Category Archives: Credit

Managing Your Personal Finances Starts With Your Credit Card Debt

Not taking care of your personal finances in regards to credit cards can negatively affect you, both physically and emotionally. You need to do a lot of your research so that you don’t mess up your current finances or even your future. There are some tips listed below to help you start taking care of your personal finances.

Credit card debt is a major problem in United States. Nowhere else in the world experiences it to the extent we do. Keep yourself out of debt by only using your card when you have money in the bank to spend. Alternatively, get a debit card instead of a bank card. To establish a good credit history or repair a bad one, you will want to keep your bank card balances low. You should never let your balance get anywhere near your maximum credit line. Having reasonable balances that you pay off regularly is a sign of a responsible user who can be trusted with debt.

Use your favorite cards regularly if you don’t want to lose them. Bank card companies may close or reduce credit limit on inactive or unprofitable accounts without advance notice, which may negatively affect your finances in the future. Use them regularly and pay off the balances to stay out of debt.

Pay off high interest ones as soon as possible. The interest charges will eat you up and cost you more in the long run.

Always make sure that you’re reading the fine print on any financial contract like a bank card, home loan, etc. The way to keep your personal finances running in the black is to make sure that you’re never getting snagged up by some rate hikes you didn’t catch in the fine print.

Eliminate all the credit cards except one. Use this one only in emergency and not on items you don’t have money for. Spending money you don’t have is a sure way to get yourself into more debt.

Contact your bank card company and have them lower the limit on your card. This helps you two fold. First, it keeps you from overextending yourself and spending more than you should. Second, it sends a message to the card company that you’re being responsible by making sure you can’t overextend yourself.

For those individuals that have credit card debt, the best return on your money would be to minimize or pay off those credit card balances. Generally, credit card debt is the most expensive debt for any household, with some interest rates that exceed 20%. Start with the credit card that charges the most in interest, pay it off first, and set a goal to pay off all credit card debt.

The Credit Preview for Equipment Financing and Leasing

Many companies have been affected by the fluctuations in the economy the last couple of years. Sales would surge one month, completely go flat the next and it has been difficult for many of us to manage cash flow and the repayment of debt. Company and small business credit has taken a hit and damage has been done, yet we still push forward to improve our businesses and try to grow them into the future. The situation makes us hesitant to take on new debt or try to finance new equipment even though it is absolutely necessary if we are to survive. New equipment will allow us to offer the latest product or services or simply keep up with the growing market trends in our industries.

It’s time to apply for that new machine but we cringe at what the procedure might reveal. A solid solution which many progressive finance companies are offering is called the Credit Preview; it is a step which can take a lot of pain out of the application process. A preview doesn’t cost you anything and will provide valuable information on the condition of your company.

The Credit Preview entails taking your basic minimal business and financial information and reviewing it to determine if there is good potential for a finance approval without requiring all of your tax returns, financial statements, debt schedule, etc. It will save you time, stress and energy since the preview will offer quick feedback on the chances of getting approved. Finance companies understand it doesn’t make sense to dig out 2-3 years of financials if your business has no chance for the type of approval you’re wanting.

A standard Credit Preview only requires the following:

1) Credit Application – should be completely filled out, legible and be sure to sign

2) 3 months of current bank statements – all pages should be included since the underwriter is trying to determine the money coming into your business

3) Vendor Quote or Proposal detailing how much equipment, labor, etc. is involved. The underwriter wants to see how much “soft” costs like labor and consultation is part of the purchase as opposed to “hard” costs like equipment and machines.

That’s all that is needed. The Credit Preview process will provide a much better analysis than those online “quickie” finance credit reviews which only checks your credit score; the preview checks 8 different areas to get a true picture of where you stand and how to move forward. Even with damaged credit, at least you will know some of your alternatives.

Simple Ways to Manage and to Limit Family and Personal Credit

Experienced shortage of money? Have difficulties in managing your credit? You are one of those who had trouble with their credit.

Credit is a byword everywhere because seldom can you find a person who do not have any form of credit. It is sometimes beneficial provided you know how to manage and to set limits to your personal debt, otherwise, you will be caught off-handed and experienced budget deficits and shortage of funds. This problem can only be solved through careful planning and management of one’s credit and finances.

Credit management implies a lot of things to companies and individuals alike. To some it
means the imposition of policies and rules aimed at mitigating and reducing the debt, while to others it means avoiding extending credit terms to bad debtors.

Despite the difference in meaning, it only means one thing, that is, the management of one’s finance to reduce and to manage personal debts. It takes a lot of motivation, dedication and courage to control one’s finances.

To regain financial stability, pay your debts and loans on time because your credit record is not only affected by the amount you pay, but also on how quickly you pay them. Most often, late payments of loans and credits had their associated interest fees, the greater the amount borrowed, the greater the interest once you defaulted on them. Good credit score is important in obtaining financing from banks and other financial institutions.

To control your monthly expenses, develop a budget scheme to save money and to set aside payments for outstanding bills. Prioritize payments for important items, like food, medications, education and gasoline. If you plan to have a vacation or a holiday, set aside money ahead of time. Most important of all, save money for emergencies.

Reduce your interest obligations by monitoring the interest rates of your credit cards, mortgages, personal loans. Make sure that interest rates are not above 12%, otherwise negotiate with your creditor to get it lowered. If it hesitates to lower the rate, transfer to another financial institution that has lower rate. Monitor and pay your interest obligation monthly.

When paying for interest rates, pay first those with highest interest rate and largest debtor because it will give you best satisfaction.

Before applying and committing for a loan, know and understand the credit agreement, interest rate and terms offered. Select those that has the smallest term and fixed interest rates.

If you fail to pay your loans and creditors hunt you, take time to call them and ask for extension or credit workout scheme. Majority of them want to work with you to get things sorted out, rather than bring the matter to court.

If you have defaulted on your credit cards, call the credit card company and ask for their assistance. Ask them and negotiate to reduce your interest rate. Some firms are willing to decrease the interest rates because they do not want you to default on your loan and they want to get the principal amount back.

If all steps failed, always make it a point to consider debt consolidation or consumer credit counseling agencies your last resort. Some of these companies can help you by offering debt reduction plans to help you pay your debts.

Simple Guide to Understanding Credit Card Debt Management

You have a credit card for every need! You have the personal one; the corporate one; and, you even have one for your college student. Such a variety of carefree spending choices! That is, until the billing statements start arriving. What did you get yourself into? It is time to take control of your finances! Credit card debt management is the road to a debt free life.

The average consumer has between 3 and 8 cards. Where do you fit in? How many do you have? Are you using one card to pay another card? If you are at the point of considering credit card debt management, you more than likely answered yes to both of the questions. It is time to get control of those cards – it is time to retain the services of a management program. The first thing you need to do is decide which of the various credit card debt management programs is for you. This may take some time, but it also took time to get into this financial disaster. These programs are usually designed to address your unique needs. Determine what your needs are.

Evaluate your financial status:

* Monthly income – Does it vary from month to month or are you salaried?

* Monthly expenditures – Determine your fixed expenditures. Subtract this amount from your monthly income – what are you able to pay towards bills?

* Are you “robbing Peter to pay Paul” when paying your bills?

* How much are paying just to meet the minimum requirements for each card?

* Determine your spending habits.

Calculators:

* Debt Payoff Calculator

* Debt to Income Ratio Calculator

* Interest Calculator

Now you are ready to find a credit card debt management program that will works for you. There are an endless number of such programs and organizations available. Each has different payment arrangements, fees for services, and time frame for debt relief: explore your options.
Can you gain control of your debt without the services of such programs?

* Cut up the “extra” credit cards; especially the high APRs and variable APRs.

* Apply for a personal loan.

* If you are more than 6 months behind in payments, negotiating with the credit card yourself.

Counseling

* Organizations providing professional counseling services. Help you gain control of your finances by teaching you responsible spending practices and budgeting.

Negotiations

* For those who do not have the cash to negotiate settlement offers themselves. Company sets up an account until funds needed for settlement are reached.

Credit card debt consolidation loans

* Loan designed to pay off debts by consolidating into one payment.

With so many options available, you will be able to find a great one. Categorize options and match your needs. Relief is on the way.