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Mention the word “budget”, and people’s eyes tend to glaze over. Budgeting isn’t the most exciting activity in the world, and on the surface it is extremely limiting. We don’t like it when other people try to tell us how to spend our money, and even setting parameters of our own may seem too much.
What many of us do not realize is that a budget is the ticket to financial freedom. It restricts what we spend each month, but in the long run it allows us to get more out of our money. Instead of frittering funds away on things we could comfortably do without, we can save up for emergencies as well as things we enjoy.
Here are ten tips for creating a budget, setting priorities and keeping tabs on spending.
1. Be realistic. All too often, we create the perfect budget on paper, only to completely blow it in practice. This is frequently because we are not realistic about our expenses. It may help to save all receipts for a month before you start on your budget. That way you can evaluate how much you’re really spending and avoid budgeting too little for any given item.
2. Remember the little things. Eating out every day instead of packing your lunch might not seem like a big deal, but it can really add up. The same is true for many of the habits we have. Cutting back where practical can save you more money than you might think.
3. Lower your bills when possible. A good place to start is with your cable bill. Do you really need all of those movie channels? What about your cell phone bill? Would a less expensive plan meet your needs? Knocking a few dollars a month off of your bills could leave you with hundreds of extra dollars each year.
4. Get the whole family involved. A budget affects the entire household, so everyone should have a say. You may have to make changes that everyone doesn’t agree with, but they will be more likely to accept them if you listen to all input. Family members may also have ideas that you wouldn’t have thought of on your own.
5. Give everyone an allowance, not just the kids. Setting reasonable limits for discretionary spending will help prevent your budget from being derailed.
6. Make sure the necessities always come first. Budgeting for entertainment and other wants is important, but if push comes to shove, food, water, clothing and shelter are the most important things. Budget for these and the things that enable you to work (such as transportation) first.
7. Include savings in your budget. Saving up some money for emergencies is crucial for every individual and family. Try coming up with an amount to save each month and include it in the budget before any non-necessities.
8. Keep track of all expenditures. Save receipts or write down every expense so you can compare your actual spending to your budget. If you spend less money than budgeted, consider allocating more to savings. If you spend more money than you planned, you need to either watch your spending more closely or make adjustments to your budget.
9. Avoid using credit cards irresponsibly. Buying on credit will result in less spending of money in the short run, but you will have to pay it back with interest unless the balance is paid in full each month.
10. If you get extra money, use it wisely. Consider putting it directly into savings or using it to pay down debt. Spending it on something you want might feel good, but that doesn’t help your overall financial picture.
A licensed insurance agent can be a valuable resource. You would visit a travel agent to discuss destinations, rates, and obtain the latest updates only a travel agent could provide; a licensed insurance agent works in a similar way.
Let’s assume you need a specific type of insurance. An insurance agent can search for those policies that meet your needs. He can answer many questions you may have, can apprise you of discounts offered through his company, can help you with filing claims in an expeditious manner, and can review your existing policies to ensure you are fully covered.
On the other hand, before speaking to an insurance agent, it is recommended that you engage in some market research on your own. While it may take a little more time, you can certainly find the most affordable insurance rates on your own either by checking companies online or by calling them directly.
However, if you do not have the time or the inclination to do so, finding a really good licensed insurance agent can make all the difference. The only caveat is that some agents may try to talk you into purchasing insurance you neither need nor can afford.
Just like travel agents, most insurance agents work on commission. And just like travel agents, if the trip and/or the arrangements made are unsatisfactory, an agent will lose a valuable customer.
Ultimately, using the services of a licensed insurance agent can benefit you in a variety of ways, including:
* Finding the best deal
* Offering information not readily available to you
* Help you to make the right choices
* Explain the different types of insurance and if they are beneficial to you
Therefore, it’s a good idea to find an agent whom you feel comfortable with, who listens to your concerns, and doesn’t seem overly zealous when it comes to your insurance needs.
Resolving issues with health care companies are potentially trying experiences. You’ve possibly been underpaid, or are having issues pertaining to the company not authorizing necessary services. This experience doesn’t have to be a headache. The tips below can possibly avoid additional stress.
1) Be prepared for problems. Keep all records in the same place
The first step is clear. Either your claim is accepted, or there is trouble ahead. In the United States there are several billion claims processed each year. Health insurance companies are no different than anyone else; they too make mistakes.
Keeping records of all contacts you have with insurers within easy access can help. Each contract, fee schedule, addendum to a contract and letter referring to a contract or other payment matters should be filed together, or at least have one folder for each of the individual insurers.
2) Ask for clarification
If you are in the middle of disputing actions taken by the insurance company, you need to understand why this action is being taken. There are trends towards policies and positions. In some cases there really is no clear explanation for any action. For example, you may want them to give you a fee schedule, but they won’t tell you why you can’t have one. In these types of situations, don’t hesitate to put a little pressure on the company to at least get some answers.
3) Relevant information
If the company cites an article in your contract, it’s time to review the section. If you don’t have your own copy of the contract, ask for one. It’s also important for you to consider any documentation you have which supports your personal position, and make each section or citation known to the person you are speaking to.
4) Start cordially, and then escalate
Start the conversation or email as calmly as possible. If your polite and courteous approach doesn’t produce results, you can gradually become more assertive. Keeping your tone at a cordial level is even more appropriate if you have any type of established relationship with the company representative.
5) Paper trails
Keep track of all conversations including time, date and who you spoke with. Write a short summary of each conversation, keeping this with your other files in case you need it later.
If your cordial measures don’t resolve the situation, it’s time to build on that paper trail. Start putting all communications in writing either via email or registered letter.
6) Short and sweet
Insurance company employees normally have large volumes of calls and paperwork each day. They aren’t likely to have time to wade through page upon page of information on a problem or issue you are having. Keep your communications short and to the point so they can find what they need easily.
7) Make yourself clear
Keep in mind that you aren’t just stating a complaint, you also need to be clear in what exactly it is you want the company to do for you. What’s the action you need from them? Do you need them to answer a question? Authorize required care or maybe pay a claim? Even though this is often overlooked, it’s a vital step in getting your issue resolved quickly.
8) Climb the chain of command
It’s possible your initial contact isn’t very helpful to you. Don’t hesitate to ask for the name and number of the next in command. Ask for the information politely, and say they may have a better knowledge of how to deal with this particular type of situation, or have different authorities than a lower level employee may not have.
9) Be persistent!
If at first you don’t succeed, keep trying. Just because you got a negative response the first time, doesn’t mean the case is closed. Being persistent shows the company you are not willing to let them sweep your case under the rug. Keeping on top of things means that you are also keeping the insurance company’s employees on their toes.
Credit can be a wonderful thing. But when it gets out of hand, it can wreak havoc on our finances. This is especially true when it comes to credit cards. Charging up a large balance is bad enough, and by the time you add in fees and high interest rates, the debt can be overwhelming.
In a perfect world, everyone would use credit wisely and pay off balances within a month or two. But in reality, cardholders often build up a mountain of debt and fail to realize it until it’s unmanageable. That’s when it’s time to put the plastic away and work on paying off the balance. Here are some tips to help you do that.
1. Rework your budget, eliminating unnecessary items. Even little things like that cup of coffee you buy on the way to work every morning can add up. Once you’ve decided what you can do without, add up how much you’ll save and add it to your monthly payment.
2. Volunteer for overtime, or get a second job. Put all the extra money you make toward your balance.
3. Reduce your overall interest rate. If you have a low interest card that allows balance transfers, transfer the balance of a higher interest card to it. Even if you can only transfer part of the balance, you will save some money and be able to pay everything off more quickly.
4. Put lump sums of money that you receive toward your credit cards. These may include tax refunds, bonuses or settlement proceeds. This can save you a lot of money in interest.
5. Put your raises toward paying down your debt. A raise is money that you were living without before, so you should be able to continue to live without it until you’ve paid off your credit cards.
6. Sell stuff. Get rid of that extra vehicle, or have a garage sale. We all have things sitting around that we could do without, and those things can make us money. Use the extra cash to help pay off your credit card debt.
7. Snowball your debt. This simply means paying the minimum payment on all but one card, and paying as much as possible toward that one until it’s paid off. Then you move on to another card, paying the minimum payment plus what you were paying toward the previous one. Repeat until all balances are paid in full.
8. Get help from friends and family. A loan from someone who is close to you can help you get out of debt, and repayment terms are usually much more favorable. But it’s still important to have a repayment agreement and follow it carefully.
9. Negotiate with your creditors. If you’re having a hard time paying off your balance, they might be willing to lower your interest rate. You may be required to stop using your card while the lower rate is in effect, but a moratorium on charging until your finances are in better shape is a good idea anyway.
10. Talk to a credit counselor. If you are several thousand dollars in debt and can’t afford your payments, credit counseling could save you from bankruptcy. A credit counselor will negotiate with creditors on your behalf, and can usually get you lower interest rates and reduced payments. Once it’s all set up, you make one monthly payment to the credit counseling agency, and they forward the appropriate amount to each creditor.
If you’ve ever been hit with an unexpected expense, you know that you need some source of funding to fall back on at all times. A savings account makes the most sense, because it gains interest. But many consumers use their credit cards as a safety net, even though they know it will cost them more in the long run.
Those who are saddled with credit card debt, either because of using them for emergencies or simply overusing them, are painfully aware of how interest and fees accumulate. They swear that when they get out of debt, they will start saving money to avoid having their finances fall back into ruin. And if they’re serious about it, they might put every spare dollar toward paying down that balance.
Paying off high-interest debts has definite advantages. Most importantly, it can save you lots of money over paying just the minimum payment each month. It also frees up your credit line so that you can use it if you have to. But is paying down credit card debt more important than building up savings?
There is some disagreement among financial experts. All agree that your bottom line is positively affected by paying as little in interest as possible. And some find that to be reason enough to put money toward paying down your balance before you try to save up. But others feel that the importance of having an emergency fund trumps the money saved in interest charges.
One argument against paying off credit cards before starting to save is that it leaves no resources to use in case of emergency except for the credit card. If you’ve paid down your balance sufficiently, you may be able to use the card if something comes up. But you’ll also experience a setback in paying it off. That means you’ll pay more in interest, and it will be longer before you can start that savings account.
By the same token, using a credit card for emergencies is one of the habits that those with debt issues need to break. Putting yourself in a position in which you have no choice but to do so is a step in the wrong direction. By saving up an emergency fund, you can avoid using credit until you’ve eliminated the debt you already had.
Choosing between paying off credit card debt and building up a financial cushion can be difficult. But if unemployment or some other major financial problem is a possibility, building up your savings is usually the best option. Putting away at least a months salary before you start paying off your debt will allow you to breathe easier.
Credit cards offer a number of benefits. They give us easy access to credit in emergencies. They make it easy to pay for the things we need and want. And when used responsibly, they can build up our credit. But they can also be very expensive, especially when we have to pay penalties.
Credit card companies issue penalties in various forms. These include:
* Late fees : When we’re late paying our phone bills or electric bills, the company often tacks a late fee onto our next bill. The same holds true for credit card companies. The difference is that the fees from credit card companies are usually much, much higher. It’s not unusual for them to charge late fees of up to $39.
* Overlimit fees : Most credit card providers will not allow debtors to charge purchases in excess of their credit limits. But if your card is maxed out, interest charges could push your balance over the limit. For each month your balance is over the limit, the creditor can impose an over limit fee.
* Penalty interest : Most credit card contracts include a provision that allows the company to raise your interest rate if you are late with your payment. In most cases, interest will not be raised until you’re late twice in a 6- to 12-month period. But the default rates are often two to three times your normal interest rate.
* Universal default : A growing number of credit card companies are raising interest rates for customers who are late with payments not only to them, but to other creditors. This is called a universal default rate. Even if you pay your credit card bill on time every month, a misstep on another debt could result in a rate hike.
* NSF fees : If you make a payment and it doesn’t clear your bank, your credit card company can add a non-sufficient funds fee to your bill. This is in addition to late payment and over limit fees that may result from the denied payment.
* Annual fees : An annual fee isn’t technically a penalty, but it is something to watch out for when you apply for a card. Some creditors charge annual fees of $50, $75 or $100 or more. There are plenty of cards out there without annual fees, so in most cases it’s best to just pass the ones that do charge them by.
Knowing the Penalties for Your Credit Cards
Credit card issuers are required to disclose all penalties and fees that are or could be charged on credit applications. They may also send a copy of this information to new cardholders. And this information should also be provided on each credit card statement. You will have to read the fine print, but creditors are required by law to provide this information.
If you incur a penalty, you may be able to get it reversed. If it’s the first time you’ve been late with a payment or a bank error has occurred, a call to the credit card company may resolve the issue. But if you habitually make late payments or exceed your credit limit, the creditor is unlikely to be helpful.
Penalties can cost you a great deal of money. Whether they’re one-time fees or interest rate increases, they can eventually add hundreds or thousands of dollars to your balance. Paying attention to these fees and making a conscious effort to avoid them will enable you to pay off your balance much sooner and allow you to keep more of your hard-earned money.
The sub-prime mortgage crisis that began in 2008 was the catalyst that left many homeowners in foreclosure. It caused the stock market downturn, which decreased or wiped out retirees savings; led to the insolvency of banks; and caused the Treasury Department to institute emergency bailouts of banks, major corporations and one very large insurance company in particular which, if it had filed bankruptcy, would have caused a ripple effect that would have devastated the financial markets here and abroad.
Homeowners and individuals who have been caught in this credit trap have had to make major changes in their lives. While recent legislation has allowed for the revamping of home mortgages for those who are in foreclosure, the recession has caused a major effect across the nation and the world.
With unemployment currently at 8.5%, small businesses as well as large corporations have had to make drastic changes in order to survive this recession. As a result, every facet of our worsening economy has had a direct affect on individuals across the spectrum.
We now know that the sub-prime mortgage crisis was a credit trap. It allowed future homeowners to purchase mortgages with no money down and eventually spiraled into a high-interest rate debt that could no longer be managed.
In addition, banks stopped lending and consumers with credit cards faced a sudden increase of higher interest rates even though they had good credit and paid their bills on time. Moreover, student loans and car loans became more difficult to obtain.
Banks raised the standard of lending to consumers and unless an individual had a FICO score of 720 or higher, the chances of obtaining a loan were nil.
Today, this financial crisis has left many individuals struggling to meet their debt obligations. It is no wonder, then, that many are turning to debt consolidation, credit counseling and repair and, in some cases, bankruptcy.
While the events that unfolded over the last year are unprecedented and were a direct result of the sub-prime mortgage crisis, this report will address one aspect of this crisis: credit traps.
We will explore and offer suggestions on how to avoid such traps as: credit cards, mortgages, and loans that affect everyone from homeowners to teens. In addition, we will offer recommendations on how to pay off credit card debt; what to look for when applying for credit, mortgages, or loans; and the resources that are now available due to the government’s intervention.
The good news is that the recession will not last forever. Economists assess that we may see some positive results by the end of this year. In the mean time, we all need to begin the task of paying down the debt we have and avoid incurring new debt, with all its trappings.
Credit Cards
Universal Default Clause
One of the most insidious credit card traps has to do with banksí Universal Default clause. This clause allows banks to increase interest rates on credit cards if you make late payments to other accounts unrelated to your credit card such as utility companies, for example. Currently, there is legislation that will prohibit these excessive fees incurred by banks.
0% APR
Perhaps you have received dozens of credit card offers in the mail that invite you to apply for a credit card with a 0% APR. It is important that you read the fine print as this low rate usually expires within six months.
Interest Rate Increases
Many banks have been sending out notices to credit card holders stating that interest rates will be increased. While you may be paying your bills on time, they have nonetheless changed the terms and you can either agree or close your account. The rate increase, in some cases, has been as much as 13% and the bank has the ability to apply the increase to the entire balance, and not merely to the new charges
Late Fees, Annual Fees, and Payment Fees
Making a late payment on your credit card can increase the interest rate as much as 23%. Some banks charge an annual fee for their credit cards. They can cost up to $50.00 a year. If you make credit card payments online, there may also be a fee of up to $10 per month.
Cash Advances on Credit Cards
Banks usually send out notices with blank checks to allow for the consolidation of other debts. This is considered a cash advance and has a higher interest rate. Furthermore, since you now have the cash advance interest rate and the regular credit card interest rate, most banks will only apply payments to the cash advance or lower interest rate before it is applied to the remaining balance. Thus, the remaining balance on your card will continue to multiply.
It is important, therefore, to read the terms and agreement section of the credit card before you apply. While it has been said that the language can only be understood by lawyers, you can still ascertain what penalties, fees, and other charges will be incurred using this card.
Look for these particular sections:
* Annual Percentage Rate (APR) for Purchases
* Other APRs
* Variable Rate Information ñ See Important Notice Regarding Change in Terms
* Annual Fee
* Grace Period for Repayment of Purchases
* Minimum Finance Charge
* Transaction Fee for Purchases
* The Default Clause listed under Summary of Terms
* Late Payment Fees
* Cash Advance Fees
* Fees for Issuance or Availability
* Method of Computing the Balance for Purchases
* Non-Usage Fees
* Fees for Purchases Made Outside the US
It is widely agreed that most credit card terms are ambiguous at best. But it is still important to learn as much as you can by reading the terms and agreement section so that you will be able to avoid any traps in the future.
Credit Cards for College Students
There has been and still is an on-going campaign by companies to aggressively market credit cards on college campuses. The methods used to entice students to apply for credit cards may include free items and other coercive tactics.
Studies show that over 50% of 18-year-old college students obtain a credit card for the first time and that more than 70% actually own one credit card with a balance of more than $2000.
This is a credit card trap that requires a student to ask some very hard questions before signing on the dotted line.
* Do I need a credit card?
* Can I afford a credit card?
* How will I use the credit card?
* Will I be able to make the payments each month?
For most college students, the answers may determine whether or not they are willing and able to take on this added responsibility.
In order to avoid this trap, college students should investigate different credit card companies and consider the following:
* What is the APR rate?
* Does the card carry an annual fee?
* What is the default interest rate?
* What are the policies as it relates to Change in Terms?
* Does the card carry a Universal Default clause?
After they have researched the terms and conditions thoroughly, then and only then should they make the decision whether or not it is worth it to apply. Once the card is received, it is important to use the card wisely. This requires that the student:
* Pay off the balance each month
* Do not exceed the credit card limit
* Avoid cash advances
* Keep track of purchases and payments
Credit Cards for Teens
Debt not only affects adults, but it has trickled down to teens as well. For those teens that have not been taught how to handle money in a responsible way, they become trapped too early and incur debt too young.
From an early age, children have no concept of money or how much things cost. Therefore, educating children is the first step in learning fiscal responsibility. Beginning with the simple task of putting money in a piggy bank to opening up their first savings account to eventually having their own checking account is the basis of what will be their introduction to understanding the process.
One of the many recommendations offered to help teens become more financially responsible is to set up a prepaid credit card. Since the amount on the card will be limited, the teen will be able to make reasonable purchases. It will help them to assess the difference between what they want and what they can afford.
If they exhibit responsibility using the prepaid credit card, perhaps then they will be ready to apply for a regular credit card. But in the interim they will fully be prepared for, and become more knowledgeable about, the utilization of a credit card and know how to use it in an effective and responsible manner.
Getting Out of Credit Card Debt
Before the recession, consumer credit card debt was the highest in the nation. Today, it has become the bane of every consumer who owns a card. With banks raising interest rates, late payments and defaults have become the norm rather than the exception.
If you have credit card debt, here are some suggestions to help you pay down the debt.
1. Make a list of all credit card debt with the highest interest rate card at the top.
2. If your budget allows, double up on payments towards the first card on the list.
3. Once the top card has been paid off, use that same amount to pay off the next card.
4. Follow the same method to pay off the remaining cards.
If you cannot afford to pay off the credit cards, call each credit card company and explain your situation. They may either lower the interest rate or reduce the minimum payment.
Recent reports have suggested that seeking out debt consolidators is not a good idea. They charge a fee and utilize the same process mentioned above. Moreover, this practice will lower your FICO score which, in turn, can hurt your overall credit standing.
Bankruptcy should be the last resort. If you need assistance, talk to family members to ascertain if they can loan you the money to pay off the debt. If you own a home, you may wish to look into a refinance loan. Filing bankruptcy will be listed on your credit report and remain there for ten years.
Finally, under no circumstances should you withdraw money from any retirement fund such as a 401K or IRA. Doing so would incur a hefty penalty.
For information on consumer debt, credit reports, and other resources, check out:
http://www.myfico.com/Default.aspx
https://www.annualcreditreport.com/cra/index.jsp
http://www.ftc.gov/bcp/consumer.shtm and http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm.
Mortgages
The sub-prime mortgage crisis is a perfect example of a mortgage trap. Unscrupulous lenders would offer mortgages to clients with no money down. While the initial interest rate was acceptable to the client, eventually the mortgage was sold to a third party and the interest rate skyrocketed, leaving the new homeowner facing foreclosure.
Here are some suggestions for new homebuyers.
1. Choose a lender that is well-known, such as a bank or private institution.
2. Acquire a list of the fees that will be incurred.
3. Ask if there are any pre-payment penalties (these usually occur with ARMs)
4. Obtain the lowest interest rate possible by comparing several banks and lendersí rates.
5. Be prepared to place a minimum of 20% down.
6. Compare the adjustable rate mortgage against a fixed rate mortgage.
7. Watch out for mortgage discounts as they may include a hefty fee.
8. Research a reverse mortgage thoroughly before you consider it.
9. Inquire about insurance fees.
10. Have the home appraised by a qualified and approved appraiser.
With so many homes in foreclosure, there is another scam that has become pervasive especially among homeowners that are close to losing their home. It works like this:
Letís assume the bank has notified you that your home is being foreclosed upon. An individual offers you a deal to keep your home. He sells the home to another party and asks the owner to sign a paper which turns out to be a lease agreement for a specified period of time. When the homeowner is in a position to buy the home back, the amount is so high the original owner cannot afford to purchase the home. Meanwhile, the scam artist has made a hefty sum.
The moral of this story is to make sure the lender you are dealing with is a well-known institution with a solid record, and avoid the pressures by real estate agents.
One can make the same analogy when purchasing an auto. Dealerships have an in-house finance unit in which they pressure you into utilizing an insurance company of their choice. You may already have a very good insurance company, but if faced with a choice of saving a few hundred dollars using another car insurance company, the trap may be unavoidable.
No matter whom you deal with, research the company before you set up a meeting with them and take a few days to make your final decision.
Loans
Whether you are seeking a loan to buy a car, a college loan, or a home equity loan; there are just as many traps in this area as well.
To avoid these traps, you will need to begin research different banks and lenders to compare the following:
1. What is the APR?
2. Are there any fees if you pay off your loan early?
3. What is the insurance rate on the loan?
4. What is the interest rate and how is it derived?
5. What is the default fee?
Just as with credit cards, applying for a loan can have its disadvantages and traps. For example, a consolidation loans either through credit card companies or home equity loans prolongs long-term debt.
In addition, if you make a late payment or default, your credit rating suffers and your FICO score is reduced to the point that any future loan may be impossible.
Now that the Federal Government is taking over student and consolidation loans, go to: http://www.govloans.gov/govloans_en.portal?_nfpb=true&browseLoans_1_actionOverride=%2FBrowseAllLoansFlow%2Freport&_windowLabel=browseLoans_1&browseLoans_1currentSubType=5&browseLoans_1bid=602&_pageLabel=gbcc_page_browse_loans.
In addition, you will find information on all types of student and business loans at:
http://www.govloans.gov/govloans_en.portal?_nfpb=true&_pageLabel=gbcc_page_browse_loans&_nfls=false.
Let discuss consolidation loans for a second. Assuming you need a loan to pay off your credit card bills or other debts, it is important that in doing so cut up all credit cards and keep one just for emergencies.
Keep in mind, however, that the interest rate of the loan may be higher even though you are reducing the amount you pay each month.
Furthermore, since most banks are hesitant towards lending, your FICO score will have to be in the high 700s for the bank to even consider giving you a loan.
How do you increase your FICO score?
1. Obtain a copy of your credit report. Clear up any errors on the report. Then go the website address given in this report and obtain your FICO score. Once you have this information, you will be able to make adjustments to increase your score.
2. Call the credit card companies and ask to have the interest rate lowered. Make more than the minimum payments on credit cards each month.
3. Cut up all credit cards except one. Pay for items with cash. If you cannot afford the item, you can’t buy it.
4. Save as much as you can by re-examining the family budget. Make appropriate adjustments to it so that you can put away a specified amount each month.
5. Begin to pay down credit card debt using the example given under credit cards.
6. Avoid late payments.
7. Don’t borrow from Peter to pay Paul. In other words, don’t apply for a 0% APR credit card to pay off a high-interest rate credit card.
8. Ensure the credit card debt is less than 20% of your take-home pay.
9. Put aside at least three to seven monthís savings for emergencies.
10. Read the terms and conditions for each of your credit cards so that you know exactly what charges can be incurred based on specific conditions.
Know your rights as a consumer. Go to the Federal Trade Commissionís website at: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm. Here you will find information on debt collection agencies and their practices.
Credit traps have become more prevalent during this recession. Scammers and schemers have invaded the lives of many homeowners and seniors. Even today, the predatory mortgage lenders are out in force once again.
As the Federal Government continues to devise new methods to counteract these problems with legislation and information made available to the consumer, there will always be a scam that falls through the cracks.
To help you in this endeavor, you can find a list of free publications from the FTC at:
http://www.ftc.gov/ftc/contact.shtm#publications.
Finally, it should also be noted that identity theft has increased significantly. To this end:
* Ensure that you change your online passwords monthly;
* Never give out any personal information online or via telephone;
* Make copies of all credit cards (front and back), passports, social security cards, and keep them safe at home;
* Keep telephone numbers of all credit card companies accessible in case of theft;
* Be mindful of people behind you when using an ATM machine;
* If you purchase items online, make sure the website has the gold lock in the lower right hand corner and has encryption services;
* Use the ìFraud Alertî service available for most credit cards;
* Use only those accredited online sites such as Pay Pal and others that have the URL beginning with ìhttps.î
Thus, becoming more aware of what is going on through internet news, government websites, and the latest scams also posted on websites will give you the knowledge you need to circumvent these credit traps before they occur.
There are several factors that will determine whether or not you need life insurance. Here are some tips on how to choose a policy that is right for you.
* Who should buy life insurance? Life insurance is recommended to those who have dependents, those who are self-employed or own a business, and those who want to ensure that their surviving spouse will have enough funds to cover funeral and burial expenses as well as any outstanding debts or taxes incurred.
* How much insurance do you need? This is also dependent on several factors. In addition to the expenses already mentioned, you may want to cover education costs for the children. You may also require a supplemental safety net in case a situation arises such as illness or if you need to borrow money.
While some experts agree that most people who buy life insurance do not buy enough, others will say that most people buy too much. How much is enough is determined by how much debt has been incurred including mortgage, credit cards debt, tuition and expenses, and the needs of the surviving spouse as well as the children. Once that calculation is made, one can then ascertain the amount of coverage needed.
* What type of insurance should you obtain? There are two types: term life and whole life. Term life is insurance that is only good for a specific period of time, whereas whole life insurance has no expiration and allows you to borrow from the policy or cash it in.
Term life insurance varies in cost. Depending upon your age, whether or not you smoke, your current health, and income may inflate the cost of this type of policy. But, in general terms, term life insurance is usually affordable.
* Understanding the types of life insurance available is critical. It is recommended, therefore, that you research each type as well as the insurance companies who provide the policies. Then set up an appointment with at least five agents to obtain proposals that you can compare and contrast.
Once you have decided on the type of insurance and the insurance company, think about it before signing on the dotted line. Ensure that this policy meets all your needs.
Imagine what you could learn from over 500 articles based around internet marketing, business and finance, home business, legal matter, blogging, copywriting, email marketing, PPC, RSS, search engines, website promotion and more and what could this do for your business?
1. How to Turn an Idea into $100,000
Do you ever wonder why some people seem to get all the lucky breaks in business while others struggle to barely get by? They seem to be in the right place at the right time.
Fact is, maybe they are not at the right place at the right time; maybe they just know how to make things happen.
As a business advisor I often see people begin and end a business before they have given it a chance to grow. For some reason, they seem to think that all they have to do is have a product or service to sell and the rest magically takes care of itself.
Nothing could be further from the truth. For any business to succeed there are steps that must be taken.
2. The Steps from Product Idea to Product Success
Michelangelo once said that his statue of David was embedded in the block of marble and he merely chipped away the edges to reveal it. Is your product idea inside your mind just waiting to come alive? Or, is your product already formed and you need only to smooth out the edges?
Using my Market-Step process your idea will come to life as we progress in the following steps from idea to launch:
1. Self-Evaluation
2. Concept Evaluation
3. Prototype Evaluation
4. Product and Market Planning
5. Product Development and Marketing Tactics
6. Product Launch, Marketing and Selling
Please use this roadmap as a navigational tool to guide and monitor your progress.
3. Is This the PR You Thought You Were Getting?
You know, where you do something positive about the behaviors of those outside audiences that MOST affect your organization? And where you do so by persuading those important external folks to your way of thinking, then move them to take actions that help your department, division or subsidiary succeed?
Yes, that is right, it’s where you use the fundamental premise of public relations to produce external stakeholder behavior change, the kind that leads directly to achieving your managerial objectives.
What it boils down to is
(1) your public relations effort must involve more than special events, brochures and news releases if you really want to get your money’s worth, and
(2), the right PR really CAN alter individual perception and lead to changed behaviors that help you succeed!
4. How to Easily Increase Your Profits
Do you remember the last time you went into a shop and the person serving raced over to you, greeted you with a lovely smile, heaps of enthusiasm and said, Welcome to our store, what can I help you with today? And then listened attentively to what you had to say?
Doesn’t happen very often does it? In fact, while I was writing this, I couldn’t recall when I had experienced it. I’m sure I must have yet it would have been so long ago, I can’t remember.
Let me tell you what happened this week
I belong to a well-known trade exchange which I have found very useful for my business. I wanted to purchase a suitcase from a particular store which usually takes trade dollars.
From time-time the store will limit the use of trade dollars if they have reached their maximum for the month. Anyhow I quickly discovered this wasn’t going to be my lucky day.
5. A Simple Formula for Success
Leaders in the business world need public relations big time, and they show it every day.
How? By staying in touch with their most important external audiences and by carefully monitoring their perceptions about the company, audience member feelings about hot topics at issue, and the behaviors that inevitably follow.
Could there be an angle here for your business?
What I mean is, once you interact with, then learn what that key target audience of yours believes about you and your organization, a corrective public relations goal, a specific behavior change — can be established.
Which then requires that you identify a strategy. There are just three choices here, create opinion where none exists, change existing opinion, or reinforce it.
6. Attracting Clients With Ease
Whether you are already running your own business, or still thinking about starting your own business, I suspect that deep down you know you have gifts and talents that can really make a difference to others.
In an ideal world, you’d spend the majority of time doing the work you love to do, with a steady stream of clients knocking at your door as and when you want them. The reality, however, can be somewhat different, and the whole process of finding new business can be a time consuming challenge full of uncertainty.
Some would be entrepreneurs are so intimidated by the idea of finding clients that they never put their dreams into action. Others start promising businesses, yet give up disillusioned by the frustrating lack of clients. Some die-hards persist, but at great emotional and financial cost as the uncertainty about attracting and maintaining clients takes its toll.
Just imagine! You can use these articles to build, promote, advertise, write articles, newsletters, build autoresponder messages and much, much more for your business. These articles are loaded with good keywords for search engine rankings and they are yours for the taking as long as you leave the resource boxes in tact. If you want to read the rest of the articles above and to read more about internet marketing, than this is the place to do it!
We are all looking to find ways to increase savings during this economic recession. Reducing the cost of your home insurance policy can help in this regard. Here are six ways you can lower the costs.
1. Stay with the same insurer. You can take advantage of discounts offered by your insurer if you purchase all insurance policies with one carrier. For example, having a homeowners and automobile insurance with the same company can yield up to 15% discount on your premium.
Moreover, the longer you remain with the same insurer, the better chance you have of obtaining additional discounts. For example, homeowners who have been with a company for five years or more may qualify for a special discount.
2. Increase the deductible. While you may currently have a $500 deductible, by raising it to $1000 you can save up to 25% on your premium.
3. Add security features. By installing smoke alarms, burglar alarms, and special locks, you can save as much as 20% on your premium. To find out if your insurance company offers these types of discounts, give them a call and determine how much you may be able to save in this regard.
4. Age-related discounts. Some insurance companies offer discounts to individuals who are 55 or older and retired. Check with your company and ask if they offer such discounts.
5. Annual review of your policy. This is another way you can cut costs on your policy. If you have expensive items in your home that are covered under a floater attached to your homeowner’s plan, these items will depreciate each year and may no longer have to be covered.
6. Good credit. One of the components used in determining how much you will pay for insurance is based on your credit rating. Therefore, to keep costs down it is a good idea to ensure that you check your credit report and FICO score annually and correct any errors you detect on the credit report. Do not skip any monthly payments on credit card bills or loans, and maintain a good credit history.
