Credit Basics 101

How Much Are You Spending ????

noreply@blogger.com (Money Guy) — Sat, 27 Feb 2010 15:20:00 +0000

Have you ever considered just how much you are spending? Most of us live on a paycheck to paycheck schedule. For the most part we were never taught how to manage personal finances. In today's world we must be very savvy consumers which means we must understand how to live within a budget and not paycheck to paycheck.

Budgets are fairly easy to set up and live by however, learning how to manage your money properly can be tricky if you do not understand how to start one. Below is a link to a calculator that can help you better understand what you make on a monthly basis vs your debt.

CLICK HERE

This will help you determine if you are making all your bills and just how much you have left over to pay down your debt. I would further suggest taking whats left over and put half towards your debt and the other half in savings for a rainy day.

Money Guy

Bad Credit Cards You Need TO Avoid

noreply@blogger.com (Money Guy) — Sun, 07 Feb 2010 21:45:00 +0000

This video shows just how bad credit card companies will rip you off !!! Pay attention to what they tell you here !!!

Money_Guy

Raise Your Credit Score Without Risk

noreply@blogger.com (Money Guy) — Sun, 07 Feb 2010 20:55:00 +0000

I have been asked if there is anyway to really raise your credit score without running the risk of having an item repossessed for non payment. Yes, in fact if your credit is in the gutter and you can make payments on a purchase contract. I would strongly suggest seeking out companies that make owning easy without credit checks. Basically, your rent to own stores, these stores tend to be an easy means of establishing or reestablishing your credit. You will need to complete the entire purchase contract with them before they will report it to the credit bureaus.

Keep in mind, if you miss a payment or they request you return the item then they will not report it to the credit bureaus.

The second way to raise your credit score is to look for furniture companies that finance there own accounts. You will be required to put a down payment up for security purposes and sign a contract. Be sure you can make the monthly payments on time each and every month. If you have an issue with making a payment become very passionate and communicate with your creditors don't just leave them hanging this will leave them with bad thoughts and they can reposes your items you purchased. Do Not Let this happen!!! This type of account will report to the credit bureaus on a monthly basis so pay your bill on time !!!!

Money_Guy

Dirty Credit Card Secrets

noreply@blogger.com (Money Guy) — Sat, 06 Feb 2010 16:55:00 +0000

Dirty Credit Card Tricks and secrets !! Watch out for this one !! Do we really have control over all these banks? Yes we do, the people can make a difference but first we must start saying no to credit card companies and paying off our debt !!! After you pay it off close your account !! Learn to live strictly on a cash only basis !!! I have posted several articles on the effects that credit cards have on your personal finace. Review my blog post on these articles

Credit Repair Guide

noreply@blogger.com (Money Guy) — Sun, 24 Jan 2010 19:31:00 +0000

Here is a great guide that will help you answer your questions about how to repair your credit !!! I highly recommend this guide CLICK HERE

Money Guy

Six Ways You Waste Money

noreply@blogger.com (Money Guy) — Sun, 17 Jan 2010 17:51:00 +0000

Have you ever considered just how much money a typical person waste every year? What could you do if you took the money you have needlessly wasted and applied it to your debit or even better,starting an investment portfolio for your retirement. Not many people consider, especially younger adults, there finical future. While most middle age adults get stuck in a rut of credit card debit. There has been more of a turn recently considering the down turn of the economy from 2007 to 2009. And the good news about this more of us are saving and cutting down on debit.

Here are six ways you can avoid wasting money.

1. Convenience Stores These stores provide a convenience to everyone. Meaning you pay a premium price for there items including gas. Why? lets say you go to the grocery store and buy a 12 pk of drinks for around $4.00. You stop by a convenience store during the week and buy the same single serve drink for a $1.00, then you would pay $12.00 for the whole 12 pack rather than paying .33 cents for each drink at a grocery store. Now consider the very high markup you just payed for convenience, a whopping 67% markup over the grocery store. You can save a lot of dough by shopping smart and buying in quantities.

2. Cell Phone Plans The second way you can save money is buy paying attention to your cell phone bill each and every month. Lets say you have a plan that cost you $40.00 a month but on an average you tend to exceed your plan minutes by 100 minutes a month. This will cost you around $40 to $50 dollars more each month. Sit down with your provider and work out a better plan for what you are using. Most of the time you can change plans without affecting the term of your contract. You could end up saving hundreds of dollars a year by making this change.

3.Restaurant-Soft Drinks One of the biggest markups restaurants have is on selling you drinks. On an average if you spend $2.00 for each drink you buy from them it can add up over a period of a year when you dine out ! Lets look at this closer, Say you have a family of 4 that eats out once a week. Each of you order a drink @ $2.00 each, you have just spent $8.00 before you even order your meal. To understand this, you are spending $8.00 a week on drinks times 52 weeks a year for a total cost of $416.00. You can save this amount just by ordering water which cost you nothing. Saving this amount can be directed towards retirement or paying down your debit.

4. Unnecessary Bank Fees I have recently wrote about the enormous fees bank charge there customers. Take for example, Your short on cash and you spot a ATM you zip your card in and bam it spits out the money you requested. Again, this is related to convenience and you pay for this dearly. On an average you will have to pay your bank $2.00 and the ATM owner up to $5.00 for each transaction. Just to take out $20.00 will end up costing you 35%. These fees can be saved just simply plan out your daily finical activities and avoid using ATM's.

5. Magazines With the expansion of the internet and the availability of articles on News Groups and other Free sites, Magazines are becoming a dinosaur. Take for example just one magazine can cost you $5 to $10 dollars just for one copy. If you just have to have these books then consider subscribing to them on an annual basis. You can save 50% to 60% off the news stand price and this can add up especially if you have several magazines you buy frequently.

6. Annual Credit Card Fees The final way you can save, take a look at your annual credit card fees. If you have good credit history, shop around, and find credit card companies that don't charge annual fees this can save you hundreds of dollars each year.Unfortunately, for the ones who have less than perfect credit you will end up paying a annual fee. However, shop around you might be surprised and find a company that will offer you a low annual fee and percentage rate.

In close there is nothing wrong with saving money. Making it a daily habit will bring yourself finical rewards. Always compare prices at different stores especially on big ticket items. Being impulsive when making a purchase is what the stores hope you do. Never buy anything without first comparing and adding the cost into your monthly budget. Buying in bulk saves you money and using coupons will help cut your cost of food and other necessities.

Money Guy

First You Tube Video

noreply@blogger.com (Money Guy) — Sun, 20 Dec 2009 21:54:00 +0000

As promised my first in a series of videos !!!

Money Guy

Financial Tools

noreply@blogger.com (Money Guy) — Sun, 20 Dec 2009 18:23:00 +0000

Here is a website that is FREE for you to use that will help you create a monthly budget and track expenses. In order to avert any financial distress this is a must. You have to know where you are and how much money it takes to run your household. The average family does not have any clue as to what a budget even can do. Think of this as a way to get a foot up on your bills and creditors. I highly recommend http://www.mint.com for everyone.

Watch this video:

Money Guy

Managing Debt and Credit

noreply@blogger.com (Money Guy) — Sun, 20 Dec 2009 16:15:00 +0000

Today I am going to talk about Managing Debt and Credit. First, we need to understand the meaning of CREDIT. it is defined as: the granting of a loan and the creation of debt. It is any form of deferred payment. Now lets extract this meaning and put it in to understandable terms. Basically, what this means is a bank, loan company etc... loans you money. This creates the debit that you agree to pay back on a weekly, semi monthly or monthly basis.This is known as a loan agreement or contract with specific terms and conditions regarding the repayment of the loan. This makes the loan as a deferred agreement between yourself and the bank. Before you sign any contract you need to make sure you have read all the terms and conditions of the contract to verify you understand how the loan has to be repaid. And, what happens if you default on your promise to pay.

Our modern society of instant credit has created a vast credit card debit for millions of people. Many have charged thousands of dollars on credit cards that has put them in a debtors prison. Unfortunately, once you reach this point you have exhausted all your resources of credit and backed yourself in a corner that is truly hard to recover from. If you are at this point you may need to consult with a financial ad visor or attorney to help relieve or negotiate this debit. You must use credit wisely as this helps establish creditability of your financial responsibility over time.

Lets touch on using credit wisely, First you need to determine how much you are paying on your credit cards and loans. Most loans are installment contracts meaning you make a set monthly payment at a set amount normally at a interest rate of 5 to 10 percent. These type loans are usually found on automobiles, mortgages and installment type loans. Credit cards are revolving loans and tend to charge a higher interest rate than installment loans. Typically from 15 to 30 percent interest, By making the normal monthly payment on a installment loan typically you will pay this contract out in 48 to 60 months. With credit card monthly minimum payments, this will prolong paying off the balance for up to 360 months. This in return cost you a large amount of money (interest) over the period of repayment. In the graph below this will establish a visual of just how costly credit cards verses installment loans can be.

Installment Loan- $2,500
Interest Rate - 10%
Years to Repay- 48 months
Interest Cost - $544

Credit Card - $2,500
Interest Rate - 18.5%
Years to Repay- 360 months (30 years
Interest Cost - $6,500

Your total cost of the installment loan over the 48 month period is $3044.00. The amount of interest is very low. The total cost of using your credit card borrowing the same amount of money at a higher interest rate with a longer revolving term of 360 months cost you a whopping $9000.00. The majority of this repayment is interest ($6500.00) I will tell you this, your bank is very happy that you payed them $6500 just for loaning you $2500.00. Remember, if you are maxing your credit card out this will in return lower your credit score up to 45 points, thus reducing your ability to obtain new credit at a lower interest rate. The rule of thumb is to only use 25% of the line of credit on your credit card.

In close it is of grave importance to pay down the amount of your credit card debit. Not only do you need to rethink paying only a monthly minimum payment but paying more each month until you achieve paying these high interest rate cards down or off.

Money Guy

Credit vs Debit Cards

noreply@blogger.com (Money Guy) — Thu, 10 Dec 2009 22:27:00 +0000

In this post I want to explain the differences between credit vs debit cards. What are there differences and likeness?

First lets explore credit cards. Lets define the meaning, in short, this is the amount of credit that a bank will extend to you on a line of credit. For example, say your credit score is between 650 to 700 then you could receive a line of credit of a few thousand dollars. The higher your score will result in even a larger line of credit with a very low interest rate. Now the down side to this scoring system is that if your credit score is below 650 you may not receive a line of credit above a thousand dollars. And, your interest rate will be vary high. Beware of credit card companies that try to lure you into a introductory APR ( Annual Percentage Rate ) then turn around and hike your rate. Make sure you read the Terms And Conditions before you accept these type of cards. The real draw back to this card is that you have a monthly bill and you are required to make at least the minimum monthly payment. And only paying the bare minimum on your card account will only sustain a balance for years to come.

Next a look at a bank debit card. For the most part, these cards are generally linked to your checking, savings or other account that allows you to withdraw a pre set amount on a daily basis. The best aspect of this card is that it is widely accepted as both a credit and debit card. However, you are paying for goods and services as you go with a direct debit from the aforementioned accounts. Normally there is no charge for this service from your bank unless you overdraw your account with purchases. Then you would have to pay a Non Sufficient Funds Fee. You must be careful as to make sure you are able to keep up with your balance at all times. The one draw back to this would be when you purchase a item on a debit card and ask the merchant to run the card as credit. Be careful here as not all credit transactions post immediately to your account. This can cost you a lot of money in NSF charges.

Lets review, Credit cards are costly and you must be prepared to make a payment, at minimum each month. Interest rates can become overwhelming if you fail to abide by the terms and conditions the bank sets forth in the signed agreement.More important is your ability to repay your debit. Failure to make one payment on time can result in your credit score dropping around 25 to 30 percent. Now debit cards are much easier to use, are in the form of a credit card and can be used as a credit or debit card. The upside of this card, no monthly payment or interest rate to pay. The down side is you must keep track of your balance this type card is attached to. However, over the long term even if you had to pay a few NSF charges you would still come out ahead financially and save a lot of money alone in interest charges. This makes the Debit vs Credit card a better value for the consumer.

Money Guy

Living On A Cash Only Diet

noreply@blogger.com (Money Guy) — Wed, 09 Dec 2009 18:16:00 +0000

I stumbled across this article today, Living On A Cash Only Diet, and wanted to share it with you. I highly suggest reading this article as it shows how people are changing the way they spend money . Especially, using credit cards. We must understand that credit card companies do NOT want you to know or understand just how financially a burden they reap on your personal finances . Why should they, after all they are making billions of dollars a year off interest alone.

In this article, you will meet 4 people who were able to change the way they spend living on a cash only diet. They all realized one thing, that is being in debt thousands of dollars to credit card companies had to stop.

Here is the Article link : CLICK HERE

After you have read this very informative article, ask yourself, can I make adjustments and pay off my credit card debit ? You bet, and it all starts with making a solid commitment to yourself, family,credit and living on a cash only diet!!!

Money Guy

New Credit Card Laws

noreply@blogger.com (Money Guy) — Sun, 06 Dec 2009 23:25:00 +0000

Evening, I ran across this video and wanted to share it with you regarding the new credit card reform. The host is Susie and she really gets fired up about what these company's are doing to everyone with a credit card. My advice is to watch out these compaines know they are now going to lose or are they?

No they are not !! Now watch this video and you will learn how these companies have already found a loop hole to beat the new laws. Yes, they are already raising the rates and doing it a different way which the new laws co not protect you on.

With this now in mind you must ask yourself , Are these new laws really going to protect me from the credit card companies ? Yes and No, In fact the only real protection you will get is in the billing and notifications by the issuing card company. As far as the rates are concerned, due to the way they are adjusting to a adjustable rate, similar to a mortgage, they can still keep your rates on the high side. In my opinion our legislators still have not fixed the problem. Would you not agree! This calls for more credit card reform so dont waste your time write your congressional representatives and voice your concerns NOW !!!!!

Minimum Payments On Credit Card's

noreply@blogger.com (Money Guy) — Fri, 04 Dec 2009 22:46:00 +0000

The one thing that I want to stress the most is Credit Cards. To and extent these pieces of plastic need to be merely a backup and do not depend on them for your everyday use. Learn how to use them in only emergencies or only when you can pay the entire balance in full each month. Pay with cash and save your credit ! Remember, if you do maintain a balance on your card make sure it is no more than 25% of the issued credit limit. For example, if your have a credit limit of $1000.00 dollars. You should not carry no more than a maximum balance of $250.00 dollars. When you carry a balance over the 25% mark, the new credit scoring system will lower your credit score. This in return can cost you more money if you apply for a new loan.

Banks are not in business to help you. They are in business to make money off of everyone they can convince to sign the dotted line. Most importantly our society has accepted the fact of getting our statements in the mail and only looking at the minimum payment due. If you only pay the minimum payment each month more than likely you will still be paying for purchases long into the future. In fact, you may retire still owing a large balance on the account and never pay it off.
Here is a good tool to use that will provide you with an understanding of how important it is to pay down your credit card debt! CLICK HERE

Money Guy

Credit Basics 101

noreply@blogger.com (Money Guy) — Wed, 02 Dec 2009 17:32:00 +0000

Welcome to my thoughts and perceptions on credit in today's economy. Not all of us are fortunate enough to have a good credit rating (score). With the economy in a down turn and good jobs very scarce many have resulted in a higher unemployment rate, bankruptcy, and not to mention foreclosures. It is no wonder that our economic outlook is bleak. Many Americans are faced with damaged credit and now must pay a higher unreasonable rate to even obtain the credit that they can get. Is this really fair? No, by no means, however this is the way our society functions ang prospers both in good and bad times.

I wanted to share a credit basics 101 with you and help you understand thatbeing down now can be short lived and there are ways to fix your credit. Many of us often ask, Can credit repair organizations really fix the problems? Yes and No, Repairing credit is no easy task and often many companies claim that they can fix your credit immediately. Before you chose anyone to help you I would strongly look at repairing your credit yourself. No, its not fun but why shell out a load of money that you dont have in the first place when you could take what you would pay these companies to help you and pay down your debt.

Here is a look at a 15 minute credit repair overview that will take you more in depth into credit repair 101.

CLICK HERE

I welcome all comments and questions!

Money Guy