Personal Finance guide

Hard to get out of that? Credit card hardship programs can help pay your credit card debt or monthly bills. During the present economic crisis, it has become common for the lenders to find out good card holders who maintain good credit scores due to the financial situation they are facing.

As a result many card companies like discover, chase, Citibank, capital one, bank of America come up with hardship programs which will help credit card holders pay their bills, maintain debt and credit scores.

Thinking why banks or credit card companies come up with hardship programs? It is in their best interest to provide relief as they know that financial crisis across the nation has created disaster among the families and are unable to meet the monthly payments. If this is the case then the card companies will lose total amount of debt in case consumers file bankruptcy where they will receive zero amount on their outstanding debt. For this reason to collect at least some amount which is better than none come up with hardship programs.

Credit card hardship programs are similar to loan restructure or workouts where the main goal is to help borrowers to avoid default on their debt. It is an agreement between the creditor and borrower where the borrower sets up a plan to pay of the amount affordable with him monthly and the creditor reduces amount you owe, rate of interest charged on the debt or sometimes lowers the minimum monthly payment to the level that is affordable.

Many are uncertain that the card issuers will reduce the amount you owe but there are cases where the amount of debt gets reduced with HSBC, bank of America and capital one. The main reason that banks are reducing or restructuring the debt in hope that consumers will come on track regarding financial situation and make full payments on your debt.

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Excellent credit begins with how well a consumer handles all financial aspects of life. Responsibly managing a mortgage, credit cards, auto and personal loans and even their cell phone service will add depth to an individual’s credit history and increase their credit score. Credit scores influence whether a loan or line of credit is approved, the higher the score the better the chance of securing a mortgage, loan or credit card.

One common misunderstanding of establishing excellent credit is that zero balances on your credit accounts will earn an excellent credit score. Lenders want to know that you can actually manage your account and, as grand a gesture is of paying off the balance every month, it doesn’t convey the ability to handle debt in the midst of financial uncertainty. So, even if you have the financial stability to pay off the balance, allow one or two accounts to carry a small balance each month.

Good credit comes from handling a variety of loans and credit accounts, not only how you manage revolving credit card debt. It’s also affected by how you handle fixed payments, like your car and mortgage payments. But when it comes to credit cards, there are several points that need to be addressed to help secure a healthy score and credit history:

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With tighter budgets and heavier financial burdens, especially around the holidays, credit card companies have come up with an offer that they say will lighten the burden. They’re often called ‘payment holidays’ and have a high acceptance rate by consumers. But, ‘buyers beware!’ (Keep in mind that credit card companies are in the business of making money and not saving you money.) Be suspicious of any offer that sounds too good to be true.

The typical holiday payment offer includes a message of sympathy for the financial burdens of the season and a ‘kind’ gift for you to skip a monthly payment on your credit card balance. Most of us consider a gift as something free but this is not the case. The offer is genuine but it’s not free–it will cost you!

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Thanks to Federal laws and credit card company policies, losing your credit cards doesn’t mean extensive losses to your bank account or damage to your credit score. Federal law caps your liability at $50 in such an event, but most credit card companies have a $0 liability clause, if you call within 24 hours of the loss. If a thief uses your card before you report it missing, the most you will owe for unauthorized charges is $50.

If you report the loss before your credit card is used, the card issuer cannot hold you responsible for any unauthorized charges. And if you report fraudulent activity within 60 days from the first billing statement it appeared on, you won’t be responsible for any of the charges above $50. Also, if the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.

But it’s critical that you report the loss or theft of your credit card to the card issuers, as quickly as possible. And remember, it’s much easier and less traumatic to cancel a card that you find later in the week, then to risk the hassle of a thief running amok with your credit card and racking up thousands of dollars of debt on your account.

If you notice questionable charges on your statement, call your credit card company immediately to begin an investigation. Many companies have toll-free numbers and 24-hour service to deal with such emergencies. Pick up the phone and contact the fraud department of your credit card company and be prepared with your account number and when you first noticed your card was missing. Be sure to get the name of the representative you speak with and any reference numbers that may apply.

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Using a high interest credit card is like throwing money down the drain! If you’re wasting money with a high APR, you should consider applying for a low interest or 0% APR credit card instead. Although your credit score will ultimately determine your interest rate, apply for a lower APR and you could save a ton on interest charges. Here’s an example of how much you can save just by reducing your current APR:

Your current credit card has an APR of 14.99%. But you’ve been pre-approved for a credit card at 9.99%. Over the course of a year, you could save 5% on interest charges. How does this add up?

Save with a Low APR:

Assume you have a balance of $5,000 on your credit card:

OLD CARD: 14.99% = $ 749.50 per year in interest charges

NEW CARD: 9.99% = $ 499.50 per year in interest charges

In this example, you could save up to $250 per year! If you had a balance of $10,000, you could save twice as much! This extra money could be used to pay down your current credit card balances or used to make cash purchases and avoid increasing your existing credit card debt.

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The previous article on the benefits of consumer contract financing was concluded by citing three specific benefits associated with factoring consumer contracts (ie. financing consumer receivables, retail installment contracts, consumer notes, etc.). Those three benefits were: bad debt elimination, consumer contract processing and meeting increase demand. There are many other benefits associated with consumer contract financing which will be mentioned in this article.

~ You can take advantage of early payment discounts. Consumer receivable financing may very well allow you to take advantage of early payment terms offered by your suppliers. By enhancing your cash flow through consumer receivable financing you may be able to save two percent of your raw materials cost because you will have the cash to pay bills withing ten days. This in turn can reduce your financing costs.

~ You can take advantage of volume discounts. Another advantage, for example, of financing your retail installment contracts, is that you will be able to buy in greater volume from your suppliers because of your improved cash flow position. By “cashing out” your retail installment contracts withing days after the contracts are written, rather than waiting one, two or even three years or more to be paid, you will be able to experience first hand the “time value of money”. Thus, you will be able to take advantage of volume discounts offered by your suppliers.

Continue reading ‘The Benefits of Consumer Receivable Financing Part 2’ »

Personal Internet banking can certainly make things a lot easier, but you want to make sure that you protect yourself so that no third party can access your personal information and end up being able to get in to your account and perhaps taking your money. There are a few tips for personal Internet banking in particular that you are going to want to be aware of and which will be helpful to you here.

Remember

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Opening bank account isn’t difficult; you should know that almost all banks follow “Open Bank Account Formula”. In this article you will learn how to open bank account in person or online in 7 steps.

Step 1: Choose an Institution

Shop around to make the right choice. Determine what kind of account you need: a free checking account or a saving account. Should you use a credit union? Get an open bank account with them, who have the features you want.

Step 2: Go to the Bank or Website

The best way to get all information about bank – is to visit their Website. You can search on Google. The advantage of online bank account – that you can use it anywhere, anytime. Opening bank account in person you will have opportunity to visit them only in business hours.

Step 3: Pick the Product You Want

There is a variety of account services and types that you can match and mix. They usually have funny names which you should know. It’s very important to choose the right one.

Opening bank account on a Website you will have to drill down to the product that is right for you. You can open this account in three steps; just click “Open Bank Account”, then “Checking”, and finally “Free Checking”. Opening bank account in person you chat with a teller, who can help you the best account for you.

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A significant number of people are looking to save more money over the course of 2010, it has been revealed.

Britons are taking an increasingly positive approach towards saving, new research has shown – and such a trend appears to be particularly the case among men.

Such is the assertion of NS&I which points towards findings indicating that just over a quarter (27 per cent) of people claim they are likely to place more money in saving accounts over the course of 2010 then they were able to do in 2009.

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British optimism towards saving has fallen, Nationwide reveals.

People are taking a poorer view towards placing money in savings accounts, new research indicates.

Nationwide, in its latest Saving Index report, reveals a fall in the number of consumers who set money aside last month.

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