Have you ever really examined your credit card bill? Do you understand all of the different fees you’re being charged? For a long time now, credit card companies have been operating without any real scrutiny and the number and types of fees they charge their customers have gotten out of control.

The tide is beginning to turn now though. More and more people are realizing what’s been happening to them and more and more people are starting to do something about it. One technique that can help us avoid the burden of monstrous fees is to switch off our credit cards and switch on prepaid debit cards. Let me explain.

If you’re in a position to do so, I propose you start converting all of your existing credit card spending over to prepaid debit cards. Month-by-month, phase out all of the credit card purchases until you make no more. Then (again, if you can), set up an automatic payment to your credit card, something that is higher than the minimum payment required and something that is scheduled to arrive at least a few days in advance of the billing due date. Then lock the credit card away in a drawer!

If you do that, you’ll never have another late fee again. Credit card companies love to charge late fees. In 2008 over 19 billion dollars was raked in by these companies for their various “penalty fees.” That’s a lot of dough, especially when you consider that in some cases the companies manipulate their billing practices to put the consumer in a position to incur these fees. Here’s an example.

Let’s say your credit “limit” is $1,000.00. You would think that you couldn’t charge more than that and if you tried your card would be declined. You’d be wrong. In reality, that’s a soft limit. Credit card companies are perfectly willing to let you charge beyond it so they can tack on a $25.00 or $35.00 over-limit fee to your bill. Then they can get tricky and send you a bill with a minimum payment that will bring you just under the limit – but not when you calculate in the monthly finance charge. In other words, you make the minimum payment, think you’ve dropped below the credit limit, the company tacks on its finance charge, and bang – you’re back over the limit and you’re getting a second over-limit fee. Pretty slick huh?

Prepaid cards don’t come with tricky monthly finance/billing cycle calculations either. These are the computations the credit card companies make to determine how much they’re going to charge you to carry your balance from one month to the next. There are actually 6 or 7 different ways these charges can be calculated and everyone is designed to yield the highest return for the company based on your spending habits.

Another great (and hidden) fee the credit card companies receive is the interchange fee. These are pretty much secret fees that businesses pay the companies to cover the actual credit card transaction costs. Then of course the businesses pass the expense onto their customers by charging higher prices. There are some estimates that say consumers pay about $2.00 in interchange fees for every $100.00 they spend with a credit card. That $2.00 adds up to tens of billions every year for these companies.

These are just a few of the reasons why switching over to a prepaid debit card can benefit you as a consumer. Let’s face it; the credit card companies have almost all the leverage. About the only options we have left is to cut our losses and prevent them from preying on us in the future. So if you’re in a position to do so, I invite you to take a good long look at prepaid debit cards and see how they can become your sensible, more consumer-friendly alternative to credit cards.

Articles and books on personal finance will provide as many tips as possible in an effort to make at least a couple of them stick. This approach may convince readers to save for emergencies and pay out less than they bring in, but in some cases you can say to much without explaining anything.

In this article we’ll focus on just one technique to improve your finances – paying in cash. Here’s how making cash-only purchases can help you to budget, save and invest.

A Plastic Paradise

With rapid increases in the use of plastic over hard currency, some people consider carrying cash old fashioned. To be fair, plastic is much sexier than a bit of coloured paper with a deceased president gazing into the great beyond. Some banks even allow you to customize the colour and graphics on your credit and debit cards.

Debit and credit cards also offer the advantage of security. With them, you need a signature and/or a PIN number to access your funds. Cash is only protected by your ability to defend it should someone want to take it from you.

Except for the odd country store, plastic is accepted in as many places as cash is. Yet cash is almost always the better choice for making a purchase. Here’s why:

Overpaying

One of the drawbacks of credit and debit cards is that they encourage you to spend more than you intend to by giving you easy access to more capital. With cash, spending more than you intend requires going to a bank or ATM, then returning to the store to complete your purchase. This provides time to reconsider whether your budget can handle the extra strain.

Carrying only the cash you are prepared to spend on a given product can prevent you from ‘buying up’ and paying for features you don’t need. This works for minor items, but buying a boat or pickup truck requires more cash than you may be comfortable carrying on you. If a cheque can’t be used, a debit card is better than a credit card because you can only spend money you already have.

Over-Shopping

Cards won’t just lead you to pay too much for single purchases, they also encourage you to buy more items than you mean to. Stores build displays to make their wares appealing so that you will purchase more. In some cases a checklist is insufficient in preventing impulse buys.

People tend to spend more with credit cards than with cash. One study found that people spend up to 18% more when using credit cards, and McDonald’s notes that average purchases rose from $4.50 to $7 when customers used plastic over cash.

Only carrying enough cash to buy the things on your list is the best way to shop within your budget. If you take the time, you can find sales or inexpensive alternatives to your regular brands to make your cash go further.

Cash Vs. Credit

For the purpose of this article, cash means money you have already earned. Using your Visa for a cash advance does not solve the problem of using high-interest debt to cover your expenses.

Cash has one clear advantage over credit cards: if you carry a balance on your card, or only make the minimum monthly payment, you will incur interest at a rate of 15% or more on your purchase. This means paying $15 or more for every $100 you spend. If you save enough cash for the same purchase, you give yourself the equivalent of a 15% discount by not using your card.

Cash Vs. Debit

If we just portrayed cash as a better alternative to credit cards, few would argue against us. In contrast, debit cards enjoy a protected status, despite ATM fees.

A debit card can also trivialize purchases. Being a square of plastic, it is difficult to tell how much money is spent through your debit card. It becomes a matter of $2 here, $6 there and so on until you give up tracking how much you spend. It’s a shock when the monthly statement comes. With cash, you can monitor your funds as you spend.

Conclusion

Using a credit or debit card offers more security than cash in most cases. For large purchases, cash is often not an option and writing a check or getting a bank draft may be more trouble than it is worth. In addition, a properly used debit card can be a great alternative to cash instead of resulting in credit card issues.

A credit card can also be a convenient tool, but it’s only a fair substitute for cash when your balance is paid in full at the end of each month. Otherwise, your reward for convenience is debt.

If you tend to overspend, shopping with cash is one way to adhere to your budget and limit impulse buying.

As time progresses, more and more people are joining the credit card revolution. Yes, it really is a revolution. These days you no longer have to worry about how much cash you have in your pocket when you go shopping. So long as you have that single plastic card you’ll have enough ‘money’ to buy yourself a treat. You can even use your credit card to order things online from the comfort of your home.

The number of credit card applications is on the rise, but not every application is met with success. Many applications get rejected.

Why would a credit card supplier reject a credit card application after spending so much time, energy and money on wooing and recruiting new customers? One potential reason for the rejection of your credit card application is simple human error. Perhaps you wrote down the wrong telephone number, incorrectly spelled the name of your street or inputted the wrong postal code. Another possibility is that you forgot to fill in some mandatory information on the credit card application form, or misunderstood what was required of you. It’s normal to make mistakes such as these. After all, we are only human.

Your credit card application could also be rejected because of someone else’s error. The person processing your application may find your handwriting difficult to understand, resulting in processing errors. Your credit card sales representative may make a mistake while depositing your form or give you incorrect advice regarding how you should fill out your application. Newly hired sales representatives can make such mistakes, and even seasoned representatives can have an off day.

These types of errors are minor and can be easily corrected. Their only impact would be to delay the arrival of your new credit card. The main and more serious cause for rejection of credit card applications is if you have a bad credit history.

If you have other credit cards or have taken out loans or mortgages in the past you will have already built your credit rating. If you have made your payments adequately and on time your credit rating will be in good shape. However, if you have been irregular or have defaulted on payments, you will have developed a bad credit rating and a low balance transfer credit card may not be in your future.

Your rating is calculated by credit agencies based on information provided by from different lenders and financial institutions. Every credit card applicant is examined for his or her credit rating. If yours comes up negative your application will be rejected outright, not just delayed. This is the result of more than simple human error, and to fix it requires time, commitment and responsibility. Your best bet is to take this responsibility early, and build a good credit rating from the start.

Here is a few information you may need to know with your credit cards. Whether you have problem getting rid of debt or just new to applying for one, here’s a good guide to familiarizing yourself with credit cards.

Credit cards are part of a system of payments giving you access to funds for purchases from certain merchants supporting such system. Named after the small plastic card issued to you as the user of the system, your credit card is a representation of an account your accountable for. Since it entitles you as the holder to buy goods and services, the credit card provider hopes to rely on your promise as the card holder to pay for these goods and services you purchased. Granted with a line of credit to you, you can borrow money for payment to the merchant. Credit cards are convenient and widely accepted. It can also come with some perks such as reward points or frequent buyer’s privileges. Moreover, this can provide you with access to cash advances in cases of emergency.

Most of us are facing a financial crisis in our lives with the current recession. On the personal level, whether the current crisis is caused by personal illness or the loss of a job, this can be very overwhelming. Your new credit card can probably help you somehow with a cash advance. But this can be a short-term help.

The problem however with most of us is the trouble when paying the bills during the due date. When we receive notices from creditors, it is an indication of a bad credit score and a lifestyle of overspending. You may lose your home or your car if you fall on this trap. Find out your exit strategy first before getting your new credit card.

While you may hear that a credit card can provide you with a convenient, accessible credit, there are certain disadvantages too. Credit cards offer you a way to track your expenses. Why not use this to monitor personal expenditures? You can use this tool too to track work-related expenses for certain taxation or reimbursement purposes.

Before applying for that new credit card, weigh the options between the advantages and the disadvantages. Make wise use of that credit card and only use it when you can afford what you spend for.

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Debt management has taken the spotlight in our modern lives as borrowers. With growing marketing coupled with increasing debts spell unforeseen hardships in the future. Every one must consider debt management today to be secured with our financial life. It is better to be prepared than sorry.

Many options are actually available, but the best may actually be you helping yourself. Here are some of the tips you will find valuable for your debt relief strategies.

Maybe a credit counseling services can be of real help as well. With these programs, experts will recommend you to solve the situation by cutting down on spending and monitoring your accounts closely.

If this does not work, ask the help from a financial expert. The sooner you seek help from an expert, the better you will be out of debt. Credit counseling is one of the best options you might consider if you are troubled with financial problems.

In such a situation, your stress can be overwhelming. This is when your creditors are calling you daily to collect money that you don’t have yet. Never end the communication. While it is a natural response to stop answering the phone and let the mail stack up unopened, this does not resolve the issue that you still have the obligation. Explain your financial situation to your creditors. In most cases, they will even work with you to reduce your total balance by providing a better interest rate or eliminating the late and other charges.

One of the benefits of credit counseling is that the credit counselors can actually deal with those credit collectors for you. But the most important advantage of credit counseling is that it helps you, who might have reached the end of their financial rope, to avoid the dreaded bankruptcy.

Seeking the financial experts’ advice can save you money by reducing your debt by 40 to 60%. Expect to be debt free within 5 years depending on your debt situation.

Be cautious, though. Some credit counseling services will have upfront fee. These fees can range from a few hundreds to up to thousands of dollars. This, in fact, does not get applied yet to your balances from creditors. So a part of your supposed savings will actually go to the professional fee.

Before taking the plunge, work out your homework and research a lot of free information about the company you are dealing with. You can’t afford to get wrong this time. After all, this is your last hope.

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When applying for a credit card, you must bear in mind that you have to use them wisely to make most of it. Using a credit card gives you access to more spending power in a moment than you realistically have. This in return entices you to spend more on luxuries, which can make you incur heavy debts.

Admit it; you can hardly pass up what conveniences credit cards can offer. With extra security, the quick identification, and as a source of cash when you need it most, credit cards are a necessity. But can you handle one?

Needing a credit card is a personal decision that depends on your responsibility to use it. Using a credit card needs thorough planning so that you use it wisely with your lifestyle.

Credit cards are convenient because they are now universally accepted as a form of payment. From movie theaters to the internet, credit card payments are now welcome. Add to that the issue of the safety of bringing cash around and you will understand the role of credit cards in making our life not only convenient but safe too.

Another advantage of a credit card payment is when you have a dispute with a merchant over a purchased item. In this case, you always have the right to withhold payment. In instances where you purchase high-ticket items with your credit card, you are more secured when the item does not work as advertised. Moreover, you can also cancel payments if the merchant fail to meet your expectations.

There are several benefits to using a card. This is probably the reason why it has become so popular mainstream. As a tip, make a note of all the transactions you have made for the week using your credit card. Keep a record and assess it by the weekend. Make this as a habit to account your expenses.

Once you establish that habit, develop a payment scheme for you to pay the full balance by due date. Only through that way can credit cards become your greatest tool.

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Banks across the United States are preparing to combat the growing fears of a global recession. There are a few things you can do to proof yourself against this looming threat.

Lessen your spending! Make this one of your top priorities. Decide if you really need that new model eggbeater, or if it can wait. Make a decision to cut back on that extravagant cruise you were thinking about booking. If you live on a tighter budget for a while, you’ll be better for it.

Lower your debts. Pay off large amounts of your credit card. Lessen your payments towards lines of credit and loans. Check out the interest you are paying and make sure you are shelling out for the lowest rate possible.

Make sure to cut back on your bills. Im talking about gas and electric, things like that. How much are you paying for Internet? How much is your lease on your car? These are all things that you could probably cut down. Most people just stay with their current rates and dont bother to search around and find a rate that would save them money.

Putting about 10% of your total income away in a special fund that you never touch is a good idea. This is a good thing to do, as you need a security cushion in case of emergencies. Its always wise to be safe. Its not so hard to part with 10% of everything you make, if you are secure in the knowledge that its building a security cushion for you.

One thing to keep in mind is that if you have a tracker mortgage, it may have its rates cut down due to a looming recession.

A lot of these ideas are not new. What is new to most people is actually applying the self-control necessary to get yourself in a good financial position. It really does take a fair bit of discipline to keep doing this regularly.

If you follow the above advice, you should be able to improve the odds of not suffering from the apparent economic turmoil that is rolling out across the world.

There are many different types of discount auto insurance. Some discounts are known by almost everyone but there are some additional discounts that may apply to you that are not widely known. Individuals that have clean driving record for the past 3 to 5 years in which they have not been in an accident or received a ticket receive discounts. If you have multiple policies with the same company or have insured more then one car with that company then you will normally get additional discounts.

There are other tips and tricks that can get you even more discounts that many individuals may not be aware of. The type of college degree you have can lower your car insurance as it was found that individuals with a bachelor’s degree in engineering have fewer risks then other individuals. 21st century group offers additional discounts on your auto insurance if you have a degree in mechanical engineering, mathematics, biochemistry and other engineering and scientific fields. Scientists and engineers with no accidents or tickets can save 10 to 30 percent from the base rate.

Teachers and farmers are also considered to be low risk customers for auto insurance. Many auto insurance companies will offer an additional discount if you are an educator. This type of discount will vary depending on your certification and which state you teach in. You may need to be a full time college professor to qualify for the auto insurance discount but you should first check with your insurance company.

If you were in the army or currently in the army then you can save between 2 to 15 percent. This military discount does apply to specific states. Car insurance military discount is offered through Geico. Geico can also drop you coverage to only comprehensive if you are suddenly shipped overseas. If you receive hostile-fire pay then Geico will decrease your bill when you are overseas by an additional 25%.

AARP members can also get discounts of up to 45% on their car insurance through Hartford’s AARP Auto Insurance Program. They offer specific discounts on multi-policies and multi vehicle policies and additional discounts if you have held insurance with them for more then 5 years. Basically the longer you are with the company the more discounts you will receive.

MetLife will lower your auto insurance premium if you take and pass courses offered from the National Safety Council, particularly the defensive driving course. These courses can be taken online or you can order a complete course kit. If you have a lot of points due to accidents and tickets then taking a defensive driving course if a great way to lower your insurance payments.

To get the most out of your car insurance you will have to delve deeper then the basic car insurance comparison quotes. You should have all of your questions ready and spend the time calling up the auto insurance companies and making sure you get answers. Some of the discounts are unknown but they are there and all you have to do is ask to see if it applied to your policy and circumstances.

Is there anyone out there that hasn’t felt some sort of financial pain in the last several months? Job layoffs, credit card issues, mortgage problems, it just seems harder to control our financial destiny than ever before.

But there is a financial tool that can help, prepaid debit cards. And more and more people are turning to them.

Prepaid cards are simply cards that you load before you spend. They’re Visa and MasterCards, but they have no interest, minimum payments, or credit limit. You simply buy them, load them up, and away you go. You don’t need a bank account and you don’t need a credit history to get one either. They’ve become a great option to regular credit cards.

They come with the same features as regular credit cards too. In fact, you can use them just about anywhere a regular MasterCard or Visa credit card can be used. But what really makes them so attractive is that they don’t have the same downside as today’s credit cards.

For instance, credit cards let you spend more than you actually have while prepaid debit cards only allow you to spend what you’ve already loaded. And because they’re pre-loaded, these cards never have an interest rate or a minimum payment. It’s pretty difficult to get into credit trouble with a prepaid card.

You will have to be more prudent with a prepai card though. You won’t be able to buy things just because you can; you’ll have to give all your purchases more forethought. But that kind of planning and discipline will save you money in the long run.

That’s why prepaid card usage is on the upswing. People are turning to them because they offer a better spending model as well as a better way to manage ourselves back to financial health.

So, if you’re having some credit card spending issues of your own, why not try using a prepaid debit card for awhile? They’re easy to use and, since you don’t sign a credit contract, you can stop using them just as easily. They might just be the first step on your road back to financial recovery.

Have you ever wondered what would befall your credit rating if you went with a debt consolidation?

If this is the case, you are not alone, and there is help accessible for you. You can set about a debt consolidation at any time, you simply find a debt consolidation company with a great track record and provide them with the required information. Usually, any accessible accounts you have will be closed down by your lenders so you can’t use them anymore, but at this place, you’ve been incapable of paying them anyhow.

Numerous people worry that a debt consolidation will make their credit worse, and it could perchance. Unfortunately, it depends. In a average debt consolidation program, there are ways to assure that your credit doesn’t suffer. Start by closing the accounts that you will be consolidating. Closing Down these yourself saves you from making your creditors do it. When they close them, your credit report displays that there were troubles and they had to cut back or take away your credit favors.

The best thing you can do to maintain healthy credit is get in a debt consolidation program while you are still on time with your bills. That way you will pay them all but with a smaller rate of interest and you won’t get the comment: “paid as agreed” on your credit rating report. This comment implies you paid them back, simply not the whole sum, showing future creditors you may not be suited for much credit because you won’t pay back in full.

If you own or are purchasing your own home, a house equity loan for debt consolidation delivers fewer troubles with your lenders. Nevertheless you still ought to delete all those business relationships yourself anyway while assuring the sum on your loan to pay off all of them in their entirety. Again, this keeps an “As Agreed” comment away from your credit rating record.As well, since your dwelling is the collateral for the loan, you’ll have your bills payed off fully and the loan gets paid back at a lower interest rate, potentially preserving you thousands of dollars in the long haul.

Irrespective of how you set about managing your debt consolidation, allowing you use an honorable, tested, and reputable party, you’ll get a mass of aid repairing your citation so that in the future you can still sustain the financing that you require.