We've all seen the commercials for credit card companies: Well meaning parents give a credit card to a college student for "emergencies," and either while showing up for an impromptu visit or getting a
heart-stopping bill find out the card has been "maxed out."
While shopping, at church and eating in fast-food places I have heard children and teenagers ask, plead for and beg their parents for credit cards. "I'll only use it in an emergency!" yeah. Seldom have I heard a parent ask the interesting question: "Exactly what do you consider an 'emergency?'" The answer might come as a surprise.
A few years ago I did a survey of teens in my church, then sat down with their parents with the results. These folks were getting hit with the "I need a credit card" petition. Amazingly, the top answers were not: paying for a tow when the car breaks down, an emergency gas-tank fill up, missing the last bus and needing a taxi or anything an adult would choose. The top answers turned out to be: dinner at the mall perhaps including friends, clothes, food delivery for parties and other non-emergency items.
I wondered who these teens were. I thought I knew them, having watched them grow up from birth. Did some metamorphosis take place and turn them into different people? I thought they had sense.
Speaking with them and their parents, one theme presented itself: the perception of credit cards as opposed to reality. Small wonder. Media ads everywhere give the impression anything can be had by using plastic. And had now. No mention is made of the reality that shows up in a month: the bill. No matter, the payment is miniscule, just make that.
Using one parent's credit card bill, I pointed out the credit limit- a high figure- $1,500. Some of the teens cheered. But wait-there's more. Moving down the bill, the monthly payment was only $45 a month. Teens cheered. But wait-there's more. Continuing down the bill, I pointed out the principal (the amount actually applied to the whole balance due) being paid was a paltry $9.52 on a balance of $1,257.85. No one cheered.
Credit card companies are there to make money. Period. They are NOT going to help anyone pay the card off and get out of debt. They make the majority of their money on the interest payments (the majority of that
"minimum" payment) and on late fees. They have no incentive at all to helping anyone but themselves.
I finally had the teens attention. Up until that moment, the meeting had been treated like a joke. "I'll get a job and pay it off myself," "All I have to do is make the minimum payment, right? No problem." The question was asked: What do we do?
Until the United States Congress convinces credit card companies to raise the minimum payments to at least 10 percent of the balance and add interest to that amount, those swimming in credit card debt could drown. Instead of waiting, I offered the following advice:
Before using a credit card, look at the interest rate. For example, if a card has a 20 percent interest rate, add a zero to it. Two hundred percent is what you'll pay back by making the minimum payments only. That means for a $20 pair of jeans, not only paying back the $20, but nearly an additional $40 in interest. Or before each use of the card, sitting down on paper and using the math formula I=PRT. Interest= Principal multiplied by the Rate multiplied by Time. The formula comes very close to the same amount. No one seemed willing to pay $60 for a $20 pair of jeans.
I had credit card debt until I paid off my last card 2 years ago by taking the bill and adding a payment of 10 percent of the balance to the existing "minimum payment." I saw the balance start to drop dramatically. When I could afford more, I paid more. On the glorious day of zero balance, I cut the card into little pieces and sent it in with the last payment. I patted myself on the back, bragged to friends at work and was proud of myself.
Now that I had that monthly payment still in my budget, what to do? There are all kinds of offers for "pre-paid" credit cards. I suggest reading all the print, fine and otherwise. You give them your money,
then use the card to spend only the amount you've paid in. If you don't use the card, the amount builds up. Who gets the interest on that account? Not you. The credit card issuer gets that interest, along with any other fees for "managing" the account, processing the purchases, etc. That didn't sit well with me. The whole idea of paying off credit cards is to have more money, not give it to someone else.
I solved the problem easily by going to my credit union and opening a second checking account. This account has a debit card with a credit card logo on it. It can be used as a debit card or as a credit card. I simply make the payments to that account that I was making to a credit card company. And who gets the interest on the account? ME. I manage the account, track the purchases, everything.
The parents and teens both realized this solution is not only feasible, but easy to do. A teen can build financial responsibility by getting "that job" and depositing some or all of their money in the account. A college-bound student has the "allowance" their parents deposit. They can only spend what they have, no more. Emergency account? Save money in the savings account and both parties sit down and if necessary, write down what is a true emergency. I suggested parents may want to impose a penalty for misusing the "emergency savings."
I was asked about younger children. How do they not lose their heads in a "plastic world?" With a family of children I that I used to watch, I asked the parents if I could try an experiment in money management training after a trip to the store. I would give each child an allowance. Not cash, I gave store gift cards. Since the oldest child had more responsibility she would receive a higher allowance. The money would be loaded onto their cards, and the children would be given a 3x5 card with their balance on it. We agreed to several rules that would be followed by the children and adults, and put everything in writing, in case the children needed reminders. When everything was ironed out, the children were informed. They were elated. The oldest child was given a calculator to figure sales tax on items to help others realize if they had enough money for the entire purchase. They could not borrow from each other or adults for a purchase.
They had "plastic" almost like adults, but learned quickly that the card is not a spend-all, have-all. They could only spend what they had. Their parents did not allow the children to put their cards together
to buy one toy- avoiding the "who owns it" argument later.
While lay-away was available, they were introduced to payments, responsibility, and what happens if those payments were not made. Borrowing from the parents/other adults (only with the parents permission) meant making payments with a small (3 percent interest with consequences if payments weren't made). When Wal-Mart announced lay-away no longer available, I watched as the oldest child asked if she could have a second gift card to save money on when those "gotta-have-it-now" purchases are encountered. She was 10 years old. I was never prouder. No one had mentioned having two cards or a savings account until that day.
Now, each child has two cards, one marked "savings" and one marked "main." They also now can deposit money into their parent's savings account (Mom keeps excellent records) to have money to spend somewhere else. When these children are old enough for checking accounts they will be well-tuned to financial responsibility.
The oldest child is almost in college now (I feel old), has managed a checking account and debit card for almost a year, and is researching scholarships and student loans for college. She does now to read all the print in an application and to ask lots of questions. She's learned to look before she leaps. The rest of the children are learning from her, too.
While these methods may sound simplistic, they really do work. Perhaps the store gift cards will work in some families, in others it may not. Some use "money jars" stored in the parent's closet.
There are many different methods out there. The only true way to find out what works is to give different methods and honest try, say six months.
Whatever method or plan works for you or your family, stick with it. It takes effort.
Here's some incentive: A lot of the adults returning home to live with/off of their parents are doing so because of overwhelming financial irresponsibility. Teaching them to be responsible now will help help them in their future, and parents can have that "sewing room," "den," etc. of their own. And keep it.
Wednesday, 22 December 2010
Credit Card Debt Advice
If you're looking for credit card debt advice, chances are you've accumulated higher balances on your cards than you know what to do with. If you're like many people,
you may be charging gas and groceries, because you just don't have enough money to make ends meet every month.
This is a bad situation to be in, but be assured that you're not alone. A lot of us have been there (a lot of people are still there), and there is hope. I used to be deep in debt myself, but I've managed to pay off those credit cards, and I don't carry a balance any more from month to month. I'm going to give you credit card debt advice based on my experience.
Ready? Here we go:
1. Get over the idea that you'll get anywhere paying the minimum payment.
The credit card companies specifically design things so they can stretch out your debt over years (and even decades) to keep you paying interest to them for as long as possible. Why wouldn't they? Why would they want to work when they can get tons of money for free just by letting you borrow theirs?
Many people in credit card debt think they can climb out by paying a little extra on each card every month. This is actually a bad approach. If you remember only one piece of credit card debt advice, remember the next one...
2. Pay off your highest interest credit card first.
If one card is at 9%, one is at 28%, and one is at 15%, you want to focus on the one that is at 28%. Put all your extra resources into paying off that card while you continue to pay the minimums on the other cards.
To many this seems counterproductive, but the highest rate card will grow the biggest the soonest, so it's important to get rid of that debt as soon as possible.
3. You can negotiate a better deal on many cards.
If you're feeling overwhelmed by those interest rates, call the credit card companies and request a better deal from the customer service representative. Just tell the rep you're getting better offers from other credit card companies and that you're thinking of switching. Most reps are authorized to lower rates instead of risking customers.
This advice won't just lower your interest rate so your balance doesn't increase so quickly, but it will also make your minimum payment lower each month.
4. Move your balances to cards with zero-rate introductory rates.
You may have heard this piece of credit card debt advice before, but did you act upon it?
If you can qualify for a new card with a low or zero introductory rate, don't hesitate to shift your existing balances over to that card. This can save you a lot of money in interest while you whittle away at your debt
Just be sure to read the fine print. Introductory rates are just that: rates you only pay for 6 or 9 months. The rates can hike right up to the old rates (or even higher) after that period, so you want to make sure to transfer your debt over to a new card with a new introductory rate once that happens.
Also watch out for any balance transfer fees, and make sure the low introductory rates count for the balance you transfer, not just new purchases.
5. As you pay off the highest interest cards, cancel them.
Remember the earlier advice to pay off your highest interest cards soonest? Once you have them paid off, cancel those suckers.
Replace them with debit cards, low-interest credit cards, or no-balance charge cards. It's a good idea to keep at least one credit card for emergencies, but you don't need a wallet full of them.
A good way to keep that one for emergencies is to make sure you leave it at home. Don't take it out where you can fall back into the habit of using it at the mall or anywhere you might make impulse purchases.
Hopefully this credit card debt advice has helped you. The important thing to realize with paying down your debt is that it probably will take years. That can be depressing, but never stop believing that you can do it. Stick with the plan and make it work!
you may be charging gas and groceries, because you just don't have enough money to make ends meet every month.
This is a bad situation to be in, but be assured that you're not alone. A lot of us have been there (a lot of people are still there), and there is hope. I used to be deep in debt myself, but I've managed to pay off those credit cards, and I don't carry a balance any more from month to month. I'm going to give you credit card debt advice based on my experience.
Ready? Here we go:
1. Get over the idea that you'll get anywhere paying the minimum payment.
The credit card companies specifically design things so they can stretch out your debt over years (and even decades) to keep you paying interest to them for as long as possible. Why wouldn't they? Why would they want to work when they can get tons of money for free just by letting you borrow theirs?
Many people in credit card debt think they can climb out by paying a little extra on each card every month. This is actually a bad approach. If you remember only one piece of credit card debt advice, remember the next one...
2. Pay off your highest interest credit card first.
If one card is at 9%, one is at 28%, and one is at 15%, you want to focus on the one that is at 28%. Put all your extra resources into paying off that card while you continue to pay the minimums on the other cards.
To many this seems counterproductive, but the highest rate card will grow the biggest the soonest, so it's important to get rid of that debt as soon as possible.
3. You can negotiate a better deal on many cards.
If you're feeling overwhelmed by those interest rates, call the credit card companies and request a better deal from the customer service representative. Just tell the rep you're getting better offers from other credit card companies and that you're thinking of switching. Most reps are authorized to lower rates instead of risking customers.
This advice won't just lower your interest rate so your balance doesn't increase so quickly, but it will also make your minimum payment lower each month.
4. Move your balances to cards with zero-rate introductory rates.
You may have heard this piece of credit card debt advice before, but did you act upon it?
If you can qualify for a new card with a low or zero introductory rate, don't hesitate to shift your existing balances over to that card. This can save you a lot of money in interest while you whittle away at your debt
Just be sure to read the fine print. Introductory rates are just that: rates you only pay for 6 or 9 months. The rates can hike right up to the old rates (or even higher) after that period, so you want to make sure to transfer your debt over to a new card with a new introductory rate once that happens.
Also watch out for any balance transfer fees, and make sure the low introductory rates count for the balance you transfer, not just new purchases.
5. As you pay off the highest interest cards, cancel them.
Remember the earlier advice to pay off your highest interest cards soonest? Once you have them paid off, cancel those suckers.
Replace them with debit cards, low-interest credit cards, or no-balance charge cards. It's a good idea to keep at least one credit card for emergencies, but you don't need a wallet full of them.
A good way to keep that one for emergencies is to make sure you leave it at home. Don't take it out where you can fall back into the habit of using it at the mall or anywhere you might make impulse purchases.
Hopefully this credit card debt advice has helped you. The important thing to realize with paying down your debt is that it probably will take years. That can be depressing, but never stop believing that you can do it. Stick with the plan and make it work!
Get Rid of Credit Card Debt
Credit card debt is no fun. If you are saddled by credit card debt, you are not alone. I read somewhere that the average family in America has credit card debt to the tune of $9,000.
Millions of people are in debt to credit card companies and struggle to make the minimum payments. Here are some tips that you can use to start erasing your credit card debt.
1) Pay more than the minimum payment. Always pay more than the minimum amount that you owe. If you can afford to do it, double or triple the minimum payment. This will help you get rid of credit card debt more quickly. See the credit card payment calculator at bankrate.com (http://www.bankrate.com/brm/calc/MinPayment.asp) to see how paying off more than the minimum payment will help get you out of debt faster.
2) If you have multiple credit cards, you might want to concentrate the bulk of the money you have available to paying one off at a time. The credit card you should focus on first is the one with the highest annual percentage rate. Pay this card off and then move on to the next highest one and so forth. This not only gets rid of the worst credit card debt (i.e. the one with the highest interest rate), but it gives you a sense of accomplishment and peace of mind, knowing that you have one less payment to worry about.
3) Something you might want to try to do is call your credit card company and speak to a customer service agent about getting your interest rate lowered. This would help lower the strain of your credit card debt. This is not something that is guaranteed to work, but it is worth a shot.
4) Try not to rack up your credit card bill. If you can avoid it, do not use your credit card at all, as this will just put you deeper into debt. Try to pay cash for what you need and eliminate the things that you want (even if only temporarily). The horrible thing about credit card debt is that it is so easy for your debt to increase.
5) Write down a list of expenses. It is very beneficial to know exactly where your money is going each month. Money seems to disappear before you even get your hands on it. Writing down a list of where your money
goes will get you thinking about certain areas where you can save money. You can change your money habits by taking the time to understand where it is going. When you look at your list (and you should include what you are paying in credit card debt), you will probably be motivated to do what you can to try to hold on to more of your money.
6) Transfer your debt from high interest rate cards to those with lower interest rates. It makes sense to do this if you can.
7) Pay down your credit card debt before you put money in a savings account. Your credit card interest rate is exponentially higher than what you gain from a savings account at a bank. Get rid of the credit card debt first, otherwise it will keep growing.
I know that those credit card bills look formidable, but it is possible to get out from under that oppressive burden. It will take some time and a little determination and planning, but it is possible. Good luck.
Millions of people are in debt to credit card companies and struggle to make the minimum payments. Here are some tips that you can use to start erasing your credit card debt.
1) Pay more than the minimum payment. Always pay more than the minimum amount that you owe. If you can afford to do it, double or triple the minimum payment. This will help you get rid of credit card debt more quickly. See the credit card payment calculator at bankrate.com (http://www.bankrate.com/brm/calc/MinPayment.asp) to see how paying off more than the minimum payment will help get you out of debt faster.
2) If you have multiple credit cards, you might want to concentrate the bulk of the money you have available to paying one off at a time. The credit card you should focus on first is the one with the highest annual percentage rate. Pay this card off and then move on to the next highest one and so forth. This not only gets rid of the worst credit card debt (i.e. the one with the highest interest rate), but it gives you a sense of accomplishment and peace of mind, knowing that you have one less payment to worry about.
3) Something you might want to try to do is call your credit card company and speak to a customer service agent about getting your interest rate lowered. This would help lower the strain of your credit card debt. This is not something that is guaranteed to work, but it is worth a shot.
4) Try not to rack up your credit card bill. If you can avoid it, do not use your credit card at all, as this will just put you deeper into debt. Try to pay cash for what you need and eliminate the things that you want (even if only temporarily). The horrible thing about credit card debt is that it is so easy for your debt to increase.
5) Write down a list of expenses. It is very beneficial to know exactly where your money is going each month. Money seems to disappear before you even get your hands on it. Writing down a list of where your money
goes will get you thinking about certain areas where you can save money. You can change your money habits by taking the time to understand where it is going. When you look at your list (and you should include what you are paying in credit card debt), you will probably be motivated to do what you can to try to hold on to more of your money.
6) Transfer your debt from high interest rate cards to those with lower interest rates. It makes sense to do this if you can.
7) Pay down your credit card debt before you put money in a savings account. Your credit card interest rate is exponentially higher than what you gain from a savings account at a bank. Get rid of the credit card debt first, otherwise it will keep growing.
I know that those credit card bills look formidable, but it is possible to get out from under that oppressive burden. It will take some time and a little determination and planning, but it is possible. Good luck.
Reasons to Pay Your Credit Card Bill in Full
Do you dread each month when you are looking at your credit card bill? You are like many Americans who are overwhelmed with credit card debt. However, it is vitally important to your finances to get this under control
as quickly as possible. I am going to list some reasons why it is important to pay your bill in full each month. If you are unable to pay the bill in full, you need to consider creating a strict budget and sticking to it, as well as consider obtaining a lower interest rate loan to pay your balances off, or even consider applying for a new card that allows interest free transfers for a certain period which will allow you to quickly pay the debt off.
Reason #1. Your credit rating. If you are only paying the minimum payment each month, you are setting yourself up for problems here. It is very important to keep your credit rating as high as possible so that your credit card balance does not provide a problem when you are looking to purchase a home or car. You want to make sure payments are paid off as quickly as possible.
Reason #2. Interest. Each month the balance is not paid in full, you are incurring interest charges. I liken this to going outside, making a nice little bonfire, and placing the money in your wallet in the fire one bill at a time. You are doing no better by carrying the balances on your bill. Interest rates are quite common to be around the 15%-20% range sometimes higher depending upon your credit score. This is a lot of wasted money each year that could be spent on things your family wants or needs.
Reason #3. This is similar to Reason #2. If you make a great purchase online for a wonderful item at a killer, price and you pay with your credit card you are not saving any money! If you save a couple of hundred bucks on the price of the item, but pay several hundred dollars in interest fees you are not saving any money, and are in fact paying more! Credit cards can hurt you in this respect.
Reason #4. Budgeting. If you are using your credit cards to pay your bills without paying off the balance every month then you have a budget problem somewhere. If you cannot afford to pay the balance each month then you
need some serious budget revisions. When you are having to use credit cards to merely make ends meet there are huge budget problems that can create devastating effects on your credit report. There are several consumer-financing companies that can assist you in reducing your monthly bills, as well as getting a workable budget set up so that you are able to pay your bills each month.
As you can see, credit cards can be either good or bad for your budget, finances, and credit file. You want your credit to be as spotless as possible, and dragging balances over months is never a good idea. Good luck with all your credit cards and you should be able to work out all budget issues quickly with some work.
as quickly as possible. I am going to list some reasons why it is important to pay your bill in full each month. If you are unable to pay the bill in full, you need to consider creating a strict budget and sticking to it, as well as consider obtaining a lower interest rate loan to pay your balances off, or even consider applying for a new card that allows interest free transfers for a certain period which will allow you to quickly pay the debt off.
Reason #1. Your credit rating. If you are only paying the minimum payment each month, you are setting yourself up for problems here. It is very important to keep your credit rating as high as possible so that your credit card balance does not provide a problem when you are looking to purchase a home or car. You want to make sure payments are paid off as quickly as possible.
Reason #2. Interest. Each month the balance is not paid in full, you are incurring interest charges. I liken this to going outside, making a nice little bonfire, and placing the money in your wallet in the fire one bill at a time. You are doing no better by carrying the balances on your bill. Interest rates are quite common to be around the 15%-20% range sometimes higher depending upon your credit score. This is a lot of wasted money each year that could be spent on things your family wants or needs.
Reason #3. This is similar to Reason #2. If you make a great purchase online for a wonderful item at a killer, price and you pay with your credit card you are not saving any money! If you save a couple of hundred bucks on the price of the item, but pay several hundred dollars in interest fees you are not saving any money, and are in fact paying more! Credit cards can hurt you in this respect.
Reason #4. Budgeting. If you are using your credit cards to pay your bills without paying off the balance every month then you have a budget problem somewhere. If you cannot afford to pay the balance each month then you
need some serious budget revisions. When you are having to use credit cards to merely make ends meet there are huge budget problems that can create devastating effects on your credit report. There are several consumer-financing companies that can assist you in reducing your monthly bills, as well as getting a workable budget set up so that you are able to pay your bills each month.
As you can see, credit cards can be either good or bad for your budget, finances, and credit file. You want your credit to be as spotless as possible, and dragging balances over months is never a good idea. Good luck with all your credit cards and you should be able to work out all budget issues quickly with some work.
Advantages: Automatically Pay Bills/ Donations with a Credit Card
Paying your bills with a credit has many advantages, compared to paying each bill individually, which can cost more money, and provides no rewards. Many utility services provide consumers the option, having their
monthly bills, directly charged each month to a credit card, includes electricity, water, and telephone companies or referred as Automatic Bill Payment. Also, many cable and satellite services, newspapers, and insurance company premiums (car and home insurance), offer the option for payment by credit card through an automatic service or providing the credit card number each billing cycle, by phone, internet or enclosed in the mail. When applying for Automatic Bill Payment, you should continue to pay your bills directly, until you are notified the service has been established. Certainly, companies that accept credit payments are happy, knowing that the credit card company is reliable to send them payment each month, rather than waiting until a customer pays a bill or pays the bill late. Contrarily, automatically having bills charged to a credit card, eliminates possibility forgetting to pay a utility bill or some other monthly charge, since the credit card company, pays that bill each month or like having your own accountant, except your only responsible for paying the credit card bill. These companies that have Automatic Bill Payment policy, do not have to consider any legal action, against customers that don't pay their bills, since nonpayment is the concern of the credit card company. However, at some point in time, the credit card company will notify the customer's utility service or other business entity, discontinue service and stop charging the credit card, for noncompliance of payment. However, credit card companies provide line of credit, not offered by utility or other type of monthly services. This can be utilized cautiously for a duration of time, when paying a minimum monthly amount to a credit card company, and preferably sooner than later, pay the entire balance.
A credit card user may add an additional amount to a credit card payment, which is credited for a future payment. This can be helpful, when going away on vacation or long trips, and next month(s) bills have sufficient
reserve funds to be paid, by the credit card company. Since, utility or other basic services are billed each month. Also, a good method to have sufficient reserved money held in a credit card account, if you are tempted to spend that money, before the next credit card bill arrives. However, any money credited, does not earn any interest. This approach can be helpful, if you have a college student that has credit card, and uses it responsible. Advance payment to a credit card, ensures the student's bill will be paid following month or longer, if you can calculate approximately next month's charges. Also, if you are away from home for a long period of time or have a busy schedule, which may cause you to forget to pay a future credit card payment.
Consumers that use a credit card to pay monthly, quarterly or annual bill charges increase the number of advantage reward points or earn rewards faster during the year. Also, paying with a credit card instead of cash increases reward points or benefits. Limit the number of credit cards utilized two - four cards - this will quickly increase rewards points, than having many credit cards paying bills. Certainly, advantageous signing-up with a credit company that offers some type of rewards points, "cash back" program, frequent flyer mileage, and/or rebate program, whenever a charge is applied, and paying no annual fee. Sometimes, paying an annual fee for a credit card, will entitle the credit card user availability of more services, and better selection of gifts for the exchange of reward points. Credit card companies that offer "cash back' rewards, make it possible for consumers to receive money back, from a credit card company, and in some situations, the amount can be significant. For example: A credit card company may offer the user, one percent "cash back," for each dollar charged on a credit card. If the monthly expenditures on the credit card total $2,000, than the credit card user would receive $20 "cash back." If that amount averages $2000, each month or more, by the end of the year, the total "cash back" would be at least $240. Other reward programs, such as American Express, offer advantage reward points for each dollar charged on a credit, after payment is received, and often will include additional free bonus points for certain charges. Sometimes, during the year, credit card companies including American Express, will offer double point rewards, for certain type of charges, including purchasing groceries, gasoline and insurance payment. By the end of the year, reward points could add up significantly, especially for large purchases or travel charges. Also, before the Holiday Season, reward points can be exchange for various gifts, and saving money, rather than to pay for these gifts. Besides, exchanging reward points for gifts will save money, on sales tax, usually no delivery charge, and whenever getting a gift for yourself. Also, paying each bill individually, adds to the cost of postage, and sometimes the cost of an envelope, which can be reduced to one stamp per credit card service, and a return envelope is provided. Reward points earned by a credit card does not expire, compare to frequent flyer mileage points, and other reward service providers, often have an expiring date.
Making charitable donations with a credit card has many advantages, than just claiming a deduction on your income tax return. When the charge is applied to your credit card, payment is not required immediately, until the credit card bill arrives in the mail. Some people will charge a credit card for a charitable donation, and will be expecting to receive amount of money, in the near future (within a few days), that will pay all or part of the credit card charge. Also, any amount charged on a credit card, user will receive after payment, reward points, "cash back" amount or benefits, offered by the credit card company. Most charitable organizations, accept credit card donations, since payment is send to them, from the credit card company, after verification, and processing the transaction. Many charitable organizations offer the option to debit a user credit card, for a specific amount each month. Certainly, this process is convenient, and accounting each month for a deduction.
When a monthly bills, arrive in the mail, which have been automatically charged to a credit card, those amounts should be written down, and then later, compared to the amounts charged on the corresponding credit card. This will ensure the accuracy and inconsistencies can be rectified, by contacting the credit card company, and/or charged service company or business, as soon as possible. Credit card companies usually have twenty-four telephone service, most problems can be resolved anytime, day or night. Also, many offer a website address, where customers can send E-mails to have questions answered. Sometimes for various reasons, necessary to notify the service or business that automatically charges your credit card, by providing new credit card number (and/or a new credit card service). Often, getting a new credit card number is necessary, when a credit card is fraudulently used, stolen or misplaced.
Many credit card companies provide annual statements, relating to previous year transactions. This information is useful, locating tax deductions, when preparing an income tax return.Some credit card companies, may offer this service for an additional charge or upgrade of a credit card service, while other credit card companies, don't provide this service. American Express and maybe other credit card companies will subdivide the year's paid expenses into various categories (including restaurants, entertainment, travel, etc.), which is helpful finding acceptable tax deductions including donations.
Certainly, when a credit card bill is not paid on time, additional charges will be added, and the credit rating of the user will be affected negatively. The convince of paying monthly bills by a credit card, prior there should be sufficient money collected, earned each month or during the year, which is put aside, for each monthly bill that is prepaid. Certainly, tempting to spend the money in the bank account for other expenses, instead of using the funds to pay the monthly credit card bill, should be avoided. When financially manageable, having the ability to spend the money set a side for a credit card bill, if the amount is replaced, in short amount of time or within days, before the credit card bill arrives in the mail. Actually, when money is set aside for credit card bills, that money will earn more interest in a financial institution or bank account. This happens often, considering the credit card bill does not have to be paid immediately, for at least a few days or a week later, until the amount is due. Also, after a bill arrives in the mail, which has been prepaid, usually at least a few days or more, the credit card bill will then arrive. Once the credit card bill company receives payment by mail and the check clears the customer bank account, and approximately 30 days have elapsed, since first receiving a prepaid bill(s).
Credit card service companies provide access to cash (a line of credit) or ability to write checks, but the interest and fees are very high, since the amount being borrowed, has not been back - up by a collateral asset or considered unsecured debt. This type borrowing should be considered only for emergencies or extremely short duration of time. Certainly, beneficial borrowing money from a bank or lending institution, since the interest is lower (assuming there is collateral or equity to secure the loan), and the interest is tax deductible, for certain types of loans, including home equity loans.
monthly bills, directly charged each month to a credit card, includes electricity, water, and telephone companies or referred as Automatic Bill Payment. Also, many cable and satellite services, newspapers, and insurance company premiums (car and home insurance), offer the option for payment by credit card through an automatic service or providing the credit card number each billing cycle, by phone, internet or enclosed in the mail. When applying for Automatic Bill Payment, you should continue to pay your bills directly, until you are notified the service has been established. Certainly, companies that accept credit payments are happy, knowing that the credit card company is reliable to send them payment each month, rather than waiting until a customer pays a bill or pays the bill late. Contrarily, automatically having bills charged to a credit card, eliminates possibility forgetting to pay a utility bill or some other monthly charge, since the credit card company, pays that bill each month or like having your own accountant, except your only responsible for paying the credit card bill. These companies that have Automatic Bill Payment policy, do not have to consider any legal action, against customers that don't pay their bills, since nonpayment is the concern of the credit card company. However, at some point in time, the credit card company will notify the customer's utility service or other business entity, discontinue service and stop charging the credit card, for noncompliance of payment. However, credit card companies provide line of credit, not offered by utility or other type of monthly services. This can be utilized cautiously for a duration of time, when paying a minimum monthly amount to a credit card company, and preferably sooner than later, pay the entire balance.
A credit card user may add an additional amount to a credit card payment, which is credited for a future payment. This can be helpful, when going away on vacation or long trips, and next month(s) bills have sufficient
reserve funds to be paid, by the credit card company. Since, utility or other basic services are billed each month. Also, a good method to have sufficient reserved money held in a credit card account, if you are tempted to spend that money, before the next credit card bill arrives. However, any money credited, does not earn any interest. This approach can be helpful, if you have a college student that has credit card, and uses it responsible. Advance payment to a credit card, ensures the student's bill will be paid following month or longer, if you can calculate approximately next month's charges. Also, if you are away from home for a long period of time or have a busy schedule, which may cause you to forget to pay a future credit card payment.
Consumers that use a credit card to pay monthly, quarterly or annual bill charges increase the number of advantage reward points or earn rewards faster during the year. Also, paying with a credit card instead of cash increases reward points or benefits. Limit the number of credit cards utilized two - four cards - this will quickly increase rewards points, than having many credit cards paying bills. Certainly, advantageous signing-up with a credit company that offers some type of rewards points, "cash back" program, frequent flyer mileage, and/or rebate program, whenever a charge is applied, and paying no annual fee. Sometimes, paying an annual fee for a credit card, will entitle the credit card user availability of more services, and better selection of gifts for the exchange of reward points. Credit card companies that offer "cash back' rewards, make it possible for consumers to receive money back, from a credit card company, and in some situations, the amount can be significant. For example: A credit card company may offer the user, one percent "cash back," for each dollar charged on a credit card. If the monthly expenditures on the credit card total $2,000, than the credit card user would receive $20 "cash back." If that amount averages $2000, each month or more, by the end of the year, the total "cash back" would be at least $240. Other reward programs, such as American Express, offer advantage reward points for each dollar charged on a credit, after payment is received, and often will include additional free bonus points for certain charges. Sometimes, during the year, credit card companies including American Express, will offer double point rewards, for certain type of charges, including purchasing groceries, gasoline and insurance payment. By the end of the year, reward points could add up significantly, especially for large purchases or travel charges. Also, before the Holiday Season, reward points can be exchange for various gifts, and saving money, rather than to pay for these gifts. Besides, exchanging reward points for gifts will save money, on sales tax, usually no delivery charge, and whenever getting a gift for yourself. Also, paying each bill individually, adds to the cost of postage, and sometimes the cost of an envelope, which can be reduced to one stamp per credit card service, and a return envelope is provided. Reward points earned by a credit card does not expire, compare to frequent flyer mileage points, and other reward service providers, often have an expiring date.
Making charitable donations with a credit card has many advantages, than just claiming a deduction on your income tax return. When the charge is applied to your credit card, payment is not required immediately, until the credit card bill arrives in the mail. Some people will charge a credit card for a charitable donation, and will be expecting to receive amount of money, in the near future (within a few days), that will pay all or part of the credit card charge. Also, any amount charged on a credit card, user will receive after payment, reward points, "cash back" amount or benefits, offered by the credit card company. Most charitable organizations, accept credit card donations, since payment is send to them, from the credit card company, after verification, and processing the transaction. Many charitable organizations offer the option to debit a user credit card, for a specific amount each month. Certainly, this process is convenient, and accounting each month for a deduction.
When a monthly bills, arrive in the mail, which have been automatically charged to a credit card, those amounts should be written down, and then later, compared to the amounts charged on the corresponding credit card. This will ensure the accuracy and inconsistencies can be rectified, by contacting the credit card company, and/or charged service company or business, as soon as possible. Credit card companies usually have twenty-four telephone service, most problems can be resolved anytime, day or night. Also, many offer a website address, where customers can send E-mails to have questions answered. Sometimes for various reasons, necessary to notify the service or business that automatically charges your credit card, by providing new credit card number (and/or a new credit card service). Often, getting a new credit card number is necessary, when a credit card is fraudulently used, stolen or misplaced.
Many credit card companies provide annual statements, relating to previous year transactions. This information is useful, locating tax deductions, when preparing an income tax return.Some credit card companies, may offer this service for an additional charge or upgrade of a credit card service, while other credit card companies, don't provide this service. American Express and maybe other credit card companies will subdivide the year's paid expenses into various categories (including restaurants, entertainment, travel, etc.), which is helpful finding acceptable tax deductions including donations.
Certainly, when a credit card bill is not paid on time, additional charges will be added, and the credit rating of the user will be affected negatively. The convince of paying monthly bills by a credit card, prior there should be sufficient money collected, earned each month or during the year, which is put aside, for each monthly bill that is prepaid. Certainly, tempting to spend the money in the bank account for other expenses, instead of using the funds to pay the monthly credit card bill, should be avoided. When financially manageable, having the ability to spend the money set a side for a credit card bill, if the amount is replaced, in short amount of time or within days, before the credit card bill arrives in the mail. Actually, when money is set aside for credit card bills, that money will earn more interest in a financial institution or bank account. This happens often, considering the credit card bill does not have to be paid immediately, for at least a few days or a week later, until the amount is due. Also, after a bill arrives in the mail, which has been prepaid, usually at least a few days or more, the credit card bill will then arrive. Once the credit card bill company receives payment by mail and the check clears the customer bank account, and approximately 30 days have elapsed, since first receiving a prepaid bill(s).
Credit card service companies provide access to cash (a line of credit) or ability to write checks, but the interest and fees are very high, since the amount being borrowed, has not been back - up by a collateral asset or considered unsecured debt. This type borrowing should be considered only for emergencies or extremely short duration of time. Certainly, beneficial borrowing money from a bank or lending institution, since the interest is lower (assuming there is collateral or equity to secure the loan), and the interest is tax deductible, for certain types of loans, including home equity loans.
Tips for Staying Healthy in a Bad Economy
I am sure you have had to hear some elder in your own family tell you, "Eat your vegetables, they will make you grow up strong and healthy!" As luck would have it, they were right. A true key to staying
healthy, is a proper diet, exercise, and cleanliness. Before the white man came to America, the Possum was the closest thing to "Junk Food" the Indians had, to compare to. With things like Chocolate, sugar, and tobacco, (to list a few,) being introduced into the western world, came rotten teeth, obesity, and lung cancer.
Now, it's not the products, so much, as it is the person's fault, who is using them. Addiction, abuse, and good old gluttony, is the true beast here in the western world. Knowing what it is your putting into your body, is as important to your health, as how much your putting into your body. Some things we eat can do more damage if abused, than other things do, such as, salt or sugar. I do not know any one who would drink one cup of salt in one day, but we do not find any trouble drinking one full cup of sugar in our tea, in just one day. Sad fact is, both are harmful, if used to much.
As the economy gets worse, people began to look for ways to cut back on spending, doing so, our health usually takes a back seat, to our power bill. The average middle class family goes out to eat once or twice a week, 90% of the food they eat will be fried, contain large amounts of: salt, sugar, fat, artificial colors, sodium citrate, lactic acid, sorbic acid, modified food starch, xanthan gum, calcium disodium edta, sodium benzoate, along with a huge list of other chemicals not found in a vine ripened Tomato, fresh picked apple, or even in a glass of water. (Not many of you reading this, can boast that you drink 3 glasses of water a day, now can you?)
So from this one writers opinion, and from the 40+ years of practices, I would suggest to you the reader, web surfer, and fellow American, family and friends, in this troubled economy staying healthy is to your best
benefit, doing so means eating right, and cutting back on the other things you may consider more important. Use less electric, gas, and "Night out on the town" in a month instead, then you can save more money, you know, for your grocery bill!
Investing in your health, instead of the hot rod in the garage, will save you thousands, upon thousands in medical bills. In turn, having better health, leads to a longer happier life. Any public library will have a book on "The Proper Diet" for all ethnics and ages. As I am sure, the Sergeant general would agree, eating healthy, and keeping clean, has been known to lead to sever longevity and happier life, in laboratory studies.
For the most part, store have category like any good book. On isle 12, is bread, flower, sugar, or what not, and on isle 8 you'll find coffee, tea, and spices. The true differences are not the product, but rather the prices. One store may impose a 300% markup, while another only imposes 125%, where as, the one who supplies the store is charging a lot less, for the same thing, but without the chemicals to preserve it.
As I see it, If the stores charged a 5% to 7% markup (instead of the 150% to 300%,) they would not be able to keep the shelves loaded fast enough, (resulting in no need for preservative in the first place,) but that is just my own opinion.
Farming and ranching should never exceed it's available size. Doing so causes product to expire before it can be delivered to it's destination. The proper thing would be to make another (farm, or ranch) closer to the intended destination, eliminating the need to extend the shelf life of editable foods.
So shop your local markets who buy from there local markets, check the sales list, fliers, and paper, for bargain deals, coupons, and special days, for lower prices on the things you need. Try your local "Farmers Market" for your produce, look in your area for a meat production facility, like for example; "Copeland's Central Packing Company" (USDA Inspected!) on Sheppard access, in Wichita Falls, Texas. (close to my home,) where your hamburger meat wont get a "Dye" (FD&C red #11, 7, and 19.) or saturated in salt water, such as is done to chicken. To me, the beauty of a steak, is when it's taken off the grill, and not before it's put there, that truly matters the most.
Shopping SMART, is better for the "Human Body" and provides better health, which prevents medical cost, reducing insurance cost, and saves money in your wallet over the greater picture of time. It should be
logical to assume that "eating" the same as you "shop" would have the same (or better,) end results. One very smart thing you can form into a habit, is get your local "Sunday's Paper" from a news stand, and browse the prices in the store's advertisements. It will save you loads of time, and gallons of gas in the years to come. (Also gets your eye's off this screen at least once a week.)
Even if you do not cut, clip, coupons, (Which really does help save you a lot of money!) the price is posted, and there are usually more than one store's flyer's, coupons, and sales ads in them with there price on it. Walmart, Walgreen's, and Target, all three pay for Sunday's Advertisement in the same newspaper. (Example; Dallas Times, San Fransisco Times, etc.) all three have an AD for the same exact bottle of Bufferin Aspirin. All three advertise a slightly different price. Going by the lowest price, offered at the closest store, with the most items your looking for, is where you want to go.
There are many things you can do to save money in a hard economic environment, from using less, to saving more. Price checking, coupon clipping, and picky choosing, just to scratch the surface. Everyone has the ability to learn, and can do what they put there mind to doing, the human race is the only species on this planet that creates what they can imagine in there thoughts. No one is limited to anything less than there own imagination. So on this next "Shopping Day" try some of these Idea's, get out and meet some new people, think of other Idea's to try, ask around, do some serious communications with your local community, and read your local paper! (There ONLINE as well!)
healthy, is a proper diet, exercise, and cleanliness. Before the white man came to America, the Possum was the closest thing to "Junk Food" the Indians had, to compare to. With things like Chocolate, sugar, and tobacco, (to list a few,) being introduced into the western world, came rotten teeth, obesity, and lung cancer.
Now, it's not the products, so much, as it is the person's fault, who is using them. Addiction, abuse, and good old gluttony, is the true beast here in the western world. Knowing what it is your putting into your body, is as important to your health, as how much your putting into your body. Some things we eat can do more damage if abused, than other things do, such as, salt or sugar. I do not know any one who would drink one cup of salt in one day, but we do not find any trouble drinking one full cup of sugar in our tea, in just one day. Sad fact is, both are harmful, if used to much.
As the economy gets worse, people began to look for ways to cut back on spending, doing so, our health usually takes a back seat, to our power bill. The average middle class family goes out to eat once or twice a week, 90% of the food they eat will be fried, contain large amounts of: salt, sugar, fat, artificial colors, sodium citrate, lactic acid, sorbic acid, modified food starch, xanthan gum, calcium disodium edta, sodium benzoate, along with a huge list of other chemicals not found in a vine ripened Tomato, fresh picked apple, or even in a glass of water. (Not many of you reading this, can boast that you drink 3 glasses of water a day, now can you?)
So from this one writers opinion, and from the 40+ years of practices, I would suggest to you the reader, web surfer, and fellow American, family and friends, in this troubled economy staying healthy is to your best
benefit, doing so means eating right, and cutting back on the other things you may consider more important. Use less electric, gas, and "Night out on the town" in a month instead, then you can save more money, you know, for your grocery bill!
Investing in your health, instead of the hot rod in the garage, will save you thousands, upon thousands in medical bills. In turn, having better health, leads to a longer happier life. Any public library will have a book on "The Proper Diet" for all ethnics and ages. As I am sure, the Sergeant general would agree, eating healthy, and keeping clean, has been known to lead to sever longevity and happier life, in laboratory studies.
For the most part, store have category like any good book. On isle 12, is bread, flower, sugar, or what not, and on isle 8 you'll find coffee, tea, and spices. The true differences are not the product, but rather the prices. One store may impose a 300% markup, while another only imposes 125%, where as, the one who supplies the store is charging a lot less, for the same thing, but without the chemicals to preserve it.
As I see it, If the stores charged a 5% to 7% markup (instead of the 150% to 300%,) they would not be able to keep the shelves loaded fast enough, (resulting in no need for preservative in the first place,) but that is just my own opinion.
Farming and ranching should never exceed it's available size. Doing so causes product to expire before it can be delivered to it's destination. The proper thing would be to make another (farm, or ranch) closer to the intended destination, eliminating the need to extend the shelf life of editable foods.
So shop your local markets who buy from there local markets, check the sales list, fliers, and paper, for bargain deals, coupons, and special days, for lower prices on the things you need. Try your local "Farmers Market" for your produce, look in your area for a meat production facility, like for example; "Copeland's Central Packing Company" (USDA Inspected!) on Sheppard access, in Wichita Falls, Texas. (close to my home,) where your hamburger meat wont get a "Dye" (FD&C red #11, 7, and 19.) or saturated in salt water, such as is done to chicken. To me, the beauty of a steak, is when it's taken off the grill, and not before it's put there, that truly matters the most.
Shopping SMART, is better for the "Human Body" and provides better health, which prevents medical cost, reducing insurance cost, and saves money in your wallet over the greater picture of time. It should be
logical to assume that "eating" the same as you "shop" would have the same (or better,) end results. One very smart thing you can form into a habit, is get your local "Sunday's Paper" from a news stand, and browse the prices in the store's advertisements. It will save you loads of time, and gallons of gas in the years to come. (Also gets your eye's off this screen at least once a week.)
Even if you do not cut, clip, coupons, (Which really does help save you a lot of money!) the price is posted, and there are usually more than one store's flyer's, coupons, and sales ads in them with there price on it. Walmart, Walgreen's, and Target, all three pay for Sunday's Advertisement in the same newspaper. (Example; Dallas Times, San Fransisco Times, etc.) all three have an AD for the same exact bottle of Bufferin Aspirin. All three advertise a slightly different price. Going by the lowest price, offered at the closest store, with the most items your looking for, is where you want to go.
There are many things you can do to save money in a hard economic environment, from using less, to saving more. Price checking, coupon clipping, and picky choosing, just to scratch the surface. Everyone has the ability to learn, and can do what they put there mind to doing, the human race is the only species on this planet that creates what they can imagine in there thoughts. No one is limited to anything less than there own imagination. So on this next "Shopping Day" try some of these Idea's, get out and meet some new people, think of other Idea's to try, ask around, do some serious communications with your local community, and read your local paper! (There ONLINE as well!)
6 Tips for Spending Less and Saving More
One of the biggest problems when it comes to financial success is holding on to the money you have. They don't know how to manage their spending habits. With the right habits you will go along way towards paying the
bills and being able to afford the things you want as well. At first it will seem difficult to limit your spending habits but overtime you'll be able to break bad habits and develop new ones.
Credit Cards
Credit cards can be very useful at times but are also often the cause of overspending. It's best to try and avoid using them and pay cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If you must use a credit card be prepared to pay the balance off monthly. This will save a lot of money because you'll be avoiding interest charges. Transfer and already existing card balance to a card with a lower interest rate, and try to find a card that doesn't charge an annual fee.
Phones
Some people will spend hundreds of dollars a month on phone charges alone. Limit your phone use to off peak hours. Check with your provider and find out when you have cheaper or unlimited calls.
Coupons
Check the sales page in you Sunday paper. Don't throw away coupons. Saving a few cents here and there may not seem like much, but once again you'd be surprised how much this can add up to be overtime. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars every time you go to the grocery store.
Pay Yourself First
When configuring your budget, plan for your savings first. You will grow wealthier every month if you set aside money for yourself first. Decide on a set amount that you will pay yourself. It doesn't have to be much. 5 to 10 percent of every paycheck will do. Then, deposit the amount into a savings account before paying any bills.
Do this at the beginning of the month. If you wait until the end of the month, you'll probably end up over spending and you won't have any left to save. Paying yourself first will give you an organized way to make your money grow.
Penny Pincher
If you really want to save be as cheap as possible. Don't feel embarrassed to pick up pennies off the street. Put all the spare change you accumulate in a can or jar. After a period of time count it and roll it up.
You may find that you have an extra 30 or 40 bucks just in spare change.
Get all you can out of any product you purchase. Turn bottles upside down and drain them to get every last bit out of it.
Don't buy name brand items just because you think they're better. For the most part they're really no different and you can save a fortune.
Try and use everyday household items as replacements. Try using ammonia instead of fancy floor cleaners. If your furniture needs some polishing, a mix of white vinegar and vegetable oil makes a great polish replacement. For a freezer bag, use empty chip bags and close with masking tape or any bowl with a lid, such as a margarine tub will due in a pinch.
Often overlooked
With many things in life it takes time to see significant results and most people just don't have the patience for it. If you learn to become patient you'll see the results and you'll be much happier in the long run.
When creating a budget don't think you can set it once and forget about it. Things change and some times it needs to be adjusted. A budget is created using a set of expenses and income figures that are subject to change. As the figures change, so should the budget
While everyone remembers the holidays they forget to plan for them. Set-aside some money for presents, food, parties, etc. These items should be factored in when making a budget and saved for throughout the year.
Finally when planning a vacation people remember to factor in the cost for travel and accommodations but they underestimate money needed for food, entertainment, and spending money. Keep in mind that all the resorts and tourists areas are double or triple what you would normally pay.
bills and being able to afford the things you want as well. At first it will seem difficult to limit your spending habits but overtime you'll be able to break bad habits and develop new ones.
Credit Cards
Credit cards can be very useful at times but are also often the cause of overspending. It's best to try and avoid using them and pay cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If you must use a credit card be prepared to pay the balance off monthly. This will save a lot of money because you'll be avoiding interest charges. Transfer and already existing card balance to a card with a lower interest rate, and try to find a card that doesn't charge an annual fee.
Phones
Some people will spend hundreds of dollars a month on phone charges alone. Limit your phone use to off peak hours. Check with your provider and find out when you have cheaper or unlimited calls.
Coupons
Check the sales page in you Sunday paper. Don't throw away coupons. Saving a few cents here and there may not seem like much, but once again you'd be surprised how much this can add up to be overtime. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars every time you go to the grocery store.
Pay Yourself First
When configuring your budget, plan for your savings first. You will grow wealthier every month if you set aside money for yourself first. Decide on a set amount that you will pay yourself. It doesn't have to be much. 5 to 10 percent of every paycheck will do. Then, deposit the amount into a savings account before paying any bills.
Do this at the beginning of the month. If you wait until the end of the month, you'll probably end up over spending and you won't have any left to save. Paying yourself first will give you an organized way to make your money grow.
Penny Pincher
If you really want to save be as cheap as possible. Don't feel embarrassed to pick up pennies off the street. Put all the spare change you accumulate in a can or jar. After a period of time count it and roll it up.
You may find that you have an extra 30 or 40 bucks just in spare change.
Get all you can out of any product you purchase. Turn bottles upside down and drain them to get every last bit out of it.
Don't buy name brand items just because you think they're better. For the most part they're really no different and you can save a fortune.
Try and use everyday household items as replacements. Try using ammonia instead of fancy floor cleaners. If your furniture needs some polishing, a mix of white vinegar and vegetable oil makes a great polish replacement. For a freezer bag, use empty chip bags and close with masking tape or any bowl with a lid, such as a margarine tub will due in a pinch.
Often overlooked
With many things in life it takes time to see significant results and most people just don't have the patience for it. If you learn to become patient you'll see the results and you'll be much happier in the long run.
When creating a budget don't think you can set it once and forget about it. Things change and some times it needs to be adjusted. A budget is created using a set of expenses and income figures that are subject to change. As the figures change, so should the budget
While everyone remembers the holidays they forget to plan for them. Set-aside some money for presents, food, parties, etc. These items should be factored in when making a budget and saved for throughout the year.
Finally when planning a vacation people remember to factor in the cost for travel and accommodations but they underestimate money needed for food, entertainment, and spending money. Keep in mind that all the resorts and tourists areas are double or triple what you would normally pay.
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