Chasing dollar…..always

Archive for November, 2010

Fight off your credit card debt woes!

Are you burdened with a hefty credit card debt? Thousands of Americans are facing credit card debt problems and filing for bankruptcy.  If you think that bankruptcy is the only situation out of your debt problems, then wait! Read below to learn how you can keep debt problems at bay.

1) Don’t use too many credit cards: The point is simple; if you have a number of cards you simply increase your chances of overspending and inviting debt. Limit the number of cards that you carry and control your spending.

2) Opt for a low interest card: Be smart and transfer all your balance from a high interest rate to a low interest rate credit card. Merge all your credit card dues into a single payment so that it becomes easier for you to pay off your dues.

3) Budget: This is very important. You must keep a track of your spending and budget your expenses. If your spending exceeds your income, then you increase the chance of falling into debt manifold. Controlling your expenditure according to your income would make sure that you do not spend beyond what you can afford to.

4) Try to negotiate with your creditor: Most people think that negotiating with their creditor won’t turn out to be fruitful. Do not fall prey to your guessing game! The point is that you should at least try to crack a deal with your creditor. Show him that you are concerned and persuade him to lower the outstanding balance so that you can pay off your debt affordably.

5) Clear your dues with the high interest rate cards first: Make a list of your dues and the interest rate for the respective credit cards. Keep higher interest rates at the top and make a determination to pay them off first. This is done to ensure that you can stop the high interest rate card from piling up your dues all the more.

Keep these points in mind and you will be well on your way to fight away debt. The best thing to do is to stay away from the use of credit card wholly, this way you make sure that you limit your purchase with what is there in your wallet!

Advertisements

Are you managing your finances wisely?

The global recession has left thousands of people jobless and burdened with mounting debts. In such a scenario, it is very essential for you to start managing your finances wisely. This will help you achieve a stable financial standing as well as fight your debt successfully.

The following tips will help you understand how you can go about managing your hard earned dollars wisely:

  • Keep a proper track of your tax and debts.
  • Inform your creditors if you are unable to pay your installments. Keep in constant touch with them and let them know about the financial hardship that you are facing.
  • You might not be in a position to make regular payments to your creditors. It is advisable that you still make regular payments, even if the amount that you are paying is much less than the payable installment. The regularity of your payment would help to win your creditor’s confidence.
  • Try not to stake your assets.
  • Prepare a budget and try your best to stick to it. By not crossing your monthly expenditure limit, you can weed out a lot of needless expenditure.
  • Avoid making investments on unnecessary luxury items.
  • Last but not the least, try to save some money each month.

Stick to these, and you will be well on your way to pave your path to financial success!

Ten steps to a good credit score

Credit score! You have probably heard a lot about it. It is a measure of your financial stability. You go for taking up a loan today and your creditors would surely be concerned about your credit score. It helps your lenders to predict the chances of you defaulting on your loan.  Read on to know how you can boost your credit score.

  • Ask for credit reports: You get a free copy of your credit report from the three main credit reporting agencies i.e. Equifax, Experian and TransUnion every year.
  • Look out for errors in the credit report: Check your report for inaccuracies; if there are any items that you have settled but is still showing as unpaid or any account that you have closed but which is still showing open.
  • Pay attention to the most recent 12 months first: Your credit report is affected most by collections and unpaid accounts which have occurred recently.  You can take care of older items later.
  • Dispute errors that appear on your report: If you find any error in your report, write a letter to the card issuing company asking them to delete the item. The company should respond to your dispute in 30 days.
  • Keep all communication documented: Ask your creditor for a letter which states that your account has been settled. Keep copies of all the letters so that you can produce them whenever necessary.
  • Request the credit reporting agencies to delete the errors from your credit report: Send copies of letters to all the three credit reporting agencies and request them to delete the errors form your report.
  • Negotiate: It is best to negotiate with your creditors; they usually work with you, unlike the collection agencies.
  • Get help: If you feel that you need help in repairing your credit score, you can always opt for credit repair and credit counseling companies. These companies can help you to restore good credit.
  • Close unused accounts: It is best to close your unused accounts if you want your credit score to improve.
  • Pay on time: The most important step to establish a good credit score is to make your payments on time. Pay off your balance each month and never be late on your payments.