The Real Costs Of Credit Cards
March 26, 2010 by Sally Depp
Filed under Credit Repair
When it comes to credit cards, there are a variety of expenses that aren’t considered by consumers. These expenses might not be considered by consumers, but it is important to keep in mind that many of these costs could be quite expensive. Therefore it is important to make sure that you simply use the card wisely to prevent these common fees which are charged to users that often take advantage of credit.
Over The Limit Fees
Over the Limit Fees are those which are charged to the credit card when the customer finds that they’re over their credit limit. These costs can be as much as thirty five dollars per occurrence. This can accumulate, as the fees are frequently charged every month that the consumer is over their credit limit. Ensure that you make payments to reduce your debt and make sure that you are well-under the limit.
Late and Missed Payment Fees
Staying away from late and missed payment costs can not only save you money when it comes to the costs that are associated with the card, but it can also help you save money when it comes time to shop around for a new card.
Annual Costs for Membership Based Cards
With hundreds of choices that are available when it comes to choosing a credit card, it is important to realize that you have choices. You can find numerous cards which are obtainable that have just as many advantages as paid membership cards that can save you upwards of one hundred dollars every single year, as this is the average cost of paid membership cards.
Currency Exchange Costs
Whilst shopping on the internet, or utilizing your card in a foreign country, you will need to keep in mind that the exchange fees for the credit card are built into the price. As well as the exchange fees being built into the price of the items which are getting bought, you can often find charges that are found on the credit card from the card company because the transaction is taking place outside of the regular currency of the account.
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Trading In An Old Car Can Cost You
March 20, 2010 by Gary Antosh
Filed under Car Finance
Your car is probably one of the biggest money drains people waste their hard earned sweat on. Suppose there is a new car you want and an old one you want to get rid of. The dealer offers you the new one for $22,500 less $6000 for your old one in trade. You figure you can’t do much better, but you may be wrong.
In the first place, it’s very little trouble to put a three line ad in your local paper offering your old car for $8500. You might sell it for that yourself. In the second place you might get that new car for $20,000 cash if you try. If you trade you will lay out $16,500 and have anew car. If you sell and buy you will lay out only $14,000 and have the same new car.
How did you make that $2500 extra? By going to a little trouble. The dealer, you see, has to make an investment in that old jalopy of yours and take a chance on selling it. If you do it yourself he doesn’t mind. You might very well scare up more cash for it and he doesn’t mind getting cash instead of the trade-in. Try it. Cash is powerful!
The same thing applies to other items, particularly small boats, The dealer will take your old one in a trade, but if you sell it yourself at the beginning of the season you might very well get more for it. Just remember that when you accept the dealer’s offer of a trade-in, he is only using that as a sales device. He rarely makes money on the used item.
He has to make an investment in it; to store and repair it; then to sell it in a separate transaction requiring more bookkeeping. He has to consider all that in the deal he makes you. Remember this also: no experienced dealer will ever pay you more than something is worth. A less knowledgeable buyer just might.
Incidentally, if you do trade in your old car for a new one be sure that the contract states exactly what the trade-in price is AND THAT IT WILL REMAIN THE SAME between the time of making the deal and the delivery of the new car.
What’s more, don’t turn your old car over to the dealer, not even the registration, until you have the new car in hand and it belongs to you.
To keep you better informed there is much more on the topic of check your credit score Visit www.everlife.com for more on the world of finance and your money.
Exploring The Possibilities Of Car Leasing
March 3, 2010 by Gary Antosh
Filed under Car Finance
More individuals as well as small business operators and professionals are exploring the possibilities of car leasing on a yearly basis as opposed to owning a car. Recent depressions in the car business have encouraged more dealers to experiment in the field, and in many areas advantageous prices have already been offered to individuals. There are angles that are often overlooked.
In the first place, if you use a car only occasionally, whether for business or personal reasons, it would probably be cheapest for you to rent it on a daily or weekly basis when you need it. However, in our go-go world that is not happening. Short-term rental fees can be very attractive indeed when you consider all the investment you do not have to make buying, keeping, maintaining, and insuring the car when you’re not using it.
When weighing a yearly lease, however, an opposite view must be taken. The more you use a oar, the more mileage you put on it each year, the better the leasing deal could be for you. That’s because there are certain fixed charges which you pay as a base while you add so much a mile.
You can figure that the average small-medium car, run about 15,000 miles a year, will cost you about $1,000 a year to keep up, plus gas and oil, unless it’s a lemon. If it is a lemon the advantage is all on the side of leasing. If you lease a lemon you can have the superb satisfaction of taking it back and getting another car without question. As a matter of fact the good lessor is anxious to keep your car in top condition for you.
If you drive a car with some faults in it you’re likely to break down and need expensive repairs. So dealers see to it that you’re always in the best running order. Which is a second advantage of leasing over owning-no shady repair bills from doubtful mechanics for doubtful repairs. If the car doesn’t run perfectly you just take it back and get it fixed on the house. Sometimes easier said than done.
The trouble with all this is that if you go right out and try to lease one car for one year you may find that the price in your area is too high, that is it is higher per month than the total of payments on a car you buy, plus maintenance, plus insurance. Here are two points, though, that you must not overlook:
1) The carrying charges on your car installments. Make sure you really know how much they come to.
2) If you normally buy for all cash, consider the USE of the money.
If you operate a business you might want to use that couple of thousand dollars used for down payment some other way instead of tying it up in a car. If you run your personal life like a business (and you should), by investing your spare money so that it earns the most possible, you must make a similar calculation.
For more information on the topic of credit card debt assistance Visit www.everlife.com for more on the world of finance and your money.
How Living Within Your Means Can Make Life More Enjoyable
March 1, 2010 by Adriana Noton
Filed under Credit Repair
With the recent downturn in the economy, many people are realizing that they cannot afford to sustain the lifestyle that they have grown accustomed to living. Fortunately, this does not mean life cannot be enjoyable. There are a number of easy ways to live within your means without hurting your quality of life. With a little planning and knowledge you can live on budget without feeling the financial strain.
The following are a number of ways to live within your means while making life more enjoyable:
1. In order to live within your means, you have to be able to bring in more money than you are spending. Create a monthly budget that includes how much you spend on essential items such as home and vehicle insurance, utilities, food, cable, phone, mortgage payments, gas, etc. Then, calculate how much you earn monthly. Subtract your monthly income from necessary expenses to determine how much extra money you have to work with.
2. List extra expenses such as entertainment, recreation, and products you shop for in the home and on yourself such as clothing, personal care products, etc. Calculate how much you spend monthly on these items. You will then need to come up with ways to control your spending habits. This can include cutting down on the number of times you dine out each month, shopping for discounts at large department stores, second hand stores, surplus stores, etc. When shopping, look for deals, coupons, and sales. Never pay full price for an item. As well, you can often find great deals when shopping online.
3. Credit card debt is a major source of financial hardship. If you have several credit cards with high outstanding debt, you should at least pay the monthly minimum for each card, and then start to pay off the card with the highest interest rate. Owning fewer credit cards will make it easier to manage and remember. Always pay your bills on time to avoid having to pay any interest at all. To help wean yourself off of credit cards, start carrying cash with you at all times and pay using cash. Seeing the physical money literally change hands will help you consider needs vs. wants on a more regular basis.
4. If you are having trouble keeping up with debt payments, then maybe you should consider consolidating your debt in order to manage it better. Instead of making multiple monthly payments to several creditors, you can consolidate your debt and only need to make a single monthly payment. In addition to helping you get organized, this can also alleviate stress that is often associated with debt.
5. Clean up your credit score. Request a copy of your credit report from one of the following two major credit bureaus: Equifax, or TransUnion. Check it over for any inaccuracies. Look to see what debt is affecting your credit rating and work with a creditor to establish a repayment plan. Don’t ignore your creditors as they will send your debt to a collection agency.
At first, implementing a plan to live within your means can seem very unpleasant. You may miss a few of the luxuries you had grown accustomed to. However, once you get used to the plan, you will find life more enjoyable as you will not longer have the worry of how you are going to pay all of your bills. You may even realize that you are much happier living on a budget.
When searching online for debt counseling or credit counseling, one of the many resources available is Consolidated Credit; offering a variety of debt counseling services and financial planning tools to help Canadians get their debts under control.
Beating Credit Card Debt Collectors at Their Own Game
November 23, 2009 by Matthew Highlander
Filed under Debt Collection
Most people would simply rather pay their credit card debts than deal with collection phone calls and collection attorney letters. But, what about those who cannot afford to make monthly minimum payments on their credit card debt? Many fall prey to the debt collection industry. Some, however, become educated consumers and use the law to force debt collectors to spend their time with other, less knowledgeable consumers.
Time is money for a credit card debt collector who is in the business of collecting unsecured consumer debt, most of which happens to be credit card debt. These consumer debt collectors and collection attorneys work on a percentage of what is collected. Most people think there is a debt collector for every debt, when the reality is there is only a debt collector for every easy-to-collect credit card debt.
Consumer debt collection has grown and prospered with the expansion of the credit card industry.
The Federal Reserve and Business Week report $133.7 billion of consumer debt in 1970 increased to $2.5 trillion of consumer debt in November 2007.
Each year debt collectors put more than $40 billion back into the U.S. economy, according to ACA International, a trade group for the debt collection industry.
There were 173 million credit cardholders in the United States in 2006, According to the U.S. Census Bureau.
4.75 percent of bank cards were delinquent in the first quarter of 2009, according to the American Banking Associate.
These statistics indicate debt collectors have millions of delinquent credit card accounts to collect from.
The Federal Reserve requires credit card companies to hold reserves for bad debts. The credit card companies profit from these debts after they are written off by selling them to junk debt buyers for no more than one penny on a dime, or 10 percent of their value. With that discount, junk debt buyers and their collection agencies and collection attorneys can be quite profitable by only collecting on 30 or 40 percent of the purchased accounts.
Debt collectors can make more money by pursuing delinquent credit card account holders who put up no resistance. Proper resistance to debt collection attempts usually causes debt collectors to look for less resistant targets. Effective resistance to credit card debt collectors relies on The Fair Debt Collection Practices Act (FDCPA).
The Fair Debt Collection Practices Act covers the behavior of collection agencies, junk debt buyers, and collection attorneys. The FDCPA treats attorneys as debts collectors, if they are collecting consumer debt. The consumer must be notified in writing by the debt collector of their right to dispute the debt and have it validated, according to the FDCPA. Copies of original documentation that verifies a debt are considered proper validation by the FDCPA. The FDCPA gives the consumer the right to tell the debt collector to stop collection activity until they have validated the debt.
Should the debt collector invest their time with those who properly dispute and request validation or those who put up no resistance?
Matt Highlander has researched credit counseling, debt settlement, debt collectors and collection attorneys. If you are seeking credit card debt relief, read Credit Card Debt Survival Guide