Making a Christmas Credit Budget

Surviving Christmas with your credit intact is about having a budget and sticking to it no matter what.  Ideally you are starting early, and have plenty of time to avoid the impulse buys that the department stores are counting on to shave your money off of you.  Making a budget to avoid a debt problem means sitting down with your spouse if you have one or just giving yourself a stern talking too and being honest about what you can and can’t spend.  Every year it surprises me how many people run out the door without a clue of how much money they can afford to spend, relying on a piece of plastic to fill the void.

How many people are being bought for versus how much total money do you have to spend?   Some people have little to no disposable income and yet run out the door Visa in hand regardless.  They will pay for that long after Christmas is over.  Be smart, if you have little money for Christmas, get creative.   Gift baskets, homemade items, family photos, all are great ideas which are fairly affordable.  We used to get home brewed beer, Kailua, and jam from my mom, boy my husband just loved the heck out of that.  Just goes to show you that the best gifts are not necessarily the most costly.

The biggest part of success is having reasonable expectations.  If you are facing foreclosure, don’t buy your wife diamond earrings.  That said, you can make a ton of money and still make terrible credit choices, and regardless you shouldn’t feel like you have to bust your wallet, after all that just isn’t what the holidays are all about.  Start early, be reasonable, and use no more credit than can be paid by March and you should survive the holidays with your credit intact.

DIY Debt Reduction Plan for People with Excessive Credit Card Debt

Excessive credit card debt has become a widespread problem for North Americans. Once people begin using credit cards to make purchases they cannot afford their finances often begin to spiral out of control. High interest rates and credit card fees make it difficult for people to pay back the money they have borrowed and it does not take long before a credit card becomes maxed out and the credit card company begins calling and demanding high payments. If a person has credit cards that have low limits, they may be able to fix their financial problems with a DIY debt reduction plan.

Getting Organized

The first step to creating a debt reduction plan is to get all financial records properly organized. People should place all of their monthly bills in a container with dividers. Unopened bills should be reviewed before going into the container. Organization is essential to financial success. All monthly bills, rental or mortgage statements, store receipts and any other financial information should be stored in the container. Once people have their financial papers in order it is time for them to create a detailed monthly budget plan. In order for people to pay off outstanding debts they need to know exactly how much money they earn each month and how much money they spend on monthly expenses such as food, transportation, clothing, etc. Those who do not know how to create a budget that balances can purchase an informative book on the subject or find free information online.

Creating a Budget

After creating a budget most people realize that they have enough money to make decent credit card payments if they cut expenses in other areas. For example, people who save $100 per month because they stop eating out at restaurants can use the money they save to pay down their credit cards at a faster rate. Those who do not earn enough money to make ends meet must consider getting a second job in order to get out of debt. It is not difficult to create a DIY debt reduction plan and once people with excessive credit card debt gain a greater awareness of their financial situation they will realize that it is possible to get out of debt quickly if they are willing to make a few lifestyle changes.

The author has spent a lot of time learning about diy debt reduction plan and other related topics. Read more about excessive credit card debt at the author’s website.

Improve Credit Score Ratings Without Compromising One’s Lifestyle

The ability to improve credit score ratings is very important to the financial health of any person or family.  However, greatly altering one’s lifestyle can be difficult for those who are accustomed to luxury and lavishness.  Even those who are more prone to comfortable living may find it difficult to change the way that they live.  Below are some helpful tips on how to improve one’s score without compromising one’s lifestyle.

Become aware of one’s income

Many people receive paychecks without realizing where they allocate their extra funds.  While utility bills and other necessities are paid, many individuals are unaware of how they spend their residual funds.  This can lead to foolish spending sprees on unnecessary or frivolous items.  In order to improve credit score ratings, an individual must be aware of how much money he or she has after bills have been paid.  A small amount of this money should be allocated towards paying off credit card debts and loans.  This is one of the best ways to improve credit score ratings.

Understand the concepts surrounding credit scores

Many people are unaware of what the national average credit score is and how to use it to their advantage.  No individual has to have perfect credit since this feat is almost impossible in this day and age.  People simply have to be aware of what the average is and they must ensure that they keep their scores above this average.  Individuals who wonder how to improve credit score ratings should always pay off their monthly credit card payments and they should keep up to date with their monthly bills.  Being aware of the national average is one of the best ways to improve credit score ratings.

People who wish to restore their financial histories do not necessarily have to alter their lifestyles.  Instead, they should educate themselves about their finances and start making wiser financial decisions.  This includes being more aware of their incomes and understanding credit score concepts.  This will ensure that a person is able to successfully improve credit score ratings.

Visa Black Card for When Gold Just Won’t Do

There is a new elite credit card out on the market. This time it isn’t American Express that is offering it. Barclays Bank Delaware in partnership with VISA are offering what they are calling the Visa Black Card. These elite types of credit cards go the extra mile for those that are willing to pay for it.

They claim on the card details page that this card “is available to only 1% of U.S. Residents to ensure the highest caliber of personal service is provided to every Cardmember”. It doesn’t really explain what credit score or annual household income you need to qualify, but I am assuming that if they are only issuing this card to 1% of the US it must be a very high number.

Some of the perks of the card include:

• Limited Membership
• 24-Hour Concierge Service
• Rewards Program – 1% cash back on all purchases
• Luxury Gifts
• Access to more than 500 airport lounges in over 90 countries worldwide

The concierge service, which looks pretty interesting, offers the following services:

• Entertainment Planning – information and reservations for restaurants, health clubs, sproting events and golf tee times
• Business Services – conference and translation services, message services and computer, A/V rentals
• Travel Information & Assistance – hotel, fliight mass transit, car rental info and reservations. ATM and weathe information
• Country & City Information – sights/entertainment, tourist and shopping info
• Gift Arrangements (The one I would use the most) -Gift baskets, Floral arrangements, Specific gifts (as requested), Special occasion gift recommendations
• Specialty Services – Assistance with location and purchase of specialty items.

All of these features come at a price, however, in the form of a $495 annual fee. The card design is pleasing to the eye especially when compared to my current cards that are in my wallet. If I had $495 a year to drop on this for the annual fee I would definetly sign up for this as some of the concierge services would come in handy since I travel quite a bit for my job. These elite cards are not for everyone, but if you have the cash, the VISA Black Card is definetly worth a look.

Advanta Mastercard 90 Days No Interest Forever

Advanta has come out with an interesting new Net 90 Mastercard which defers the interest for 90 days on charges. This is not an introductory offer and applies to all purchases.

To put this in perspective most cards give you 30 days from the beginning of the statement until you need to pay for the charges you make. Having 60 more days with no interest makes things interesting since you can float all those charges and earn interest on that money by putting it in a high yield savings account rather than having to pay the bill each month.

If you get on a cycle of paying for your charges 90 days later, each month you are floating 2 months worth of charges. You could potentially save quite a bit of money in interest by doing that. Just to make sure you track your purchase and when they need to be paid off! You don’t want to get caught in a rut of paying interest every month.

Some other benefits other than the 90 days no interest are a cash back rewards program as well as no annual fee.

This is a business card, but you can apply as an individual. See the application page for more details.

Use Those Old Credit Cards!

Your credit score is basically your financial resume. It is what could save you thousands of dollars in interest by getting you the best rates based on your financial history. One factor that affects your credit score is the average length of your credit history. This is generated by looking at your earliest credit account.

We are all told to keep those old credit accounts open so your average is higher. You will receive better interest rates if your average credit account is 10 years old, for example, versus a new account you just opened. Previously you could just cut the card up and leave that account dormant forever. However these days, due to the current economic conditions, banks are going through their accounts and closing ones that have been dormant. There is no formula to how they are doing this, but I have heard reports of banks closing credit cards for accounts that haven’t been used for over a year. Some others have reported that banks where they have 2 or more cards are closing one of the cards. Credit card companies have every right to close your account, but they usually do so without any warning to you. By the time you find out what happened, it is too late.

If you want to avoid an account closure for those cards that are extending the length of your credit history, I would reccommend using the card at least once every 6 months. Just use it at the store for something small or buy a tank of gas then pay it off right away. Some people might say once a year is good enough, but these days banks are scrambling to get an accurate picture of their bottom lines, so closing rarely used accounts is one way to put their arms around their total liability.

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