We all know that there’s a war between sexes on who are better drivers, men or women? And as men are claiming to be far better at the wheel the statistics are actually on the opposite side. The National Highway Traffic Safety Administration’s Report dated 2004 notes men being involved in 27,000 more fatal accidents, 432,000 more injury accidents and 1,369,000 more incidents with damaged property, resulting in total 1,828,000 more insurance claims filed by men in 2004 only. And since then the trend hasn’t changed.
And it’s hard to tell that the most risky drivers – men younger than 25 years old – are contributing to these statistics. These are actually men of all age groups.
One/two step to decrease your premiums significantly.
People spend years trying to figure out the way to make the premiums on their insurance deals go lower. A lot depends on the amount of steps you will take to change the situation into better. Being specialists in our domain, we have to admit that once you sort the problem of extra payment out, your life will be much easier. Sometimes it can only take up to one day to think your reviews over. This sort of review can be performed every year or if there is any possibility to help decrease your payments.
Imagine setting out on a cross-country car trip with no itinerary, no maps, no money and no source of help. Jumping in the car, and heading across the country with no direction and no planning may sound like fun (and it might be for awhile), but what happens at the first sign of trouble? Living without a budget is a lot like that car trip.
It may seem easy enough to buy what you want, when you want it, use credit cards to handle those nuisance bills that come along very few months (like car insurance, vehicle tags and registration and even a prescription or two), but what do you do when something big hits? Would you find yourself in serious financial trouble if your income suddenly changed due to layoffs or a career-change; the roof needs to be replaced; or an unexpected baby arrived?
Spending plans, otherwise know as budgets, are just that: a plan for how you handle your money, to better prepare you for all of life’s twists and turns. Most people hate even the thought of budget. Why? Because they have been taught that a budget limits what they can have; what they can do; and what they can spend. Smart financial planners know that the opposite is really true. A good budget can be used to set the stage for financial security, and gives the freedom to spend money on honestly, anything.
Imagine the next time that bi-annual car insurance bill arrives in the mail: you open it, looked at the total and reach for your checkbook, knowing that the entire amount is there, just waiting to be paid. Whew! Sound too easy? It doesn’t have to be. Setting up, and living by, a good budget can free you of the stress and chaos of juggling paychecks and credit cards to meet the bills. It’s a way for consumers to break free from the bondage of debt and have the money for the fun stuff , without the worry of how to pay for it later.
What else can a budget do for you? Here are 5 important benefits of budget-based living:
1: Following A Realistic Budget Helps Free Up Cash For The Fun Stuff.
Budgets aren’t designed to deny the user from doing or having the things that are important to them. Budgets are an excellent tool to help stop wasting funds on little things that you don’t need, but sure can add up! For instance, one smart budgeter realized that if she just bought her favorite soda from the grocery store and took it to work with her instead of buying it from the machine, she could pocket nearly $400.00 a year! She took that soda money and used it for a weekend at her favorite spa! Instead of denying her of her favorite soft drink, her budget simply alerted her to an unnecessary expense, which ultimately allowed her to use that money for something she really wanted, yet didn’t think that she could afford.
2: A Budget Helps You Prepare For Emergencies.
Eventually something big is going to beak and need replaced. It may be a $400 washing machine, or it could be a $20,000 car. Are you ready for the inevitable? Budgets allow the user to see where their money is going, and to help them better equip them to both save for emergencies, and clearly see where changes can be made if an unexpected expense comes up. When Bob was suddenly laid off from his job, he and his wife Nancy had very little saved, but they used their budget figures to immediately see what temporary cuts could be made to get them through a few lean months with very little stress and worry.
3: A Budget Can Both Get You Out of Debt; and Keep You Out Of Debt.
The average American household owes more than $9,000 in credit card debt. That doesn’t even begin to account for the hundreds of thousands of dollars we each carry in additional mortgages, car, and student loans debt. Owing money is an American epidemic. It has even been cited as the #1 reason for divorce in the United States. Creating a budget the whole family can live with, will ease the burden of debt on the American household by teaching everyone in the household how to curb their overspending habits and live a more sensible, and stress-freeing financial life.
4: Budgets Teach Responsibility.
We see in every magazine, on every billboard, and in every commercial: you want it, you deserve it, go get it – no matter what the cost. The instant gratification of American credit has taken a severe toll on our sense of responsibility. After all, we can buy now, and pay later, much later, so who needs to think responsibly? Unfortunately, those bills eventually come due, and many people aren’t ready for them. Budgets help reign in over spenders, and teach them real financial responsibility.
5: A Budget Eases Stress.
Money concerns are a top stress inducer in today’s over indulgent society. It has been reported however, that those who live by a budget experience less stress in their daily lives. Surprisingly, that was true for both minimum wage workers, as well as high-income workers. It didn’t seem to matter how much (or how little), income a household reported, the fact that they knew how to best spend their money seemed to play a significant role in the stress they reported in their overall life.
Creating a budget may seem like an exercise in futility to some, but the statistics are clear: budgets are good for you! What do you have to lose except for a little worry? Try one and see what unexpected benefits you find yourself reaping.
CPA / personal financial specialists are experienced professionals who are in the best position to help their clients to stay on track with their financial plans regardless of the economic condition. The clips youre about to watch, provides advice to help you manage your financial situation.
Any suggestions (other than Quicken) for budgeting and personal finance software for a Mac?
The credit card industry has had some bad press recently. Some companies have resorted to secretly increasing customers APR and minimum payments to make themselves more financially able, much to the disappointment of their customers. Credit card owners have never felt so uncertain as what will happen to their credit cards and their money. However, help is now at hand- the government has introduced some new guidelines which credit card companies must abide by, hopefully making it easier for those struggling to pay off their credit card debt.
Struggling customers will now be given 30 days to come up with a payment plan to begin repaying their debt. During this time they have the option to use a free debt advice service, such as the Citizens Advice Bureau. The debt advice service will help you to come up with an affordable repayment plan, and offer advice and guidance wherever needed. During these 30 days, credit card companies are unauthorised to chase you up for payments, whether it be phone calls or sending letters. If an agreement hasn’t been made in these 30 days, the customer then has another 30 days to devise a plan with a debt advice service.
Following the recent uproar, credit card companies will also have to give customers 30 days notice before they can increase their interest rates. This will give customer’s time to either transfer their balance to another credit card, or close the account altogether. If taking out a new credit card, card issuers cannot increase your minimum payments or you interest rate within the first year. After the first year, your account can then be reviewed every 6 months, if necessary, and again you will be given 30 days notice before any changes are made to your account. All of these guidelines were made in January, and will be applicable to everyone who owns a credit card account.
When looking for a good deal on credit cards, always compare what is available on the market. Use an online comparison tool to compare balance transfer credit cards and interest free credit cards. This way you should be able to find a good deal with a low interest rate.
If you need help keeping track of all your credit card balances and you are tired of all your monthly payments being swallowed up in interest, then a balance transfer credit card is for you.
With the balance transfer card you would be able to transfer your various debts onto one account and reduce your monthly credit card payments. The benefit of this is that more of your money would be used to pay off your capital as the interest is consolidated as well.
In order to make the most impact on your debt, you would need to make sure you know exactly what your new card offers you as this could determine if transferring your balance is worth it or not.
Your new card should carry a 0% APR on balance transfers so that you would not face a charge at this point. Some cards also carry a 0% APR on all new purchases which means you do not have to worry about paying interest in the introductory months. If there is a balance transfer fee, be sure to factor this into your monthly payment and see if you would be better off.
The length of the introductory period is important; the longer this period is the better. Most balance transfer introductory period averages at about 12 months, but look around as there are many deals on the market.
As spending on everyday items contributes to your increasing credit card balance, look for cards that have added benefits to you. If you use your credit card for gas purchases, look for balance transfer cards that give you cash back on gas and auto maintenance purchases. This could provide a hefty savings on your monthly automobile expenses.
Cash back on normal purchases are available on named cards and this would be another saving you would benefit from. Most of these cards have unlimited cash rewards that do not expire, but do not take it for granted, always check the small print.
When deciding on your balance transfer credit card, look for one with no annual fee and pay close attention to the reversionary APR. No annual fee means that is one less charge you have to pay at the end of the introductory period. The last thing you want to do is pay all the money you saved in interest over the introductory period towards an annual fee.
Likewise the reversionary rate shouldn’t be higher than any of your current credit cards; you should search out the lowest rate possible, the less interest you have to pay on a monthly basis the faster your card balance would go down.
When you add up all these benefits, they provide with you with great savings as you are able to spend less on interest and earn cash back on your necessary purchases. And the more you save on expenses the more cash you have to spend or pay towards your balance in order to reduce your credit card debt.
Credit cards have long been a convenient and simple way to make payment for purchases, whether in person, by phone, on via the Internet. Credit cards offer many benefits, from the ease and convenience of being able to make cash free payments to being able to spread repayments on your purchases to increase affordability. However, for many people credit card debt can quickly spiral out of control, and this can result in financial problems and stress.
Many people have more than one credit card – some people have several cards, all of which have high balances and on which they are being charged high rates of interest. This can result in extortionate repayments each month and can involve paying a lot of money in interest until the balances have been cleared. This is why it is important to try and clear your higher interest credit card debts as soon as possible.
One solution to dealing more effectively with your credit card debts is to take out a 0% balance transfer credit card or a low rate life of balance transfer credit card and transfer your higher interest balances on to the new card. This can benefit you in a number of ways. Firstly you will only have one repayment to deal with, which eases financial management and reduces hassle. Secondly, you can enjoy cutting back on the amount of interest that you pay, and could even get away with paying no further interest in some cases. You can also reduce your monthly outgoings by transferring your various credit card balances.
If you transfer your balances onto a 0% balance transfer card you will probably be charged a fee of between two or three percent of the total amount being transferred. If you can then repay the total transferred balance within the interest free period you will be able to get away with paying no further interest. With a low rate life of balance transfer card you will not be charged a fee, but you will enjoy a very low rate of interest for the life of the transferred balance so you are no so restricted in terms of how long you have to repay your balance.
Once you have transferred your balances it is a good idea to close down the high interest rate credit card accounts. If you want to have a credit card on hand to use for emergencies you should apply for a 0% purchase card, as you can then enjoy interest free credit in the event that you do need to use the card.
There was a time when my friends and I found that we were lagging way behind in our credit card bill repayments. There are the monthly insurance premiums, mortgages and car loans to think of, and we were not sure if our salaries (combined with our respective husbands’ salaries) could take any more load.
A balance transfer was at the back of my mind, but I did not have enough knowledge about it to even have the courage to bring up the topic. Lucky for me that a friend of mine was working at a finance company. She gave me a lot of great advice that helped me out.
What is a balance transfer?
If you have not been able to pay for your credit card debt, you can transfer the balance to another card issuer. By doing this, you can avoid paying hefty amounts as late fees or other kinds of penalties. Many people opt for balance transfer because another issuer is offering lower interest rates.
Why is balance transfer a good idea?
If you have been unable to pay off your credit card balance, it is most likely that the finance charges are adding up to your debt on a monthly basis. If you avail of a balance transfer credit card, it is like starting afresh.
You do not have to worry about being charged with late payment fees as long as you keep paying for the minimum amount due every month. It is always better if you pay more of course. Take note of the fact that several balance transfer card issuers charge relatively low interest rates. You could end up saving quite a bit.
What is the procedure for obtaining balance transfer?
Well, you certainly cannot avoid shopping around and looking for balance transfer card vendors. Make sure that their interest rates are much lower compared to your old card issuer – it’s possible to get 1% to 2% interest if you take your time negotiating and researching for a reputable company.
In fact, many banks are willing to offer balance transfer credit cards at no extra cost. Some will give you a grace period of six months to a year, where in they charge a lower interest on your transferred balance. Because these card issuers want your business, they will be more than happy to accommodate you. You could end up with a new card within four weeks.
How is my credit score affected with balance transfer?
This is the tricky part. If you are just going to transfer the balance to another card, your credit score is safe. Some say that it is better to close the old credit account, but that is not true in most cases. Not only does part of your credit history get “erased”, your debt ratio will be affected negatively especially if your new card has a lower credit limit.
On the other hand, having an open bank account will also affect your credit score, but not as much as closing it. The best thing to do is to keep both accounts open. You could get rid of your old credit card or you could continue to use it, even as you make payments on the new card.
The majority of people with a large credit card debt either stick their head in the sand, ending up paying hundreds in interest, or they pay a fee to move their debt to one of the popular 0% balance transfer credit cards on offer.
However, many of those people who switch to one of these cards don’t actually clear their balance before the six or 12 month introductory offer expires. This leaves them in the same situation as before – paying an average of 17.27 per cent interest (CreditAction.org, 2007)
There is an alternative
Compare balance transfer credit cards before availing one. Choosing a lifetime balance transfer credit card offers you a way to really make a dent in your debt without a six or 12 month constraint.
Despite their name, most of these cards don’t actually offer a “lifetime” rate. Rather, they offer around five years at a very low rate on your transfer – between around 3.9 per cent and seven per cent if you shop around.
Remember though, just because you have a low rate doesn’t mean you’re not paying interest – you still want to clear you debt as quickly as possible. Undertake research to find the best balance transfer credit cards.
Will it work for me?
These cards particularly suit people who have a large debt that they won’t be able to clear before the end of a promotional period on a zero per cent credit card.
Also, banks have long been wise to those people who continually switch to avoid paying off their debt and any interest. This means that you’ll not only have to pay a fee of around three per cent every time you want to transfer to a new card, you might also find yourself being refused your next card as the crackdown on consumer credit hits the high street.
Don’t use it for spending though
While these cards are great for clearing hefty debts, they shouldn’t be used for spending. Payments against all credit cards are tiered so that you pay off the “cheapest” debt first.
This means that if you make a transfer but then go on spending on that card, any payments you make against your debt will go towards paying off the balance transfer first, and only once that is cleared will you be able to start paying off all those things you’ve bought.
Even if your card carries a 12 month interest free offer on purchases, by the time you start paying for those purchases you’ll probably be back on the standard rate.
Is it for me?
You’ll still be paying interest – so you’ll be less likely to ignore your debt – but it will be at a much lower, more affordable rate.
So if you’ve been weighed down by the burden of your debt for too long, a balance transfer credit card could be just what you need to finally be debt-free.
Stephanie Wendy writes for CreditChoices.co.uk that offers price comparison tools and consumer guides for balance transfer credit card, best balance transfer credit cards, 0% balance transfer credit cards and savings accounts.
Making 0% balance transfer credit cards work for you
If you’re carrying around a large credit card debt, shouldering the burden of all that interest, it’s probably time to switch to a zero per cent credit card that could save you hundreds of pounds in unpaid interest.
How do they work?
Zero per cent credit cards offer you a break from your interest payments, allowing you to transfer an existing balance and make a real dent in your debt. You’ll have to pay a fee to move your money – typically of between two and three per cent of the total balance – but by choosing the right card, you’ll still be able to save loads.
Find the longest offer
The length of the promotions on zero per cent balance transfer cards vary, usually from between nine and 15 months, and you should look for a card with the longest possible offer. Rather than just taking the card that’s offered by your bank, use a comparison site to find the longest interest free period for the lowest transfer fee.
How much will it cost me to transfer my balance?
When they were first launched, interest free balance transfers didn’t charge customers for moving their money, but as increasing numbers of people took to being ‘rate tarts’, moving their debt from card to card without ever paying it off or paying any interest, banks began charging balance transfer fees.
But even if you have to pay a three per cent fee on a balance of £2,000 – which would work out at £60 – you would still save much more than that by taking a year off from the average APR of 17.31 per cent (CreditAction.org).
Make it work for you
Interest free balance transfers are great, but you need to make sure that you don’t get caught out, ending up in even more debt than you started with.
Your interest payment holiday is a great way to clear your credit card debt once and for all. However, many people end up using it as an excuse to build up new debt on their cards.
But balance transfer credit cards shouldn’t be used for spending. If you still want to shop on a credit card you should use a different card, preferably one that offers interest free purchases or cash back.
Tiered payments
Credit card companies allocate your repayments to different “segments” of your debt. This means that any repayments you make will go against the “cheapest” debt – your interest free balance transfer – and any spending you’ve done since transferring the balance will continue to accrue interest at the standard APR until you’ve paid off all the “cheaper” debt.
Other traps
You also need to look out for things like minimum monthly spending, higher interest on instant cash transactions and make sure that you clear your debt before the promotional period ends or you’ll find yourself back where you started.
Stephanie Wendy writes for CreditChoices.co.uk that offers price comparison tools and consumer guides for balance transfers credit cards, 0% balance transfer, 0% balance transfer credit cards and savings accounts.
All across the United States, consumers who are smart with their finances are taking advantage of zero percent credit card offers, and for good reason. By signing up for a 0% intro APR credit card deal, consumers with credit card debt and a good credit score can literally pay no interest on their lingering credit card debt for 12 months or more.
Here are some important things to remember when taking advantage of zero percent intro APR offers:
1. Many credit card companies will offer you an interest free period as a way of introducing you to their credit card. It is very important that you know and understand what the interest rate will be once that free period is over. If you are forced to pay a significantly higher interest rate after the free period you will likely wind up with a much worse deal than you had intended. If at all possible try to pay off your total credit card balance before the interest free period comes to an end. Try to find a balance transfer deal that gives you at least 6 months 0% introductory APR so that you don’t wind up making balance transfers too often.
2. Be sure that you read through all the fine print very carefully. A lot of the 0% balance transfer credit card offers include a catch: if you use the new card to make a purchase while you are in the interest free period, the APR or Annual Percentage Rate can often be quite high, even as high as 25%! Additionally, payments that you make on your new credit card with a low or zero percent intro APR will be applied to the transferred balance first, which often means you’ll get hammered with high interest charges for purchases and cash advances. A balance transfer can be a really good way to help you save money over the long term, but if you need to make new purchases you will be much better served by using cash, a pre-paid credit card, or your bank debit card.
3. Try to avoid using the convenience checks. Many credit cards will include convenience checks along with your regular credit card statements. A convenience checks is usually equivalent to a cash advance, and cash advances almost always carry the highest interest rate. Sometimes a credit card will give you a good interest rate if you use their convenience checks for making balance transfers. Just be sure that you read the fine print thoroughly so that you fully understand the terms before using their convenience checks.
There is good news about convenience checks. Some credit card companies will provide you with blank checks that are covered under their 0% intro APR balance transfer offer. These blank checks can be very useful as you can use them for whatever you want. A lot of consumers use these blank checks as a method of obtaining an interest free loan, but they can also be used to open a high-yield savings account or to purchase a certificate of deposit. Keep in mind that once the 0% introductory APR period is over interest charges will begin to accrue so it is recommended that you pay off the balance before, or as soon as, the interest-free period ends.
If you are not absolutely certain as to whether the checks you receive are included in the 0% introductory APR offer then take a few minutes and call the credit card company to ask. Whenever you call your credit card company, be sure to jot down the name of the person you speak to in case the representative makes a mistake.
4. Don’t get carried away with your credit card applications. Regardless of whether or not you are approved or rejected, if you file too many credit card applications within a short time period your credit rating could suffer a downgrade.
5. Many credit card companies own multiple credit card brands. Before submitting an application for a balance transfer, be sure that you are dealing with a credit card company that is different from the one you want to transfer a balance from. If you try to transfer a balance from one account to another, and one bank controls both credit card brands, then your application will almost certainly be rejected. Remember that inquiries into your credit report may have a negative effect on your credit rating; this is especially true if the inquiry results in an application being rejected.
If you already have two different credit cards that have been issued by the same bank or credit card company, you can usually consolidate the balances into one credit card account. If you have questions about this call your credit card company to discuss consolidating your credit cards.
6. It is very important that the account to which you’ll be transferring your balance has a high enough credit limit so as to avoid getting into trouble with fees. Some credit cards charge a fee for transferring balances, and if your new account’s credit limit isn’t high enough, you may get hit with an over-the-limit fee after e.g. the balance transfer transaction fee is added in. When shopping for a zero APR offer, try to find one that doesn’t charge a fee for transferring balances. If you go with an offer that does charge a balance transfer fee, then do your best to find out what your new account’s credit limit will be.
7. Always pay all of your bills on time. This may sound obvious, but it is very important. Credit card companies will offer the best terms to applicants with the best credit rating scores. Having a high credit score will also minimize the chances of having your application for a credit card rejected.
