Starting Your Own Business, Part 1

We stress this option because it is what we believe in. But how are you going to find the money or the time to start your own business especially when you are short of money right now anyway? And what are you going to do? If you have excessive debts then you might want to try to resolve those or find out information on a debt payment plan. You can usually find a debt reduction or debt management service provider pretty easily. In fact ReduceDebt.net is one of the leading providers in this area.

These concerns are all tied in together and basically boil down to “do what you love and the time will be there and the money will come”. The best way to explain this is to give you some examples. And remember that a lot of these can be done by anyone from 13 years old to 90 years old. And all of them take extremely little cash to start up.

Do you love animals? If so, you could try to get a part-time job with a veterinarian. Or you could start your own part-time dog grooming business. Sit down to your handy home computer and write up a flyer about what you will do, such as a complete shampoo and blow dry. Run off some copies of your flyer (this few dollars for flyers will be your only expense) and go out walking your own dog in a different area every evening. Every time you meet someone else with their own dog, hand them a flyer. It would be easy to fit this into a tight schedule.

Do you like flying kites? You could teach a class on Saturday mornings at your local Parks and Recreation department on how to build different types of kites and how to fly them (so they actually stay up, that is). Or you could start your own business by offering these classes in your own home. Again, your main expense will be flyers to post around town. However, learning how to get on the radio for free to preach the wonderful benefits of flying a kite would bring you even more customers.

Do you like spending your weekends biking around the countryside? You can offer your own tours and advertise them through bike and outdoor life stores. Or start a newsletter for bike riders about the most beautiful or safest or most kid friendly or easiest or more strenuous rides in your region, your state or even the whole country. You get to do what you love and still make money at it.

Do you love gardening? Again, offer classes on growing a healthy diet, one class for adults and one for kids. You don’t have enough room where you live to do this? Find a country person who does and offer to grow them so many pounds of whatever in exchange for a few month’s use of some land. Live in the city with only enough room for your own small garden? Teach the city dwellers about container gardening. You could even offer a class in your own kitchen on 50 ways to cook and enjoy broccoli. Sell your leftover vegetables to your neighbors.

If woodworking is your thing, you just need to focus on the area you like best. Do you like cabinetry and can, therefore, start a custom cabinet business? Or is furniture more enjoyable to you? Or do you like repairing old houses? Or do you and your spouse like doing the arts and crafts type of thing? Or do you want to teach others how to do these things?

In other words, think about what you really love spending your time doing and turn that into a part-time occupation. We all need time to relax during the day. What better way to spend it then by doing something you love and making a little extra money at the same time? On top of that though, you may find that you really love doing this thing and you are building up clientele so that eventually you can quit the job that you do not particularly like and have your own full-time business. This is truly the best of both worlds.

Debt Reduction – Your Personal Credit File

There are two types of personal credit files: standard and investigative. A standard credit file contains a more or less complete outline of a consumer’s financial history. Chances are you won’t ever have to deal with anything besides a standard credit report.

Investigative reports are much more detailed and may contain information about a person’s lifestyle. Investigative reports are usually prepared for companies that want a really thorough investigation of a person’s background. For example, an investigative report may be prepared on someone trying to take out a million-dollar insurance policy, or an executive being considered for a high-level job, or someone applying for a job requiring a security clearance.

There are four parts to a standard credit report:

Personal Information

Your name, address, previous addresses for the past five to ten years, your date of birth, your Social Security number, your spouse’s name and Social Security number, the names and addresses of your previous and present employers, and your phone number can appear in the personal information section of a credit report.

Tradelines

A tradeline is industry lingo for a credit account. In this section, you will find a list of most of your credit accounts, the date each account was opened, whether you have paid each account on time, how much you still owe, whether you share your accounts with someone else, and any negative information about the account (for example, if it was included in a bankruptcy filing).

Public Record Information

Monetary judgments (if you were sued in court and lost, a judgment would order you to pay the person who won), state and federal tax liens, and bankruptcies appear on credit reports. Past-due child support may also be listed. Public record information is usually collected by companies that go to courthouses and gather financial public record information, and resell it to credit bureaus and other interested parties. Debt Reduction is covered in other articles found on this site.

By the way, information in credit reports is reported in a factual and straightforward manner. For instance, if you filed bankruptcy, your file would list the date and court particulars of your bankruptcy filing, but it wouldn’t say you’re a “deadbeat.”

Inquiries

A listing of everyone who has seen your credit report recently will appear on your credit report. Each listing is called an inquiry. There are three kinds of inquiries:

One kind is usually generated when you apply for some type of credit, insurance, or a job. Another kind of inquiry is a promotional (sometimes listed as a “PRM”) inquiry. These are usually created when lenders ask the credit bureau for lists of people who fit a certain profile so they can mail them pre approved credit card offers. These companies don’t actually receive your report, only your name and address if you match their guidelines. (And they don’t actually get that either, since the names and addresses go to a mailing house that sends the solicitations.)

While you would receive the names of the companies that were involved in a promotional offer under the inquiry section, those types of inquiries are not included on the reports that are sent to credit granters and other companies that get a copy of your report.

An account review inquiry is created when lenders want to review the credit of some of their customers. Say, for example, your department-store card issuer wants to increase customers’ credit lines before the holidays. They may go to a credit bureau and ask them to run criteria through a certain group of customers’ credit reports to find out who meets their qualifications. Those who do will get credit-line increases. Again, this type of inquiry is not reported to lenders.

If you’ve ordered your own credit report recently, you may also see consumer inquiries. Those just indicate that you reviewed your own file. They aren’t sent to lenders, either.

The previous three types of inquiries—promotional, account review, and consumer—are called “soft” inquiries because they will appear only when you order your own report, not when a lender orders it for review.

In addition to these soft inquiries, there are several distinct types of “hard” inquiries that will appear on your credit report whether you order it or a lender does. Mortgage-related inquiries, auto-loan-related inquiries, credit inquiries, insurance company inquiries, and employer inquiries are examples of hard inquiries.

Under the credit reporting law, employment inquiries are reported for two years, all others for one year. Debt can create a huge set of problems in your life, so its best to avoid it. Otherwise your options are debt management, or debt consolidation. If you’re interested in debt reduction look for other free informative articles on our site.

Debt Counseling Services – Signs its a Scam

Whether someone is offering you debt consolidation services, debt management, a credit card application or just trying to get you to sign up for a free credit report its important that you pay attention to the details. Here are a few different scenarios.

• The ad assures you that there will be no credit check. Any legitimate company is going to want to see your credit report, even those that lend money to people with less than perfect credit.
• You have to call a 900 number to apply.
• The ad absolutely guarantees that you will be approved. No legitimate company will do that. This is a double warning sign if the ad specifies that you are absolutely approved for a large credit limit such as $2,500.
• The card is offered by a company that claims to be in the business of credit repair, especially if the name implies that it’s a not-for-profit operation. The real credit repair agencies are more interested in getting people out of debt, not into debt.
• Any offer that prompts you to say, “Wow! That sounds too good to be true.” You know the old saying about that. This is another one of those situations in which you should listen to your gut.

Even legitimate credit companies sometimes offer useless services.

For example, some companies offer “credit insurance,” to protect your card in case it gets stolen. The offer assures that you would not be responsible for any bogus charges if you notify the company right away. Sometimes, the company will offer this service free for three months but then charge you a monthly fee, which it will helpfully take by hitting your credit card automatically.

The problem is that under federal law, you are protected in the event someone steals your card for any purchase over $50, if you notify the company right away. Many companies will forgive that $50 anyway.

Another worthless service is credit disability insurance. Again, the idea sounds good. If you are disabled, your minimum payments are covered until you can get back on your feet.

Once you do get some credit, use it wisely. Resolve to never again get in the position of waking with cold sweats or letting the answering machine pick up because you have no way to pay your bills. Debt consolidation or debt management companies will be wanting to speak with you soon.

Your best friend right now is your good common sense. You know now how easy it can be to get in over your head. You know that nothing you buy on a whim will bring you more pleasure than a savings account and little or no debt.

I’m reminded of that great Jimmy Buffett song, “Permanent Reminder of a Temporary Feeling.” He was talking about things like tattoos, but he could just as well have been talking about having huge credit card balances with nothing to show for them. You know from your own experience how easily that can happen and how stupid you feel later on. If you’re not careful you could find yourself calling a debt consolidation company to help resolve the thousands of dollars in debt you have.

Great ways to avoid credit card debt

Credit card debts are becoming the most common forms of debts today. The process of settling the credit card debts is much simpler and hence should be settled faster.

Debts and credit cards

Credit cards are the most essential financial tool provided to consumers today. Immense competition in the world of banking and financial tools has resulted in easy availability of the same. Having multiple credit cards is no big deal with 0% charges and no balance prerequisites for getting a credit card. But this facility is often used in the wrong way by consumers. The benefit of paying later and buying now is an appealing prospect but leads to high interest payments with bills piled. Credit cards are used for payments of utility bills, medical bills, grocery bills and all kinds of bills. These pile up and result in debts. If not paid on time the high interest rates can make the financial situation worse. Hence avoiding debts of credit cards is the best way out.

Avoiding credit card debts

The best way to avoid debts on credit cards is to limit the use of the same. Also reducing the number of credit cards is another way out. Generally if card has overdrawn its limit then another card is used. This results in a repetitive chain of debts which are never ending. Hence by reducing the number of credit cards and trying to make payments by cash are the best ways to avoid debts on the credit cards.

Settling smaller bills

The credit card debts result in poor credit rating which can be a problem for future financial investments and loans. Credit rating can be improved through the settlement of smaller bills. Usually the smaller bills are piled on because they are less in amount and the general conception is to settle these all together. But by settling smaller bill amounts the credit rating can be improve and also unnecessary interest charges on these bills can be saved. Settlements of smaller amounts of bills are the best ways to avoid credit card debts.

Negotiations for credit card settlements

Even though avoiding debts are the best way out of credit card debts there are unavoidable circumstances like illnesses and loss of employment which leads to the same. In such circumstances negotiations are the best way out to avoid further debts. Negotiations can lead to reduction of the credit card debt. The amount can sometimes be reduced to almost 50% which is a benefit only on credit card debts. It helps to improve the credit rating and the remaining amount of the debt can also be paid in installments.

Using common sense is also always a very good option.

Avoid Credit Card Debt - Consider Hidden Credit Card Costs

The Fixed-Rate Credit Card That Isn’t: When you take out a fixed-rate mortgage, you know what the rate will be for the entire life of the loan. When you take out a fixed-rate car loan, you know that the interest rate will be the same on the first payment as the last. When you take out a fixed-rate credit card, it’s an entirely different story. Severe credit card debt can be avoided if you’re careful.

Variable-Rate Cards: Just like with mortgages, a variable rate means the interest rate is tied to another interest rate in the economy, and will change if that interest rate changes.

Every card issuer that offers a variable-rate card is free to decide how it’s going to compute the rate. One, for instance, may determine the rate by adding 5 percent to the prime rate as listed in the Wall Street Journal. Another may choose to tie the rate to the federal discount rate.

Most variable-rate cards change rates quarterly but some do semiannually-it is up to the card issuer to decide. Information about how the variable rate is determined, and when it changes, has to be disclosed up front in applications and solicitations. According to CardTrak.com, most variable-rate cards have interest rate “floors” below which the interest rate cannot go, even if the index rate goes lower. If rates dip very low, as they did in 2001, consumers may be better off getting a lower-rate card elsewhere than sticking with a bottomed-out variable rate.

Tiered-Rate Cards: A few credit card programs offer tiered rates: The interest rate depends on the balance on the card. For example, a tiered card may charge 17 percent on balances up to and including $1,000, and 13 percent on balances above $1,000. This rate structure is designed to reward higher balances and make more money off lower balances. Tiered-rate cards are usually not good deals because they “reward” customers for going deeper into debt.

Different Rates for Different Balances: Many cards now charge different rates for different balances. There may be a lower rate for the balances you transferred from another card during a promotion, for example, or another rate for cash advances. If you have balances subject to different interest rates, your issuer will print an “effective” rate on the statement, which is basically an average of the different rates you are paying.

A caution: All issuers allocate payments to the lowest-rate balance first. That means you’ll be wiping out the cheapest balance first. This is directly contradictory to the most common advice for paying off debt, which recommends you pay off your highest-rate balance first. Consider yourself forewarned.

Teaser Rates: 5.9 percent or even 0 percent interest sounds great. And it can be. But remember: Card issuers would not continue to offer teaser rates if they weren’t profitable. Many teaser rates just don’t last that long. Six months sounds like a long time, but by the time you’ve completed the transfer (which can take a few weeks), you may not benefit from the new rate that long. And if you don’t find a new card or negotiate a better deal, you may be stuck with a higher rate than you need.

So which do you choose: a fixed-rate, variable-rate, or tiered-rate card? It really doesn’t make a difference whether you choose a fixed-rate or variable-rate card, since neither is completely stable. So far, there have been no studies that tell whether fixed or variable-rate cards change rates more dramatically. We think it’s a matter of finding a bank that has a general reputation for charging low rates (fixed or variable) and hoping they don’t decide to suddenly change their marketing strategy. Whatever you choose, you are taking something of a chance. The exception are cards from Arkansas banks, where state law keeps rates very low. If you can get one of these cards, you know the rate will be good as long as that law’s in place!

When Your Account Changes Hands

It’s true that the big banks keep getting bigger-at least in the case of credit card issuers. Credit cards are so profitable for banks that “do it right” that many of the larger banks want to get more and more customers. Sometimes, they’ll just buy them from other issuers.

Card issuers have to give you fifteen days’ advance written notice before changing the terms of the credit card. This is also true if a bank buys another bank’s cards and raises any of the costs. In addition, individual states may have laws that cover banks located in that state.

If, for instance, your new credit card issuer is located in Delaware or New York, you will have extra protection against a sudden rate hike. Delaware and New York laws require issuers to give customers thirty days’ advance written notice before raising the rate, and also require banks to give customers the opportunity to pay off the card at the old terms and surrender the card.