Investors are always looking for ways to make their money work for them. We should all learn a thing or two from them about that. It makes no sense to keep your money under your mattress. Putting your money in a bank account isn’t that much better either. Sure, it’s safer, but you’re losing money, as $100 now won’t buy you the same amount in a few years, due to inflation.

So what are we to do with our extra money? How about an interest earning online savings account? Years ago this was a popular option, as rates were at over 5% for a fully FDIC insured account. But now you’ll be hard pressed to find anything higher than a measly 1%. CD’s (certificates of deposit) are at about the same rate too. How about the stock market? Well you won’t have any luck there, as overall the stock market has been going down and is extremely volatile.

With interest rates at an all time low and a bad economy hurting businesses, it has become difficult to earn a return on your money. Yet investors are still finding a way to make money. They are doing it via peer to peer lending.

Peer to peer lending companies like Lending Club offer loans ranging from $1,000 to $35,000 and investors can fund the loans. As an investor, you can choose to invest as little as $25 per loan. This means that you are spreading out your risk across many different loans. So if someone defaults, the interest earned on the other loans will make up for it.

The loans offered are 3 or 5 year loans with interest rates ranging from about 7% to 20+%. The higher the credit score the lower the interest rate. With banks tightening their restrictions many are finding p2p lending sites as their last recourse. By eliminating the need of a central bank, Lending Club can offer lower rates. It’s a win-win for everyone involved.

Typically borrowers use Lending Club to consolidate their debt into one payment at a lower interest rate. It makes sense that if someone has three credit cards at 20% interest that it would be wise to pay all of those off and just get one new loan at a lower rate. Others use the loan to do major home upgrades, start a new business or pay off medical bills.

While it sounds risky to invest with complete strangers, Lending Club says that only 3% of their loans default and they only approve about 10% of all borrowers. A good strategy for a beginner is to start small, invest only $25 per loan and only invest with those with pristine credit scores. So if you have some extra money laying around, get it out of the mattress and into Lending Club.

Those who are frugal know a thing or two about saving money. Those who adhere to the frugal lifestyle are always looking for ways to keep more of their own money in their pocket. Every moment of every day they are naturally doing things that save them money. Being frugal is just a way of life for them. Here are some ways that the frugalists manage to save money.

Cans, Bottles & Paper

Frugalists are very good at recycling. Maybe not even for the sake of the environment, but for the sake for their wallets. Every time you buy a can of Pepsi you’re not just paying for the drink, you’re paying for the aluminum as well. So get some of your money back by saving your cans and taking them to a recycling center. You can do the same with plastic water bottles and in some places even paper. Imagine that, just keep your junk mail and newspapers and you can recycle them and even get a couple of bucks out of it.

Re-Using Items

You can find alternate uses for countless items. Let me give you a few examples. If you buy a new pair of shoes, don’t throw away the box. You can use the box to store old postcards, baseball cards or use it to store your shoes. If you buy a jar of pickles, don’t throw away that jar. Once the jar is empty, wash it thoroughly and remove the label. At this point, you can use it to store food items like almonds, rice or spices. You can also use it for decoration and add a plant or marbles in it. Finally, if you go to the store and they give you some plastic bags, use these in your trash cans rather than buying trash bags. You can also use plastic bags as dog waste bags. Next time you go to the store you can take the bags with so you won’t have to ask for any more bags.

Cell Phone Recycling

Cell phones really take a beating, which is why you typically replace your cell phone every couple of years. It’s’ no surprise why we need to upgrade. We stick them in our pockets or purses and use them constantly throughout the day. They hardly ever are off which means they don’t last you too long. Since cell phones are always in your pocket or purse, they get scratched by your keys. Not only that but with the way technology is advancing your cell phone becomes outdated soon after you buy it.

When you replace a cell phone, some throw their old phone away and buy a new one. But the frugalists don’t dare do such a thing. Those who are frugal know better. There are companies that will accept your old cell phone and recycle it for you. They won’t just keep the toxic chemicals from inside your cell phone away from our environment. They will actually pay you for your old phone. With a service like this, I know I can sell my phone to free up space, help the environment and get paid too.

If your cell phone is a popular phone and is relatively new, you can expect to get a good chunk of change. If your phone is a bit banged up they may fix it and sell it as a refurbished phone. Eventually your phone may end up in the hands of someone from a less developed country who can’t afford to buy a new phone.

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If you’re thinking about buying a house, you would think that it’s wise to sell your current house first before buying a new one, but there are some drawbacks to this option. Here are a few reasons why you might want to think twice.

Renting

Once you sell your home you have nowhere to live and because you have yet to find your new home, it is likely you will need to rent after the sale of your old home, while you look for your new one. This is not only an added expense to consider, but you also need to think about the inconvenience and the disruption to your family life of moving twice in a short period of time. You’ll also need to sign a lease for a predetermined amount of time and you could find a home before the end of your lease, but have to pay out the remaining term anyway.

Storage costs

If you are renting while you look for your new home you will probably look for an affordable home, which is likely to be smaller than your old home. As a result you may need to put a lot of your belongings in storage. Consider this cost, as well as the effect of not having access to all of your possessions for a time.

Buy now

You secure your dream home. If a property fits the bill as your dream home then chances are other buyers will see it as their dream too, and when there is a perfect property on the market, it doesn’t stay there very long. Therefore if you are willing to buy before you sell then you can secure your dream home without having to settle for second best.

Buying a second home is a huge decision so take into account the pros and cons and choose the option that has the less risk and least negative financial impact on your family. If you need help in deciding, you can look at the pros of selling your home first on this previous blog post.

- Pay your credit cards off. Nothing drains your finances more than high interest credit card debt. Consider getting rid of your cell phone, cable/satellite for a few months to pay off your cards.

- Improve your credit rating. Pay your bills on time and your credit score will go up. Next time you need credit,  you’ll get a lower interest rate.

- Buy it used. Buy used books and used movies. You can find these on ebay or amazon for just a couple of dollars, there’s no point in buying these items new.

- Quit drinking beer and smoking. Not only are these things highly unhealthy, but they’re expensive (heavily taxed) and are addictive as well.

- Downgrade your TV options. See if your carrier offers cheaper plans with less channels.

- Don’t drive too often. Discover your community. Find a local park or a local grocery store to cut the fuel costs.

Back in the days when credit cards were a luxury, layaway was the easiest way to pay for large-ticket items or multiple purchases that couldn’t be purchased at the time with cash. Weekly or monthly payments were required by the retailer to maintain the items in lay-away. But layaway has made a comeback with so many American’s living hand-to-mouth while still hoping to provide the extras for their families or for a happy Christmas morning.

According to the About Group’s ConsumerSearch.com, more than seventy percent of consumers are open to using a layaway plan in the next six months. There are both positive and not so great reasons to consider using layaway. Here’s the scoop:

Fees for Layaway Plans

For consumers who chose layaway, whether for lack of cash or credit, it’s important to know what fees you’ll be paying to use a service. Most stores assess a $5 service charge on all layaways, with variables in the length of the agreement from 30 to 90 days. Layaway plans over sixty days are usually reserved for bigger ticket purchases. Down payments of 10 to 20 percent are required. If you don’t pay off your layaway by the deadline, you’ll be charge a cancellation fee of between $10 and $15. For a detailed explanation of how layaway works visit Wikipedia’s layaway page.

Negatives about Layaway

The biggest complaint against layaway, are the fees charged by the retailers for using the service. There is a charge to put an item on layaway, a charge if you need to cancel, and even worse, some may only give store credit, if you need to cancel or are unable to pay it off. When you consider the fact that layaway is often the last chance for low-income people to provide for their families, for people who are already living on a shoestring, the fees can be seen as gouging.

The second issue is one that many people may not consider and that’s the price freeze that is established once the items are placed in layaway. Unless you’re adding items over time as they’ve gone on sale, you’ll end up paying the highest price for those items. To get the best deals, buy items over time with cash, as they go on sale, that’s just plain smart money management.

Good Reasons To Use Layaway

It’s easy to see that paying over time, without incurring credit card debt, is a plus for layaway. There’s also a better sense of what you’re spending when you visit the store to make a payment, knowing that you will not receive the merchandise until the balance is paid in full. Layaway also gives people who lack a credit card the opportunity to make payments toward big purchases.

As a freelance writer for popular finance blogs and websites, Noreen Ruth provides readers with the most up-to-date information on credit, debt and other financial issues. Her goal is to help educate consumers about topics that may impact their ability to manage their credit/debt responsibly. Noreen shares tips on how to (understand credit cards, compare and apply for a credit card, manage credit card debt, apply for debt reduction help, etc.), in addition to reporting on the latest credit and debt news from government and other reputable sources.

Often times when people are trying to fix their credit report, they pull up their report a few times and wonder, do these types of credit inquiries hurt my credit score? Here I’ll try to answer that question and thus clear up some misconceptions. You see, there are two kinds of credit inquiries, there is a soft credit inquiry and a hard credit inquiry. One impacts your score negatively while the other one doesn’t.

A soft credit check is when you check your own report or when someone accesses your report without you initiating the look up. Examples of this include when your employer does it, utility company does it or insurance company does it.

A hard credit inquiry happens when you’re applying for credit. Examples of this include when you’re applying for an auto loan, applying for a mortgage or applying for a credit card.

For many who are young (16-21 years old), getting credit is almost impossible. The reason is that they haven’t yet established a long credit history. So a car loan company or mortgage company will be wary to loan someone tens of thousands of dollars when they have yet to prove their creditworthiness (I can’t believe that’s a word). So the task is to build up your credit. One great way of doing that is with secured credit cards.

Here is how secured credit cards work. You deposit funds into your credit card account. That amount you have is your credit line. You can then use whatever balance you have to make purchases. There is little risk for the credit card company, since they’re not loaning you any money. These cards are extremely easy to get approved for and are great for a young person to build up their credit. Not only that, but you can even earn a little bit in interest from your balance every month.

The cost of accepting credit card payments can be expensive, frustrating and time consuming for a small business and especially for those just starting up. A percentage of each purchase and a transaction fee are paid to the credit card company, in addition to the cost of a phone line and of leasing a card reader.

The technology that turns cell phones into credit cards is already being used extensively in Europe and countries across the globe. The holdout in the U.S. has been the cost of replacing the current credit card readers with the new smart-phone terminals.

With the introduction of services like Square and the proliferation of cell phones and providers, it may not be long before credit cards are a thing of the past, especially when you consider the advantages for both consumers and retailers. Look for major companies like Google, T-Mobile, Verizon and AT&T to jump on the bandwagon to develop their own technology.

Convenient for Consumers

With the free Square app installed on your phone, simply choose which bank account you want to make the purchase from and make the payment with a contact-less wave over the Square reader. Once the transaction has been authorized, an email or text receipt will be sent to the customer. Keep track of all your transactions, deposits, purchases and refunds by simply logging into your Square account.

Savings for Retailers

By eliminating their current charges – a percentage of purchase price, a transaction fee and a minimum monthly charge, retailers will see a substantial savings. The new systems will simplify the cost by charging one straightforward fee per transaction, currently 2.75%. There are no hidden fees, contracts, maintenance fees or charges for the Square reader. Both credit and debit purchases can be accepted through Visa, MasterCard, Discover and American Express.

Noreen Ruth is a freelance writer who has provided hundreds of articles on multiple websites including a credit card blog. Her articles educate consumers on debt management, loans, credit cards and other financial topics. For additional information on the best credit cards, visit asapcreditcard.com

For years financial experts have claimed that carrying around cash as opposed to credit cards is an effective way to save money—it prevents consumers from blindly going over their personal spending limits. But if powerhouse tech company Google has anything to say about it, a different method of payment will actually be the key to help consumers save: swiping your smartphone.

Late September Google officially launched Google Wallet, a digital “wallet” that allows users to make purchases by tapping or swiping their touch screen cell phones. Although there is a slew of mobile wallets in-the-making, Google Wallet is the first-of-its-kind to hit the U.S. market. While the new technology is still in its infancy stages (and is only available to Sprint Nexus S 4G phone owners for now), it’s a technology that if widely accepted by the masses may just render cash, credit cards, and tangible wallets obsolete, according to tech experts. And aside from the obvious—never having to buy an actual wallet ever again— like stated previously it can actually help consumers save tons of money. To find out how, continue reading below.

1. Access to Exclusive Coupons. Upon downloading the e-commerce app, Google Wallet users will also gain access to Daily Deal, a feature similar to Groupon. What it does is offer one-of-kind coupons and promotions to consumers for items that he or she “typically” buys. This means you may get a pleasant surprise and get a few cents off your purchase. This also means less coupon-cutting from circulars or scouring through websites for online coupons before you shop.

2. Keeps Database of Vouchers, Reward Cards. What’s also neat about Google Wallet is that it consolidates all of your reward cards and other vouchers you may have in one place and automatically uses them whenever you’re at the checkout counter. This means that you’ll never have to worry about forgetting to scan your rewards card and miss out on some great in-store instant savings.

3. Provides Product Info on Demand. Google Wallet also has a special feature that allows consumers to quickly find out more information about a product they are considering purchasing. This feature alone may just be what some consumers need to avoid buying a good with a bad reputation and/or from making impulse purchases.

4. Allows you to Pay Exact Amount, Even with Group Bills. As much as you love going out with your friends to semi-fancy dinners, large groups of people typically mean no split checks. That means you may end up paying $40 for your $26.58 meal because you only have two $20 bills in cash. With Google Wallet however, you can pay the exact amount. All you have to do is “bump” phones so that each of you can pay your own portion so no one gets jipped. Of course, you’ll need to factor in tip.

5. It Keeps you Organized. Last but not least, Google Wallet can help consumers stay organized which in-turn can help you save tons of money. First of all, you won’t risk losing loose change (coins can add up substantially). Secondly, you’ll receive e-receipts instead of paper ones; this means you’ll be able to keep track of your purchases more effectively and will be able to get your money back and make returns with more ease when/if needed. This also means that you will be able to find the proper documentation to claim warranties as well.

Mariana Ashley is a freelance writer who particularly enjoys writing about online colleges. She loves receiving reader feedback, which can be directed to mariana.ashley031@gmail.com.

As capitalist societies brace for a double-dip recession, many consumers and small businesses are experiencing difficulties obtaining credit. While applicants with relatively good credit histories are struggling to find affordable lenders, those with poor or non-existent credit profiles are finding the task extremely difficult – but not impossible, as the guide below will explain.

A credit rating can be defined as a numerical expression of an individual’s capacity to settle debts: a measure of risk that is used by lenders to decide whether an application for credit should be approved or rejected. Obviously, an applicant who has a poor credit rating is less likely to be approved for a loan, credit card or mortgage than an applicant whose credit history is good or excellent; however, it should be noted that a good or poor credit rating is not always the deciding factor in an application for credit.

There can be many reasons why an individual might have a poor credit rating. Typical causes include defaulting on past credit agreements and bankruptcy, while County Court Judgements (CCJs) and other legal notices can be placed on a credit profile for a number of years (usually up to six). Shaking off a history of bad credit can take a considerable amount of time and effort.

Poor credit ratings also can be caused by having no credit agreements in place over a certain period of time. No evidence of a credit history is sometimes worse than evidence of a poor credit history, but in either case the consequence for applicants is the same: applications for credit are usually rejected. Overcoming a poor credit history can be a Catch 22 scenario for people whose failed loan and credit card applications merely serve to worsen an already dire credit profile, thereby reducing any hope of obtaining ‘good’ credit.

Good credit is not everything, however, as there are reasonably reputable lenders in existence who make a business out of offering credit options to people with bad credit histories. The only problem with this is that credit options of this kind are invariably subject to high rates of interest and very low borrowing limits. One way or another, people usually end up paying a price for questionable credit decisions made in the past.

Credit cards designed for people with bad credit ratings will not be subject to the same rates of interest as standard cards, which typically range from 6 to 19 per cent APR; in fact, even cards with interest rates between 20 and 25 per cent might not be considered `bad credit` credit cards. In most cases, people who successfully apply for bad credit credit cards can expect to pay interest rates of between 30 and 50 per cent.

Bad credit lenders include Capital One (Progress), Barclaycard (Initial), Aquacard and Vanquis. These providers vary in terms of eligibility and lending criteria, but most accept people with poor credit ratings. Although the high rates of interest and relatively low credit limits might put off many people, those with poor credit histories can use such cards to rebuild their credit profiles. After a year of making monthly repayments on time, a person`s credit rating is likely to have increased markedly – so the high interest rates and low credit limits are of secondary importance to the opportunity to improve a credit profile.

Finally, people who are turned down for credit cards and mortgages may wish to consider a loan for bad credit. Although subject to high rates of interest, any such loan can help to improve finances in the short-term whilst serving to rebuild a credit profile – providing, of course, repayments are satisfied in full and on time without exception.