reddevil's Blog
Category Money
| "Credit Repair Kit" Sound To Good To Be True? It Is. | |
A lot of people have bad credit. It is unfortunate that good people with good intentions are sometimes lured into credit card offers with outrageous interest rates or convinced to buy a new, overpriced car that they cannot afford. Sometimes, it is a stroke of bad luck. You may have recently lost your job or been involved in an accident that made you unable to work which in turn also made you unable to pay your bills. Whatever the case bad credit can follow you for a very long time and repairing your credit is no easy task. You may have seen advertisements claiming to be able to repair your credit for only a small fee. Some advertise credit repair kits for anywhere from $10.00-$20.00. This may seem like a small price to pay to have your good credit reinstated. But beware, the price is often much higher. Jail time or high fines are the price you must be willing to pay since these scams are illegal. Credit repair kits claim to be able to repair your credit through a process called "file segregation". This is a fancy term for obtaining an employment identification number or EIN. Employment identification numbers can be used to apply for credit instead of your social security number. The problem is that you must use false information to apply for this number. This is illegal and you can be charged with not only misrepresenting your social security number, but if you used the telephone or mail to apply for the credit you could be charged with telephone or mail fraud. Keep in mind that you should never have to pay money for a service before it is received and you have the right to see all paperwork regarding the case. So ask for all agreements in writing and carefully examine the documents to be sure that you are not participating in something that is illegal. If you are still thinking of using a credit repair service, contact the state Attorney General and the Better Business Bureau to determine if the company is legitimate. If you have previously purchased a credit repair kit or been a victim of a credit repair scam, you should also contact the state Attorney General to report the crime. The best way to repair you credit is through time and effort. You can do it, but nothing is going to fix your credit instantly. Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and free credit repair information that you can research in your pajamas on his website.  'Credit, Repair, Kit', Sound, To, Good, To, Be, True?, It, Is.
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What is Credit Card and Debit Card Blocking? Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit or money in your bank account? If this happened shortly after you stayed in a hotel or rented a car, the problem could have been card "blocking." What is Blocking? When you use a credit or debit card to check into a hotel or rent a car, the clerk usually contacts the company that issued your card to give an estimated total. If the transaction is approved, your available credit (credit card) or the balance in your bank account (debit card) is reduced by this amount. That's a "block." Some companies also call this placing a "hold" on those amounts. Here's how it works: Suppose you use a credit or debit card when you check into a £100-a-night hotel for five nights. At least £500 would likely be blocked. In addition, hotels and rental car companies often add anticipated charges for "incidentals" like food, beverages, or gasoline to the blocked amount. These incidental amounts can vary widely among merchants. If you pay your bill with the same card you used when you checked in, the final charge on your credit card, or final amount on your debit card, probably will replace the block in a day or two. However, if you pay your bill with a different card, or with cash or a cheque, the company that issued the card you used at check-in might hold the block for up to 15 days after you've checked out. That's because they weren't notified of the final payment and didn't know you paid another way. Why Blocking Can Be a Problem Blocking is used to make sure you don't exceed your credit line (credit card) or overdraw your bank account (debit card) before checking out of a hotel or returning a rental car, leaving the merchant unpaid. Blocking is sometimes also used by restaurants for anticipated sizeable bills (like large groups at dinner or a party), by companies cleaning your home, and other businesses to ensure credit or account money will be available to complete payment. If you're nowhere near your credit limit or don't have a low balance in your bank account, blocking probably won't be a problem. But if you're reaching that point, be careful. Not only can it be embarrassing to have your card declined, it also can be inconvenient, especially if you have an emergency purchase and insufficient credit or money in your bank account. On debit cards, depending on the balance in your bank account, blocking could lead to charges for insufficient funds while the block remains in place. How to Avoid Blocking To avoid the aggravation that blocking can cause, follow these tips: • When you check into a hotel or rent a car - or if a restaurant or other business asks for your card in advance of service - ask if the company is "blocking," how much will be blocked, how the amount is determined, and how long the block remains in place. • Consider paying hotel, motel, rental car, or other "blocked" bills with the same credit or debit card you used at the beginning of the transaction. Ask the clerk when the prior block will be removed. • If you pay with a different card, by cash, or by cheque, remind the clerk you're using a different form of payment and ask them to remove the prior block promptly. • Ask your current debit card issuer if they permit blocks, for how long, and from what types of merchants. If they do, you may want to consider getting an overdraft line of credit from your bank. Ask about a plan that always automatically covers the overdraft and does not involve a separate bank decision on whether or not to pay it each time. Although you might incur some interest on this plan if you don't pay off the amount fairly quickly, you would not have an overdraft that is not paid. Ask your bank if they offer an overdraft line of credit, how it would work, and how much it costs.
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Saving Financial Freedom Saving Money is the key to financial freedom. Unfortunately, talk about savings and most people's eyes start to glaze over. Inside many people simply feel that life is for living now, not for sometime never in the future and anyway they already contribute to a 401k.
This is a big mistake and many people make it; believing that savings are only about retirement. Retirement planning is important but it is not the only or the most important reason for saving.
The benefits of saving are often hard to value when it all seems so far away in the future. Here is the reality - people with savings have choices. Not having savings often leads to debt spending. Debtors are owned by their creditors, chained to their jobs to obtain money to cover debts. If they fail, they know they face a world of financial pain and money worries.
For those with savings, there are no such financial worries, just choices and that is what financial freedom really is. It is the ability to make choices unrestricted by financial constraints.
Saving is as much about living fully now as it is about future financial security. Living free of debt and with savings is a financial state that enables you to live life to its fullest potential. It is the key to financial freedom and prosperity.
Even now I can hear many readers of this article complaining that it is all very well talking about savings but in the real world it's a struggle to make ends meet and saving money is just not realistic.
Let me tell you now - anyone who truly desires to live this way without debt and with savings to fall back on, can. It is a simple life choice. The amount of income you have is not important; research has shown that the ability to save bears no relation to disposable income. Equal results can be obtained across all income brackets - which means that you can do it - if you want to.
Simple changes in behavior and spending habits can reap huge savings, often accompanied by an improved life-style. It is amazing how simply taking the time to re-examine and adjust your life patterns can not only result in big financial savings but also wonderful life improvements.
The ultimate goal of this process is to stop living in debt - no more credit card debt, no debt of any kind other than maybe a mortgage. To achieve this you need to leave behind the "buy now, pay later" ethos and replace it with a philosophy of only spending what you can afford on things you really want and need. Making financial choices that prioritize your financial well-being over short-term gratification is part of the positive process of change needed by all who choose this road to financial success.
Savings can be divided up into three basic types.
Long-term retirement saving, this is usually a one-way street into something like a 401(k) where there are tax perks and penalties for early withdrawal.
Short-term savings are to cover anticipated expenditure such as insurances, house maintenance, mortgage payments etc. Predict and budget for these in your personal budget.
Medium-term uncommitted saving is sometimes referred to as a "Freedom Account". This is money saved that is accessible within 3 months. Use this for unexpected contingencies and to give you the freedom to dip into the fund to pursue life goals. This is your contingency money against disaster and your ticket to your dreams.
Remember, there is no point in saving if you have debt (exclude your mortgage), pay off your debt, keep paying down debt and don't stop paying off debt until there is no more debt and then start building your savings.
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Scholarships: The Top 10 Strangest Ways to Pay for College Scholarships are a great way to pay for college education. The problem is that scholarships are typically merit-based, which means they are usually reserved for students with 4.0 GPAs or star athletes. Thankfully, there are scholarships that rely on other kinds of distinction. Some of these scholarships might be called "non-traditional"; others are downright strange. Here's a list of ten of the more unusual ones out there.
1. The Patrick Kerr Skateboarding Scholarship. You remember when your mother told you that skateboarding was a waste of time? Well, not anymore. Any high school senior-skateboarder with a 2.5 GPA and serious plans on attending college can apply for one of four scholarships, ranging from $1,000 to $5,000 dollars each.
2. Carnegie Mellon University Bagpipe Scholarship. This scholarship is truly one-of-a-kind - literally. Carnegie Mellon University awards exactly one applicant every year a $7,000 scholarship to study bagpipe. William Wallace would be proud.
3. Chick & Sophie Major Memorial Duck Calling Scholarship. This scholarship needs no explanation. If you know how to call ducks, get yourself down to Stuttgart, Arkansas, to compete for a $1,500 prize for college.
4. The Klingon Language Institute's Kor Memorial Scholarship. Yes, this is a real scholarship based on the popular alien race from Star Trek. The good news is that you don't have to be a Star Trek devotee to be eligible. In fact, you don't even have to speak Klingon. You just need to be an undergraduate or graduate student enrolled in a language or linguistics program at an accredited university.
Incidentally, there are also several Starfleet Academy Scholarships, also of Star-Trek origins, also $500 each. The Starfleet Scholarships are named for popular actors/characters in the television series and include the Dr. Leonard McCoy Medical Scholarship, the Montgomery Scott Engineering Scholarship, the LeVar Burton Educational Scholarship, and the Patrick Stewart Scholarship for the Performing Arts.
5&6. Billy Barty Foundation Scholarship for Dwarfism and the Tall Clubs International Scholarship. Whether you're big - over 6'2" for men, 5'10" for women - or small - 4'10" to be exact, with a medical form of dwarfism - you could be eligible for a $1,000 scholarship. They even have a scholarship for left-handed students at Juanita College. In fact, there's a scholarship for nearly every physical condition - well, almost. I'm still waiting for a scholarship for people who are "big-boned," if you know what I mean...
7. Duct Tape "Stuck at Prom" Scholarship Contest. This scholarship is open to all students who are attending a high school prom. Applicants enter as a couple and attend high school prom wearing complete attire or accessories made from duct tape. The first place prize consists of a $3,000 scholarship for each member of the winning couple and a $3,000 cash prize to the school that hosted the prom.
8. Michigan Llama Association Scholarship. If you're studying veterinary medicine at Michigan State University College, and if you're interested in learning about and working with llamas, you could be eligible for a $500 scholarship sponsored by The Michigan Lama Association.
9. Excellence in Predicting the Future Award. This is not exactly what it sounds like. Any would-be Nostradamus need not apply. Any would-be Alan Greenspan, on the other hand, should. The "Excellence in Predicting the Future Award" is actually a contest for students interested in economics. Participants "buy and sell" future predictions in the manner of buying stocks. A $400 cash gift is awarded every two months by Troy Studios to encourage students to pursue economics or simply to learn more about the world they live in.
And finally...
10. Society of Vacuum Coaters Foundation Scholarship. Before you make any snarky remarks about "sucking-up" this scholarship, be advised that it awards $5,000 annually to one lucky student pursuing vacuum coating technology at an accredited university. I don't know about you, but suddenly vacuums seem much more interesting than Klingons or llamas.
The moral of the story? Basically, it's that there are innumerable scholarships out there for potential college students. So whether you are a Trekkie, an aspiring Tony Hawk, a bagpiper, or even if you like ducks or duct tape, there's a scholarship for you. In short, if you can't find a little extra money for college, then, frankly, you're just not trying.
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Financial Security in an Unstable Economy
Few families pass on actual knowledge about wealth building to their children. Negative feelings of poverty and scarcity can last for generations.
Accountant and financial advisor, Dr. Joseph Simini says, "Most people are illiterate about finance. Finance isn't all that tough. If you want to become financially independent, you can't depend on someone else to do that for you. You have to do it yourself with knowledge."
Dr. Simini started out in life in a poor immigrant family and learned the basics of creating personal wealth from his father's teachings and the school of hard knocks. He manages family owned investments and advises people on the subject of financial independence.
He offers practical advice on how to become financially literate and financially independent:
1. Buy Your Own Home: It is important to buy your own home because with a small amount of money, and a lot of someone else's money, you can get started. Instead of paying rent and making your landlord wealthy, you will be paying into your own mortgage. Eventually, you are going to own the building, leading to tax benefits.
2. Deduct Property Taxes and Mortgage Interest: These items can be deducted from your regular income and that is a big savings. Most people just use their standard deduction, but by adding the property tax deduction and the mortgage interest deduction, you can increase your deduction by thousands of dollars.
3. Save 10 Percent of Your Income: Fill out a budget categorizing all your bills and when they should be paid. At the top of the list of bills to be paid, put your own name. Pay yourself first. Nobody can help you, but you.
4. Make a List of Necessities: Make a list of the necessities that you need to live: rent, mortgage, clothes, food, etc. After this, make a list of the discretionary things. Decide if you really need all the things you are spending your money on. Are they necessary? Can you cut back? These are the financial questions you need to answer.
5. Take Advantage of Compound Interest: One of the most important fundamentals of wealth building is compound interest. Instead of giving you a nice return, compound interest will give you a sensational return.
Compound interest is the interest added to the principle, and then the interest rate is on the new amount of money. Each year it becomes a little more. After years of compounding interest, it becomes a tremendously larger amount of money than if it were only simple interest.
All of these wealth building strategies require awareness and a change in habits. Change your attitude about money. Change your financial habits. Read financial magazines, the business section of the paper, and financial magazines. Know what money can do for you.
Look beyond just employment income. Put your skills and talents to work for you. Create additional streams of income teaching or selling the hobbies you are already interested in. This additional income will give more opportunities for saving and paying the bills. You have to go out and build income of your own.
Avoid putting your money into cash. That includes: a bank account, notes, and bonds. These will only give back a small amount of interest. They are the worst things to invest in.
The stock market has the potential for incredible wealth building if you learn the rules of the game. Do your homework, researching all the information available about investing in stocks. Become stock literate to protect your investment in the stock market. Find advisors and take responsibility for your own choices about your own money.
Do not get caught up in limited thinking. Expand a little bit and take some different actions to benefit yourself financially. This is the foundation of building financial independence. Get yourself started onto the road of financial success by becoming financially literate.
Once you learn the financial principles and practices pass them on to your children. Get your children involved in the basic skills of finances and building wealth. Knowing about money is as important as knowing the ABC's in today's world.
Financial literacy will lead you to additional wealth building techniques. You will be able to come up with a plan that will take you from paying someone else, to becoming the person who other people are paying. |
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