It may seem like an unsavory chore when talking to someone about the credit card debt that has piled up like Fall’s leaves on your front step. A simple brush of the foot does not make this go away. Just as cleaning one’s own yard takes patience and the right tools, so too does eliminating credit card debt take time and tools.
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Credit Card Debt in America
You may be surprised to learn that the majority of Americans are not encumbered by large credit card debt, as many would like you to believe. The median balance for those with credit cards in 2004 rose 10% from 2001, to $2,200, according to The Federal Reserve’s 2004 Survey of Consumer Finance. The mean rose to $5,100 a total increase of 15.9% over 2001’s numbers. This means that while credit card debt has risen in the country, there are still many people with manageable amounts of credit card debt. From the study, we can see that only 1 in 20 individuals have credit card debt over $20,000. If people learn to use credit wisely, then building up so much debt that it appears we are drowning will never happen again. By being responsible with our credit, we save ourselves money that would have been paid to interest, annual fees, or membership fees.
Stamping out Credit Debt
Credit debt is the antitheses of saving money. To purchase a new couch, lawnmower, computer, curtains, or other such home items using a credit card can be costly in the long run. If we look at the math we may decide not to purchase the new lawnmower using credit debt. Assuming we have the median interest rate of 11.9% on our credit card, we can purchase a $300 lawnmower in August and still owe on it in December. If we take one year to pay the lawnmower off then we can end up paying back around $33 more for the lawnmower. This may seem like a good deal, but if we use credit debt for all our purchases, then we are always racing ahead of our paychecks to increase our future debt. It means we never actually get into the black. Credit debt acts as the bridle to our long term savings, always pulling back quickly when we begin to surge ahead.
Consolidating Credit Card Debt
Like many people, the credit card debt may be setting too high to be considered manageable. This is where some outside tools may come in to play. For instance, credit card debt consolidation can be a very helpful and forgiving mechanism for any individual battling credit card debt. The credit card debt consolidation programs essentially pay off your existing credit debt, thus making you responsible to one person to pay off the debt. This can lower monthly payments, keep individuals from being harassed by creditors wanting their monthly payment (which presumably you cannot afford to pay), and lower the debt payments by a considerable amount. To explore more information on credit card debt consolidation, visit the Consumer Credit site to understand more about the process and how it will affect your finances and credit history.
Unsecured Debt Consolidation Loans
These types of loans do away with credit card debt, but have no strings attached to any asset, like a home or other investment. A person can effectively eliminate credit card debt through the use of an unsecured debt consolidation loan, but like its sister solution-credit card debt consolidation-it can be more expensive and costly to credit history in the long run. If you are interested in exploring this avenue, we recommend reading through the debt consolidation loan consumer guide found on the Debt Workout site. It is a comprehensive approach to understanding debt consolidation loans and can better assist you with understanding all the nuances of that avenue.
Other Alternatives to Consolidation
Credit card debt reduction does not have to be a solitary battle. There are many people out there who have experience coming back from extreme credit debt. Join them in forums online and learn from their experiences. They will offer encouragement as well as provide hope in troubling times. A site like Credit Help Forums can point you in the right direction, or any other forums like Credit Net or Credit Boards. Wherever you decide, become involved and share with others in the community. It will help out in the long run.
According to the 2004 Federal Reserve’s Consumer Finance Survey, the median credit limit rose 25% to $13,500, while the median interest rate fell 3%. Not to paint credit card companies as bad, but they seem to be coming after people with renewed vigor. They give more credit to try to entice individuals into spending more. Just look at how low the interest rate is, they say. It cannot hurt to put all the household expenses on the card. Just use the card and receive these rewards. See how good we are to you? All of these things are lies. Credit card debt when used responsibly can enable someone to pick up a costly expense and pay it out over a few months, but the darker side of credit debt is that it can hinder economic security. Do not buy into the credit card lies. If you buy on credit, have a plan to pay off that amount, knowing full well where it will end. It may just save you money.
Source : http://www.thehealthypocketbook.com
With the home buying market bottoming out in late 2006 and early 2007 and foreclosures reaching record numbers, mortgage lenders began to change the way they did business. Many mortgage lenders stopped offering subprime loans—–the mortgage loans that were offered to home owners with credit problems.
Because of these changes, mortgage loans that consumers could receive just last year are unavailable. Future homeowners with great credit will still be able to get a loan from traditional lenders such as banks and national mortgage companies. But even those with seemingly high credit scores are finding challenges.
Research is the only way to find the best interest rate and deal on a mortgage and consumers can find great information on the Internet. Yahoo has a plethora of financial information on mortgages. Another popular search engine, http://www.msn.com/, also has a financial section for those looking for a home purchase loan or take out a second mortgage. Most of the news affiliates have financial sections such as CNN, also known as Cable News Network, which has the latest in mortgage news at http://www.money.cnn.com/.
Some websites offer financial advice and direct links to home lenders. The website, http://www.efinancedirectory.com/, has information about first and second mortgages. The site also has information on lending companies.
Lending Tree is one of the most familiar mortgage brokers in the business. During the boom in the real estate market, their commercials were very prominent on television. The company’s website, http://www.lendingtree.com/, has a site where lenders can type in their information and get information in their email inbox.
GuideToLenders.com allows consumers to compare loan packages. With the market in turmoil, the offers are less lucrative and the interest rates are higher.
A financial advisor is always on call at http://www.myfinancialadvice.com/. The site also offers informative articles on how consumers can save money on their mortgage and get the best interest rates.
To simplify the search for a mortgage company, Mortgage Banker Magazine recently named their top ten mortgage companies.
1. Countrywide Financial Corp
2. Wells Fargo Bank
3. Bank of America
4. Washington Mutual Bank
5. JP Morgan Chase Bank
6. World Savings Bank
7. Suntrust Mortgage/Suntrust Bank
8. Citimortgage/Citibank
9. New City Mortgage
10. Private lenders
All of the companies have websites that describe their mortgage programs. Consumers can make a pre-application online. Many of these companies no longer offer subprime loans due to the recent rise in foreclosures.
Some companies are still offering subprime loans. A directory of subprime lenders can be found at http://www.mywholesalelenders.com/. This is a great site but is available only for real estate agents and mortgage brokers. Future homeowners can ask their financial professionals if they have access to the site.
Many subprime lenders are also listed on http://www.lenderlab.com/. The website had list of subprime lenders that anyone can access.
People with challenged credit may lost money instead of saving money if they don’t thoroughly research the companies they choose. Mortgage fraud has increased in recent years and the federal government has made several arrests.
Loan fraud includes any false statement made to a lender. Those statements can be made by the consumer, real estate agent, appraiser, mortgage broker, attorney, closing agent or anyone associated with the loan.
False information about the borrower is just on common mortgage fraud scheme. Others include false information about the source of the buyer’s downpayment and the amount of closing costs paid by the buyer. Often someone associated with the loan will ask the borrower to falsify so that they can get the loan and the commission. Mortgage fraud resulted in $946 million in losses in 2006, according to the Mortgage Bankers Association. These losses are often passed on to other consumers in the forms of higher interest rates and increases in home sales.
If you have questions about whether or not your loan is legitimate, consult an attorney or call law enforcement. The Federal Bureau of Investigation (http://www.fbi.gov/) partnered with the Mortgage Bankers Association in March 2007 to combat mortgage fraud. You can find more information on the agency’s website. You stand to lose more money if you are caught up in a mortgage fraud scheme than if you pay a bit more in interest with a legitimate company.
Source:http://www.thehealthypocketbook.com
You can’t get buy without a checking account in today’s economy. You need it to pay bills and purchase items. While most people only use their checking account’s debit card, many people still need cheap checks to pay bills they have to send in the mail. Ordering them from your bank could cost you between $25 to $75 a month. That doesn’t seem like a lot of money, but it adds up to several hundred dollars a year if you are not careful. But you can find checks online much cheaper and save more money for your company.
Even the nation’s largest retailer is in the business of providing low costs checks. Wal-Mart has a separate business, www.walmartchecks.com. You can purchase checks at prices ranging from $6.96 to $10.95. A box is only $10.95. If you don’t write a lot of checks, these could last you for a while. The retailer also has business checks in all forms: ready to be printed on the computer or in a three to a page check book. And you can get your favorite characters or themes.
The Internet is full of sites where you can purchase cheap checks. Google returns more than 63,000 hits for the phrase. Most of these sites also sell mailing labels and other items. You could save more money if you order more than one item. The sites include:
* www.checkseek.com. This company features 857 designs ranging from your favorite flower to your favorite candy at a discounted price.
* www.coolchecks.com has more than 4,000 products to choose from on their website. The website says the products are 50 percent off bank prices.
* www.reorderbankchecks.com. A wide variety of your favorite designs all at great prices are features on this site.
* www.buycheckscheap.com. The name of this company says it all. You can get checks for any thing you love including movies (“The Wizard of Oz” is a featured design), to support your favorite charity or show your commitment to your faith.
Vista Print (www.vistaprint.com) is well known for cheap business cards and other printed materials. But you may not know that the company also provides business printing, including checks. The company offers all types of checks. In some cases you can get a great deal on checks if you get other items as well such as labels, post cards or greeting cards. If you just need personal checks, you can purchase 25 for $2.49. Business checks are a little more expensive but still competitive with other sites. With most people using debit cards and writing fewer checks, these can last for a while.
If you don’t like to surf the Internet or shop online, check your Sunday paper. You can usually find offers for cheap checks and many of them include shipping in the costs. Like the online retailers you can find a variety of designs. You simply cut out the coupon and mail it in—with a check or money order!
As debit cards have become more popular, the demand for checks has decreased. Debit cards are used like a credit card. You can pay for purchases at a store or online and even withdraw money from an ATM. But the balance is debited from your checking account. However, many banks charge fees, particularly if you use the ATM. You can save money on debit card fees if you shop around. To lure customers, many banks offer a debit card at no additional fee except for an activation fee that ranges from $5 to $10. Fees for using the ATM are waived, even thought there may be an initial charge if you use a bank that is different from your own.
Another way to save on checking is to shop around at different banks. Some banks offer free checking with a deposit that is as low as $50 and with no minimal balance. You may even find a checking account that will draw interest as long as you keep a certain balance in the account at all times. The good thing is you can find many banks that will give free checks if you open an account with them and keep a certain balance.
Source: http://www.thehealthypocketbook.com
You’re exiting the freeway on that killer ramp—the one with the steep grade and the hairpin turn midway down. You try the brakes, and… nothing. You keep careening at 75 mph toward the guardrail, that broken length of floss that is the only thing between you and a 400-foot dive into a shallow lake full of fire-breathing alligators.
Okay, that scenario is a bit unlikely, but the fact is, brake failure can be a terrifying — and dangerous — experience no matter where it occurs. While automobile brakes don’t fail often, every motorist should know what to do if it happens. Here’s how to control your car safely if your brakes go out.
1. Don’t panic!
2. Take your foot off the gas, and turn off cruise control (if on). Cruise control systems should turn off as soon as you touch the brake or clutch, but make sure it’s switched off.
3. Pay attention to how your brake pedal feels.
* If your brake pedal is soft and goes to the floor, you may have low fluid, a faulty master cylinder or problems with your drums or calipers. You may be able to rebuild some braking pressure by pumping the brakes (see the next step).
* If your brake pedal is hard and does not move, something in your brake system may have seized or you may have an obstruction under the pedal. Try to feel with foot (or have a passenger look) to see whether you have something under the brake pedal.
4. Pump your brakes. Pumping your brakes several times may rebuild enough pressure in the braking system for you to stop. This may take a while, so keep trying. You should do this even if your car is equipped with ABS as the ABS is only activated when your car is braking too hard, which won’t be the problem if your brakes have failed. Than, regardless of whether the car has ABS brakes or not, quickly squeeze the brakes down to the floor, to make the most out of all of the pressure you have preserved or built-up, as hydraulic (or air) brakes rarely fail all together. Keep the brakes squeezed to the floor.
5. Shift into low gear. Shifting into lower gears helps slow you by using your engine to slow the car.
* If you have a manual transmission, downshift quickly. Be careful not to downshift too fast unless you need to slow the car as soon as possible; rapid downshifts into first or second gear can cause you to lose control. Go into the lowest gear you can, and try to downshift again once the vehicle slows a bit. Keep working down through the gears.
* If you have an automatic transmission, downshift a gear at a time into low range (generally labeled as “1” on the shifting mechanism).
* If you have tap-to-shift, shift into manual “M” (generally to the right or left of “Drive” on console-shift vehicles or the bottom gear on column-shift vehicles) and press the minus button to shift down. Again, if you can’t go directly into the lowest range, try gradually shifting down.
* If you have additional means of slowing down the car, like a ritarder, exhaust-brakes or Jacobs-brake, use it, though not too rapidly, to avoid locking the driven wheels.
6. Use the emergency brake. The emergency brake, or parking brake, can usually stop a vehicle, although it will take longer than usual to come to a stop because it only stops the rear wheels. If possible, use the gears to slow you down, and the emergency brake only to bring you to final halt.
* Apply the brake (depending on your vehicle this is done either by pulling up on the handle or pushing down on the pedal) slowly and steadily. Your emergency brake can lock your tire if applied too hard or too fast, especially at high speed. If you pull up the brake quickly, you may lose control of your vehicle. To prevent this, use the release button (if your car has one) as you apply the emergency brake. This allows you to modulate the pressure with which you are applying the brake. If you feel or hear your tires lock, release a small bit of pressure from the brake application and hold it there. It should be stated that if the tires do squeal slightly, it does not necessarily mean that they are indeed locked-up. With a normal handlebar E-brake, one can apply it up to three clicks, to enable a controlled slow-down, and one or two extra clicks to bring the car to a final halt.
If you have a hand brake, keep the release button engaged
If you have a foot brake, hold the release lever as you push down on the brake
If you have a foot brake with a push-to-release system, squeeze down very, very slowly. If your tires lock up, release the brake and either try again, not applying as much pressure as before, or move on and try something else! Remember, the most important thing is to stay calm so that all of your options are open to you.
7. Keep your eyes on the road and continue to steer. Pay attention to what’s in front of you, and maneuver to avoid heavy traffic, pedestrians, and dangerous obstacles.
8. Warn other drivers and pedestrians. Turn your hazard lights on, and honk your horn to make others aware that there is a problem. Be sure to know the location of the hazard light button prior to such a situation. While they may not be able to figure out what the problem it is, a warning should cause most people to proceed with caution and pay attention to what your vehicle is doing. Open windows to enable air to stabilize and slow you down, also enabling you to shout through it to other passengers and drivers.
9. Slow the vehicle however you can. If the above measures fail to stop you, or if you must stop very quickly, do whatever you can. Ideally, you could use a runaway truck ramp, but as these are not particularly common, you’ll probably have to improvise. Keep in mind, however, that these techniques can be very dangerous, especially at high speeds, and should only be used as last resorts.
* Use friction to slow your vehicle. Driving through gravel or dirt (such as you might find right off the side of the road) can slow your vehicle considerably. Be very cautious when using this technique. Sudden terrain changes — especially if only under the wheels on one side of the car — can cause the car to flip, and may cause serious injury or death to yourself or others. Approach to a gravel or grassy shoulder must be made progressively, smoothly and gently. Afterwards, the car must be stabilized as it is driving along the shoulder of the road.
* Use guardrails to slow your vehicle. Cement dividers are built pear-shaped so that contact is made with the wheels, not with the precious metal and paint of your automobile. Applying friction to the rubber on your wheels will slow the car considerably without harming other portions of your vehicle. You can also gently sideswipe whatever is available.
* Use terrain to your advantage. Try to seek out inclines that you can go up. If this does not bring your car to a stop, be prepared to do some reverse driving and/or use the emergency brake at the appropriate time.
* Small trees and shrubbery will slow your vehicle when all else fails. Try to put your vehicle through the center of a line of shrubs or saplings, being careful not to pick a tree that is too heavy for your car to go through. Trees with trunks over 4 inches (116 mm) are considered dangerous to occupants of motor vehicles. Large trees can be fatal.
* Hit the back of another car. While obviously not a first choice, it will slow your vehicle. If you’re going to do so, try to warn the driver in front of you by honking your horn. Try to strike a vehicle that is traveling at about the same speed as yours (hitting a slow-moving or parked car will stop you, but the deceleration will be quick and extreme) and attempt to make impact squarely on the back of the vehicle. Glancing blows will likely send both vehicles out of control. Be extremely careful not to hit to hard as your airbag may go off.
10. Look for a safe spot to pull over (or to crash). Scan the road ahead for a safe area to pull over once you’re able to come to a stop. If you’re not able to bring the vehicle to a complete stop, look for open spaces that you can coast across without hitting anything.
* If the safest spot to “crash land” your vehicle requires you to jump a curb, extra caution must be taken. Even with power steering, the cars’ initial reaction will be to rip the steering wheel from your hands, bounce from the curb and back into traffic. It is imperative that you grip the steering wheel in a firm manner and angle your car deep enough into the curb so that it will go up and over, yet shallow enough so that you don’t turn the car completely and lose control in a spin.
11. Steer sharply from side-to-side Turning creates friction, which slows your car naturally. If you do not have brakes, try turning sharply from left to right over and over to slow your car down. Do not do this at high speeds. Turning at high speeds may flip your car and turning too sharply at any speed can spin your car around, so be careful.
12. Use the Aerodynamics against your car if you are on a highway and you lost braking power try to open the doors, the 2 front doors or the 2 doors at the back. A sunroof will also do. If you are driving at high speed you will have to push much harder to resist the air flowing around. This is extremely helpful because opening the doors applies a lot of drag of about 80% to 90% of it, which is normally around 60% of the drag of a normal going car on the road.
Tips:
* Several “brake failure” cases are brought about by an object getting stuck under the brake pedal, such as a toy or a soda bottle. Avoid this situation by keeping your car clean and free of debris, especially the area around the driver’s seat.
* You can avoid most instances of brake failure by regularly checking your brake fluid and changing it according to the manufacturer’s recommendations. You should also have your entire brake system inspected at regular intervals or if you notice any change in the performance of your brakes. Don’t put off making necessary repairs or performing routine maintenance.
* Downshift when beginning long downhills. Overuse of your brakes will cause them to overheat and fail.
* Avoid “riding the brakes” when going down a prolonged incline. Brake hard, slowing the vehicle significantly, then coast for a time, and set the car in a specific gear, even in an automatic. If necessary, make another downshift. If further braking is necessary, apply it lightly, and release it for short intervals. This does not mean to pump the brakes, as this will give a worst result. It’s better to apply an almost constant light brake pressure, with small intervals, rather than constant pumping of stronger brake pressure. Heat destroys the effectiveness of your brakes.
If the brakes do heat up, use more engine braking and less foot-brake pressure, to slow the car down, stopping it gently with the emergency brake, and letting off of the brakes all together. If the brakes are exposed, going out and pouring just a bit of water on them will help.
* In the wet, especially after hydroplaning or going through deeper water, the brakes might fade due to moist. When going into such water, it’s best to apply light acceleration, or even de-clutch. Once exiting the water, or recovering from a hydroplaning incident, press the brakes moderately-light, release and reapply (again, do not pump). This will help you feel whether the pedal is spongy and soft, in which cases a few more times of reapplying the brakes in that manner should dry the brakes.
* Do not shift an automatic transmission into park when moving. The parking pawl that binds the transmission will not be able to support a moving car.
* That red “brake light” comes on for a lot of reasons! It’s not just to tell you that your parking brake is engaged. Check every time you start the car that it flashes, to make sure it’s working. If it comes on while you’re driving, you’ve lost at least half of your braking system. If it comes on while you’re applying the brakes, you have a problem, most likely low brake fluid or a faulty master cylinder.
Warnings:
* Do not shut the engine off during a brake failure, as power steering systems are hydraulically driven, and regulated by engine vacuum, as is the brake booster. If you do panic and shut the engine off, hydraulic systems typically give you three more power assisted pumps. Turn the key to the second position (accessories) so the steering wheel doesn’t lock.
* Sudden down-shifts may damage your transmission. This is especially true if you manage to shift in reverse. That said, you must do what is necessary to stop the vehicle.
* Once you manage to stop the vehicle, do not attempt to drive it again until you are sure the problem is fixed.
Source: http://www.wikihow.com
Older cars can be really easy to take care ,for most of them are so basic, there is nothing on them to go wrong but
in order to do this effectively there are some things you need to know
1 To Start the car regularly to prevent the engine from becoming worn.
2 To Get it serviced regularly.
3 If it starts developing rust take care of it immediately because it significantly weakens the body.
4 As for a car that has been sitting for seven years or so.
5 Look for rust immediately.
6 Get the engine a badly needed tune up.
7 Replace the tires.
8 Get a general service.
9 Check the brakes.
10 Clean any dust or leaves or grass out of the engine bay.
11 Make sure it still starts.
Warnings:
Rust is very dangerous in older cars with iron body’s if it is rusted have the rust cut out.
Source: http://www.wikihow.com
