Being in Bad Credit Personal Loan

certain the right moment during the majority of the people the ‘lives there comes one moment when borrowing the money is the only option. This can be to buy a house, a car, for improvements of the habitat or to consolidate debts simply.

Persuading of the financial institutions to lend the money, particularly the great numbers, is easier for some customers than others. Such which finds to borrow particularly difficult are people with a bad history of credit. The bad credit includes the judgements of Court of County (CCJS), the decrees and the problems of history of credit of past. However, not all is lost is for people with the bad credit, because they can make use of the personal loans of bad credit. Never hear of him! You do not worry; we will say all about the personal loans of bad credit.

A personal loan of bad credit is as any other personal loan of which one could be oneself served as in the past. The only difference is that it is for these people who have a bad credit, or in simpler terms, people with a bad history of credit. There are many lenders who are ready to grant a personal loan if there is a bad history of credit. These lenders however, usually have customer requirement at clean their own house like protection or mortgage it. Refundings are calculated according to the amount of money required and the duration when the loan would be required for. For example, more the loan is borrowed for smallest the payments are a long time, but more interest which the customer will pay. It is thus essential, because the house is employed like guarantee, that the borrower is certain that refundings can be met before an agreement is concluded.

Some lenders can consider a ‘reputation of solvency of S by agencies before sanctioning a personal loan but it is in the majority of the cases a formality. Do not forget that they are there to grant the loan to people with bad appropriations only. However, if there is a very bad and not very impressive disc in the past, it can be refused but that occurs in only exceptional cases and surely, it can secure its loan of another lender. Interest rate in personal loans of bad credit can be high sometimes because they are given to somebody with a bad credit. It is the only disadvantage differently of a loan of rescue for much.

On the personal loan of whole and bad credit is an advantage in the disguise for people with the bad credit and can make wonders for them rejuvenating their companies or by consolidating debts.

Article Source : http://www.financelogs.com/credit/being-in-bad-credit-personal-loan/

Credit Card Debts - The Worst Type of Debts to Have!

Are you sick of being in debt and not being able to see the light at the end of the tunnel? Do you want to have more money left every month for extra things and to save towards retirement? If this is something you are after, then you need to know that credit card debts are horrible to have, but not hard to get rid of. Here are some tips to help you through your debts.

1. Cutting up the Cards

The first thing you must do is get rid of your credit cards because they are causing you the problems. From now on you will be paying for everything with either cash or a money order. If you can handle a checking account, then that is fine, but if you cannot just use money orders to pay bills and cash for everything else. Make sure you dispose of the cards in a way that will not have someone else stealing your information.

2. Setting up your budget

The next thing you have to do is set up a budget to include some money towards each of your credit card debts each month. Now you can do this one of two ways. You can either continue to pay what you can on each card or just pay the full amount you can afford on one card until it is paid off, then move onto the next one. This will all depend on if you are already behind on payments or not.

3. Getting help if necessary

When it comes to credit card debts you should get help if you are afraid you cannot handle them on your own. There are companies that will negotiate a smaller payment and lower balance on your cards for you. Then, they will have you pay then one monthly payment, which will be split up and disbursed to all the credit cards you owe on for you. This is very easy and a very good way to get your debts paid off in three years or less.

Article Source:http://EzineArticles.com/?expert=Jared_McDermott

Dealing With Financial Stress in the Right Way

Good money management habits can help us to lead a financially stress free life. Financial stress can cause acute health problems like diabetes, high blood pressure or even heart attacks. Financial stress combined with health problems can cause havoc to personal life.

People need to learn to deal with financial stress the right way because this helps to protect oneself and the family against its negating factors. All it takes is simple lifestyle changes and meticulously planned savings strategies to prevent any unwarranted financial crisis.

Always be aware of your financial status. This can be done by understanding the current income sources and expenditure items. Most of us always tend to cut expenditures only, instead of working towards increasing the income sources. It is important to build on the income sources with a clear understanding of future needs. It should be remembered that when savings is created for a particular cause like child's education or retirement, it helps to do it with more commitment.

It is important for people to realize that their current financial condition is purely because of their current lifestyle activities. So, it is absolutely important for each one of us to make a slow and steady change for the better. A spending strategy that cuts the expenditure by 20-25% should be developed to realize considerable cost savings.

Always ensure to set aside a part of the salary for savings before planning for monthly expenditure. When people get used to a savings strategy, it becomes easy for them to follow it. There are many budget planning software that can take care of expense management and bill payments efficiently. Use one of them for hassle-free saving and monitoring of bank accounts.

Whenever there is a change of plan, remember to make amends fast keeping in mind the current financial constraints. This will also be a good way to set example to children, to prevent financial stress in their own life. Always remember that the family is at stake during financial problems. So, learn to deal with financial stress in a cool way so that solutions can be derived fast.

Article Source: http://EzineArticles.com/?expert=Leeb_Ritti

MLM and the Current Financial Problems

There is a lot of talk and coverage from the media the last few months about the current financial problems the US economy is facing that threatens to drag the whole world into a global recession. But what will be the consequences of that crisis to the MLM industry?

Actually, the MLM network marketing industry is to benefit from all this turmoil for many reasons whether we dive into a recession or hopefully manage to avoid it. First let us take the worst case scenario that we do get into a recession or even a depression.

In that case, many corporations will start lay offs in a big scale and many people will find themselves unemployed, while others under reduced salary. Such things could lead to an increase in the people who are looking for opportunities in order to start a home based business and supplement their income. Of course the great increase won't come for those who lost their job, as they would be desperately looking for a new job to survive, but from the rest. It would come from people who will keep their jobs, but would keep feeling a constant threat that their job is the next in the line if another round of lay offs would happen. Probably a percentage of them would be working under reduced salary, so they would have another incentive to start looking for alternatives to supplement their income, as probably their paycheck wouldn't suffice.

Many MLM opportunities are poised to benefit from that influx of new members and many distributors would manage to fill their downlines fast and build networks that would give them passive income in the years to come.

But even if we hopefully manage to avoid a crisis and things would go back to normal, many people took their lesson from what little we have experienced till now. While not in a big scale we still had lay offs, and many people saw their investments in the stock market falling. Investments that were supposed to provide for them when they reach the age of retirement. Add to that that the decline in the house prices hurt a lot of people that were relying on the increasing value of their homes in order to draw equity from them through refinancing to cover a part of their expenses, and you realize how hard people were hit.

Under all this, it is natural that many people learned how dangerous is when you rely on others for your economic future and are going to seek for alternatives. Alternatives like having and running your own home based business instead of relying exclusively to employment for a source of income. And of course a percentage of them will get into MLM as it is offering many advantages that is very difficult to be found in other business models.

Learn the tips and tricks that can help you succeed in MLM and build a big downline in any network marketing opportunity. Knowledge is vital when it comes to building your home business in any multilevel marketing company and you should always allocate a percentage of your time to your training as it would define your future success.

Article Source: http://EzineArticles.com/?expert=Chris_Kosman

The Smart Way Out of Debt!

With the way our world has changed you need to know what the best way to take care of debts is. There are many companies preying on the teachings of how to get out of debt and some are good, but others are not and could even be scams. There are good ways to get out of debt and bad ways. Here are a couple things to avoid and one great solution for your debts.

First, if you are not unemployed with over $100,000 of unsecured debts, then bankruptcy should not even cross your mind. This is the way out that those that are weak and cannot keep their word choose. It does not teach you anything about managing your money and it just gives you a way out that is way too easy to be worth the time and money you will spend to file your bankruptcy.

Second, when it comes to how to get out of debt you need to avoid any of the credit counseling agencies as well. These are good for the individuals that do not mind selling everything they own and moving into a very cheap home to get out of debt. They will show you how to manage your money some, but this is not good for your credit and in the long run there are better options.

Last, if you want the best way for how to get out of debt you need to look online and find a debt relief agency that will work with those that have at least $10,000 in unsecured debts. They will give you a free consultation and they will also help you get out of debt within 36 months or less. They will work with your budget and negotiate with your creditors to get you lower payments, rates, and balances.

Article Source: http://EzineArticles.com/?expert=Jared_McDermott

5 Steps on How to Manage Your Credit Card Debt!

To spend has become our habit and nature, especially when we are suddenly handed down with a bunch of cash. However, most of the time, we spend in advance even without the cash in hand. With the introduction of credit card, we all, human beings after all, crave for things to satisfy our desires and lusts. Seeing other people having them, we also want the same thing and experience.

Here's probably an experience you could relate.

Beginning of the month, one fine sunny afternoon, a truck stopped in front of your neighbor house. Of came two men, unloading a big flat box. Out of curiosity, you went out to look what's happening. Out came, your neighbor, smiling happily and greet you. Hey man, what's up? You neighbor replied, "Oh, I have just bought a new 36 inch LCD flat panel TV, come in and have a look". The two men brought in the stuff, unpacked it, and setup it on the living room. Power it up and "Wow", a sleek beauty of thinness of the screen displaying your favorite home movie. You are so intensely and engross with the picture sharpness, clarity and crispness. Best of all, it came in with full-surround mode speaker, and thrill and delighted you even more with the surround sound. You heart keep on telling, "Hey, I got to get one, I ought to have it, I am going to buy it". The next day, you went to the store where your neighbor bought the LCD TV, without even having a thought of it.

So, on the day, the same truck appears now in front of the house, and you got a nice LCD TV, setup in your living room. The picture, the sound, the experience, is indeed overwhelming and the feeling is good.

Come to the end of month, a letter is posted in your letter box. You open it up; $3,500 is printed in the credit card bill. You are shocked, and your mouth is wide open. Oh me gosh, how I am going to pay this?
You got yourself in debt! Out of your Impulse!

Did you know?
In the US, credit card debt has risen over 25% in the past decade with an average balance over US$7,000. Over half of citizens carry a balance every month one in five citizens carries a credit card balance at annualized rate of over 20%. Over 22% of the debts incurred are because of poor debt and credit card management.

Bank of England revealed that Britons owed an outstanding £1 trillion in consumer debt including credit cards and estimated that this debt was rising by £1 million every four minutes.

Here the simple math!
With and outstanding of $1,000 and with minimum monthly charge of 5%, it would take 5 years and eight months to settle the total debt and over and above that, you will be paying $382 in interest based on an annual percentage rates of 18% per annum.

If you are drowned with credit card debts, here are the simple 5 steps to manage your credit card debts!

Step 1
* Understand terms and conditions and charges. This is a very important point. You got to know how much is the Annual Percentage Rates (APRs) for the card you are holding. Some banks may have higher interest rates, or different rates for purchases, cash advances, tiered APRs, penalty and others. A single credit card may have several APRs. One APR for purchases (e.g.14%), cash advances (e.g. 18%) and balance transfers (e.g. 19%) There is also a Tiered APR, which is different rates are applied to different levels of the outstanding balance. For example, 16% on balances of $1-$500 and 17% on balances above $500. A penalty APR is the APR that may increase if you are late in making payments. For example, your card agreement says, "If your payment arrives more than ten days late two times within a six month period, the penalty rate will apply. If you carry over a part of your balance from month to month, even a small difference in the APR can make a big difference in how much you pay over a year. If unsure, ask the bank or agent for clarifications of the terms and condition of the APRs. Be alert to changes in policies and rates.

Step 2
* Prioritize your payments. If you currently have credit card debt, focus on paying off balances on cards carrying the highest interest rates. If you have a 17% APRs credit card, focus to settle the balances, as it will save you a lot of interest. Another way is to transfer the balances to a cheaper interest rate e.g. 8%, but however read the fine print before you do that. You could also negotiate with your current credit card banker to lower the interest, provided you have a good credit rating which means that no late pay notations on your credit report and a good credit score. Otherwise, if the bank do not obliged you to reduced the APRs, just transfer to the cheaper interest rate bank. Make sure you transfer to the credit card that has a low annual percentage rate and be aware of incidental fees and charges.

Step 3
* Limit the number of credit cards. Decline new credit card offers, and cut into half existing cards with paid off balances. In the competitive world, banks are trying to entice consumer with lots of goodies, e.g. free lifetime membership, free gifts upon signing up and etc. No matter what, if you already have one credit card, that is more than good enough. Keep only one, declined other rest, no matter what sort of offer the bank comes out with. Keep in mind, the more cards, the more headaches in trying to keep track of the each card account balances.

Step 4
* If you were forced to use your credit card for an emergency, do attempt to pay off the balance immediately. By paying minimums each month only leads to prolonged and growing debt. If you can't pay full, then you must make attempt to pay more than the minimum.

Step 5
Don't ever... ever... ever... spend beyond your means. Spend within your means. Buy only what you really needs, not the nice to have stuff. Buy what you could afford. Most people will shop for the latest fad cell phone that have touch-screen feature, email function, mp3 players, video player and so on and so forth. However, think about it, what is the main function of the phone: that is to make a call, and probably send some short messaging message. Do you really need all the other gadgets, and do you really need to utilize all the fancy gadgetry stuff the manufacturer pack into the phone. If you really must buy the phone, ask yourself whether you have the budget or money for it. You must also practice delay gratification. Do mind your debt. This sort of credit card debt can be avoided by following one simple rule "If you don't have the money to pay for it, then don't buy it."

Well, that is the 5 simple steps that could indeed be a great help to manage your credit card better.

Article Source: http://EzineArticles.com/?expert=Jayzee_Jon

What You Must Know About Your Credit Cards!

There are many credit card debt facts that you should know, but we are going to cover the most important ones to help inform you of what you are facing. Those with these types of debts know the crazy amount of stress that comes along with knowing you owe someone money. They are like loan sharks and they are no fun to deal with. Here are some of the things you need to know about these debts.

1. They are negotiable

The first of the credit card debt facts that you must know is that most of the time you can negotiate with the creditors that you owe. The older the debt is or the more late fees you have been charged the better. This leave you more room to negotiate. Usually you can cut a credit card balance in half by agreeing to pay it off in full or use three payments over three months to do so. This is one option to try.

2. They will not go away with minimum payments

The second of the credit card debt facts that is necessary to know is that if all you pay is the minimum balance due you will never get rid of them. Did you know that a $1,000 credit card balance will take you nearly 25 years to pay off if you pay only the minimum payment. This is insane and the problem is that you are going to pay well over $5,000 to pay off $1,000. This does not seem right, but it is very true.

3. You can get help

If you are not sure you can handle all your debts on your own and you want help dealing with them, then you can get it. If you have $10,000 or more in unsecured debts, then there are many consolidation companies that will work with you regardless of your credit. They will provide you with one payment to cover all your debts and they will help you pay them off within about 3 years or less.

Article Source: http://EzineArticles.com/?expert=Jared_McDermott

Financial Problems - How to Repair Bad Credit History

Tips on how to repair your credit score is usually tips on how to prevent bad credit score. There is really nothing much you can do about it once you have already blundered. The most you can do is to be a good credit individual again. So here are the first principles you should remember:

Pay on time

Only a careless individual would not pay his or her bills on time even if he or she has the funds to do it. There are thousands of cases when you can have problems with your credit simply due to carelessness. People make up so many excuses such as "I woke up and totally forgot about it because I was too busy on other things" or "I misplaced the bill." Remember that there are measures to avoid these things such as keeping reminders such as post it notes, and simply being more organized. If you fail on this step, then you are most likely the type of person not responsible enough to have excellent credit in the first place.

Three things that will pull you down significantly

Try to stave off bankruptcy as long as you can afford to. The same thing goes with collections and liens for mixed tax payments (remember the first step is to pay on time in the first place). Remember that bankruptcy will stick to your credit history for up to a decade. Collections will last up to 7 years and unpaid liens will last you till you die. Remember to cross out these three things because they are the most dangerous things for your credit health. If you get one of these bad records, your score will immediately go down. This is one of the best tips on how to repair bad credit score for good reason. Though these problems are recoverable, you can't simply rebound from them right away. They will way you down for a long time and you will realize just how heavy they weigh you down through the years when you could have used a loan or good rates but could not get them due to your low FICO score.

Keeping clean with your credit cards

Do not keep too many credit cards. The temptation to use all these cards up will be simply too great. Manage your financial affairs by closing credit card accounts are not used that much or simply do not get new credit accounts in the first place. These just add up to your temptation. Then, after you close an account, report this to the three major credit reporting agencies. Aside from not getting a lot of credit cards, you should also learn to manage the credit cards you already have.

Checking your credit report

Now here is one of the best tips on how to repair bad credit score that some consider as not merely preventive. This can actually bring down up your credit (although technically, you are just correcting it). Did you know that there are many people who have mistakes in their credit score? Credit reports are done by machines. A small mistake in spelling of you name or address, un-updated personal details, just one additional zero to a transaction, each of these things can lead to mistakes that lower your score. Thus, it is advisable to get your free yearly credit report from the three major credit reporting agencies. Study them carefully and dispute the mistakes in them.

Article Source: http://EzineArticles.com/?expert=Joel_Owens

CREDIT CARD DEBT AND YOU: Under-30s under siege

THOSE under-30 are the leading age group for people declared bankrupt due to credit card debt. This startling finding reveals the other dimension to the general problem of credit card debt which has now reached RM23.3 billion.

“Out of the 3,548 people declaring bankruptcy by credit card, 1,774 belong to those aged 30 and below,” said Datuk Abdul Karim Abdul Jalil, director-general of the Department of Insolvency Malaysia. That works out to a staggering 50 per cent.

There are a number of reasons for the phenomenon but no serious study of the matter has yet been conducted , said Abdul Karim.

He added that applying for a credit card is easier these days. There are instances where you do not need to submit your pay slip to apply for one.

With credit cards easily obtained, it’s important that the right people should be the ones who are eligible for them. These cards should be made applicable to those who have the capability to pay.

Besides that, the public should also be educated on how to better manage credit finances so as not to end up in debt, Abdul Karim said.

“We’ve already witnessed what the credit crunch has done to a country as powerful as America. We should take precautions to make sure the same thing does not happen to Malaysia.

“It is often said that money is the root of evil, but now, we can also easily say that enjoying the luxury of credit is the root of bankruptcy.”

RM24b not small money

IS RM24.4 billion big money? This is the amount of credit card debt owed by Malaysians, according to Bank Negara Malaysia’s statistics as at end of March 2009, reported by Bernama last week.

The report, however, stated that the credit card debt in the country has not yet reached a critical level, according to the Credit Counselling and Debt Management Agency (AKPK). This is because up to that period, loans via credit card accounted for only 6.1 per cent of the total financing by banking institutions.

However, Malay Mail took a closer look at how much RM24.4 billion is worth by looking at the country’s 2009 budget allocation, and we find that RM24.4 billion is certainly worth “something”.

The budget allocation for 2009 stood at RM207.9 billion. Out of this amount, RM7.6 billion was allocated for transport, RM3.2 billion for public utilities, RM17.8 billion for social services (including education and health), RM7.3 billion for pensions and gratuities, RM4.1 billion for security, RM33.8 billion on subsidies, RM 27.7 billion on economic services and RM13.5 billion for debt service charges.

So, in comparison, it is quite evident that the RM24.4 billion is not an insignificant amount.

Problems clearing debt?

AGAINST the backdrop of job losses and falling disposable income, those who have debts are expected to face severe problems repaying their loans and settling their debts.

As such, it is not surprising that the number of clients coming forward to seek help in debt restructuring has been on the rise since October 2008.

The best general advice for people facing debt problems is to seek advice from banks and government bodies namely Agensi Kaunseling dan Pengurusan Kredit (AKPK) who will assist to work out the loans for them to suit their capabilities.

According to AKPK, a wholly owned unit of the central bank, the cumulative number of people seeking debt counselling and help as at end-March stood at 82,441 nationwide. On a quarterly basis, there is a 35% increase in the number of people applying for AKPK’s financial services.

However, AKPK CEO Mohamed Akwal Sultan cautions against reading too much into these figures.

“Certainly debt counselling has more relevance when things are not going well, but this is still a new agency and part of the growth we see is from our awareness campaign which includes talks, briefings, articles as well as exhibitions.

“Also, there is maybe the word-of-mouth from the people we have helped who tell their friends,” he says, adding that this could partly explain the rise in number of people who have approached the agency for counselling.

Credit card problems is an issue for most (70.5%) of the people who seek help from AKPK, says Mohamed Akwal.

“It is only natural that there is credit card debt. When things go bad, you will not want to miss the car payment because you don’t want them to repossess it, you will also try to keep paying the mortgage because you want to have a place to stay. So, people usually delay paying and prioritise other loan payments.”

He also cautions against the habit of simply paying the minimum payment on the credit card while using the credit card to settle other needs. “It’s a very bad way to survive”.

The one message the agency wants to send to the public is that people should try to go for help to their bank or AKPK earlier.

“Normally, when people start to miss payments, they try to avoid the bank but you should actually go to the bank or come to AKPK and discuss your problems as soon as possible,” he advises.

What is the general advice for people with debt problems?

“Well first we look at the person’s overall situation. Then there are two things they can do – reduce their monthly expenses (cut corners) or total debt amount and/or look at increasing income by taking a second job,” he says.

There are only two ways out of it – tighten the belt and cut back spending or raise income level by taking a second job.

But that’s easier said than done. He points out that in considering to take up a second job, one must pick something that is physically possible and sufficient sleep and time with family are important.

As for those who have been retrenched, Mohamed Akwal says the main thing is to be careful on how to spend retrenchment benefits.

According to the Human Resource Ministry, almost all those who are retrenched at present should be able to find work if they are not choosy as there are enough jobs.

He suggests people take on part time work or even start a business if they are inclined, AKPK is able to put people in touch with microfinance agencies if they are interested.

But it is completely up to the agencies whether to finance the business idea, he points out.

Latest Ministry of Human Resource numbers show that a total of 33,361 people have been retrenched in the country from Oct 1, 2008 to May 7, 2009.

Another 42,884 people have been temporary laid-off or have received a pay-cut in the same period.

AKPK expects higher debt problem cases

Kuala Lumpur: Credit Counselling and Debt Management Agency (AKPK), an agency set up by Bank Negara, expects a surge in the number of financially-distressed individuals seeking counselling and debt management services this year.

Chief Executive Officer Mohamed Akwal Sultan said more people might not be able to meet their financial commitments in view of the current economic downturn.

There could be more lay-offs and shorter working hours, rendering people in a tight spot for money.

"Last year, the number of counselling services increased to 41,447 from 25,320 in 2007," he told Bernama.

"AKPK also handled 11,958 cases involving debt management programmes in 2008, an increase from 7,614 cases in 2007," Mohamed Akwal said, adding that he expected more cases on credit cards and housing loans.

The Association of Banks in Malaysia (ABM) recently lowered interest rates for credit cards by between 0.5 percent and 1.5 percent for Tier-1, Tier-11 and Tier-111 credit cardholders.

Late payment fees will be slashed to a minimum of RM5 and a maximum of RM75 effective March 31.

However, many parties viewed the interest rate cut as not good enough.

Mohamed Akwal said the reduction would only benefit the 40 percent who currently elect to leverage on the credit made available under the credit cards.

It may also encourage this group to make more regular minimum payments to move from Tier-III to Tier-I to enjoy the lower interest rate.

He said credit cards should be used as an electronic means of payment mechanism and not a source of long-term credit.

Interest rates for credit cards will normally be higher than other secured loans as the risk is higher.

However, interest rates on credit cards in Malaysia are still one of the world's lowest.

"Though the non-performing loans in Malaysia are not as bad as in the United States, it is crucial for the people to live within their means and only buy things they can afford," he said.

AKPK's counselling services are available to all individuals who need help to manage their personal debts with financial service providers regulated by Bank Negara.

However, there is a qualifying criteria for AKPK's assistance, he said.

An individual has to have an income after meeting his or her expenses, total debt does not exceed RM2 million, not under advanced litigation process and is not a bankrupt.

For financially-distressed individuals, who met the qualifying criteria, AKPK will offer a debt management programme (DMP) to restructure their loans or extend repayment period and flexibility in loan repayment amount to suite their cash flow.

"As long as the DMP applicant abides by the terms and conditions, banks will not take legal action," he said.

According to the profile of individuals who have enrolled into AKPK's DMP, Mohamed Akwal said it was the Malaysian men who were the most debt-ridden.

"In a household, it is usually the man who is the main breadwinner and manages the household. As such, they are the ones who normally take loans," he said.

Mohamed Akwal said AKPK's counselling and DMP are available at all its eight branches in Penang, Perak, Melaka, Johor, Pahang, Terengganu, Sabah and Sarawak.

Two new branches in Kota Baharu and Alor Setar will be opened this year, he added. - Bernama

The do’s and don’ts for Financial Success

Now more than ever it pays to be savvy when it comes to getting the credit you need to run your life. Luckily, you don’t have to be an expert to stay on the money. These simple steps could help you find financial success.

Do know what you owe…

In the current climate, you need to know exactly where you are before making plans – and what you really owe could come as a wake-up call. Instead of wading through files and old bills, you can find your credit accounts, from credit and store cards to loans, mortgages and even mobile phone accounts, listed in your credit report, along with your repayment record. You can see your Experian credit report for free with a 30-day trial of CreditExpert, the online credit monitoring and ID fraud protection service.

…and don’t stick your head in the sand

Therst thing you can do is nothing. Interest could be mounting up on borrowing you’ve forgotten, so you could end up owing even more in the long run.

Do keep up with your repayments…

It can be tempting to skip the occasional repayment if you’re having a tough month but you could rack up penalties and interest – and it will be recorded on your credit report for at least three years, where lenders will see it when you make a new application.

…and don’t be afraid to talk to your lenders

If you’re having financial problems it’s in their interest, as well as yours, to come up with a sensible solution. Together, you may be able to agree a new schedule of affordable payments, although this may mean that it will take longer to clear what you owe.

Do your research…

When you need a card, loan or credit account of any kind, research what’s on offer – visit personal finance and price comparison sites to see what’s out there and what matches your circumstances. You’ll stand a better chance if you ask for an appropriate and affordable deal.

…and don’t take a scattergun approach

There’s no point in firing off lots of applications in the hope that one of them will succeed. Not only could you get turned down, but you could damage your credit rating in the process. Each application will trigger a search by the lender and these leave a record on your credit report. If other prospective lenders see a lot of these, they could fear you’re overstretched, out of financial control or even suspect a fraud.

Do shred before you bin…

ID fraud is one of the UK’s fastest-growing crimes, so make sure thieves can’t get hold of personal or sensitive information from your rubbish and use it to borrow money in your name or max out your accounts.

…and don’t put too much in the recycling

You may think you’re doing your bit for the environment but you could also be offering a free gift to a thief. Remove the address or account information from all letters and documents before you put them in the box – even an old catalogue could put your ID at risk if a bin raider picks it up.

Do check your credit report regularly…

Lenders look at your credit report every time you apply to them and when they’re setting interest rates and other conditions, so it pays to be sure that all the information it contains is up to date and accurately reflects your situation. You’ll also be able to spot suspicious applications or transactions that could indicate attempted ID fraud.

…and don’t assume everything’s okay

If you haven’t received any payment demands or red bills, don’t assume you have a good credit rating. A simple clerical error or misunderstanding could damage your credit status, so make regular checks on your credit report part of your financial routine. A credit monitoring like CreditExpert can help – members receive an email or text alert every time there is a significant change, like a late payment recorded by a lender or a large change to a credit account balance.

Do put a shine on your credit history…

If you can demonstrate that you are a responsible borrower with a stable lifestyle, you have a better chance of getting the deals you want. You can improve your credit status by taking simple steps – for example, ask lenders to correct any errors in your credit report, close unused accounts and register to vote at your current address.

…and don’t assume the past is over and gone

If you’ve been bankrupt, taken out an IVA or had court judgments against you for debt, the evidence remains on your credit report for at least six years and even a missed repayment can be seen by lenders for at least three years. If special circumstances, such as illness, an accident, redundancy or divorce, were behind any past problems, you can add a note of explanation that lenders may take into account when deciding whether to make you an offer.

Do ask for help

If you’re having problems, get free, professional advice. Try Citizens Advice at adviceguide.org.uk, National Debtline at nationaldebtline.co.uk or the Consumer Credit Counselling Service at cccs.co.uk. As well as offering advice on how to manage and reduce your debts, these organisations have the legal right to negotiate with creditors on your behalf.

…and don’t be tempted by offers that are too good to be true

“There is no magic spell that will allow you to walk away from money troubles without any consequences and only you can sort out your credit status, so be wary of miracle cures for your financial ailments. They almost always cost you money you can’t “

Avoiding Bankruptcy - How To Avoid a Financial Problem

Bankruptcy may seem like a quick and relatively easy fix to a big problem, but it isn't. First, it can haunt your financial life for a decade or more, keeping you from owning a home, buying a new car, or even living the life you really want.

Maybe you're debt is beginning to weight you down. It's not to late t change some bad habits and reverse your financial woes. How can you avoid bankruptcy? Here's a good place to start:

Get Control of Your Spending:
Less than 43% of Americans today have more than $1,000 saved for a rainy day. Living paycheck to paycheck is a dangerous, considering that emergencies happen every day. Cars break down; people get hurt and miss work; unexpected pregnancies force women out of the workforce, and more. If you're struggling to pay your bills now, imagine the chaos an unexpected layoff would cause.

Sure, not everyone has the ability t save a large chunk of their salary, but almost everyone can put $5, $10 or even $15 a week away in a savings account. The key to living under your means, and avoiding bankruptcy, is creating a workable spending plan (ok, a budget), and stick to eat. First figure out the things that are essential; place to live, food to eat, a way to get to work, etc. Now, this doesn't mean that you need to live in an $1800 a month condo if you make $23,000 a year. It means finding an apartment or home that you can afford; a reasonably priced car (or take the bus), and regular old jeans, not the designer kind.

Remember, the point here is to spend less than you make, and that will mean sacrifice of some type. How much sacrifice depends on how far over your income your spending has become. Once you've figured out your necessity spending, then you can take a good hard look at your non-essential spending habits and limit that to what you can reasonably afford and still be able to have enough left to pay down your current debt and save for an emergency.

So, how much should you be spending? Most experts agree that a sound-spending plan should consist of the following ratio:

-35% of your net pay for housing costs (rent, utilities)
-15% for transportation ( car payments, gas, maintenance, insurance)
-15% for debt (credit card payments, student loans, personal loans, etc)
-10% toward savings
-25% for everything else (clothes, food, fun)

Following this ratio should allow you to live a comfortably debt-free life, freeing you of he worry of bankruptcy in the future.

Debt Consolidation:
Ok, so maybe it's too late to prevent financial trouble - you already have it. How can you stave off bankruptcy in order to get your financial house in order? If you own your home, and you're able to handle the payments, causing your home equity to consolidate your entire debt into one long-term loan may be the answer. Be careful though. Until you break the spending cycle that got you into trouble in the first place, this is only a temporary solution that can ultimately mean the loss of your home if you continue to wrack up debt after the consolidation is complete. If, however, you're prepared to pare back your expenses and attack your debt head on, then this may be a great way to buy a little time and keep creditors in check.

Debt Settlement:
Sometimes, even the equity in your home is gone and the well is simply dry. Creditors hate bankruptcy since they either never reclaim any of what you owe them, or get pennies on the dollar through payment options. So, once bankruptcy has become an option, contact your creditors and see if there's a possibility you can settle some of your debt in order to help you avoid bankruptcy altogether. Many are more than happy to forgive up to 60% of your current debt if they are guaranteed they'll get the last 40% in a timely manner. Be prepared, however, to prove your case. Face it, you haven't been very responsible thus far with your spending, or your bills, so they'll need a little convincing that things have changed and that you are indeed working hard to make things right.

Credit Counseling:
Oftentimes, people get into financial trouble simply because they don't know any better. Credit counseling can be a wonderful resource to help you get your spending under control, learn to live on a budget and handle debt settlement and consolidation for you. Just be sure that you choose a reputable service that has a proven track record.

While bankruptcy may seem like the best solution when creditors are calling every hour of the day or night, but, bankruptcy can often be avoided with a little ingenuity and some hard work.

Bankruptcy may seem like a quick and relatively easy fix to a big problem, but it isn't.

How To Use Brainstorming To Solve Your Money Problems

Advertising executive Alex F. Osborne first coined the word “brainstorming" in the early 1940’s. Since then literally millions of ideas, products and services have been created.

Every institution from Fortune 500 companies to Universities and Government agencies, have used the principle of brainstorming.

Fact: For every product in your home or office, chances are a person or group of people brainstormed about it.

They brainstormed on how best to create, market, sell, manufacture, advertise, or distribute it. This is how powerful brainstorming is.

One of the best things about brainstorming is that it can be used by anyone. You don’t have to be a C.E.O or army general. You can gain from brainstorming if you’re a housewife, janitor, student or unemployed.

Yes, you can use the principles of brainstorming for the largest project or the smallest project.

You can use it to plan a million-dollar ad campaign, or use it to plan what you’ll have for dinner tonight.

Practice the following steps. You'll soon be amazed at the ideas and solutions your fabulous brain will give you.

7 Steps For Effective Brainstorming Sessions

1. The brainstorming session can be done with one person or one hundred people. The rules are the same. The only requirement is the participants should know about the problem, business, product or subject of the brainstorming session.

2. Don’t use critical thinking. Critical or judgmental thinking slows down or kills the creative process at this stage. Because as hard as you may try, you can only think one thought at a time. When your creating you can’t judge and when you judge you can’t create.

3. Keep the session light, loose and free spirited. Humor has been known to help oil the wheels of our creativity. A large portion of our creativity is released through our humor.

4. Make sure you have a pencil and paper to write down any and all ideas, or if you’re in a group, designate someone to write down the ideas.

5. It’s best to set a minimum length of time or amount of ideas you want to get out of each brainstorming session. Setting a goal helps everyone to focus; it also helps everyone avoid wandering minds.

6. Write down the problem, the goal, or the subject at the top of a piece of paper. For example, “Ways To Attract More Customers". Next number each idea you or the group comes up with. Write down every idea, the good, the bad, and even the ugly. Remember, the goal is to get as many ideas listed on paper as possible.

7. Next evaluate the most do-able ideas and take action.

That’s the 7 tips for effective brainstorming sessions. Follow them and watch the ideas flow.

Financial Problems

If the "buy now-pay later" way of life has left you facing a mounting pile of bills each month, you're not alone. Today, millions of Americans are having difficulty paying their debts. Most of those in financial distress are middle income families with jobs who want to pay off what they owe.

If you are having financial problems, it is important for you to act now before those problems get worse. Doing nothing can lead to much larger problems in the future -- even bigger debts, the loss of assets such as your house, and a bad credit record.

The good news is that there are solutions. There are ways to help improve your relationships with creditors, reduce your debts, and help you manage your money. In brief, these solutions can help give you a new, fresh start. First, let's see how bad your problems are.

Financial Fitness Checklist

To find out just what kind of financial shape you're in, answer the questions in the following Financial Fitness Checklist.1 If you're married, print this out and take it home so that you and your spouse can work together to answer the questions. Make a note of how many questions you answer yes to.

1. Are you using more and more of your income to pay your debts?
2. Do you make only the minimum payments due on your loans and credit cards each month?
3. Are you near, at, or over the credit limit on your credit cards?
4. Are you paying your bills with money intended for other things?
5. Are you borrowing money or using credit cards to pay for things you used to buy with cash?
6. Do you often pay your bills late?
7. Are you dipping into your savings to pay current bills?
8. Do you put off visits to the doctor or dentist because you can't afford them?
9. Has a collection agency called recently about overdue bills?
10. Are you working overtime or holding a second job to make ends meet?
11. If you or your spouse lost your job, would you be in financial trouble right away?
12. Do you worry about money a lot?

If you answered "no" to all questions on the Financial Fitness Checklist, you're the picture of financial health.

One or two "yes" answers, while not necessarily a sign of impending doom, can be a warning sign of potential problems. Before things get any worse, take time now to draw up a realistic budget (including a savings plan) or to revise your spending plan. Cut back on your use of credit cards, and watch closely for other signs of financial trouble.

Three to five "yes" answers could mean that you're heading for financial trouble. It's imperative that you get your spending under control right away. If you don't have a monthly budget, draw one up and follow it. Put away your credit cards and cut out all unnecessary spending until you can answer "no" to all the questions on the Financial Fitness Checklist.

If you answered "yes" to more than five of the questions on the Financial Fitness Checklist, you may already be in serious financial trouble. But don't despair. Financial counseling can start you on the road to financial recovery.

Road to Financial Recovery

If the Financial Fitness Checklist indicates you are heading for financial trouble or already in it, immediate action is in order. Eight different organizations concerned with consumer and credit issues worked together to develop the following guidance for people like you.2 Free or low-cost personalized counseling is available through your Employee Assistance Program or a private non-profit organization in your area.

What You Can Do for Yourself

Review your specific obligations that creditors claim you owe to make certain you really owe them. If you dispute a debt, first contact the creditor directly to resolve your questions. If you still have questions about the validity of the debt or the collection practices, contact your state or local consumer protection office or state Attorney General.

Contact your creditors to let them know you're having difficulty making your payments. Ideally, this should be done before a payment is late or missed. Tell them why you're having trouble -- perhaps it's because you or a spouse recently lost a job or have unexpected medical bills. Try to work out an acceptable payment schedule with your creditors. Most are willing to work with you and will appreciate your honesty and forthrightness. Many have "hardship programs" which provide for adjustment of payments for a period of time.

The Fair Debt Collection Practices Law prohibits a debt collector from showing what you owe to anyone but your attorney, harassing or threatening you, using false statements, giving false information about you to anyone, and misrepresenting the legal status of your debts. Remember that under other federal laws to collect debts, creditors cannot seize most government assistance and can only garnish a portion of wages to collect debts.

Budget your expenses. Create a spending plan that allows you to reduce your debts. Itemize your necessary expenses (such as housing and health care) and optional expenses (such as entertainment and vacation travel). Start a savings plan so that funds are available for unforeseen but essential expenditures. Stick to the plan.

Try to reduce your expenses. Cut out any unnecessary spending such as eating out and purchasing expensive entertainment. Consider taking public transportation rather than owning a car. Clip coupons, purchase generic products at the supermarket, and avoid impulse purchases. Above all, stop incurring new debt. Consider substituting a debit card for your credit cards.

Use your savings and other assets to pay down debts. Withdrawing savings from low-interest accounts to settle high-rate loans usually makes sense. Selling off a second car not only provides cash but also reduces insurance and other maintenance expenses.

Look for additional resources from governmental and private sources for which you may be eligible. Government assistance includes unemployment compensation, Aid to Families with Dependent Children (AFDC), food stamps, low-income energy assistance, Medicaid, and Social Security including disability. Other resources may be available from churches and community groups. Often these sources are listed in the Yellow Pages of your phone book.

"Looking closely at our options helped us realize that we still needed to try self-budgeting before taking more extreme measures. We think that perhaps we were giving up too soon." Alicia A.

What Others Can Do for You

Credit Counseling. If you are unable to make satisfactory arrangements with your creditors, there are organizations that can help. An organization that you can call is a Consumer Credit Counseling Service (CCCS) agency. These local, non-profit organizations affiliated with the National Foundation for Consumer Credit (NFCC) provide education and counseling to families and individuals.

For consumers who want individual help, CCCS counselors with professional backgrounds in money management and counseling can provide support. To promote high standards, the NFCC has developed a certification program for these counselors. A counselor will work with you to develop a budget to maintain your basic living expenses and outline options for addressing your total financial situation. If creditors are pressing you, a CCCS counselor can also negotiate with these creditors to repay your debts through a financial management plan. Under this plan, creditors often agree to reduce payments, lower or drop interest and finance charges, and waive late fees and over-the-limit fees.

According to the NFCC, about 35% of those counseled are able to help themselves after budget counseling sessions; 30% require a debt repayment program, 7% are referred to legal assistance, and 28% are referred to other resources (e.g., programs for treating compulsive behavior such as alcohol, drug or gambling problems) or decide not to participate at that time. About 65% to 70% of the individuals who start the debt repayment plan complete it successfully.3

After starting the debt repayment plan, you will deposit money with CCCS each month to cover these new negotiated payment amounts. Then CCCS will distribute this money to your creditors to repay your debts. With more than 1,100 locations nationwide, CCCS agencies are available to nearly all consumers. Supported mainly by contributions from community organizations, financial institutions, and merchants, CCCS provides services free or at a low cost to individuals seeking help. To contact a CCCS office for confidential help, look in your telephone directory white pages, or call 1 (800) 388-2227, 24 hours a day, for an office near you.

"I cannot tell you how happy I am to finally be able to control my finances now that I have followed a budget. So far, so good. I actually have a balance in my savings account!" Rodney O.

Personal Bankruptcy. Bankruptcy is a legal procedure which can give people who cannot pay their bills a fresh start. A decision to file for bankruptcy is a serious step. You should make it only if it is the best way to deal with financial problems.

There are two types of bankruptcy available to most individuals. Chapter 13 or "reorganization" allows debtors to keep property which they might otherwise lose, such as a mortgaged house or car. Reorganizations may allow debtors to pay off or cure a default over a period of three to five years, rather than surrender property.

Chapter 7 or "straight bankruptcy" involves liquidation of all assets that are not exempt in your state. The exempt property may include items such as work-related tools and basic household furnishings, among others. Some of your property may be sold by a court-appointed official or turned over to your creditors. You can file for Chapter 7 only once every six years.

Both types of bankruptcy may get rid of unsecured debts (those where creditors have no rights to specific property), and stop foreclosures, repossessions, garnishments, utility shutoffs, and debt collection activities. Both types also provide exemptions that permit most individual debtors to keep most of their assets, though these "exemption" amounts vary greatly from state to state.

Bankruptcy cannot clean up a bad credit record and will be part of this record for up to ten years. It can, for example, make it more difficult to get a mortgage to buy a house. It usually does not wipe out child support, alimony, fines, taxes, and some student loan obligations. Also, unless under Chapter 13 you have an acceptable plan to catch up on your debt, bankruptcy usually does not permit you to keep property when the creditor has an unpaid mortgage or lien on it.

Bankruptcy cases must be filed in federal court. The filing fee is $160, which sometimes may be paid in installments. This fee does not include the fees of your bankruptcy lawyer.

Choosing a bankruptcy lawyer may be difficult. Some of the least reputable lawyers make easy money by handling hundreds of bankruptcy cases without adequately considering individual needs. Recommendations from those you know and trust, and from employee assistance programs, are most useful.

Some publicly funded legal services programs handle bankruptcy cases without charging attorney fees. Or these programs may provide referrals to private bankruptcy lawyers. Keep in mind that the fees of these attorneys may vary widely.

"Our bills have been a source of worry to us. After bringing our problem to credit counselors, we have begun to feel there is a way to cope with it. We are feeling more confident now." Nelson M.

Possible Pitfalls

You may encounter credit counselors who aren't helpful. For-profit or non-credentialed counseling organizations often make promises that they cannot or do not keep. Be especially careful when asked for a large sum of money in advance. To check the organization's reputation, contact your state Attorney General, consumer protection agency, or Better Business Bureau.

"Credit repair" clinics and "credit doctors" have been frequently criticized for promising that they can remove negative information from your credit report. Accurate information cannot be changed. If information is old or inaccurate, you can contact a credit bureau yourself and ask that it be removed.

Risky refinancing options. When already in financial trouble, second mortgages greatly increase the risk that you may lose your home. Be wary of any loan consolidations or other refinancing that actually increase interest owed or require payments of points or large fees.

A Final Word: Don't lose hope, even if you despair of ever recovering financially. You can regain financial health if you act. Pursuing the options presented in this pamphlet can put you on the road to financial recovery.

"It feels great to be getting my life (and credit) in order!" Robyn H.

Security Concerns

An individual who is financially overextended is at risk of engaging in illegal acts to generate funds.

Amount of debt determines, in part, how stressed and desperate a person is as a result of financial problems. However, what caused the debts and how one deals with these financial obligations tells more than amount of debt about a person’s reliability, trustworthiness, and judgment.

If a person is not at fault for the financial problems and is dealing with them in a reasonable manner, security concern is substantially alleviated. On the other hand, debts caused by irresponsible or impulsive behavior or by gambling, alcohol abuse or drug abuse are a serious concern. A person who is irresponsible in fulfilling financial obligations may be irresponsible in fulfilling other obligations, such as following the rules for protecting classified information.

Financial stress is common among a large segment of the population. Many immature young persons go through a period of difficulty adjusting to the temptations of easy credit. Most people with financial difficulties do not view crime as an appropriate means of solving their problems, but the few who do are a serious concern. Of recent spies who betrayed their country for money, about half were motivated by some real or perceived urgent financial need, and about half by personal greed.4 Greedy individuals often have a compulsive need for money or goods as a measure of success or as a source of self-esteem, influence, power, or control.

Cash Advances Helping You Meet Your Current Financial Needs

It can be hard to see any way out of a financial situation, which is why we as modern people are thankful for the concept of cash advances. Although it is a short-term loan, it can help in remedying a situation. This method of getting money has indeed helped a lot of people get their financial situations in order.

Cash advances are short-term loans meant to help us in our current need of money. They are the difference between losing your car to the car pound, and getting it out of the car pound on time.

To different people with different and unique situations cash advances can mean a lot. They are the money safety nets to which many people turn

The other notable thing about cash advances is they are relatively easy to get and the money is in your checking account within a few days. Some companies even send the money to your account within 24 hours after your application form has been approved. This is helpful in the way that you do not have to wait around for the money to come when you want to get the bills paid up as soon as humanly possible. So if you do need the money urgently, then you will receive the money more quickly than you might expect.

It’s always nice to get a surprise every now and then, and to receive a cash advance surprise, well that is even better because when you need it cash advances are there to help you out of any financial problem that you may have. They can resolve your financial problems and lay them to rest for at least a while. This will also help you get the peace of mind and to see to other things that are happening in your life. You get the added advantage of getting back the control that we sometimes lose when we are in a financial crisis that erodes our emotions.

FINANCIAL STRESS MANAGEMENT

Most of marriages show that financial problem is the primary cause of stress in a marriage. So, you should deal with them. In such case, you can obtain the effective reference by using lots of books and through both television programs and web sites.

As the basic premise, make a table all your debts and the interest rate you owe on each of them. Start with paying the debts off by making more than minimum monthly payment. It should be started from the highest interest account. And then, you should examine about how you can shift the high interest debt into lower interest debt.

Stress management for financial case will be little bit difficult. Therefore, have a plan to gain extra money to refund your debts. You need to make a record of your each expense as a beginning. After a week, you will recognize how you are expending your discretionary income. It will be a sacrifice at first of forgetting some of those discretionary items. However, the capability for repaying high interest debt is worth it.

So, are you now willing to know more about stress management? I hope these guidelines will make you think and get smart about it!

Watch Your Finances A Relationship Problem Advice

The best thing that you can do is first make sure that you are committed to the concept of your marriage is a good relationship problem advice. Of course, when money and finances are the reason why your marriage is having a problem, you need to get organized and work something out.

So many marriages fail because of fights that start over money issues, and these failures only increase every year. Big financial decisions are often made without the spouse’s knowledge; gambling, debts, and income issues all play a big part in a couple’s marriage. This gets even more complicated when one of the spouses is not working. Financial problems become even bigger.

When it comes to finances in a marriage, the best things that can be done is for your marriage is to make sure that both people are equally involved no matter who makes the best money or if one spouse is not making any at all to make sure finance is not a cause of your relationship problem.

Money matters need not cause a marriage to end. However if you and your spouse find that you are constantly arguing about money matters, all that really needs to be done is for a good accountant and therapist to take over.

Marriage counseling helps many couples learn to deal more effectively with relationship problem advice, and they can help prevent small problems from becoming serious.

Marriages have a better chance of success when the couple goes to marriage counseling. In fact, research shows that marriage counseling tends to improve a person’s overall health and makes the family unit function better as a whole. A good marriage counselor can really make a difference in the worst situations in giving relationship problem advice.
If you want to find a good marriage counselor you can search through your yellow pages, but I would recommend that you search online. When you conduct your search this way, you can also get reviews of the counselor and what their specialties are.

Most counselors do have a specialty of their own. This makes finding the right one that much easier. Just look around and you and
your spouse will soon get your money woes to be gone for good.

How I Got My Finances Intact

First of all, I do not claim that all my finances are under control. At certain times, it can get wild and it can get out of hand. What I have noticed though, is that as I become more aware of my financial situation, I begin to have a better control over it.

Some years ago, I had started like everyone else, fresh out of university, landed myself in a job which paid relatively well given the economic situation then. I then got myself a credit card and then, the problems began. I was spending more than I was earning and I was a very good customer of the bank.

Despite knowing that it is not wise spending future money, I turned a deaf ear, saying instead that I am still young and money will not be a problem (I was optimistic that my job will still be there for me tomorrow). By then end of the first week, I was already looking forward to the last week of the month where the salary will come in.

One day, my situation hit me - OMG!! What am I doing?? I am in my late 20’s and I do not have any decent savings and besides some pathetic insurance policies, I do not have any savings nor investments. My constant excuse was that the cost of living was too high, I need to buy these things etc. I was denying that I was actually living in a dangerous turf. If I lost my job, I will not be able to sustain.

Admiting that I had a personal finance problem was a major FIRST step for me. I had to have the will to WANT a change in my current situation but I just did not have the knowledge to overcome it.

SECONDLY, I had to put in some action. Through much reading, I was able to make some sense of how to go about getting myself out of this situation. The saying “It is not about how much you earn, but how much you save” made sense to me. I started to put aside a small amount every month till I reached the minimum amount required to place a time deposit (TD). THIRDLY, I started to set goals about how many TDs I want to place by when and how much. I also had a set of broader financials goals I wanted to achieve - short terms goals (car, investment), mid term goals (insurance, house), long term goals (retirement).

All this time, I struggled to keep my expenses under control. Seeing my savings grow further motivated me to cut my expenses. NEXT, I read up on portfolio diversification - its pros and cons. I read that I should be having about 6 months of my monthly income saved for rainy days. It never reached there because I then diverted my savings into Unit Trusts (UT) funds. I then decided to give a good balance to it and took up some insurance policies. I thought about the consequences of not having the means to pay for my medical bills and having my family bear it for me. Here, I think I could have bitten more than I could chew because my premiums were killing me at one point in time and I started to regret it.

This is where my FIFTH point comes in - perseverance. When goals are set, it has to be constantly updated to suit our life stage. And when we believe that the goals are correctly set, we should just stick to it, no matter what. Our financial goals need to be realistic, our commitment to the portfolio needs to be realistic, else, we will easily give up.

Today, I am happy to say that my expenses are no longer more than my income. I have a dedicated pool of money channeled to savings, investments and insurance every month. The phrase “Too much month at the end of the money” still holds true for me sometimes, but it is more of an exception rather than the norm. Although I have cut back on my spend, I still manage to splurge on my family and myself once in a while. More importantly, I am no longer desparate for the month end to come and I could enjoy my life more.

LASTLY, it does not matter how much you earn, save, invest or insure if you do not protect it. Therefore, remember to have an estate planning session to ensure that your wealth (no matter how small it is) is being protected for the sake of your loved ones.

Credit Card Debt Problem Solutions

People all around the world are facing this credit card debt problem every second of the day.

Keep in mind that out there somebody might have even harder financial problems and you’re a happy person compared to him.

Eliminating the credit card debt is an important issue for all of us.

What can we do about it ?

How can we handle the situation ?

Actually it’s quite easy. Face the problem and deal with it before it will take over your entire life. You can use whatever method you want to solve this problem just be sure you’ve chosen the right one for your situation.

If you’re confused you can follow these 9 simple steps that will help you getting rid of that unpleasant credit card debt :-

1. Take a pen and a piece of paper and write down some important things as it follows: your credit card name, the balance, the day when you have to pay the bills, APR, your reward points along with their current offers and last but not least the remarks.

2. Put in the table the above mentioned information for all your credit cards.

3. Try to see which credit card causes most of your problems. In other words see which one has a harmful balance and APR.

4. Analyze the reward points because sometimes they can be used to pay some bills or fees. If is possible use them to cover some expenses.

5. Compare you consolidating credit card debt offers and choose the one that suits you best.

6. Get rid of the credit card that’s causing all the damage as fast as you can. (This doesn’t involves throwing anything out on the window)

7. Control your spending behavior because otherwise you might never be able to solve this problem.

8. Think about every financial alternative that will help you earn more money.

9. Enjoy the reduction of your credit card debt and breathe freely when the nightmare is over and you no longer have a financial problem.

These nine guidelines will help you deal with this situation but won’t solve it for you.

You’ll have to keep the final objective in mind and act accordingly.

Just remember a person with no credit card debts is a happy person.

How Do I Know I Need Help In Managing My Finances?

There may be times when things don’t go as well as we’ve planned. It’s important that we look out for warning signs if we need help in managing our finances, particularly our debts. Below are some indicators that should trigger us to seek help in managing our finances:


1. Frequent Arguments over Money

They say that during courtship, the guy would do most of the talking while the girl listens. In the first year of marriage, the wife would do the talking while the husband listens. After a year, both the husband and wife would do the “talking” while the neighbours listen! If you are arguing with your spouse frequently over money, then it’s a sure sign that you are facing some financial difficulties. If this financial problem is not addressed promptly, it may lead to other marital problems and ultimately resulting in a divorce.


2. High Debt-to-Income Ratio

As a rule of thumb, we should limit all our debt obligations to about one third of our take-home income (generally defined as gross income less EPF, tax and SOCSO deductions). What it means here is, if our take-home pay is RM3,000 per month, then our housing plus car loan repayments (including other loans, if any) should not exceed RM1,000 per month. It’s not surprising to find many families having a Debt-to-Income Ratio of more than 50%! This would mean that they’d have less than half of their income left for basic living and child expenses. What about those occasional holidays, gifts, outside dining and entertainment expenditures? Most likely, they’d be forced into taking on more debt through credit card or personal loans. This will result in a vicious cycle and will only get us deeper and deeper into the debt-trap!


3. Maxing-out on Credit Limits

As a result of the above, i.e. when an increasing percentage of our income is used to pay-off debts, we would rely on credit cards. If you notice that your credit balance is increasing each month, this would be another warning signal. If left unchecked, you’d most likely hit the limit very soon and then start maxing-out on the second and third card. Before you know it, you find yourself drowning in a pool of debt. That’s when your “good friend”, Ah Long, will throw you a “float” to “save” you, not realizing that this “float” of theirs is filled with rocks that will weigh you deeper down into the drowning pool of debt! Beware!!!


4. Pay the Minimum Only

Another tell-tale sign is when you start paying only the minimum of 5% on your credit card balances. The balance would normally attract a finance charge of 1.5% per month or 18% p.a. For example, if you have an outstanding balance of RM1,000 and decided to only pay the minimum of 5% or RM50 whichever is greater, the amount of interest charged to you in the first month is about RM14.25 only. You might not think of this as a lot but do you realize that if you continue this payment pattern, it’ll take 2 years for you to fully settle your initial balance of RM1,000? The total interest incurred would amount to about RM173.00. Imagine if the amount is RM10,000 – it will take you more than 7 years to repay and your total interest incurred would come up to RM3,740! Of course, these numbers assume that you do not add-on to your present balance, but how can you be sure it will not happen? Yes… only if you CUT your cards immediately!


5. Always Late in Settling Bills

We are so used to the saying, “Better Late than Never!” However, when it comes to paying our bills, this is not a good sign! Of course we do not need to settle our bills immediately when we receive them but they should be settled by their due dates. If we are chronically late in paying our bills up to a point where late payment penalties are imposed, we need to re-examine our finances. We don’t want to end up in a situation where our electricity and water supply, telephone lines are cut or our cars are being repossessed. So, if we are a little behind most of the time, it’s time to get behind the numbers!


6. Lots of I.O.U.

If we realize that more and more of our relatives and friends are avoiding us, most likely it’s not because we’ve not bathed for a week! Very likely, we have been borrowing money from them and have stacks of “I Owe yoUs” in our drawer! Another early warning sign is when we tend to borrow to purchase things that we used to pay for in cash. This is an unhealthy sign and we not only loose control over our money but also our dear friends and relatives.

We may even owe it to ourselves that long overdue medical or dental visit or even our car service. These are certain necessary expenditures that take a back seat because budget is tight every month and they are deemed not “urgent” yet. Things like these are important and when they become urgent, most often it’ll be too late!


7. Sleepless Nights

This is also known as the “Sleep Test”. Can you sleep well at night or are you having sleepless nights thinking about your money problems? In fact, the more we think about our money problems, the more money problems we would encounter. Your mind attracts the things you think about most and we should focus on the solutions rather than the problems. And one way is to seek financial counseling and get started on a well-designed debt management programme. This is not something that we can “sleep over” and hope that everything will be fine tomorrow. We have to take ACTION now!

If you do encounter any one or more of these warning signs, you should seek immediate help in getting your financial fitness back in shape. Next week, we’d be journeying through “The Road to Managing Your Debt Wisely” and you might want to join us for the ride. Together, let’s “Make Prudent Financial Management A Way of Life!”

Money Can't Solve Poverty!!!

The story of Bonnie and Clyde

If a person is poor in mind and financial education, no matter how much money he has now, he will become poor after all. Bonnie earns as little as Clyde, below the average earning of a typical adult. Bonnie thinks that striking a big lottery will solve her financial problem. As her dream comes true one day, she made a few million dollars out of a lottery ticket. She became rich in cash for several months before she ended up being even poorer than before. Meanwhile, Clyde hasn’t bought any lottery ticket but he is much richer then Bonnie, even though he save money the stupid way. This is the story of Bonnie and Clyde.

The big difference between Bonnie and Clyde is financial IQ.

Why Money Can’t Solve Poverty

If money can really solve poverty, the simple solution is to distribute wealth equally amongst every person on earth. Do you think this will solve poverty? I certainly don’t think so.

The rich people donate a lot. Think of Bill Gates and Warren Buffett. A very big chunk of their wealth is donated to help the world. The money is not simply distributed to the people who are “poor”. It is because they know that giving money to the poor will only accelerate poverty, not solving it.

In fact, money is the root of all evils. And these evils are limited only to the poor. The poor face financial problem because they don’t know how to manage their money. They don’t really need more money (although that’s what they think – more money will solve their problem). What they really need is financial education.

The ultimate solution is financial education

Think of the scenarios discussed below. I bet you will realize why financial education is the best solution to end poverty.

Financial gurus such as Donald Trump and Warren Buffett write books on making money by doing business and smart investment. They want to educate us to increase our financial IQ.

Why isn’t there any curriculum on financial education in our school system? I heard that it is a conspiracy. That’s why Robert T. Kiyosaki is writing a book about it and giving you total access for free.

Ask around the poor people you know, “Do you read personal finance books, magazine, blog or …..?” 99% will say NO. They are too busy (actually it is an excuse). But I do believe them. You stay rich in order to be free. So the poor must be busier than the rich in this sense!

Some of the richest people are born in the poorest family. And some of the poorest people are born in the richest family. Of course, it is also through the other way round. Some people are already born rich, and then become even richer later in their life. This shows that it is not the money you have that dictate your financial status. It is the difference of financial IQ, which is totally linked with the amount of financial education we learn throughout our life.

During a recession, it is harder to find a job, especially for fresh graduates. Rising unemployment rate worsen the situation and most of them will go back to school to get more education. Most of them borrows more money to get educated and hope that when they are going to graduate years later, the economy has already recovered. Do you think they will be better off compared to those who didn’t go back to school?

Again, money can’t solve poverty, financial education does!