Prime Rate Credit

Well, I’m not really sure sometimes if reading these help yourself, millionaire-aspiring types of books if helpful to the ego or the self perception, and this is one of those examples, although I will say that it has made me realize that if what they say is true, and the calculation they have you run to see what your “net worth” should be at a certain age is correct, then I’m more than a little behind - along with most of the world!

According to the popular best selling book “The Millionaire Next Door”, their equation for what your net worth should be is your age, divided by ten, then multiplied multiply that by your yearly income. The number I came up with makes me fall about 50% short, maybe a little more than that, however it doesn’t really account for all variable either and is just a simple equation.

What I mean is, does that really mean that I have to have that amount saved to live the same or a better lifestyle that I’m living today when I retire? And what about if my salary that I pay myself has gone up incrementally higher every year? Am I punishing myself for those years that I wasn’t making nearly what I make now? So, if my income went up 30% in one year, I’m still sticking myself to that high number that I should have because this last year I happened to make a lot more money than I had in the past few, and was then able to save a lot more?

While I do have these questions, I still think the books’a good read and really drives home that the people who become millionaires are the ones with self discipline who don’t just spend every cent they make. Saving and investing are pounded into your head again and again, and rampant consumerism is definitely discouraged by the authors, which I agree with and am striving to become more like, because I don’t know about you, I’d like to live the same lifestyle I do now or better in my golden years, and maybe even be able to help out some family members or friends here and there if I can.

Parents send their children to college to become prepared for a better job and be financially independent and stable. Along with educating our youth through college credits, parents need to educate them on using credit responsibly.

When college students are applying for credit cards, parents should teach them to look at the annual percentage rate and the method of calculating their balance. Encourage your teens to read all of the terms and conditions for the credit card they are applying for. Compare with all of the other credit cards and make sure they are getting the best card for their situation.

Remind teenagers that the tendency to overspend when using credit cards must be guarded against. Caution them about keeping their spending well below their limit. Also discuss that the interest rates are always high on borrowed money and will become unmanageable in a short period of time if credit is overused.

Discussion about the need to pay the balance in full each month is important. If the teen is unable to pay in full, at least encourage payment of more than the minimum amount each month.

Another important point to educate your teen about is the importance of paying the bill on time. Failure to do this will result in a bad mark on their credit record. Explain to your teen the importance of keeping a clean credit history.

Educate your teen about the ways that a positive credit history will help them to get around in life. The ability to rent an apartment, get a cell phone, buy a car and even get a job are all effected by their credit record.

Taking financial responsibility is as important to a young adult as the college degree they are earning. It is an extremely valuable lesson in life that will help them to succeed.

I was perusing this website which helps its clients clean up their bad credit by using a systematic approach of working with creditors and helping you to stay on track by tracking your progress and negotiating possible lower rates to get the credit help they need. I had to go through such a program years and years ago, and I’m so thankful that I did it now, because looking back I really feel that I lacked the wherewithall or knowledge that I was given to have the power to clean up my bad credit.

The website I was looking is for credit repair, and they have a solid knowledge of the best way to go about cleaning up bad credit and getting people back to good financial standing so they can quit worrying about high interest debts that seemingly never get paid off or even paid down significantly enough to releive the burdens they put on people’s lives and relationships.

If you find yourself in this boat, constantly struggling to make the minimum payments every month on high interest revolving debt, and choaking on high interest rates and payments that never end, I suggest you take a look at any of the provided links as they are an established company who has helped many people repair their bad credit and get back to somewhat of a financial freedom through solid debt management and elimination.

Ah, can you feel the relief already? Trust me, it’s a huge load off so it’s worth your while to look into a reputable source for helping to get your credit in better shape.

I always thought it funny when I’d hear financial wizzes and others that thought they knew a lot about finances say there is a difference between debts. I always thought all debt was “bad”, but apparently there’s been a line drawn and there is such a thing as good debt and bad debt, and true enough, one kind of debt is a much better debt to be in, but I still always thought, wouldn’t “no debt” be the best for everyone involved?

Well, yes, of course, we all know that not being in any debt would seemingly be a God send to our lives and allow us to live in peace and ever lasting harmony with the world, but even being in no debt at all can have it’s pitfalls when it comes to lenders taking on your risk if you want to buy something large. If you’re a millionaire, sure, you may be able to buy things outright, but even most millionaires incur and maintain some kind of debt. Whether it’s a mortgage, or a loan to build something, or loans to buy other things, good debt and bad debt exists no matter what part of the income sector you consider yourself to be a part of.

Good debt can be things like school loans, mortgage loans, and loans to build homes and add on to your home. Good debt is basically a debt that’s typically not revolving debt, like with credit cards and other lines of credit, and is, in some way, going to pay you back. For example, school loans are low interest, and your payback is a good education, more marketability as an employee, and most likely higher pay in the jobs you will end up seeking.

For mortgages, pay back is the fact that homes usually appreciate in value, and properties usually appreciate as well, making it a “good investment”. Also, mortgage loans are usually considered fairly low interest, and also the mortgage interest is tax deductible. Sure, you pay all your interest up front, but you’re getting something in return in the end.

Credit card debt is the biggest no no in debt these days, and usually credit card debt, which is revolving, is higher interest, and is used to buy things that don’t appreciate in value, nor do they really “pay you back”, unless you’re using them to start a business, and this is really your only means of financing certain things to start that business. How much good and bad debt do you think you have, and can you label all of your debt? Hmm….

Credit ratings serve the purpose of evaluating the credit worthiness of an individual or a business. A credit rating is assessed by your current assets and liabilities and your financial history.

Credit ratings are used to inform a lender the probability of an individual or business paying back a loan. A credit rating is determined from a credit history that is put together and maintained by credit bureaus. In addition to credit ratings to determine credit worthiness, there is a 3 digit credit score that is defined by an independent financial services such as FICO which stands for Fair Isaac Corporation.

This information affects a person’s or company’s ability to borrow from financial institutions. Credit ratings also can effect the amount needed for a deposit on a utility or rental, the amount of interest on a loan and even eligibility for employment.

Credit ratings from FICO range from 300 to 850. The higher the number, the better your rating will be. Since having a high credit rating works in your favor financially, every effort should be made to improve your rating.

There’s a variety of steps you can take to improve your credit rating. Register to vote as this shows proof of residency in any credit searches. Opt for a fixed land line for your telephone and use this number on any applications for credit. Staying with the same employer, bank and residence for a long period indicates stability.

Time applications for credit, cell phones and insurance so they are further spaced apart. Too many applications for credit close together can negatively impact your credit rating. If you have credit cards you are not using, cancel them. This will lower your credit available and positively effect your credit rating.

If you have no credit history, you can build a good credit history by obtaining a credit card and putting a small amount on it each month then paying it off in full. This way, you’ll avoid interest and, after 6 months to a year, you will be on your way to building a good history.

If you marry and your partner has a poor credit history, it won’t effect your rating unless you have joint bills. You can keep your finances strictly separated and your credit rating will not be adversely effected. If you’ve split up with someone, let the credit agencies know about the “disassociation” so your ex-partner’s credit can’t effect your future finances.

If you’re like most American families, it seems as if there’s never enough money to stretch from paycheck to paycheck, let alone put something into savings for future use and interest growth. There are some tips on saving money or, at least, items you can assess to see if they’re worth spending money on or an area where you can conserve.

Start with the most constant source of absolute need that strains your paycheck the most continuously, the grocery shopping. Ask yourself if you’re shopping at the most expensive store and if you can fill in on certain items at the cheaper, discount style grocery stores. Comparison shop for similar items at different grocery stores to discern which items are less expensive at certain locations. You may find you’re saving between $10.00 to $30.00 per week by doing this without denying yourself proper balanced nutrition that is still tasty.

Look at items that may be incurring extra service or late fees. Certain bills, such as utilities, may have an added fee if they’re paid after a particular due date. If your insurance payments for either your car or home are on monthly installments, you may save about $5.00 or better per month in service charges if you switch your payment to direct debit from your checking account.

To keep energy costs in check, adjust your thermostat to the lowest possible setting, in the winter , that is agreeable with the family. Wear sweaters and layers indoors. Insulate your house well, especially the attic where most heat is lost. Check windows and doors for air leaks and heat loss and caulk accordingly.

In the summer, try using fans to cool you when it’s uncomfortably hot. Use your air conditioning sparingly for the exceptonally hot and humid days. Maintain your car well. Oil changes done frequently and other maintenance procedures will extend the life of your car appreciably. These minor expenses will cost you far less in the long run.

Shop for clothing at the end of the season to get the best bargains. Look for classic styles that won’t be considered out of fashion by next year.
Talk with your spouse and family members about conserving money and budgeting and work together on a plan. Maintaining a budget takes a team effort within families to make it succeed. It will decrease stress on the family unit dramatically if you can keep your debt down and save something for your future needs.

In the age of increased cyber awareness, it’s a wonder that online identity thieves still find it worthwhile to send out what are called “phishing” emails to get people to unwittingly give up their personal information, credit card numbers, and bank routing and account numbers over the internet and have hundreds if not thousands of dollars stolen from them.

But there is a reason these phishers still do it, because it is still a profitable enough business and they’re still getting away with it to enough of a degree to make money at it. You may think, well who could fall for those phishing email scams?

Well, there are still a lot of people, many times not as internet saavy, many times older folks who simply haven’t had the same amount of experience online and with the new world of emails and online business, who may fall into this trap, but there are also younger people who fall for very high tech scams that seem so real, you and I might even take a second look.

For example, one day I received a Wells Fargo email asking for me to confirm some details about my account before it was officially “open”. And guess what the ironic part was? I actually am waiting for a Wells Fargo Business account to be opened right now, and thought this was real at first. The fact that the email was not filter out by my email spam filter, coupled with the fact that I really was opening a Wells Fargo account, made me think that this was a real request for information at first.

But on second look, I became weary because it provided a link to a website and asked for a user name and password, both of which I did not even have yet. I knew already at this point that this was phony, but just wanted to do a little more investigating. I actually kept the email but banned the email address from sending me future phishing emails.

You have to be really, really careful. Do not ever follow links and provide your user name and password. If you’re unsure, and really do business with the bank of credit card the email says it’s from, log onto the website directly and send the customer service an email to see if the company requested info. At the very least, report the spam to the company so they are aware a spammer and possible phisher is sending emails under the companies name for information.

We’ve all seen the ads for credit repair specialists saying that they can help us repair our credit, of course for a price, but isn’t this something that happens naturally, as we prove our financial reliability to our creditors and lenders?

Well, there are some steps apparently that you can take on your own to help repair your credit and increase your FICO score, which is basically the financial scoring system that creditors rely on when deciding first of all whether they want to give you credit, and second of all, what kind of interest rate they want to give you based on your FICO score.

Guess what? The better your FICO score, the better the interest rate offer you’ll get by creditors when doing everything from buying a home and car to getting a credit card offer, so it’s in your best interest financially to maintain a healthy FICO score by doing the following things regularly, and always staying within your financial means when budgeting your money and deciding where it goes each month.

1.) First of all, regularly monitor your credit report. You can do this for free I believe once a year, or you can pay a small fee to get your credit report information on a more regular basis. By keeping tabs on the information lenders have contributed to your credit report, you can make sure that any overdue balances are paid off right away, or contested so that they don’t appear on your credit report and tarnish your FICO if they simply don’t belong there.

2.) Paying your bills on time is the Golden Rule when it comes to your FICO score. Late and delinquent payments are one of the biggest contributing factors to low FICO scores, and need to be constantly kept up on if you want your score to stay in a respectable range and creditors to actually offer you the best interest rates. You may also see a lot more credit card offers for great low APR intro rates coming in the mail a lot more too if you have a good credit score. I’ve enjoyed quite a few generous offers since my credit has been put back on the right track.

3.) Credit cards and installment loans should be paid down as low as you can get them, because this is all used to calculate your reported income to debt ratio, a huge consideration on your FICO in determining what kind of risk a company is taking that you might not pay a loan back.

4.) Opening up too many credit accounts or credit cards can hurt your FICO score, so stop opening up so many. Stick with what you have and keep the number as low as you can. Stay away from playing the credit card game and switching to lower APR cards constantly by using balance transfer credit cards too often to get lower rates on higher APR credit balances. Supposedly even if your balances are low, if you have too many credit cards or credit accounts open at once, yoru FICO score could be negatively affected.

When all attempts to clean up your credit, seek help, make more income and get yourself back on track have not worked, there may be no other alternative than bankruptcy.

There are a number of different forms of bankruptcy and certain legal matters in bankruptcy vary from state to state.
“Voluntary” bankruptcy is when you, the debtor, petition the court for relief from your creditors. Voluntary bankruptcy types include Chapter 7, Chapter 11, Chapter 12 and Chapter 13.

Involuntary bankruptcy occurs when creditors who you have not paid force you to pay by bringing you to court and have a court appointed trustee liquidate your assets to pay them. So, with this form of bankruptcy, the creditor forces the debtor into bankruptcy.

With Chapter 7 bankruptcy, all your non-exempt assets are turned into cash and paid to your creditors. You are entitled to keep your exempt assets.
Chapter 11 bankruptcy is usually used by corporations or partnerships. Assets are not usually liquidated. The debtor expects eventually to be able to pay their creditors. Chapter 11 is usually used as a method of reorganization.

Chapter 12 bankruptcy is specifically for farmers. A farmer who has more than 50 percent of their income and 80 percent of their debt coming from farming is eligible for this kind of debt relief.

Chapter 13 bankruptcy is similar to Chapter 11 and is used for reorganization. Chapter 13 is designed for small business owners and wage earners. The debtor retains all of their assets, but must repay creditors on an installment basis set by a court approved plan.

While bankruptcy has a very negative connotation, there are situations in life where it may be the only viable alternative left. If that’s the case, it’s best to be informed and know which type would apply to you and which assets you may keep when considering filing. Consider getting prepaid credit cards if this is your downfall, because then you will never be tempted to spend more than you earn.

I don’t know how many times I’ve heard the story about how so and so got divorced, but they didn’t “divorce” themselves from the racked up credit cards, loans and other “bad debt” that they and their spouse shared together.

So, how does it usually work when two people get divorced? Usually, if the split is amicable enough, they can work it out amongst themselves as to who is going to take on what debts after the split, but what about the damage done to credit from one spouse to another spouse’s credit?

That’s the part that gets tricky. You see, when you’re married and have joint accounts, one’s actions and lack of responsibility can affect the other person’s credit score. But isn’t it still really up to you in a marital situation to kind of keep your eyes open for any financial troubles that either one of you may create?

For example, unless your spouse is the only one who sees the credit card statements, there is no way they can go charging cards past their limits and making a big mess for the two of you to get out of. Not only that, the other spouse should see the spoils that were purchased if they live together, so usually to claim that one spouse had no idea is kind of a lame excuse, unless your spouse had a good way to keep racking up debt a secret from you.

It’s important to be open with eachother and communicate about expenditures in a marriage, and if you can’t or don’t want to do that, then you should probably maintain separate accounts. I personally have been in a relationship for over five years, and we will get married some day, but I’ve already decided that we will not share an account, because we have a system worked out now that works well for both of us, and I don’t want to jeopardize something that works already!

Plus, I must admit, I’m a bit of a control freak when it comes to balancing checkbooks and making sure the bills are paid every month. I may have to work on that a little….