HOW DO YOU CONSOLIDATE CREDIT CARD DEBT

Spending is such a hard habit to break, especially when people use their credit cards. Once they get addicted, they continuously endure the agony of spending in spite of imminent problems that tag behind.

And when things eventually get out of hand, most people will soon realize that they are already stuck with a mountain load of credit card debts. And mornings after mornings, they will wake up each day with worries in their head about how they can repay all of those instant splurges.

There’s one way to get out of credit card debts—consolidation. Here’s a list of ways how to do it:

1. Make a balance transfer.

One way of consolidating a credit card debt is through a balance transfer. In this way, the person who has a huge outstanding balance on his or her credit cards will get another credit card with a lower interest rate. Once approved, they should immediately get a cash advance and use it to pay off their standing balance on the other credit card. In that way, they consolidate all of their payables into one credit card. Plus, they get to have only one rate to worry.

2. Home equity loans can do the job.

This is a very workable strategy provided that it will be used properly.

Getting a home equity loan is probably one of the easiest things to do. Best of all, home equity loans can offer tax deductions for the interest rate of the loan.

However, there is a drawback. The debtor’s house will serve as the collateral. But nevertheless, it still one good way of consolidating credit card debts. The debtor should only keep in mind that the money from the loan should only be used in paying credit card debts. If used on other things, it will only worsen the problem.

3. Make use of retirement funds.

There are instances wherein debtors can make use of their retirement funds in order to consolidate credit card debts. But this should only be made if there are no other options available. This is because this type of consolidating credit card debts can be very tricky.

Loans on retirement funds are not actually tax deductibles. However, the problem sets in when the fails to pay back the loan within five years or when he or she will resign from work.

Indeed, there are no nippy fixes when consolidating credit card debts. The bottom line is that, it is better if the person will stay out of debt so as not to worry on consolidation matters.

Harassing Creditors - What Can You Do?

When the harassing creditor phone calls keep coming and the mail is full of past due debt bills, it may feel like you don't know where to turn or what can be done. Threats of lawsuits or seizure of your property (cars or home) can be frightening. When the creditors tell you to start paying NOW or you will lose everything, it may feel like an impossible task especially if you can't find a dime to send to them.

There is help out there. Don't give up hope. The help for your mountain of debt may be easier to find than you think.

If you have not tried it yet, begin with helping yourself. What can you do on your own to begin to fix your debt problems? Obviously you can't pay all that you owe on your debts, but you may be able to start sending in something...anything...even a few dollars a month to show your good faith promise to pay your debts back to the creditor. You may be surprised that when you reach out and contact a creditor and begin to pay what you can on a regular basis every month, they will see you are serious about paying your debts and they will begin to work with you.

Sometimes creditors will lower your monthly minimum payment for a while until you get back on your feet. Some creditors will even offer to lower your balance and work very closely with you to help you get the debt paid off. You may even find some creditors that will settle the debt in full for a percentage of what you originally owed them.

If you are too far gone with debt to deal with the creditors on your own, there are many companies that will work with you and be your liaison with those tough creditors. You may also want to consider a debt consolidation loan that will help you pay off all your debts with one loan and give you one simple monthly loan payment to pay each month. There are also credit counselors available to teach you budgeting and personal finance. Some credit counselors will work with the harassing creditors to get your interest percentage lowered or your monthly payment amounts lowered to a workable figure within your current income level.

No matter what debt help method you choose, you have to recognize that you may have some habits that have put you in the debt-crazed state you are now in. Start by admitting you need to make some changes in the way you handle money. If you don't admit you need to make changes, then even if you dig yourself out of your debt hole, you will put yourself right back in the same place again in no time. You have to choose to be disciplined with your money. The peace of mind you will gain from no longer having the creditors harass you will make all the budgeting and discipline worth it.

Why You Need a Copy of Your Credit Report!

Your credit report is an important document which may affect you more than you think. It is perfectly possible to see a copy of your credit report. But why would you want to read your credit report, and how do you find it?

In the US there are 3 agencies which keep information on you and your credit. This information includes a whole range of details on many of the financial transactions that you make through your life. You may not be aware of it but much of your financial data is kept by credit agencies, and can seriously affect your life.

Opening a bank account, considering letting a bill slide a little until it's overdue, going for a loan, buying a house? Any one of these transactions and many many more are all recorded on your credit report. Information is kept on where you live, how you manage most of your finances, much of your criminal history if you have one, your history of loan repayments and much more.

And this information is not just kept there for the sake of it. This information is used to assess your credit worthiness so that when you go for a new loan, for example, the organization through which you are applying can access this information to help it decide whether or not it ought to grant you the loan.

You are in fact, rated for your credit worthiness using this information collected on you, and a credit worthiness score is applied to you. This score is part of the information that an organization may wish to find out if they are judging your credit worthiness.

Something as simple as missing a few bills because you were on holidays can quite seriously affect such things as your ability to obtain credit in the future.

So as you can see the information kept in your credit report is important information and can affect your life in ways you may not be aware of.

For this reason it is important to know what information is kept on your credit report. It is not unheard of, for example, for there to be inaccurate entries on your report and if you are unaware of this and therefore cannot correct it this inaccurate information may well cause you all sorts of unexpected problems.

So, how do you get a copy of your credit report? Luckily you are entitled by law to get a free copy of your report each year. You will need to provide your name and address as well as your social security number and date of birth to identify yourself, as well as possible former addresses if you have moved recently.

To get your credit report ring 1-877-322-8228 (toll free) and proceed as directed.

So remember, you are entitled to a copy of your credit report free each year. Make use of your entitlement, check your report and see if there is anything there which could be causing you a problem. If there is then you can start finding out what to do about it.

Strategies to Improve Your FICO Score

It used to be that "people" made decisions about your credit worthiness. You knew your banker and your handshake was all the collateral you needed. Those days are long gone, and now a single number - your FICO score - determines your credit worthiness.

Although there are several credit models, the most commonly used is FICO, based on a model created by Fair, Isaac Company. Their consumer website is myfico.com, and you can find information about the FICO credit scores there.

Your FICO credit score can be used to determine your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.

Preserving your FICO score, and improving it, is not difficult, but it may take time. Here are some tips to maintain and improve your score, based on three credit situations.

Strategy One: Obtain a Credit History

There are many reasons you may have no credit history. Maybe you're just starting out, maybe you pay cash for everything and have never needed a loan. In any case, if you have no credit history, your FICO score is likely to be low.

The easiest way to raise your score is acquire a loan, and pay it off on time. In general, installment loans are weighted more heavily than credit cards. In other words, you will improve your credit score faster if you buy goods with an installment loan, rather than acquiring a credit card.

Another way to acquire a better credit history is to take $1000 and open a 6 month CD account at a financial institution. Now, get an installment loan for $1000, using that CD as collateral. Now, here's the trick. Take the $1000 loan, and open another 6 month CD account at another institution. Take another loan for the $1000 at the second institution. Do this one more time.

Now what you have is 3 loans. Pay the minimum payment for 6 months. In the last month, cash out your CDs and pay the loans off. You now have a credit history, and did not go into long term debt to get it.

Strategy Two: Maintain Your Good Credit History

Good job - you have paid your bills on time, and do not have high credit card debt. Here's some ideas to keep your FICO score as high as possible.

First, don't close your old accounts. One part of your credit score is based on the amount of credit available verses amount of credit used. Closing old accounts can lower this part of your score.

Second, paying off your credit cards every month is good money management, but you may be able to improve in this area. Here's the scenario: you have a $2000 credit card. Every month, you charge about $1800 to that card. And, every month you pay it off. But here's what happens - your credit card company reports your credit information monthly to FICO. If they report it before you pay off your card, it looks like you carry a balance on your credit card every month. You may find your FICO score improves if you pay off your credit card at a different time of the month.

Strategy Three: Repair Your Poor Credit History

For whatever reason, if you have a poor credit history, there are things you can do to improve your score. Some of them take time, and you will probably be best served by talking to a credit counselor to be sure that you not only repair your credit history, but also eliminate what caused that poor credit history in the first place.

The most heavily weighted part of your score is based on your payment history. The first thing to do to start repairing your credit history is to pay your bills on time. The mortgage is the most important, followed by installment loans, and finally credit cards.

The next largest portion of your FICO score is based on how you use credit. The fastest way to improve this is to pay down your credit cards.

One final thing to look for is errors in your credit report. Get a copy of your credit report from all three primary agencies, and look at all the entries. You can find the agencies here: experian.com, equifax.com, and transunion.com. If there are any errors, start the process to have them removed. Call your creditors - sometimes they will remove negative information.

Your FICO score is an important part of your financial life, and using these strategies may help improve your FICO score. Before making any drastic changes to your finances, consult with a financial advisor.

Could a Prepaid Visa or MasterCard be Right for You?

What is a prepaid credit card? As generally used in the English language, "prepaid" and "credit card" are a contradiction in terms. "Prepaid" means you have paid for something before taking receipt of it and will not be receiving a bill requesting payment later. Whereas, "credit card" means that you will be placing the purchase on credit and the lender (issuing bank) will supply the funds to the merchant. Then later when you receive your billing statement from them, you will be required to pay in full or in installments. Thus the commonly used term "prepaid credit card" could be considered an oxymoron. So, it is more accurate calling these cards a Prepaid Visa or MasterCard.

A prepaid card is like a cross between a store gift card and a bank debit card. It is similar to a store gift card in that a certain amount of money has been loaded on it. It is like a bank debit card because it is accepted any place that a major credit card is honored, even online! Unlike a debit card, however, a prepaid card is not attached to a specific bank account.

There are several good reasons to use a prepaid card. First, you will not go into debt for any purchases you make. Which as an added benefit means there will be no finance charges. Many people do not have or want a bank account and so consequently, they are unable to obtain a credit card. This type of card gives them the convenience of carrying plastic instead of cash. If you have no credit or bad credit, some of these cards can aid in building or repairing your credit rating because they report to the major credit bureaus. Other ones give rewards. If you are inclined to overspend, using one of these cards can help manage your expenditures because you set the spending limit with the money you decide to load on it. Generally though, there may be a minimum transfer of $25.00 to a certain maximum amount in whole dollars depending on the issuing bank's terms.

Besides being an alternative way for you to purchase your own items, do not forget that they can make a great gift too! Some card issuers even will put a greeting message on the card for you, like "Happy Birthday" or "Merry Christmas" along with other sayings. How about giving one to your college student for the necessities he will buy when away from home? This way he will not be able to run up the balance on a regular credit card.

Prepaid cards can be obtained at bank branches or through the Internet at the bank's web site. But before you decide to apply for one, there are some disadvantages to a prepaid card that you should understand. As mentioned previously, these cards do not generate finance charges. However, they probably will have some other types of fees associated with their use. The fees that may be applied to the card could be application, activation, annual membership, monthly service, ATM and over-the-limit fees. Examine the card's policy on liability protection for lost or stolen cards. Some offer zero liability. Others only provide protection if the transaction was for a signed receipt purchase and not a PIN transaction.

Many, but not all (like those used as gift cards) allow reloading with money when the funds run low. There are different methods for transferring money to your card, such as, directly at your bank branch, an ATM machine or the issuer's web site. You can fund your card with cash; check, credit card, electronic funds transfer from a savings or checking account and even payroll.

Before acquiring a prepaid Visa or MasterCard, be sure you are aware of all the conditions that apply to it. Each prepaid card comes with different terms, benefits and fees. So, carefully compare them. Your personal situation is unique to you. It is your responsibility to ascertain which card, if any, suits your needs.

Credit Cards and Your Business

Any business will cringe at the thought of what the banks put them through to use credit cards. If you do not know what I mean, then this article is for you!

The fact is that everyone online wants to use a credit card or debit card to process their order. It is very true in our society that the credit card is a way of life, and if you do not offer that ability to accommodate them, customers will move on to another website that does allow them to use their cards. This society has become driven by instant gratification and expects to receive their products immediately, either by a download or a short shipping duration. Taking credit cards as a form of payment on the internet or offline should be thoroughly understood. Read on to see what I mean and how to protect yourself.

The fact is that any merchant taking in payments is immediately at risk for whatever amount is charged and MORE. The banks will take the charge disputed along with a "charge back" fee right from your merchant account, and you better have enough in there that has cleared to pay your own bills or you will be charged more for "overdraft charges". Some banks are waking up to the fact that it is not always the merchant at fault and most merchants are more than honest in their dealings. There is so much credit card fraud out there and since the merchants are ALWAYS liable, you need to realize this and take action to prevent as much disaster for your business as possible.

First, if you have your own merchant account, then you have a lot of work to do when you receive a credit card order. You must verify as best you can that the card, the name on the card, the address, the cvv number verification, and the quantities are all in order. You need to verify the IP address of every order and see if it is within the location of the card holder. A person living in Toronto, Canada, probably would not be in Las Cruces, New Mexico, charging products. This is a red flag but not a deal breaker, some people DO travel. Caution needs to be taken to protect your cash flow. As a merchant you must get money safely into your account for any goods or service you provide, so that you can become a larger or more substantial independent business.

Do not just take in cards and believe that everything is going to be just fine now that you have the money in your account, because it can come out just as fast, or faster, than it went in. There is a real need for you to understand a lot more than can be mentioned in this article.

The best way to receive all the tools and services you need to protect yourself and to make your voice heard is to check this website: http://www.merchant911.org This is a group of dedicated individuals who have been working for years to try to change banking and processing company rules and regulations as relative to merchants, both large and small. If you need any more proof of their dedication, just read some of the press releases and look at the tools they have assembled for merchants to use.

Right now is the time to start to protect yourself from credit card fraud. If you have read any of the newspapers or listened to any of the news reports, then you already know you are at risk. There are reports of over 40 million cards in the hands of criminals and thieves and they will sell these cards or will use them in various illegal methods. It's not hard to imagine that some day soon you will be approached and asked to spend your time and money to ship a product or provide a service with these fraudulent cards.

Do your part to keep America strong and allow your business to grow and prosper, not be destroyed by thieves and credit card sharks.

7 Simple Ways to Increase Your Credit Card Limit

Many credit card holders aspire for a higher credit card limit. The obvious reason for this is that a higher credit card limit enables the purchase of otherwise unaffordable merchandise.

First and foremost, credit card holders need to remember that to get a higher credit card limit, they must abide by the terms and conditions of the credit card company or bank.

Below are 7 other ways to get a higher credit card limit.

• The most important thing to do for getting a higher credit card limit is to prove your credit worthiness. This is the first thing that banks and companies look for when giving a higher credit limit.

• Attract positive attention from the credit card company or bank by paying finance charges once in a while. Obviously, this is not advisable on a repeating basis and should only be used as a last resort to increase your chances of getting a higher credit limit.

Proving to credit card companies and banks that you are good "borrower" can be a convincing way to get a higher credit limit. But be careful because this strategy also means that you will be paying finance charges which can accumulate in a hurry.

And always remember, a higher credit card limit means greater purchasing power, but it also increases the risk of your having to pay greater interest charges and other processing and late fees.

• Always spend within your credit card limit because doing so means that you are capable of controlling your expenses.

• Use your credit cards regularly. Don’t keep your cards for emergency use only. If you use your credit cards sparingly, banks and credit card companies will be unable to understand your spending and pay-back behavior. Under these circumstances, most banks and credit card companies will be reluctant to give you a higher credit card limit.

• Never make minimum payments. Instead, try to pay for the entire outstanding amount. This will usually give you a better chance of getting a higher credit card limit.

• Avoid late payments as much as possible. Not only will your increase payment increase, but you may also have to pay an additional fine for not clearing bills on time. This will also dim your chances of getting a higher credit card limit.

• The best and simplest strategy for getting a higher credit card limit is to use your credit card wisely. Always keep in mind that credit card companies keep a record of your transactions and payment patterns, so always pay on-time.

The bottom line is that your performance in the records of banks and credit card companies will determine whether you’ll get a higher credit card limit or not.