28 Dec
Posted by: Darcy Trugernanner in: Identity Theft
The U.S. store credit card market has changed dramatically, especially over the past few years.
A large number of retailers got out of the credit card issuing business by selling their store credit card portfolios and outsourcing their card operations to private label credit card issuers. This resulted in a major shift in the ownership of U.S. store credit card receivables. As of year-end 2004, U.S. private label credit card issuers share of the store credit card market receivables was 85% versus the 45% share in 1999.
The trend did not end in 2004. Most recently Federated and Bon-Ton stores announced that they have agreed to sell their store credit card portfolios. By the end of 2006, when the conversion of these portfolios are completed, private label credit card issuers will increase their market share to more than 92% (based on 2004 figures.
Most of us can’t tackle all of our spending and saving needs at once. We’re taught to maximize our retirement savings, create an emergency fund, pay off debts, and buy the right insurance while paying our bills, raising our kids, and trying to have a little bit of fun for ourselves. Here’s what you need to know now to properly prioritize your spending and manage your money.
Pay Your Bills
If you can get a handle on your basic living expenses, your ability to manage all your other financial priorities will be greatly enhanced. Try to limit your necessary expenses, which includes shelter, utilities, transportation, food, insurance, child care, and minimum loan payments, to less than 50% of your after-tax income. If your necessary expenses are higher than this, you may want to consider trimming your costs by trimming your food bills, lowering your home’s thermostat, finding a cheaper place to live, or getting rid of an expensive car.
Create An Emergency Fund
Having an emergency fund allows you to pay for minor emergencies without adding to your credit card debt. Set up automatic transfers from your checking account into a savings account and deposit any tax refunds or other windfall payments into the savings account until you have saved at least three months worth of expenses. There’s a large psychological advantage to having an emergency fund as people that have them are much less worried that a small financial emergency would cause a financial hardship.
Pay Off Credit Card Debt
Credit card debt is one of the most dangerous types of debt because lenders can change rates and terms at any time, the interest rate is usually in the double digits, and high credit limits encourage you to rack up more debt than you can comfortably repay. To eliminate this debt, target the debt with the highest interest rate first, paying as much as possible while paying the minimums on any other debts you may have. Another method would be to tackle your smallest debt first to give yourself the psychological boost of completely paying off a credit card bill.
Speaking from my experience, borrowing at the Bank of Mom and Dad isn’t always a pleasant thing. Approximately 15 years ago I was promoted to a management position on the East Coast. My company’s moving policy was – “move yourself, submit your expenses, we will reimburse you, maybe.” That weeded out a lot of tire-kickers but probably weeded out a lot of really good managers as well. Despite the shortsightedness of such an asinine policy for a multi-billion dollar company to arbitrarily use, I decided that a lack of money wasn’t going to stand in my way of success.
So I asked my Dad for $1,200. I was in the throes of financial stupidity and had no emergency fund, no budget, no savings account, no spare cash of any sort. My credit cards were maxed out and delinquent. I was behind on my student loans, behind on hospital bills, and behind on anything that required a payment … except rent and utilities. That $1,200 wa
14 Nov
Posted by: Darcy Trugernanner in: Identity Theft
CoreCard Software, a leading provider of prepaid and credit card processing licensed software, today announced that their software plays a key role in helping PayDay Loans Providers comply with each individual state regulations.
For many households in todays economy, with little or no savings to fall back on, an economic shock such as an unexpected home or car repair can produce a sudden short term need for extra cash. A payday loan (also called a paycheck advance or payday advance) is a small, short-term loan that is intended to cover a borrowers expenses until the next payday. Payday lenders typically charge $ 15 for every $ 100 borrowed. According to the Community Financial Services Association of America (CFSA), the payday loan industry trade association, all that a customer needs is proof of income and a checking account.
Ignoring the problems that bad credit creates can be easy at times. Day-to-day most people don’t need to worry about their credit scores. Unfortunately the time will come when you need to face the issue head-on. I came to this point about a year ago and decided that I needed to fix my credit rating.
How Bad Credit Hurts You
A low credit rating will cause a whole range of problems when it comes time to get a loan. Depending on your score you may not be able to get a loan. If you are able chances are your interest rate will be very high. While a 1% or 2% difference doesn’t seem like much it can cost you thousands of dollars over the life of loan.
How I Fixed My Credit Rating
The first step I took as I started to fix my credit rating was to order copies of my credit reports. This can be done once a year for free from the AnnualCreditReport website. Thi
Being able to pull out a debit card or credit card has virtually eliminated the chances that you will be caught short of money at an inconvenient time, such as at the checkout counter at a grocery store or during dinner with friends at a restaurant. In 2006, there were 984 million Visa and MasterCard credit and debit cards in the United States alone. Although these cards seem to work in similar manners, there are notable differences between them.
Debit cards provide a convenient alternative to cash, especially if you do a lot of shopping or pay your bills online. The cards are linked to your bank account so the money you spend is automatically deducted from your account and your bank balance goes down with each debit transaction. This makes you less likely to overspend and reduces the chances of accumulating significant debt.
Credit cards allow you to use a lender’s funds to make a purchase now and you pay the money back later. If the money is paid back within the billing period, no interest is charged for the purchase. If you do not pay the balance in full before the end of the billing cycle, you will be charged interest on the balance of the credit card. These interest charges can add up fast, resulting in quickly accumulating debt.
Using credit cards responsibly can offer a number of advantages. They help build your credit and provide more protection than a debit card if someone steals your card or account information. If a fraudulent charge is noticed on your credit card account, you can call the credit card company and make a dispute claim, resulting in the charge being removed from your balance. If thieves steal your debit card information and use it, it could take weeks for the bank to complete their investigation of your claim and replace the lost funds.
For many people, having both a debit card and a credit card available makes sense. The importa