The Recent Economic Recession: It’s Positive Impact in Changing our Behavior

The past two years has been tough for most of us. Because of the recent economic recession, we learned some things in life the hard way, especially when it came to financial matters. Regardless of the painful impact that it made on the lives of many people — such as being laid off from work, properties that were foreclosed, experienced great struggle to find ways trying to settle debts, and sad stories of small and big businesses alike that were closed down – there are still some positive results that we can derive in terms of changing our behavior towards work and finances.

For people who spent a lot of years working on something that they didn’t love, they are now being grateful that at least they still have a job to keep. They now attempt to feel less disgruntled at work and are generally appreciative of what they have as they have seen numerous workers being laid off by top companies.

Many of us have also made great headway in improving our job performance. Due to the recession, a fierce competition had risen to retain the jobs that people currently hold. We now tend to work harder and to create a good and lasting impression to our colleagues and bosses. It has given us different opportunities to strengthen our relationships with clients and to try our best to stand out from the rest.

Employers have made some positive changes as well in opening lines of communication with their employees. Teamwork attitude among the employee and their employers have also been built as they try to show their lasting loyalty to the company they are all serving.

In these times of recession, we now see that we are all in this together. And as we make our way to major changes and trying to keep our jobs as we settle debts, why don’t we try to turn our weaknesses into strengths and see the economic downturn as a blessing in disguise to improve ourselves?

10 Important Steps to Guard Yourself against Credit Card Fraud

No one is immune to crime as a lot of people say but you can improve your chances of avoiding credit card fraud as you settle a debt. Learning the available prevention tips from online references and through the use of your common sense as a rule of thumb can keep you away from criminals who commit such fraudulent acts.

Nonetheless, we’ve listed the 10 most important tips to help protect you from scams of this kind that are alarmingly on the rise:

1. As much as possible, do not let your credit card out of your sight as soon as you take it of your purse.
2. Do not give your credit card number or other details of your credit card when you are on the phone unless you are the one who initiated the call and you made sure that company you are calling is reputable.
3. Do not give information regarding your credit card to unknown websites as much as possible, unless you are certain that the website is secure.
4. Make sure that you shred your credit card bill or any document that has your credit card number written on it if it is no longer of any use to you.
5. Prevent identity theft and the duplication of your credit card by not writing down your credit card details.
6. Check your credit card bill immediately after you receive it for possible errors and unauthorized charges. In case you find something questionable, report it as soon as possible to your credit card issuers.
7. Make sure that you notify your credit card company of your change of address so they can send you private account details at your new address.
8. Only bring one credit card with you when you go out and leave other cards that you rarely use at home.
9. Do not give your credit card information through email unless you know the recipient very well to avoid ‘phishing scams’.
10. If you feel any pressure to give your card’s information (especially for a product offer online or on particular stores) do not give in to the pressure and give yourself enough time to make a decision if you need to use your credit card.

Everyone can be vulnerable to scams and fraud so always be careful with the use of your credit cards and safeguard your credit card number, most especially as you try to settle a debt.

Always remember that the bottom line is, you have to protect your credit card at all costs by only divulging information when you absolutely have to. This way, you secure not only your card but your future finances as well.

Credit Cards: Friends or Foes?

Nowadays, the use of credit cards has become so widespread and very convenient that for some people, they become an integral part of their necessities in life. But for others, the misuse of credit cards can produce financial trouble to them. Knowing the basic advantages and disadvantages in the usage of credit cards are very important. Educating the consumers on credit card basics can help make these cards better serve their purpose as financial aids especially when they settle a debt.

The advantages of credit cards usually depend on the lifestyle and needs of the consumers. One of its positive sides includes easy access and ease of purchase even when you are overseas (especially if you need to avail services from hotels, airlines and car rental) or whenever you deal with unexpected expenses.

Easier tracking of the consumer’s purchases is another one of its good uses. This is due to the fact that all the purchases that are made using a card are listed be it on an online bill or paper bill. This may come in handy in a lot of situations. For example, if you issue a credit card to an employee, you can easily monitor their purchases and advice them on whether their expenditures should be shouldered by the company or not.

Building a good credit history is also important and can be achieved by paying your credit card balance on time all the time. With the use of these cards, applying for certain loans or living accommodations can be easily done. Moreover, constant usage of cards can give consumers great perks such as discounts on certain purchases. One of the most popular bonuses that a consumer can receive are free airline miles that can get them free plane tickets.

On the other hand, there is a dark side to constant usage of credit cards which can cause a major disturbance in one person’s financial well-being. This includes the usually relative high rates of interest — when it starts to accrue, you’ll possibly have a very difficult time catching up with it when paying off your credit card bills.

Credit card fraud is another problem which is a currently increasing concern among consumers.  There have been instances when consumers found unauthorized charges on their credit card bill. This can happen when a credit card gets lost or stolen or when online scammers use your credit card details to make purchases.

Obtaining a credit card may be considered a privilege but make sure that you know the basic rules for using them so you don’t end up neck-deep in debt. Credit cards can actually serve as a reliable friend if you use them responsibly but if you abuse your use of plastic money, they can possibly become your most hated foe. So before going on a shopping splurge using your card, make sure you know enough about the terms of your credit company such as interest rates, policies of the credit card company, and hidden downsides of its use so you won’t have to suffer just because you are out to settle a debt.

Looking Forward for a Fresh Start after Filing for Bankruptcy

Looking forward to have a fresh financial start is possible even after you have filed for bankruptcy. After all what you have been through though, you will won’t think twice anymore about considering the effective ways to settle debts such as a change in the attitude, a sound financial plan and a willingness to embrace a new financial philosophy.

Looking back at your pre-bankruptcy days can help you construct a better financial plan. Know the difference of your own “wants” versus your own “needs” by pondering on your past to give you a great motivation that will help change your attitude towards money.

A good step you may want to consider would be finding a stable job — that is, if you don’t have one. Try to keep your job for as long as possible because stable employment may help rebuild your credit rating. This will also show and prove to your creditors that you have the willingness to become financially reliable.

A stable residence can also add up to your good credit rating. However, a lot of landlords nowadays have begun to screen the people’s credit record to sort out unreliable tenants from their list of applicants. If this situation causes you problems in finding a good place to live in, try asking your friends or relatives if you could stay at their place until you rebuild your credit rating.

Paying your bills on time is also very crucial, as you have probably learned even during your pre-bankruptcy days. When your bills start to accumulate and you do not find ways or you do not have enough resources to pay them, you might start to have this feeling of déjà vu of hitting the road to bankruptcy again. Pay everything on time to create a new credit history after filing your bankruptcy case.

Be diligent enough to track your credit report because it is possible that you may encounter errors on it. If you want to apply for a new loan, such errors can affect your application.

Always pay in cash instead of using credit cards. Using cash to settle your expenses is way better than your old habit of paying them in credit. You don’t want to ruin your financial life again especially if you are lazy enough to check your credit status.

If you keep these healthy financial habits armed with unyielding determination – all these can help guard you from filing a bankruptcy case again as you try to settle debts.

For People Sinking in Debt: Try to Renegotiate

A lost business, meeting a car accident, or suddenly being stricken with an illness – whatever circumstances that may lead us to crossroads where paying bills becomes more difficult for us and you falling behind on your payments is a regular occurrence, renegotiation with lenders may be worth a try.

They might say no, you may think, but as the cliché goes: there’s no harm in trying. It has been noted that there may be a high chance of a successful renegotiation of your loans because creditors would rather agree to settle your debt than possibly get nothing from you at all.

In renegotiating, it’s best to tell your lender with all honesty of your financial situation. Reminding them of your dues being paid later than the actual date may help convince them to agree that you are currently suffering a financial hardship.

Be reminded as well that when you make terms with your lender, make sure that you will be able to meet those terms because if you don’t, your credit may be damaged further.  In connection to this, you would also need to be very careful of who you are dealing with. Checking out their past loan modifications  with their other clients or simply asking around may give you an idea of what to include in your proposals.

Renegotiation of your debt may have one common drawback, however. If your lender agrees with your deal, your credit report may be affected until you begin settling your debt under the new terms. Asking for more time to settle your debt and just looking into the possibility of dropping or forgiving some of your late fees may help you stop worrying too much and still enjoy your life to the fullest.

Under Fire Debt Reduction Services: Be Wary of Scams

Debt reduction services often promise to wipe out your debt in the soonest time possible. This may sound enticing and some of the credible agencies may really give you the best programs to eliminate your debt. However, for the scam artists that are roaming around looking for prey, this is a perfectly good opportunity. These fraudulent debt reduction agents have been known to offer legal-looking financial solutions to those people who are rapidly sinking in debt — often leading to consumers being in even greater debt than before.

Do not feel discouraged though from stories about these scam artists especially if you are considering asking help from debt reduction agencies. All you need to do is to be aware of their schemes before enrolling in any debt management programs.

Usually, fraudsters present to you a specific program without spending enough time to review your financial situation. This program, if the debtor is observant enough, may realize it is not a realistic solution. High upfront fees are also presented to ‘ensure’ that your program works well but companies who offer drastic reductions in a short amount of time are likely candidates of being perpetrators of fraud.

Scam artists also often do not give you a list of the possible drawbacks and disadvantages of the programs they’re offering you. This includes potential lawsuits from your lenders to demand a repayment of your bills and in some cases, aggressive bill collection pursuit even after you participate in one of the debt reduction services of your chosen firm.

Fraudsters may claim that they have a special relationship with some creditors. They tell their clients that the company can take advantage of this relationship to negotiate the consumer’s debt to reduce it to a fraction of the amount originally owed. They also convince the debtor to pay transfer funds into the company’s trust account apparently reserved for paying your the lenders.

People who get duped by this scheme often ends up with the debtor discovering that their late fees are piling up and the creditor has received nothing for payment. After the deception, the debtor often gets sued by their lenders, being pursued for collection and the consumer may even have to file for bankruptcy. Bankruptcy may be filed because the debtor is inflicted with more harm than before he sought help after which he is left with no other choice.

False documents may also be a tool to fool debtors into paying a huge amount of money so that their obligation to their lenders can be canceled. Such documents may include government debt instruments and worthless certificates.

Today, there are trustworthy debt lawyers you can turn to for a free consultation as well as reputable counselors to help you. It’s imperative that you get a feel of a firm’s services first before entrusting to them your financial case and enrolling in any of the program presented to you by companies offering their debt reduction services.

The Federal Trade Commission and Better Business Bureau may also serve as your aid in sorting out fraud debt reduction services that currently exist to protect yourself from greater financial losses.

Military Interest Rate Reduction: Giving Financial Relief for Our Modern Day Heroes

Our modern day heroes deserve better. They try to protect and serve the country with their energies being devoted to defending the nation with all of their might and capability. But we rarely realize that some of their needs may be a lot similar to those of any other person in the country when it comes to financial woes and debt troubles.

With the existence of the Service Members Civil Relief Act (SCRA), soldiers from the Army, Air Force, Coast Guard, Marine Corps and Navy that are on active duty may now receive financial relief.  It offers a variety of provisions to help the service members on active duty to deal with their legal and financial obligations. This Act may also help relieve stress on their family members as the soldier fulfills his duties.

One of the provisions included in the Act that can be of great interest is the military interest rate reduction.  This provision applies to credit that was acquired before the service member was called for active duty. The maximum rate of interest on loans that are obtained before the active service should be up to 6% per year during the period of military service.

To qualify for this privilege, the service member may need to provide his lender a written notice as well as the copy of his military orders stating that the soldier is being called to serve in active duty. The written notice should also not be given not later than 180 days after the soldier’s release from active service.  The lender is subjected to comply with the military interest rate reduction provision of the active servicemember upon the receipt of the written notice.

Take note that the term ‘interest’ mentioned includes renewal charges, service charges, and any other fees with respect to a liability.

Getting entitled to this benefit may be a surefire way to lessen the financial troubles of our soldiers. Be more informed of the military interest rate reduction act by going through online reference or consult with your Attorney General for your related concerns.

Owning a House: 3 Compelling Reasons Why You Should Purchase Your First Home

Owning your dream home can be very fulfilling. But you may wonder how you can possibly afford to buy one if you have to pay for everything else – including food, clothing, rent, gas, phone and car payments. You may then feel discouraged, decide to completely discard your dream and just stay in your comfort zone while you settle a debt.

But if your reasons for acquiring a house are stronger than what you feel and you see yourself getting tired of dealing with an impossible-to-deal-with landlord – then why don’t you just fulfill your dreams and purchase the house that you want? You can do so as long as you keep positive thoughts in your head and remind yourself that you are not lacking any funds and you currently make good management of your finances.

There are multiple reasons why you need to buy your own house other than your simple desire to acquire one. The following may remind you of some of the basic reasons to help you get over your reluctance to purchase your own property:

1. Privacy of space – a tenant’s apartment is commonly subjected to the inspection of landlords, provided that the tenant had been given a notice 24 hours prior to the inspection. Your place is supposedly your own private sanctuary but if you are subjected to these kinds of inspections, it may be a little hard for you to feel comfortable enough in your own space.
2. Freedom is priceless – if the place where you are staying at is your own, you basically have the freedom to do things at your own expense and almost do anything that is legal to do without worrying yourself about getting a reprimand from your landlord.
3. Benefit from your home financially – instead of spending money on your rent where your money will never go back to you, purchase your own property and benefit from the increase in value of both your home and your land.

You should also bear in mind that you will need adequate wisdom and proper judgment in choosing and buying your own place. Getting a mortgage within your own income limits should be greatly considered when you buy a house that is suitable for your lifestyle.

You may also ask for financial assistance from your state government or get free consultation from lawyers who are expert in purchasing houses or concerns related to mortgage.

Pay Your Dues: Get Help with Debt Reduction Services

When bogged down with our debts and we desperately need help to settle them, most of us are not sure where to turn to. However, while filing for bankruptcy may give us an almost instant solution and may help eliminate our debt, we still keep from immediately resorting to it because we don’t want a bad credit rating to appear in our records.  Possible consequences of filing for bankruptcy may also haunt us for at least 5 to 7 years and can include refusal of loans, missed job opportunities related to finances, and even a difficulty in renting out an apartment.

If you’ve ever thought, “I wish I could implement a more effective solution for my debt problems”, then you might want to consider availing yourself of debt reduction services.

Debt reduction services may help debtors get rid of their financial troubles related to unsecured debt. Unsecured debts are loans that are not secured by underlying collateral and includes medical bills, personal loans, credit card debt, and student loans.  Availing yourself of these debt elimination services may provide you with the best possible financial solutions that may help eliminate your accumulated unsecured debts.

Usually, debt reduction companies attempt to negotiate with your lenders and convince them to settle with a lump sum offered. They also try to settle a more favorable payment plan for you with a substantial reduced balance.

As you deal with your own debt issues, it is still best to do further research on all the options available to eliminate your debt other than those outlined through debt reduction services. It is also worth it to keep in mind that if you do choose to ask help from these services while keeping a credit card account open at the same time, use your card with the lowest available credit limit and avoid impulse buying to achieve the desired effective solution.

How to Create a Money Priority List

When it comes to basic financial planning, making a priority list of where your money goes or where your money was spent is very important. Different money challenges may come our way such as struggling to stash cash at home for emergency use, buying life insurance and dealing with dozens of basic living expenses (groceries, clothing and transportation) while trying to settle a debt. And they are all part of the money challenge.

So with all of these money challenges in life, how are we to make the right list in prioritizing money?

As we all know, basic living expenses are inevitable. That’s why this should come first in the list. Other financial priorities may be greatly handled if basic living expenses are met first. You may also further subdivide this category into wants and needs so that you can easily foresee where your money goes.

In the ‘needs category’ – food, transportation, child care and shelter are included. While in the ‘wants category’ – vacation leave, new clothing, leisure and entertainment are included.  Every person may know these things but when the time the money comes to our hands, we may sometimes forget the differences between needs and wants. Hence, we continue to splurge and use money without second thoughts on where we can put it to better use.

Stashing cash at home is a wise part of the priority list. We should keep at least $500 in our hands for emergency situations so that money used in these scenarios do not add up to our debt — most especially not to our credit card balance. Although there is a risk of that money being stolen while it sits home, it is still a good plan to include it in our priority list as a safeguard in cases of power failure that lead to ATMs not working.

Paying off your debts such as your credit card debt, mortgage, car loans and among others should definitely be included on your top list. You may want to try to pay off your debt with the highest-rate interest first to achieve a maximum effect in settling your dues. This may help you avoid the feeling of being overwhelmed by your debt. Another good thing that can come out of this list is that you may be able to keep more of your money in the long run.

Regardless of your personal circumstances, prioritizing your money should be of utmost importance. Bear in mind that all of the mentioned priorities may be only be effective if you have the willpower and discipline to accomplish them. No matter how good your financial strategy is, exercising these disciplines is the only key to create a sound financial planning while you try to settle a debt.