The credit card companies seem to be responding to both new legislation and a recovering economy by adjusting their treatment of card users. For this reason, consumers, especially those with excellent credit, have much more power than in previous years. It is important to understand your rights as well how you can negotiate with credit card companies to get the best possible terms and conditions.

Negotiate With Confidence

Consumers who have good to excellent credit have some negotiating power with credit card companies. If you have managed your finances well in the past, credit card companies are more willing to consider lower interest rates or possibly waiving fees which would otherwise increase your balance. Understand that your credit history and score will play a big factor in whether or not your credit card company will consider concessions for your benefit. If you do have good credit, you are in a position of power in that credit card companies tend to cater to customers posing the lowest risk.

How to Improve Your Credit Score

For consumers who have less than perfect credit, all hope is not lost. While it is true that your credit card company might not be jumping through hoops to offer you the best interest rates or other conditions, you can make changes to improve your credit. By managing your credit wisely and proving you are capable of making responsible financial decisions, your credit card company may begin to view you as a lower risk as well. There are many ways to improve your credit including making payments on time, reducing your balances and reviewing your credit report for errors.

Understand Credit Card Companies

When you understand how credit card companies work, you are in a better position to manage your credit responsibly. Recognize that you are dealing with a multi-billion dollar business, with banks looking to make as much money as possible. With that being said, if you prove to be a valued customer, credit card companies will be more inclined to work with you to improve the business relationship you have established with them. Consumers now have more protection than ever before; making this an ideal time to learn how to improve your position when dealing with credit card companies.

The CARD Act and Credit Cardholder Rights was created by and is property of American Consumer News.

Compare Credit Card Fees

Look at all fees associated with any credit card you are considering. Are their annual fees? What is the benefit of paying for an annual fee on one credit card over choosing a card without an annual fee? What are the over-the-limit and late fees? Is there a fee to close the credit card account?

Compare Annual Percentage Rates

When comparing one credit card to another, one of the first places to look is the APR, or interest rate charged. The lower the interest rate, the better, but keep in mind many credit cards offer lower interest rates for the first six to twelve months to entice consumers to choose their card – but it’s important to know what the interest rate will be after the promotional period ends. Also look at the differences in APR charged for purchases, balance transfers, and cash advances.

Available Credit Limits

How much will each credit card company offer you in terms of a credit limit? If one card is offering you $200 compared to a $3,000 credit card – it may make more sense to go with a card with a higher limit. Credit limits generally depend on your personal credit score and amount of income.

Comparing Secure Cards and Unsecured Cards

There are two primary types of credit cards – those that are secured and those that are unsecured. The traditional credit card is unsecured, in that you get a higher credit limit and do not have to give a deposit or collateral in exchange for the spending power. For people with lower credit scores, you may consider a secured card if you can’t get approved for an unsecured credit card. This will allow you to place a deposit on the account in order to obtain credit. Just make sure to choose a secured card that will also report your activity to the credit bureaus so you can begin re-establishing and rebuilding your credit score.

Compare Grace Periods for Payments

Look at how long each card in consideration gives you for paying your credit card balance before interest is charged. Ideally, you want a card with at least 25 days to pay.

Low Balance Transfer Rates

If you intend to move a high interest balance from other credit cards to your new credit card, also look carefully at balance transfer fees and interest rates. Look for a card that will offer the lowest balance transfer fee, and the longest period of time at the lowest interest rate to help you pay off your high interest debt faster.

How to Choose a Credit Card was created by and is property of American Consumer News.

Here are some tips for using a credit card to your financial advantage:

Make Small Purchases

One of the reasons consumer debt on credit cards soared is because people failed to use credit cards wisely. They made big purchases they couldn’t afford because they mistakenly considered their credit limit as an extension of their income. The right way to use a credit card effectively is to make a few small purchases during the month and pay off those purchases before the end of the billing cycle. Never apply for a line of credit simply because you want more spending freedom.

Stash the Cash Equivalent

When you make the small monthly purchases on your credit card, place the cash value of the purchase into an envelope or your bank account. This will ensure you can cover the full balance when the bill comes due. Resist the urge to use the stashed cash for any other purpose or you may find yourself unable to meet your financial obligations.

Create a Spending Budget

One of the first basic rules of personal finance requires that all consumers establish a workable budget and stick with it. For consumers with credit cards, this means you can’t spend on credit what is not in your budget.

Assign Cards a Purpose

The most effective method for using a credit card to improve your credit score and get the incentives you want from the card is to assign different purposes to different credit cards. If you have three credit cards, put one to the side to use for emergencies only. Utilize another for gasoline purchases or groceries. The third card can be solely used for online purposes. Not only does it make it easier to do your monthly expense tracking, you also can pinpoint episodes of fraud faster and you’re entire financial life will not be frozen at the same time if something goes wrong.

Never Miss a Payment

When you start using a credit card for purchases, it can be a good idea to set up automated payments to come out of your bank account each month. This lessens the chance you will forget to make a payment. Late or missed payments can drop a credit score significantly, especially if it happens more than once. It also means you will pay late fees, penalties, and finance charges. On the reverse side, by making regular and consistent full payments on your credit cards, the information will be reported back to the credit reporting agencies and improve the calculation of your three-digit score.

After Debt Paid Don’t Close Accounts

Make paying off existing credit card debts a priority by allocating as much money as you can to pay off balances. It may mean making sacrifices but the further you can reduce your credit card balances, the better your credit will get over time. Once you have eliminated the full balance, make sure you do not close the account. Doing so will change the ratio of available credit and can be especially detrimental if the account you close is the one you’ve had open for the longest period of time.

How to Utilize Credit Cards to Boost Credit Score was created by and is property of American Consumer News.

Even the debts that stand late at 30 days or more have been declining each month. It is good news as the default data is an indicator of how defaults will play out in the future. Card payers seem to be eliminating balances racked up during the holiday shopping season for all major credit card providers across the board.

For Bank of America, the news is much different than it was in August 2009 when the bank had to write off 14.53% annualized of its consumer credit card debt. It also appears the card holders are getting more focused on eliminating credit card balances consistently. With the lowest default rates the bank has seen in three years, there is hope for US consumers staying on top of revolving debt. The national average of credit card balances has also dropped from $799.7 billion in December 2010 to $795.5 billion in February. Those statistics are similar to the numbers in the fall of 2004.

Customer Defaults Decline Again for Bank of America (NYSE: BAC) was created by and is property of American Consumer News.

Customer feedback from this selected group will be analysed before a larger rollout of cards to Citi customers occurs in 2011. Citi’s points system, which enables cardholders access to prizes or cash payout, will be maintained, but with instant access to redeeming points and cash.

Executive Vice president of Citi’s North American Credit Card Division, Terry O’Neil says, “People don’t typically think of credit cards as an innovative product, but we are excited to be the first issuer to pilot these advanced technologies and additional choice at checkout through the ‘next generation’ of credit cards.”

The new Citicard, Citi 2G Credit Card, incorporates the latest credit card technology which now gives the user a choice of 2 options at point of purchase.

These 2 options are the choice to pay from “Regular Credit” or from “Request Rewards”. The “Request Rewards” allows the customer to redeem points or cash instantly. This happens when the customer presses the “Request Rewards” button on the card.

The customer must know the level of reward points available. The card works in the same way as the old card technology. It there are not enough points available, the customer will still be charged as before.

An issue against this new technology is customers may think they are getting goods free of charge and with no waiting period. It is still the same rewards system that takes time to compile the points. They are never added to a customer’s account instantly.

The new cards are heavier than the older ones and Citibank has not specified the cost to the customer of owning one.

However, the credit card, according to phone and industry consultant Richard Crone, of Crone Consulting in San Carlos, is on the decline.

“We have reviewed more than 100 companies that are developing payment schemes that would eliminate cards altogether,” he says.

Citicorp has a belief in the success of their new card. They see their rewards program as being even more rewarding with the new Citi 2G Credit Cards. They view it as being more than a “debit or credit” card.

Citi (NYSE: C) to Launch Updated Credit Card was created by and is property of American Consumer News.

The idea of such card regulation has been a long-time concern for both MasterCard (NYSE: MA) and Visa (NYSE: V). Although the credit and debit card processing networks don’t receive most of the interchange fees directly, their revenues depend on how much a customer spends with their cards. If merchants are allowed to set up restrictions for when a consumer can use their card – MasterCard and Visa are likely to experience reduced revenues.

MasterCard and Visa are mostly afraid that these merchant-set limits will lower the number of purchases being made on cards overall. It will also slow the impulse purchases for people who don’t have cash on hand who may take out their debit or credit card to buy something at the convenient store. For example, you might see a candy bar or want coffee but don’t have enough cash on hand to buy it – and if you’re like many people, you might just use your debit or credit card to get it. If there are spending limits imposed by merchants, some of these smaller impulse purchases may stop happening, therefore reducing revenues earned by MasterCard and Visa.

MasterCard vows that it will fight this new bill until its finalized. MasterCard claims potential earnings are now very limited. The bill does not limit what MasterCard or Visa charges for interchange fees to the merchants on credit purchases, only on debit card transactions, but they’re concerned that it will also open the door for more regulation down the road.

According to an article on Reuters,

MasterCard U.S President said it was too soon to quantify the impact of the legislation on its business. But that there is a good chance that their revenues could be impacted. McWilton said in a speech earlier on Sunday that MasterCard was “very concerned” about the amendment and “working very hard to make sure” that it would not be attached to the final financial regulation bill. He made the remarks at the annual Card Forum and Expo in Orlando, Florida, a credit card industry conference hosted by the trade publication American Banker.

The government has definitely stepped up regulation efforts on previously deregulated, or unregulated businesses, and Visa and MasterCard are just the latest in this trend. The bill isn’t designed to hurt profits for the credit card giants, but rather to protect merchants from having to pay out of pocket for the small charges being made in the store on credit or debit cards that are unprofitable for them. Though it has a long way to go before it’s a law, MasterCard vows to fight it to stop further regulations to their industry.

Visa (NYSE: V) and MasterCard (NYSE: MA) Hurt By Bill Restricting Debit Card Fees was created by and is property of American Consumer News.

• Rate increases prohibited- Credit card companies are no longer allowed to increase your interest rate within the first year of opening an account. Consumers who already have an existing balance will also be protected from rate increases on the current balance. It is important to note that credit card issuers can raise your interest rate if it is part of an introductory offer that expires or if you are 60 days late paying your bill. Anyone with a variable indexed interest rate may also see changes in their interest rate. Credit card companies are required to give 45 days notice for interest rate changes that occur under normal circumstances.
• Universal default- In the past, your credit card company reserved the right to increase your interest rate if you were delinquent on other bills, even if you were current with the credit card account in question. That is no longer allowed.
• Over-the-limit restrictions- Over-the-limit fees are a big problem for many consumers, especially those who were unaware a purchase would put them over-the-limit. Under new regulations, credit card issuers must get approval from the card holder in order to honor over-the-limit transactions. Without this approval your transaction will be denied if it puts your account over-the-limit, therefore eliminating over-the-limit fees.
• Co-signer needed for individuals under 21 years of age- If you are under 21 years of age, you will be required to have a co-signer before a credit card can be issued in your name. If you are able to provide proof of your ability to meet payments you might be able to open an account without a co-signer. This restriction will make it more difficult for college students and others under 21 to rack up high debt balances which they cannot reasonably repay.

These changes are designed to make it easier for credit card holders to manage their account . It is still, however the responsibility of each consumer to understand the terms and conditions on individual accounts. Managing your credit responsibly is very important to avoid high interest debt that can make it impossible to reach other financial goals.

Credit Card Changes Go Into Effect Today was created by and is property of American Consumer News.

The fees and penalties may have become a standard part of the gift card industry, but many consumers were clueless about the extent of rules with gift cards. They assume that by buying a card at face value, nothing besides an actual purchase could take away the value amount. However, for many consumers who set cards aside after the holidays and found them during the next holiday season, there was dismay when the monthly charges and penalties were discovered without ever having used the card.

The new rules are coming into play as the Federal Reserve was increasingly criticized for not protecting consumers when it came to the unfair practices of gift cards. The new rules proposed include  limiting fees for not using the card and allowing gift cards to remain active and not expire for at least a 5 year period after purchase. These rules would also apply to gift certificates, retailer gift cards, and prepaid credit cards. Regulations would require that dormancy fees be clearly explained and applied only after at least one year from the date of purchase and only at the rate of one time per month.

The measure is based on the credit card legislation already approved by Congress and requires that the Federal Government make an approval on the gift cards by February 2010 with the rules becoming effective in mid-August 2010. Any gift card sold before the August date would not have to adhere to the new rules.

As consumers regularly purchase gift cards as gifts for others, it is important for both the giver and the receiver have an understanding of what, if any, fees would be part of a gift card purchase. As a buyer, double check with the card issuer to be that you understand the fee structure and any expiration dates associated with the card. In many cases, the cards or accompanying paperwork does not clarify these points. When you do exchange a gift card that has limits or fees, be sure the receiver has a full understanding of those issues as well. Encourage them to use the card as soon as possible to avoid losing monetary value due to charges and penalties.

New Regulations for Gift Card Holders was created by and is property of American Consumer News.

Lawmakers have been sending letters to the credit card companies asking them to freeze rates until new changes take effect, because congress is reconsidering whether to move the new law changes up to December of this year. Bank of America and Discover were the first to agree, other have been rushing in before the new law takes effect. Those that aren’t in agreement with the freeze cite the change in the economic climate and the fact that they are getting what is owed to them.

Even those with good credit and no record of missed payments report their monthly payment amount has doubled. Now is a good time to wean ourselves from the credit trap. Not to say it’s an easy task in this increasingly cash free society. It’s difficult to buy big-ticket items without having to save for a long time and tempting when “easy financing” is available for things like homes, and appliances or cars.

Sometimes life’s little emergencies get in the way. The furnace breaks, or the water heater bursts, or the transmission on the car goes out. It is possible, however, to live a more cash only life. In fact it seems to be a coming trend, with more people willing to give it a try.

Consumers are already skittish, with the rising tide of unemployment and growing foreclosures and unprecedented jump in credit card defaults. It’s a wise decision to put the brakes on spending that they can’t afford. While many consumers are putting themselves on a cash only diet others are being forced by financial institutions and lenders. Credit card companies are reducing spending limits and in some cases even revoking lines of credit.

Debit cards that won’t accept transactions larger than the amount of cash available in the consumer’s account are being used more often. As are alternative forms of payment like Ebillme and PayPal. People seem to spend less when a credit card isn’t available to them. Cash limits spending ability.

The shift from credit toward cash and cash-like options shows a clear desire by the consumer to take control of his finances. Consumer credit card use has dropped significantly, while households have increased their savings up to 2% of disposable income. A healthy sign to be sure. It is important to remember that not all credit card use is bad. One can build a good credit history, which in turn makes it easier to rent an apartment, buy a home or finance a car. Then there are the mileage, hotel, travel and other perks that credit card companies offer. That’s makes it hard to resist the trap of living beyond your means. Sooner or later though the bills come, debts have to be paid. Changing spending habits can be a challenge but well worth the effort to avoid paying the price of having high interest debt.

Consumers Choose Cash Over Credit was created by and is property of American Consumer News.

Due to the increase in the number of online shoppers who are likely to use credit cards on Black Friday and Cyber Monday, here are some tips for using your credit cards wisely as recommended by BillShrink.com, the free online service that saves people money on everyday bills, has compiled recommendations on the best credit cards for different types of holiday shoppers, coupled with tips on how to how to avoid getting hurt by issuers’ sneaky fine print.

Skip the Retailer’s Credit Card Offers

The holiday season prompts retailers to increase marketing efforts for their store credit cards. If you’re shopping in person, don’t be surprised if at every check out you’re asked if you’d like to pay for your purchases with a new credit card. Most will have a 0% promotional offer, or will save you 20% off that day’s purchase – but don’t be tempted! A single late payment on this card can cause that 0% interest rate to jump over 20%; and the 20% you might save from today’s purchase will not make up for the amount you’ll pay in interest and fees over time if you don’t pay the balance off in full.

Take Advantage of your Credit Card Return Policy

If you’re a savvy shopper getting your holiday shopping done early, you may find that by the time your gift exchange happens you’re already beyond the retailers 14-30 day return period. If your credit card offers return protection, your card issuer will take back most items the store won’t accept, up to 90 days after the purchase date.

Pretend Your Credit Card is a Debit Card

While many people rely on credit cards when they don’t have the cash to shop – ideally you should make sure you have enough money in the bank to cover everything you pay for with your credit card. Keep track of spending just like you would your debit card, and you’ll know exactly how much your holiday shopping is costing you and whether you have enough money to afford what you’re buying.

Try a Moneris POS system for your business.

Tips for Using Your Credit Cards Wisely for Black Friday and Cyber Monday was created by and is property of American Consumer News.

Believe it or not there are ways that using a credit card provides an edge over other forms of payment. And it does not have anything to do with the number of merchants who offer credit card payments or how easy it is to perform. Rather, these are advantages that only a credit card can provide.

You can find these and other reasons to use a credit card as your method of payment:

Online

Product insurance and extended warranties. You can obtain product protection and extended warranties with certain credit cards. This can be extremely useful especially if you purchase an item and it arrives DOA or you have serious buyers remorse. With these situations, your credit card issuer will to go bat for you and take the hassle out of handling these situations. It is like having a concierge at your side at all times.

Travel

Earning points on travel related services. Many, many miles have been redeemed with points or miles that have built up on a travel rewards card. When they are used for pleasure it enhances the event while saving significant amounts of money. A once-in-a-lifetime vacation becomes a reality because the costs are made affordable by this type of cards many benefits.

Rewards

Whether it is products offered in a catalog or travel points, rewards are still the golden gem of credit cards. This part of a credit card use is a stroke of genius from a marketing standpoint. Allow card holders to make purchases from an exclusive source because they use their credit cards for normal everyday purchases. What a concept and how it has benefitted many for years.

Emergencies

For legitimate items such as car repair emergencies, appliance repairs, etc. This is especially true if you are out of town and find yourself in need of repairs on a vehicle.

The downside of other forms of payment. The ability to use a debit card for the same transactions will cause you to miss out on the above advantages, but more than that, you place yourself at a higher risk as your liability goes up with a debit card. It does not have the protections that are built into a credit card. Plus, you are limited to the amount of money in your account, and should you find an item from which you can benefit from but cannot take advantage of it because of your lack of funds, you will miss out.

Use your cards wisely and take advantage of these exclusive benefits offered only to card holders.

Plastic Only – the Best Ways to Use Credit Cards was created by and is property of American Consumer News.

Applying a credit rating to customers has become a science for credit card companies because the more data they can generate on your buying habits with their cards, the more they can predict your behaviors which helps them make decisions about you and your account. Here are some categories that you are scored on which you may have never heard about before.

Response. This score is based upon the likelihood that you will respond to an offer of credit such as a zero balance transfer, etc. These scores are used to make a decision about who to make offers of credit to based on the response factor.

Revenue. This is used to measure how much revenue an account will generate for the credit card company.

Application. This is information about you that is accumulated which includes information on where you live, how long you have lived there and how much you earn and how long you have worked at your present job. This data is combined with other scores in order to determine whether or not to open an account and what the rate you should be charged and what the credit limit should be on your account.

Bankruptcy. This score predicts the likelihood that you will completely give up on your debt and file for bankruptcy – either chapter 7 or chapter 13. This is an important one, because in the case of credit cards, these are unsecured debts and they have no recourse or way to collect the amount that is discharged in bankruptcies.

Behavior. This is information specific to a particular creditor. Do you pay off your balance every month, pay only the minimums frequently? This is not information that is available on a credit report, but is only held in the card companies databases.

Attrition-risk. This score looks at the probability that if you stop using your card, is it worth contacting you and making offers to keep you as a happy customers because you are reliable in making payments and so on. Conversely, if you are not as good a customer based on that detail, you might not be made any kind of offer if you decide to take your business to another card.

Transaction. This is the instant feedback tells the merchant if your transaction has been approved or not. There are triggers in this to try to catch fraud and misuse.

Collection. When a customer stops paying, this score helps determine what kind of success the credit card company will have at collecting on the debt. Factors that go into this are the amount owed and your ability to pay based on financial status. Also your credit report is monitored for recent activity on other accounts in case there are payoffs which indicates that you might have some money.

While this data seems dull and boring to most, it does make up a system of monitoring on the part of credit card companies to help THEM make money and you remain a customer. It’s not pretty, but it does exist and is used everyday.

The Credit Ratings Credit Card Companies Prefer You Did Not Know was created by and is property of American Consumer News.

People need cash and when they do, it can create a somewhat desperate situation for some. Besides fantasies of robbing a bank, many will do other things to get cash that are just as foolish.

Case in point – Taking a Cash Advance

When you have a credit card, the financially intelligent thing to do is to save that card and only use it in emergency. The reality is, many people who are not doing so well financially will make the first mistake of using their credit cards to sustain daily life. When the time comes for cash to be needed on hand, people will make another vital mistake and use that credit card to withdraw cash. These cash advances added to an already poor financial situation will only make things worse.

Here are some of the reasons you should avoid taking a cash advance from your credit card. Remember that a cash advance isn’t just when you use your credit card at the ATM, it also counts when you use convenience checks sent from the credit card company:

Outrageous Fees
Where many people fail themselves is in part due to the particularly small print that contains the information on the interest rate applied to a cash advance. Card holders do not always take the time to read exactly what the are doing when they take a cash advance from their credit card and then wonder why they are paying up to 25%-30% in interest charges.

Unbalanced Pay Offs
Few consumers realize that when they make a payment on the balance of their credit card, the credit card company typically will apply the amount to the balance with the lowest interest rate. Because your payment does not technically go towards your entire balance at any one time, you can end up paying for that cash advance for many years to come.

No Grace
The grace period on a credit card is the time you have to make a payment before the interest charges accrue. When it comes to a cash advance, most credit card companies do not give a grace period on cash advance transactions. This means you end up paying more than you would on regular purchases.

Double Fees
When you use your credit card at a bank ATM or the teller window, you may incur additional fees for the transaction. Not only do you end up paying outrageous interest for the money, you likely will end up paying off the extra fees for a long time to come, no matter how small they may seem at the time

Before you turn to a cash advance when you need cash, try hard to come up with other ways to get cash in hand. Sell things you own or borrow from a family member. Do whatever you have to to not dig yourself into further debt.

Cash Advance: Just Say No was created by and is property of American Consumer News.

With the majority of credit card companies raising their rates for card holder’s, you could very well find yourself paying more interest on your card balances than you had originally planned on. The good news is you don’t have to take a higher interest rate as the answer!

In fact, as long as you have decent credit, there is no reason why you should accept an interest rate hike from your credit card company. With the economy the way it is, credit cardholders have been reporting that even though they’ve never made a late payment on their cards their interest rates have been increased or their credit limits lowered. If you receive a notice that your rate has been increased, you should take a moment to call them up and request a lower interest rate. If they say there is nothing they can do, you can thank them for their time and let them know you will be transferring the balance to another credit card with a lower rate.

Chances are, they may come up with something they can do for you once they hear those words! If so, you can decide whether the lower rate is satisfactory to you, or if you want to shop around for lower rates.

When looking for credit cards to transfer your higher interest balances to, you want to keep in mind a few things to ensure you get the best deal, including:

• Make sure the new credit card has a lower annual fee than the one you are looking to replace (preferably pick a credit card without an annual fee)
• Read the terms of the balance transfer offer carefully: how long is the interest rate good for? What will the balance transfer rate change to once that preliminary period is over?
• Find out whether there are balance transfer fees, and how much they are. Sometimes, a card will offer a low interest rate on all balances transferred, but then turn around and charge you 1-3% as a balance transfer fee. You’ll have to play around with the numbers to see if you’re really going to save money over the life of the balance after paying the fee to transfer it.

The best balance transfer offers give you a low fixed interest rate for the life of the transferred balance. That means the rate doesn’t change for however long it takes you to pay off that balance, provided you make your payments on time. If you can’t qualify for that type of balance transfer offer, you should look for offers that give you 0% interest for 12 months, and focus on getting that old debt paid off within that year. If you are able to increase your payments enough to pay off the balance within the 12 month introductory period, you’ll pay back just what you owe and nothing in interest!

At the very least, you could consider balance transfer offers of 6 months interest-free; and if you still have a balance at the end of that term, see about moving the balance to a new credit card with a 0% balance transfer offer; or requesting a better rate from your existing credit card company.

Playing the Credit Card Balance Transfer Game was created by and is property of American Consumer News.

Here are my favorites from the week:

• Debt Freedom Fighter from Discover Debt Freedom presents 3 Indicators that a balance transfer credit card is right for you.
• AJC from How to make $7 million in 7 years … no scams, no schemes! presents Horses are not for courses …
• Money Answer Guy from Money Answer Guy presents How to Compare Lenders Online.
• Debbie Dragon from Empowering Mom (that’s me) presents Today I’m Grateful for a Recession-Proof Business.
• CindyS from Oh My Aching Debts presents Personal Finance Game.
• Little Thomas from Soon to be Debt Free presents Everything I Thought I Knew About
  Budgeting was Wrong . . .

A Funny Carnival of Personal Finance Has Been Published (#175) was created by and is property of American Consumer News.

Those who live in flood-tornado-hurricane-wildfire prone areas of the nation may be a bit more inclined to prepare emergency kits and keep them updated every couple of months. Those who live in potential emergency zones have likely witnessed first-hand the need to have such a kit. People who live outside such areas may not consider the possibilities and are caught completely off-guard when an emergency occurs. House fires, for example, can strike anyone at any time. Many times people are left with only the clothing they escaped with because they were not able to think things through.

Families need to always practice an emergency plan and a kit can be prepared and stored somewhere convenient and easily accessible. Depending on the emergency and the family, a kit can contain many different things but the one MUST is cash. This stash of cash essentially is different from the big emergency fund you have in the bank collecting interest. This type of fund means having actual cash in a sealable bag or fire safe emergency kits, next to the flashlights and bottled water.

People fail to consider the domino effects of a bad storm, a fire, or other disaster. If you have to leave your home and travel farther away, you may get by with a credit or debt card. But what happens if you remain local and there is no power for days? The chances of you being able to use a credit card are slim to none. None of the machines will work. None of the ATM’s will give you access to your cash. Banks will likely be closed up. Without a bit of cash on hand, you can quickly find yourself in heap of trouble.

When adding cash to an emergency kit, you need to consider a few things.

How Much Moolah

First of all, it must be decided how much money you can afford to hold on to and not ever spend. Tucking a couple of bucks you find in the dryer into the emergency kit each week is not a bad idea but overall a set amount should be determined for emergencies. It can be a portion of cash you withdrawn from your interest-collecting emergency fund but it has to be on hand.

Length of Displacement

Consider the longest amount of time you might be without power or water or away from home. You want to provide food, shelter, clothing and other necessities for your family on a daily basis. How much money you put away should be determined by the size of your family and other individual necessities.

Safety First

Keeping cash in the house that is easily accessible may also make people feel uneasy. Do not announce to people outside of the immediate family that there is any amount of cash in the house. Use a fireproof box to keep emergency supplies in case fire is the emergency.

Remember to keep supplies fresh and updated in your emergency kit and account for inflation when it comes to your money count. If you prepared a kit two years ago and set aside cash counting on gas prices back then – you may not get too far with today’s prices.

Jar a Few Bucks: Why Cash is a Must for Emergencies was created by and is property of American Consumer News.

While there are some advantages to paying rent with a credit card, there are also several key disadvantages to the trend. For one, landlords will often pass along the additional costs of the transaction and processing fees associated with the service, which is typically 2 percent of the total transaction. Some tenants may not be happy about the additional fee but for those who may be faced with $100 or more charge for late fees, the transaction costs may not be a concern.

The other chief consideration is the potential for easily exceeding a card’s credit limit, thus facing over the limit penalties and negative credit problems. There is a particular cause for concern when a tenant charges rent with no viable way of paying it off at the end of the billing period.

So how can one determine whether or not their personal financial situation makes them a good candidate for paying rent with a credit card? Here are some helpful tips.

•  You typically pay off your balance in full each and every month.  
•  You are involved with a credit card rewards program in which rewards for large purchases will offset any transaction fees of the payment.
•  Your credit limit is high enough so as not to subject you to an high-use percentage charges.
•  You have enough cash in the bank to cover the full amount of the rent charge.

 If your personal financial situation does not meet any of the above criteria, you will probably be better off scraping together the cash you need for your rent and paying the late charges than using your credit card. Being desperate for cash is not a reason to use a credit card, especially for a big charge such as a rent payment. Even if you face a $100 charge for being late paying your rent, using a credit card can lead to years-long charges, penalties, and fees that far exceed $100. While it may be convenient to pay your rent online, it is probably more financial sound to dust off the old checkbook when paying rent.

Make Sense to Charge our Rent? was created by and is property of American Consumer News.

The good news is that people can help improve a bad credit score by responsibly using these prepaid cards in place of traditional credit cards. The bad news is that there are unfortunately companies who are less than ethical and have found a way to scam consumers out of large sums of cash under the guise of giving consumers much needed credit card debt relief. The companies manage to pull such scams in a number of ways.

Big Money – Bad Card

Some companies have been known to take the money that you send to be placed in your prepaid account and send you an invalid card that will not work. Many times you will not be able to contact the company in order to get a refund or even file a complaint about the bad card.

Unauthorized Purchases

Some companies will deduct money based on purchases you never made, without confirming the legitimacy of the transaction. In these cases, it becomes difficult for the consumer to prove they did not make the purchases.

Improper Deduction of Funds

Some prepaid credit card companies have been known to improperly deduct funds from a bank account you have set up to fund your prepaid account. When this situation occurs, the consumer may have to do a lot of legal legwork to clear up the situation. In some cases, it has been reported that customers might not even receive a full refund when funds are improperly deducted, if they receive a refund at all, and sadly some of the refund checks that were received did not clear the bank.

Before investing your hard-earned money into a prepaid credit card scenario, check out the references and reviews of other customers by doing an online search. The last thing you want to do is waste money by getting ripped off. Chances are good that consumers will take to the internet to voice their opinions and experiences loud and clear.

Don’t Fall Victim to Credit Card Scam Artists was created by and is property of American Consumer News.

Put More Into Retirement Accounts

If you’re lucky enough to work for a company that offers a 401K plan with a matching contribution – you would be crazy not to take advantage of the program. Each time the employer matches your contribution (or even if they only match a percentage of your contribution), that’s free money for you.

There are a number of benefits for saving with a 401K account, which makes it one of the favored options for retirement planning by many people.

Tax advantages include:

• Reduction in tax liability since contributions to a 401K plan are not taxed

• Tax deferred investment income

• Compounded interest (the earlier you save, the more you’ll have upon retirement)

If your employer doesn’t offer a 401K plan, or you are self employed, you may want to consider a Roth IRA which has a number of tax advantages as well as some distinct advantages over the 401K plan (primarily the ability to withdraw the money before you are 59 and a half, penalty free, in certain situations).

Pay Off Existing Debt

Many people who have debt to worry about are often concerned that by contributing more to their retirement accounts it will make it that much more difficult to pay off their existing debts. One of the easiest ways to answer the question of whether or not you should contribute more to a retirement or pay off your bills is this: if contributing to a 401K or other type of retirement account is not going to leave you enough money to pay your bills each month, you obviously are not in the position to contribute to a retirement account, yet!

On the other hand, it’s very easy to always say you don’t have enough money to save, so be sure to be honest with yourself regarding how much money you earn each month and how much money you are currently paying out for bills and living expenses. If there is more money than you owe; immediately set up an automatic savings option so that it comes out of your pay without you having to do anything. (if you don’t see the money, you won’t miss it as much!)

In most cases, it doesn’t make sense to skip paying into a 401K or other retirement account in order to pay your car loan or mortgage faster. This type of debt is often a fixed, low interest, and for most people- will be paid off before you are ready to retire. On the other hand, if you take and apply all of your money to these bills now, when you are ready to retire you may not have enough saved to stop working.

If most of your debt is high interest accounts, like credit cards or personal loans for example, you’ll want to pay these off as quickly as possible – even if it means reducing your retirement savings temporarily while you attack the high interest debt. If you paid only the minimum on a credit card that you over-spent on, you could still be paying that $4000 debt in 20 years time (and paying thousands in interest!) The faster you pay off high interest credit card accounts, the more money you save on interest and the more you will be able to contribute to your retirement account.

If your cash flow doesn’t allow you to pay more on high interest accounts because you are contributing to a retirement plan it is probably better to reduce or skip the retirement contributions for two or three years to get your debt paid off- and then put all of that money into your 401K or other savings plan once you are debt free.

Save For Later or Pay it Off Now? was created by and is property of American Consumer News.

If it’s not possible for you to pay off what you owe in a lump sum payment on each of your credit cards, what you will want to look at is the possibility of obtaining a credit card with a no-interest balance transfer offer. These cards allow you to move your existing balances from another credit card onto the new card, at a promotional rate.

Your best option would be to select a credit card with a 0% interest rate on transferred balances for at least twelve months. These cards are a little harder to qualify for, and if you find you aren’t able to get one of these cards- you can look for a six month no interest offer; or a card that offers a fixed low interest rate for the life of the balance. All of the balance transfer offers will give you the opportunity to make repayments on your balance at low or no interest; which means all (or most) of your payment is going towards the principal amount owed. On a no interest card, it means there is no new interest accruing, and gives you the chance to get the account paid off without paying more for what you owe. In the case of a fixed rate, low interest for the life of the balance, more of your monthly payments are being applied to principle than interest, and you’ll be able to get it paid off much faster than you could on the higher interest credit cards.

In rare cases, you may be able to find and qualify for a credit card offer of no interest on transferred balances for the life of the balance. Typically, people with strong credit scores and repayment histories will be most likely to qualify for such an offer.

Regardless of which balance transfer offer you choose, you’ll want to do some research and evaluate a number of credit cards before you select one. Make sure that the one you apply for is the best offer you can find and are likely to qualify for, as you do not want to be qualifying for cards left and right as you look for your balance transfer offer credit card.

Your most important consideration when you transfer your balances to the new card is how you will handle your other credit cards. Be careful not to give into the temptation of using those credit cards that you’ve just transferred balances from, otherwise you’ve defeated the purpose of the balance transfer!

Don’t Pay More for What You Owe was created by and is property of American Consumer News.

1. Select a credit card that offers rewards that you’ll really use.  If you travel frequently, choose from reward credit cards that give you discounted flights, free hotel nights or discounted rental cars.  If you don’t travel, select one that offers cash back, gasoline rewards, or some other program that will give you something you’ll actually make use of in exchange for using the card. 
2. Figure out how much you earn on a monthly basis, and how much your expenses are.  In other words- figure out where your money goes and decide which of those monthly purchases could be made using the credit card.  Make as many of your monthly purchases using the same credit card as you can, and eliminate the need to write checks for each of your transactions.
3. Pay your credit card balance off in full at the end of every month to avoid finance fees and interest charges.  You’ll still accumulate the rewards based on the purchases for that month.
4. Using a credit card for the majority of your monthly expenses can reduce the number of checks you write, and reduce the number of transactions you keep track of in your check register- therefore, reducing the possibility of making a costly mistake in your check register (You’ll write one large check at the end of the month to cover your monthly expenses instead of multiple, smaller checks for each individual account).
5. A credit card statement offers a detailed transaction report to show you where your money is spent each month, making it easier to see where you can cut back on unnecessary expenses.

 Using this technique will not only build up the rewards you earn from your credit card fairly quickly and simplify your financial record keeping, but it can also allow you to earn some interest on your income before you write out the check to pay your expenses off at the end of each month.  Simply deposit all of your income into an interest earning checking or savings account until the day you write the check to pay off your credit card account, and you’ll be able to benefit from additional interest due to having the money in your account for a longer period of time.

Simplify Your Financial Record Keeping With a Credit Card was created by and is property of American Consumer News.

HOW THEIVES GET YOUR IDENTITY

According to the Post Office’s brochure, Identity Thieves gain access to your personal information through:

1. “Dumpster Diving” – Going through your trash.
2. “Skimming” – Storing your credit card number in a special storage device when processing your card.
3. “Phishing” – Pretending to be a financial institution and sending scam alerts to get your personal information.
4. “Changing Your Address” – Completing a change of address form to get your mail and personal statements.
5. Stealing – Taking your purse, wallet, mail, pre-approved credit card offers, new checks, personnel files from work, or tax information.

TIPS RECOMMENDED BY USPS

1. SHRED FINANCIAL DOCUMENTS – Any paperwork with personal information should be tossed through a shredder before making it to your “dumpster.”
2. NEVER CLICK ON LINKS IN UNSOLICITED EMAILS. Since “phishing” is becoming a common problem, use up-to-date firewalls, an anti-spam service, anti-spyware, and anti-virus software to protect your home computer. Plus, never click on links in emails. Instead, open a new window and go to the website address you know to enter information. (Fake Paypal emails are becoming more common in getting people’s information, so be extra wary when dealing with these.). You might also want to avoid email archiving in the event that someone hacks into your account, but good anti-spam software is a must..
3. DON’T USE OBVIOUS PASSWORDS like your birth date, mother’s maiden name, or the last four digits of your Social Security number.
4. DON’T GIVE OUT PERSONAL INFORMATION whether over the phone, through the mail, or over the Internet unless you know who you are dealing with.
5. PROTECT YOUR SOCIAL SECURITY NUMBER – Never carry your social security number in your wallet or write your social security number on a check.
6. KEEP YOUR PERSONAL INFO IN A SECURE PLACE – This is especially important with roommates, outside help, or if having work done in your home.
7. BE ALERT TO BILLS THAT DO NOT ARRIVE WHEN THEY SHOULD. If they do not arrive, they may have been routed somewhere else.
8. BE PROACTIVE ABOUT UNEXPECTED CREDIT CARDS OR ACCOUNT STATEMENTS. If an account or credit card arrives that you did not open, someone else did. Call that company immediately and have it closed.
9. BE ALERT FOR CREDIT BEING DENIED UNEXPECTEDLY. Credit is often denied for a variety of reasons, one of which is when too much credit is opened in a short period of time. Being denied credit may mean that someone else has already opened accounts in your name.
10. RESPOND IMMEDIATELY TO CALLS OR LETTERS ABOUT PURCHASES YOU NEVER MADE. Credit card companies create a profile of their clients detailing out the most common places a customer shops and the items that they frequently buy. If something is purchased that does not suit your profile, they will contact you for verification. Respond to the notice right away to head off potential theft and damage to your credit.
11. CHECK YOUR CREDIT REPORT. Any credit opened in your name will show up on your credit report. By staying on top of this, you will be able to stop identity theft before too much damage occurs.
12. REGULARLY REVIEW YOUR FINANCIAL STATEMENTS. You want to look for any and all charges that you did not make, especially since consumers usually have only 30 days to dispute items they did not authorize.
13. CLOSE ANY ACCOUNTS THAT HAVE BEEN TAMPERED WITH OR ESTABLISHED FRAUDULENTLY. It’s better to get a new card with a new number and close the old card since this alone may stop a thief in possession of your information.

OTHER GOOD TIPS:

14. GO PAPERLESS: You can receive many of your bills through your bank account instead of having them mailed. By requesting this free benefit, you keep account numbers and personal information private, you are able to save hardcopies directly to your hard drive, and you are able to find that information quickly and easily when needed (like when applying for a mortgage).
15. STORE YOUR FINANCIAL AND PERSONAL INFORMATION IN A STORAGE BOX BY YEAR (not including social security numbers) – This is especially important when dealing with taxes since the IRS can demand to see evidential proof of deductions for as long as eleven years after you file. By keeping it in a storage box, you can set the box on fire when the time period is up while never having to worry about being unable to provide demanded evidence.
16. NEVER RESPOND TO EMAILS – Emails are now commonly used to steal or “phish” information out of consumers by making the email look as if it came directly from a financial institution. If you respond to the email, you encourage them to continue trying to get personal info from you. Simply add them to your Spam list to keep that email address from contacting you in the future, and visit the addresses you know if you are concerned the notice is valid.
17. WHEN CONTACTED BY AN INSTITUTION BY PHONE, TELL THEM YOU WILL CALL THEM RIGHT BACK – Let them give you their name and number, but do not call that number back. Instead, call the number on the back of your card and ask to speak to a representative about your account. Let them know that you were contacted and ask them to verify any problems. All account managers have access to the same information, so they will be able to see if there is a problem with your account or not.
18. OPT OUT OF PREAPPROVED CREDIT OFFERS – Although I do not personally believe that people can get credit through pre-approved credit card applications without your social security information, it never hurts to opt-out of credit card offers. By doing so, you lessen the amount of mail that comes to your mailbox, and you will still be able to apply for credit online. Check out the FTC’s Consumer Alert webpage to see all the ways you can opt out.
19. GET A LOCKING MAILBOX – This is especially a good idea for anyone in a nice area. The nicer the area you live in, the more ideal a target you would make to an identity thief. Obviously, living in a nice area (no matter how safe you think it is), the more money you make and the more a thief assumes they can steal.
20. COPY ALL OF YOUR CREDIT CARDS AND SAVE IN A FILE AT HOME – By having a copy of the card front and back in a locked filing cabinet or other safe place, you will be able to quickly and easily contact your creditors should your purse or wallet ever be stolen.
21. CARRY ONLY ONE OR TWO CARDS AT A TIME – Lock away all the other cards in a safe place and carry as few cards as possible. This way, if someone ever gets into your wallet or purse, you will notice immediately if a card is stolen and be able to report it right away.

If you do believe that your identity has been stolen, don’t let yourself be a victim. Contact the Federal Trade Commission (FTC) to let them know that you believe your identity has been stolen since this will help law enforcement across the country in your investigation. Also contact the three credit reporting agencies so they can put extra security on your credit and make all new credit have to be approved by you first. Lastly, file a police report even if you do not know who stole your card. By doing so, you will be able to get the debt wiped out by creditors and protect your good credit.

21 Ways to Stop Identity Theft was created by and is property of American Consumer News.

To protect yourself from identity theft and credit card fraud, you need to implement the following strategies and always consider those cards to be at risk. This second article in it’s four-part series goes over seven things you can do to help stop credit card fraud:

1. Fill out your own credit applications. This is especially important for SBOs (Small Business Owners). Too many times, SBOs trust their bookkeepers to fill out all their credit applications. They naively hand over their social security numbers and business ID numbers because they trust their employees not to steal from them. Although some of these numbers a bookkeeper does need to know when handling your bookkeeping, your social security number and corporation number should be kept under wraps. Once they have this information, they can fill out any number of applications without your knowledge and easily forge your signature. A new creditor will not know if your signature is a forgery. Therefore, if you must have a bookkeeper fill out your information, have them fill out everything EXCEPT for your social security number, and other business related numbers, and sign all the applications yourself. By doing so, you lessen the chance of new credit being opened in your name (or your company’s).
2. Pull your credit report every few months. Even if you keep your ID numbers to yourself, you should still check your credit and business credit reports every three months. By doing so, you will see if there are any new accounts that should not be opened, and you can have them shut down immediately. You can also report to the credit agencies that no other accounts can be opened without speaking to you first.
3. Write “Check ID” on the back of the card. Many people make the mistake of never signing their credit cards. They assume that not signing their cards prevents embezzlers from forging their signatures. In actuality, by not signing your cards, someone else CAN sign them in your place. Retailers are often trained to only match signatures on receipts to signatures on cards. If the signatures appear to be the same, they do not need to ask for ID. By writing the words “Check ID” on the back of your card, any theft that occurs with that card is not your fault or responsibility. It becomes the fault of the store that failed to ask for your ID, thus giving you more rights should you need to pursue reimbursement in a court of law.
4. Use PO #’s with Employee Initials. If you cannot help but give out cards to employees to make business purchases for your company, make sure to encourage the use of Purchase Order numbers (PO #s). Many business cards will prompt retailers to ask for PO #s, which will show up on the receipt and your credit card statement. By having the employee list the PO # as the first two initials of their name, and the year, month and day of the purchase, you will know exactly who made the purchase and when by simply looking at the PO number. Not only is it easier to track and verify which employees made what purchases, but it assigns responsibility and accountability for every purchase thus reducing the risk that an employee will steal from you and be able to blame it on someone else. (An example would be EB70214 for a purchase I might make on Valentine’s Day of 2007. Be sure to include the year to avoid duplicate PO #s year after year.)
5. Check your Credit Card Statements: This is incredibly important for anyone, whether business owner or credit consumer. By looking over statements, you will catch any fraudulent charges instantly. Most credit companies only allow you to dispute fraudulent items within 30 days of receipt of statements. By not looking over the statement immediately, you are giving up your disputing rights and may get stuck with any fraudulent charges that have occurred in your name. So go over these statements carefully and contact your creditor immediately if anything is on there that should not be.
6. Keep your credit cards locked away. Just like locking away your checks, you should always lock away your credit cards. By doing so, you greatly reduce the chance that anyone can get hold of your cards and make unauthorized purchases. However, you still need to look at the statements for these cards since people can memorize or save credit card numbers and make purchases online without identity verification.

These ideas are simple, but effective in stopping credit card theft. Although many people would say to also shred credit card applications, this really does not protect you since applications can now be filled out online. Only by protecting your important ID numbers and watching statements can you add Identity Theft off before it causes too much damage.

Check back next week for the third article in this series about Ghosts in your company. Believe it or not, they do exist in the business world. Also, check out Part 1 of this series regarding how to protect your checking account.

Protect Your Small Business from Embezzling Bookkeepers Part 2: Credit Cards and Identity Theft was created by and is property of American Consumer News.

1. Affiliate Programs: I mentioned Affiliate Programs in Part 2 of this series, and I am revisiting this issue because of its effectiveness. You see, even though having affiliate links on your website can save you money, it can also supplement your income when your customers, family and friends shop through your website. The best part about being an affiliate is that you are able to find out first what discounts an affiliate company is offering. By placing linked coupons on your website, your website will soon become the place where your acquaintances will look first for the best deals, thus supplementing your income when your affiliates pay you a commission. A few excellent choices are Commission Junction, Affiliate Showcase, and ClickBank.

2. Google AdSense: For anyone running a website or blog who does not want to go to the trouble of searching for and picking out affiliates, then Google AdSense is the perfect solution. When you sign up, you go through a three step process to create an HTML that you then paste on your website or blog. Google AdSense then reads the tags you create for your site and posts related ads that it changes constantly. It’s a sweat free way to make extra money that takes you less then a half hour to set up.

3. Blogging: Whether you own a business or are just looking to make some extra cash, a blog can actually help you achieve both goals. By writing something interesting and informative, you can build up a loyal readership that can easily turn into a clientele. Post some affiliate banners or ads from Google AdSense on your blog pages, and soon you will be adding bit by bit to your bank account, plus building your expertise and credibility among your “fans.” Check out HubPages or WordPress for a few places to get started blogging for free.

4. Freelance Writing: By occasionally writing articles for websites like Helium or Constant Content, you will be able to supplement your income a little at a time. Both companies sell articles to other websites giving you cash in your pocket as well as giving you a chance to become an expert in your field. Post links to your articles on your websites and your colleagues will soon believe you are an expert and look to you first for advice on shopping.

5. Surveys: If you have very little time to create a supplemental income, then I recommend you try filling out surveys. They are delivered to your e-mail inbox and you fill them out on your own time. (Just be sure to create a new e-mail to receive these offers or you will soon be inundated.) MyPoints has many wonderful survey offers which they give you points for, and those points can be turned in for gift certificates. Also check out Cash Crate for a plethora of offers that will net you cash fast.

6. Secret Shopping: Secret Shopping is a valuable tool to many businesses when they want to know exactly how customer-oriented their employees are. Obviously, when they watch their own employees to decipher this information, an employee is going to be on their best behavior. Many companies hire Secret Shopping Companies to gather this information on the sly. When you apply for these assignments, you are given a time frame, a scenario to play out, and a target to watch and review. You complete the project in your free time and then fill out a survey later. The Secret Shopping Company pays you once a month (usually the month after you complete the shop). Just be sure to NEVER PAY to become a secret shopper, as making you pay is a common Secret Shopping Scam. I’ve worked with SG Marketing, Bare International and Shop N Chek in the past, and all three have paid when they said they would. Also, check out this thorough list at Moms Wallet for other companies.

7. Online Auctions: Whether you are looking to sell a business product or something from your home, online auctions are a great way to move your items without spending a lot of time or effort to get the best price for your goods. Sign up for a free eBay account and you will soon be moving your product without investing much of your own capital. If you do go this route, be sure to always respond quickly to any comments and to do your best to keep your ratings up. By doing so, you will make more sales since ratings give people a sense of confidence in you and your products.

8. Use a Card that Offers Cash back Bonuses: Although I brought up getting a rewards card in Part 1 of this series, it bears mentioning again. A rewards credit card is always a better decision then a regular credit card since you can receive annual cash bonuses. Discover, Citibank and Chase all offer low interest cards that have no annual fees, plus you can cash in any time of year.

Be sure to check out the first two articles in this series (Cut Your Expenses and Get the Best Deals). Also, come back next week for the final article on strategies for increasing your income.

Keep Your Money to Yourself Part 3: Supplement Your Income was created by and is property of American Consumer News.

1. Download the Upromise Toolbar, even if you don’t need college money. Upromise.com has a free toolbar you can use to find the best deals on absolutely any NEW product you could possibly want. By simply typing the name of the product you are looking for, you will be given a list of thousands of matching items, prices, and the stores where you can buy your desired product. Once you have your list, you can then narrow it down by features, lowest price, brand, store, and cash rebate amount. With just a few clicks, you can find the absolute best deal whether you decide to buy it from www.Upromise.com or another website.

2. SIGN UP FOR A FREE EBATES.COM OR SAVINGSWATCH.COM ACCOUNT. Although I have no experience with www.SavingsWatch.com, many of my readers have commented that it is an excellent website to purchase products from and receive large rebates in return. I do, however, have a history with www.Ebates.com and I know that they do pay you on a quarterly basis no matter how little or how large your earnings are. Once you have found the best deals on Upromise.com, pop over to Ebates.com or Savingswatch.com to buy the product for the price you’ve found and receive up to an additional 30% off. By doing so, you will always get the best prices and make a little extra cash back on the side. (Right now, Ebates.com is having a sign-up special. If you have a friend who has an Ebates.com account, enter their email address to earn $5 instantly for you and your friend.)

3. SHOP AT HALF.COM FOR CHEAP BOOKS, MOVIES AND CDS. www.Half.com is an eBay company that allows everyday people to post their new and used books, music and movies for sale without paying a posting fee. A customer can then purchase the item for as little as $0.75 and spend approximately $3 for shipping and handling. Within one to two weeks, the items are delivered to your door. Compared to walking into a book or movie store, you can save a lot of money over a relatively short period of time. Just be sure to read the condition comments to avoid any surprises, and only buy from sellers with a good rating.

4. SHOP AT EBAY FOR MANY OTHER ITEMS (AND COUPONS). Since I mentioned Half.com, I may as well bring up www.eBay.com as well. Just like Half.com, you can find a wide variety of new and used products that people have put up for auction. Also just like Half.com, be sure to buy from sellers with good ratings and email them requesting details should you require more information. One more thing to look for at eBay would be coupons. Many people get hold of coupons for everything from travel to groceries, and you can purchase those coupons and save yourself a whole lot of money.

5. USE COMPETITOR PRICING TO DRIVE A HARD BARGAIN. Whether you are an entrepreneur trying to get the best pricing on your business purchases or a thrifty shopper, you can use competitor’s pricing to your advantage. By getting quotes from one company and presenting them to the place where you normally make your purchases, you can get your favorite stores to consider lowering the price just for you. In fact, many large department stores (like Sears and Home Depot) have price matching policies. They will often meet or beat a competitor’s pricing on a product, but only if you can present an ad listing the item you wish to buy. Just be aware, it has to be exactly the same item to get the best deal. Not only will this get you the best pricing, but it will also get you the best financing deals with companies you may already have credit with. (Check out competitor’s websites for printable weekly ads if you don’t receive the newspaper.)

6. USE COUPONS AND REBATES TO SAVE EVEN MORE. Many office supply stores have an “online rebate center” where you can see all the rebates being offered for their in-store and online products. It’s a great place to start when looking to make a large purchase. www.Coupons.com and www.Smartsource.com both offer hundreds of manufacturers coupons every month on grocery store products. www.Wow-Coupons.com offers rebates and coupons for restaurants, travel, retail and grocery items. Sign up for newsletters at your favorite shops and websites and you will soon receive exclusive coupons via mail and e-mail.

7. BECOME AN AFFILIATE. If you have a website, join an affiliate company. Not only will it help you supplement your monthly income when your friends, family and customers make purchases through your websites, but it will also help you find the absolute best deals on anything you want. One really good company to join for free is Commission Junction (www.cj.com). You can immediately search for thousands of products and make your selections based on price, available coupons, and commission. Every time you net $25, they mail you a check the following monthly pay period. By doing so, you can easily “earn” hundreds of dollars per year while also finding the best prices.

8. ALWAYS SHOP THE CLEARANCE SECTIONS. There is one in every store, and you can save as much as 80% off of regular-priced items by browsing this section first. Several times a year, the stores will slash clearance prices even lower to clear away out-of-season products and make room for new products. January, especially, is a great time to begin your search since stores over-purchased items for the Christmas Season.

9. TRADE SERVICES FOR WHAT YOU NEED. If you know someone who offers a product or service you need (like website development or video production), offer to trade services with them. Look for a need they have which you might be able to provide free-of-charge in exchange for something you need free-of-charge. This kind of win-win situation benefits everyone.
   

Try some of these tips today and see how much money you are able to save. Don’t forget to read article one in this series (“Keep Your Money to Yourself – Part 1: Cut Your Expenses”) to save even more. Also look for article 3, “Keep Your Money for Yourself – Part 3: Supplement Your Income” where I show you a few simple things you can do instantly to supplement your income.

Keep Your Money for Yourself – Part 2: Get the Best Deals was created by and is property of American Consumer News.

What you may not know, is that there are pre-paid credit cards, sometimes called “Secured credit cards” are cards that report your activity to the credit bureaus.  If you do not have any open credit cards (often, people who are in over their heads in debt might negotiate better repayment terms or join a credit counseling service that requires the cards be unuseable while the payments are being made) you can re-establish your credit with pre-paid credit cards that report to the credit bureaus. 

Pre-paid credit cards are backed by a traditional card issuer, like Visa or Mastercard.   When you open the account you make a deposit, which becomes your credit limit (less any fees the pre-paid card company may charge you to have the account).  You can only spend as much money as you’ve deposited- so in that sense it works very much like a checking or savings account debit card- except that when you choose a pre-paid card that reports to credit bureaus you can build your credit or re-establish good credit if you’ve had problems that have lowered your score in the past.

Another bonus of using pre-paid credit cards is that some of them offer rewards similar to the rewards programs of a traditional credit card.  You could find cards with travel or cash back rewards, just keep an eye on how much the annual fee is for the card or what other kinds of fees your required to pay.  Sometimes a pre-paid card will charge a “monthly maintenance fee”, and you’ll want to select one without this additional fee if at all possible. 

You Can Prepay Your Way to a Better Credit Score was created by and is property of American Consumer News.

1) Use a rewards credit card. A rewards card offers just that…rewards. Often, these rewards can be turned in for free products or cash.

2) JOURNAL EVERY MILE YOU DRIVE. In November of 2007, the IRS announced that business miles could now be written off at $0.505 per mile, medical or moving miles at $0.19 per mile and charity service miles at $.14 per mile. Therefore, whether for business or personal, add these miles up at the end of the year and get back a bigger refund, or pay less tax.

3) BECOME A NETWORKER. Word-of-Mouth advertising is the best and cheapest method for advertising. It gives you credibility, saves you money, and increases your odds of “getting the job.” Therefore, create your own networking group by asking friends and family to put you in touch with other business professionals. In no time, you will have a powerful sales force looking for customers and you will be doing the same for them.

4) GET A FREE PAYPAL ACCOUNT. www.PayPal.com offers the lowest fees for accepting credit cards whether you are a business owner or selling on eBay. For as low as 1.9% of a sale, you can accept any credit card through your computer instantly and transfer it into your bank account within 24 hours. Not only will you increase your sales, but also you will be able to create a free 24/7 online catalog.

5) TELECOMMUTE. With companies like www.GoToMyPC.com and www.PCNow.WebEx.com, you can now logon to any computer from anywhere and see all your files instantly. By telecommuting, you will be able to save on gas money, travel time, automobile expenses and office overhead, while at the same time acquiring several money-saving tax deductions.

6) USE THE UPROMISE.COM TOOLBAR TO FIND THE BEST DEALS. Upromise is a website dedicated to helping people accumulate money for college. However, they also have a free toolbar that you can download and utilize to find the best deals on the Internet. Simply type in what you are looking for, and then narrow the selection by features, price, and store. Not only can you save hundreds of dollars a year, but you can also get money back that can be used for anyone’s college education, or to pay down student loans.

7) JOIN AFFILIATE PROGRAMS. Affiliate programs are free to join and allow you to sell hundred of products on your website instantly without ever investing in an inventory. Furthermore, if you have a product to sell, you can offer a commission to affiliates who want to sell your product, and you pay nothing until they make a sale. Commission Junction (www.cj.com) is one of these companies that have some of the best affiliates on the web.

SUGGESTIVE SELL. Whether you are selling at a garage sale or selling to maintain your livelihood, ALWAYS suggest a second item or third item to go with the first. However, be certain to name a product and not just ask “Would you like anything else?” By naming an associated product, you create a mental image in the buyer’s mind and give them a chance to give you more of their money.

9) ELIMINATE TROUBLESOME CUSTOMERS. While it would seem that eliminating customers will cost you money, freeing up the time that troublesome customers consume will allow you to find better customers who order regularly with or without you. Stick to the customers you enjoy working with, and you will increase your cash flow immensely while also reducing your stress level.

10) CREATE A BUSINESS PLAN. This is recommended for every business for several reasons. Not only does it help focus your business and your goals, but it can also help guide your business’s choices and get you funding when most needed. Look online for free business-plan templates and just fill in the blanks.

11) SIGN UP FOR MILEAGE PROGRAMS. www.United.com is one of the best mileage programs available since you can earn miles by simply registering for their grocery and dining programs. As soon as you’ve accumulated as little as 13,000 miles, you can earn a free flight in the off-season to hundreds of locations. Programs such as these are free to join and make it easy to earn free flights.

12) UTILIZE DROP SHIPPING. Drop Ship companies are designed to ship out the products that you sell to your customers while charging you a flat fee. Not only can this save you money on paying for a shipping staff and postage embezzlement, but it can also save you from having to pay for a storage area for your inventory. Go to www.WorldWideBrands.com to find companies that can help you with your products.

13) GO TO WWW.SCORE.ORG FOR FREE BUSINESS ADVICE. This company is comprised of retired entrepreneurs who spend all their time mentoring people into thriving businesses. You can get free advice regarding everything from venture capital to business plans.

14) START A BLOG. Whether you own a business or are just looking to make some extra cash, a blog can actually help you achieve that. By writing something interesting and informative, you can build up a loyal readership. Post some ads from Google AdSense on your blog pages, and soon you will be adding bit by bit to your bank account, plus building your expertise and credibility among your “fans.”

15) USE TESTIMONIALS. People want to know that you are a good company. By asking your current clients and friends to give a testimonial about you that you can place on your website and in your brochures, you gain credibility and increase the odds of making new sales.

16) DEDICATE AN AREA OF YOUR LIVING SPACE TO A HOME OFFICE. If the home office is used for business purposes, you can deduct a portion of your mortgage/rent, utilities and supplies legally.

17) OPEN AN IRA. Although you may not consider putting money into an account a profitable situation, at this time of year, shuttling $2,000 into an IRA before April 15^th can actually reduce your tax bill or even get you a larger refund. Plus, you are keeping that $2,000 for use at a later date.

18) OPEN A HEALTH SAVINGS ACCOUNT. If you are enrolled in a high-deductible health plan, you should consider opening a Health Savings Account (HSA). This money is tax deductible and can be used immediately for any kind of medical expenses at any time without federal tax liability. Just like an IRA, you can write off the money you set aside and have more money in your pocket at the end of the year.

19) OPEN A COLLEGE SAVINGS ACCOUNT FOR A CHILD. Also like an IRA, there are several college savings accounts that offer tax deductions, thus keeping more money in your pocket and earning interest to boot. Some of these plans include a 529 Plan or a Coverdell ESA.

20) SIGN UP FOR TRAVELOCITY’S EMAIL ALERTS. If you are looking to travel, Travelocity’s e-mail alerts can alert you to the best prices on the flights you want on a daily basis. By signing up for their free e-mail alerts, you will never pay retail again, thus saving hundreds and even thousands of dollars.

20 FREE THINGS YOU CAN DO TO PUT MONEY IN YOUR POCKET was created by and is property of American Consumer News.

While most rewards credit cards aren’t overly rewarding because of how much you have to spend to qualify for the rewards, and the amount of interest you pay when you carry a balance from one month to the next, the Citi Driver’s Edge Credit Card- targeted to college students- lets you get rebates for oil changes without even using the card.

How to Get Free Oil Changes

When you get the Citi Driver’s Edge Credit Card, you are able to earn $.01 a mile that you drive using the vehicle you enroll on the card.  You are only allowed to enroll one vehicle for your card.  You get your oil changed and then submit a miles submission form with the invoice from the service; and Citibank gives you the rebate.  It’s that simple- and you aren’t even required to spend anything on the credit card to qualify for the rewards.

The card itself has lower standards for getting approved, slightly above average interest rates and no minimum income requirements because it’s targeted to the college community, but if you do decide to use the card after you get it, you will also be able to qualify for some other rewards related to your car- like gas rebates; and who couldn’t use a little savings on the amount we pay for gas these days!  Whenever you use the card at the supermarket, drugstore or gas station, you’re purchases will earn you 3%, while your other purchases earn 1% towards your rewards program.

Keep in mind, that as with any credit card with a rewards program, the only way you will actually be “rewarded” with the Citi Driver’s Edge Credit Card (other than the free oil changes just for submitting your mileage and invoices for service!) is if you pay your balance off in full each month to avoid paying interest and finance charges on your balance.

There are ways to make credit cards work for you instead of against you, and this is a perfect example of that.  Getting the card for the free oil changes only will save you around $120 per year, assuming you spend $30 on each oil change every 3,000 miles and get an oil change once every 3 months.  If you have financial discipline and are able to use the card at supermarkets, gas stations and drugstores (and pay it off before you get hit with fees and interest each month), you can easily increase your rewards to reduce the amount of money you pay for gasoline, too.

Get the Edge with Free Oil Changes was created by and is property of American Consumer News.

Tip 1 – Use your Profit and Loss Report

For businesses owners, a Profit and Loss Report (P&L) is a common tool. For everyone else, this would be the same as a Spending Journal with one little extra: your income. Your P&L (or Spending Journal) adds income and subtracts expenses. When totaled, the profit or loss (a.k.a. cash flow) is left behind. By carefully analyzing this report for a specified period of time, you can deduce where you are spending too much money and which expenses should be cut.

TIP 2 – CONSIDER SWITCHING BANKS

Since the banking industry is extremely competitive, you can renegotiate all kinds of banking fees. This includes your monthly fee, bounced check fees, and over-the-limit fees. Contact your banker and ask them to reverse these unnecessary expenses and to convert your account into a free checking account. Banks will often cooperate just to keep you happy, or they will upgrade your account at no extra charge based on your banking history. If you use QuickBooks to do your bookkeeping, make sure your bank can create a QuickBooks Web Connect file and you will be able to reduce your bookkeeping expenses as well when you download all your transactions instantly. Bank of America, Citibank and Wells Fargo are three banks that work well with QuickBooks.

TIP 3 – ASK YOUR CREDIT CARDS FOR BETTER INTEREST RATES

It is common for credit card companies to raise your interest rate to as much as 24% if you are even 24 hours late. Most people never notice because they are not contacted separately, it is simply presented discreetly in your next bill. Contact your credit card company and ask them to lower your interest rate and you can cut your monthly bill in half instantly. Also ask for Balance Transfer Deals and you can wipe out interest altogether for a period of several months to a year or more.

TIP 4 – GET A REWARDS CREDIT CARD

If you do not have a credit card with rewards or a low interest rate, you should consider switching. Rewards cards can supplement your annual income, or be used to reduce other business expenses (such as airline tickets or hotel rooms). By paying for all of your needs on a credit card and then paying that credit card off every month, you can accumulate interest on the money in your bank account while also rapidly accumulating rewards. Both Citibank and Chase offer excellent rewards cards with no annual fee.

TIP 5 – REDUCE YOUR COMMUTING EXPENSES

While in the past, the best way to reduce your commuting expenses was to carpool to and from work, there are many other ways to cut commuting expenses. One would be to invest in an energy-efficient vehicle, like an electric car or scooter. Another would be to ride a bicycle to get where you need to go (also a healthy option). The best recommendation I can make, however, is to begin “Telecommuting” to work. Thanks to technology today, people can work from home and become more productive and efficient then when working in the office. Another added bonus here is that you could cut daycare costs (if you have children) and work whenever your child is sleeping. You will find you have focus on your work, freedom from micro-managers and more time with your family…all while saving commuting time and costs. (If you need advice on getting your boss to approve of telecommuting, get Timothy Ferris’s book “The Four Hour Workweek.” He will walk you through the process step by step.)

TIP 6 – DON’T SPEND DOLLARS ON PENNY JOBS

The Mary Kay Company has always taught their 1.2-million+ consultants to never waste their valuable time doing jobs that you could pay someone else less money to complete. For example, if you make $50 an hour working at the things you do best, then why spend your spare time cleaning your house when you can pay someone else $10 an hour to do it and you spend your time bonding with your family instead. Whether your boss does or does not allow you to telecommute, there are many things that you could outsource saving you time and therefore money. Elance.com is a great website that connects with independent contractors from all over the world to complete all kinds of jobs, and many of these jobs can be completed for as little as $2 (American) per hour. Why not use them to research your competition or develop a website for you instead of spending days doing it yourself? Or, why not simply use them to research business grants or college scholarships instead of struggling to find them yourself?

TIP 7 – REEVALUATE YOUR DUES

It is a good practice to look at your insurance every year. Premiums generally increase on your anniversary date. By simply “shopping around,” you may find that you can get a better rate somewhere else. If you choose to stay with the company you are with, you may be able to bargain them to a lower price by simply having their competitors’ quotes in your hand. Also, ask them what their best-discounted specials are. You may find that by adding another policy, you can actually save money. For example, State Farm Insurance offers a large discount on auto insurance when you add life insurance or homeowners insurance to your policy. Often, the discount is large enough to pay for the new policy while also giving you a discount and protecting your assets. Reconsider your networking fees, Internet fees, telephone and cell fees…anything you regularly spend money on. By shopping around, you will be able to renegotiate and cut expenses instantly.

These are just a few things to look at today. Hopefully, they will inspire you to reevaluate your spending habits and find where you can increase your cash flow. Also, check out article 2, “Keep Your Money to Yourself – Part 2: Get the Best Deal” on ways to always get the best deal on what is on your shopping list.

Keep Your Money to Yourself – Part 1: Cut Your Expenses was created by and is property of American Consumer News.

The way Citibank was able to pull this off legally is that they bought Macy’s credit card portfolio. If you open a credit card with a bank or retailer, they have the legal right to transform your card with them to another type of card if their program changes. A common example of this might be when a bank switches from issuing Visa Credit Cards to MasterCard Credit Cards. Citibank used this loophole to purchase 3.5 million inactive Macy’s credit accounts and then opened up Macy’s branded Citibank credit cards for the customers.

Citibank made a statement to the Boston Globe about this business practice. Their public relations people had the audacity to claim that they had received “positive feedback” from customers about these new cars and that there were no privacy or security issues to be concerned about.

The truth is that Citibank is opening up a second credit line for people without them ever asking. If you receive a new Citibank Macy’s branded credit card in the mail, your credit score will actually go down! Customers who receive one of these will likely perform a hard-credit pull and have the age of their card reduced significantly. These two factors could easily lower your credit score by 25 points or more.

If you receive one of these cards in the mail, don’t make use of it. It might even be a good idea to move your credit cards from Citibank over to another financial institution. Citibank needs to hear from consumers that they are not happy and will not stand for this practice.

Citibank Busted Issuing 3.5 million Credit Cards to People Who Never Even Applied was created by and is property of American Consumer News.

There’s so much competition in the credit card industry right now that banks are offering all sorts of perks and bonuses for signing up for a new account with them. Some banks will offer you a lower interest rate initially, others will provide you with some sort of gift, and some have even resorted to giving cash bonuses to new account holders. Chase has been aggressively marketing their “Chase Freedom” credit card and are now offering a $100 bonus to anyone who signs up for the account.

Chase’s Freedom card has been one of the best rewards cards available if you’re not going for airline miles or gasoline rewards. Most rewards cards will give you 1% back across the board, whereas Chase will give you 3% at gas stations, grocery stores and fast food restaurants. Chase also offers a deal where you can get larger bonuses on certain stores online. I recently received a 2% bonus when ordering my new computer from NewEgg.com.

The card has no annual fee to speak of and a grace period of 20 days. The one down-side is that the interest rate is a bit higher than what you’ll find amongst a lot of consumer cards right now, but that’s not an issue if you pay off your balance each month. The rate they are currently offering is 17.49% variable, and it could be higher if you have don’t have a great credit score.

Here’s the link for the $100 Bonus for signing up for the Chase Freedom Visa Credit Card.

Hot Deals: Get a $100 Bonus for Signing Up for the Chase Freedom Credit Card was created by and is property of American Consumer News.

One of the worst things that can happen to you is credit card fraud. This is even worse if you don’t pay very much attention to your credit reports, since you may not find out about the fraud until there are very serious problems to deal with. Even if it’s possible to get out of paying for most of the fraudulent purchases that are made on your card, you will often have to pay for some of them – and you will have to go through the hassle of dealing with a stolen credit card if you’re not careful.

One of the major places where credit card fraud happens now is online. Therefore, you should be very careful about the companies that you give your credit card number to. Ideally, you should figure out a way to avoid giving out your credit card number at all. There are several payment services online that will help you make your online payments without giving out your credit card number to unauthorized parties.

You should also make sure that if you are entering your credit card number that it is being entered into the right field on the right page, and that it is being sent over a secure connection. If the connection is not secure, then anybody online might be able to find the information that you sent.

Another place where credit card fraud is common is over the phone. For this reason, you should avoid giving your credit card number to people or companies over the phone if at all possible. You should also listen to your instincts regarding the phone and internet. If you have any doubts about the safety of giving your credit card number, then you should probably not do so. After all, when it comes to things like fraud, you’re much better off safe than sorry.

If you do find that there are charges on your credit card that you don’t remember making, then you might be a victim of credit card fraud. Luckily, there are a lot of options to people who think that their credit card might be stolen. The first thing you should do if you think that your card or card number has been stolen is to call up your credit card company and immediately cancel the card. This will keep the person who has stolen your card from using it anymore. While you’ll still have to deal with what has already been done with your card, you will at least have limited the damage.

To keep yourself from being a victim of credit card fraud, however, the most important thing to do is just to use common sense. If something seems shady, then it probably is, and you shouldn’t risk your credit card number if you are unsure of the situation.

Featured Link: Many people find the amount and types of mortgages available to be completely bewildering. At the moment there are over 8000 mortgage plans on offer ranging from basic 100% mortgages to the more popular remortgages. Take time to analyze your options and even better, use a broker to do the hard work.

Don’t Become the Next Victim of Credit Card Fraud was created by and is property of American Consumer News.

Many individuals have been helped by consumer credit counseling to take control of their finances and to eliminate debt. Consumer credit counseling can work for you by teaching money management skills which can help you throughout your lifetime.

Consumer credit counseling can help you better understand your credit situation. It can help you understand the costs associated with misusing a credit card and make you a more informed consumer.

Consumer credit counseling is especially useful for people suffering from huge debt burdens. They can benefit from consumer credit counseling as it can help them find a way out of their present financial crisis. If you have a weak credit history and low credit ratings, consumer credit counseling can show you ways to repair your credit.

By making an appointment with a credit counseling agent, you can get all of these advantages and find out what more the agent can do for you.

Many debt management companies provide consumer credit counseling agents to advise and help individuals find a way out of debt. Debt management agencies help you reduce and consolidate your loans by negotiating with your creditors. Their credit counselors are the ones that teach their clients better ways of avoiding debt in the future and to find ways to saving money to pay back their current debts.

When selecting a debt management company, be sure that they have qualified credit counseling personnel.

Their teams of expert and experienced credit counselors, who have wide knowledge in the finance field, can help the layperson better understand their credit situation and how to improve their financial standing.

The consumer credit counseling agent will first understand the situation you are in. Then they will formulate ways in which you can save more money, become debt free and start on your way towards financial freedom.

These are just some of the things consumer credit counseling services can do for you:

- They can teach you how to better manage your household expenses.
- They can help you deal with harassing collectors.
- They can teach you understand relevant financial issues surrounding your credit.
- They can advise you on how to reduce your debt burden.
- They can help you avoid situations where you may have to declare bankruptcy.

The counselors can work with you to create financial plans such as a savings and budget plan, and help you find ways to sticking to them. Comprehensive plans can lead you to better manage your cash inflows and outflows.

Taking some time for consumer credit counseling can help you get rid of your debt problems and start you on your way to a secure financial future.

If you’re in serious debt and think that the only way out is declaring bankruptcy, the best thing to do is to get impartial and expert debt help. Bankruptcy is a severe last resort if you are in serious debt and no other debt solutions, such as an IVA (Individual Voluntary Arrangement) or Debt Management Plan can save you from going bankrupt. Bankruptcy protects you from your creditors and allows you to start afresh, but you need to think very carefully about all the implications it will have.

Stuck in a Pile of Debt? Consumer Credit Counseling Can Help was created by and is property of American Consumer News.

Business Week recently ran a story entitled “Prisoners of Debt” in which they reported that a group of banks, collection agencies and even credit bureaus were working together to undermine bankruptcy law. They found that Capital One, Bank of America, Chase, and Discover were all ignoring existing bankruptcy laws, whether by accident or on purpose, and selling debts illegally to collection agencies so that the collection agencies could go after you and try to collect the bankrupted debt. There was recently a court case in which a Chase lawyer testified to a judge that bankrupted debts are sold all the time in the industry.

The article in Business Week stated that the banks public relations arms said that these actions were an “unintentional mistake,” but let’s look at the facts. Multiple banks have neglected to wipe out people’s debt when they file for bankruptcy and then sell the debt off to a collection agency so they can collect the money. The credit bureaus then help by listing debts on your credit reports, even though they are not valid. There’s a clear financial gain for banks and debts and collectors to flaunt the law like this and since there’s been a clear pattern across a number of different companies with a large number of consumers who have filed bankruptcy, it’s very difficult for these banks to pass off these actions as an “unintentional mistake.”

If you’ve found yourself the victim of banks and debt collectors who are trying to collect bankrupted debts, contact the banks y phone and in writing and try to get them to update the status of your debts which are legally expired. If that fails, your best bet is to go back to the bankruptcy court where you filed and present the matter before the judge.

Bank of America, Capital One, Chase and Discover Caught Actively Working to Undermine Bankruptcy Laws. was created by and is property of American Consumer News.

The average family in the United States will spend around $850.00 on Christmas presents this year for friends, family and coworkers. That’s a huge number considering the fact that most people have very little money put away in savings, practically nothing for retirement, and lots of debts to be spoken of. The cash just isn’t there to pay for Christmas presents, so they charge them to their credit card and figure that they can take care of them at a later date, but how much are these presents really costing them?

Let’s say that you ended up spending $1,000 on Christmas presents this year and put it on a credit card with a 15.00% APR. The minimum payments you would probably expect to pay would be around $20.00 a month. Assuming you charged absolutely nothing on the card ever again, it would still take you 6 and ½ years to pay the debt off! You would also be paying an extra $579.00 in interest! Getting 10% or 15% off on a Black Friday deal doesn’t sound nearly as good when you’re paying a 58% fee to pay for your Christmas presents at a later date.

But what if you’re a “savvy” consumer and pay extra on your minimum balance? Is it okay to pay for your Christmas presents on your credit card then? Let’s take a look at the same example, but this time you are going to pay twice the minimum payment each month. It’s still going to take you two and a half years to pay for Christmas, and you’re going to pay $206.00 extra just to pay for your Christmas presents after the fact. Do you really want to be sitting 2.5 years down the road paying for your Christmas presents? How would you still like to be paying for your 2005 Christmas presents?

Fortunately there’s a better way to pay for your Christmas presents. Christmas comes in December each year, so it’s very easy to plan for. Decide how much money you want to spend on Christmas each year and divide that number by 12. Open up a separate savings account at your bank and have 1/12th of how much money you would like to spend on Christmas transferred each month to that. When Black Friday comes around each year, you can take that money out and spend it on Christmas presents. This way there’s no credit card debt to take care of after the Christmas season.

Why the Black Friday Deals You Scored Might Not Be Deals At All was created by and is property of American Consumer News.