Money Saving Academy

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