Archive for 'Debt Reduction' Category

By Justin Boyle

It's hard not to be generous during the holiday season, to ourselves as well as to others. The trouble with that generosity, though, is that it can lead to racking up some lofty balance figures on our credit card statements.

But starting today, you can formulate a solid plan of attack on that extra holiday debt. Here are six steps you can follow to make sure that the personal finance blow-back from your holiday generosity doesn't haunt you throughout the new year.

1. Freeze your spending

Every January 1, my aunt in New York takes whatever credit cards she's used for Christmas gifts that year and chucks them into the icebox. It keeps her from raising her balances any further, she says, while also serving as an effective reminder of her pledge every time she opens the freezer door. Her literal approach to a credit freeze may be a more eccentric gesture than you prefer, but using your own method to halt your spending can help you stop buying on credit as you get things under control.

2. Confront the numbers

Take an hour or so one evening to lay out a roster of your holiday credit cards.

By Beverly Blair Harzog

The Great Recession, according to economists and other in-the-know experts, has been over for some time. But for many people, the debt they accumulated during the recession is still very much with them. If you're one of the people who's still carrying a sizable amount of debt, you've probably already thought about a balance transfer to a credit card with a lower APR.

This is often the first option considered and it's a good one, especially if you're considering transferring debt to a credit card with a 0 percent introductory APR. There are credit cards with introductory APRs on balance transfers lasting from six to 21 months, although it's usually closer to 12 months. After the intro period, you get the "go-to" rate. The go-to rate is the regular APR that you'll be paying on purchases -- and your balance -- once the intro period ends ...

By MoneyBlueBook

by Gary Foreman

This article comes from Gary Foreman at The Dollar Stretcher.

Using the right tools for the job

This is the time of year when many people look at their debt situation and shudder. They dream of what it would be like to be out of debt. And, if they're brave, they begin to plan a strategy to reduce the amount of debt they carry.

They'll begin with high hopes, but many of them will quit before reaching their goal. They’re disappointed, discouraged, and defeated.

 Is there something that they could have done differently that would have given them a better chance at success? I think so. If you watch people long enough, you'll see some patterns and learn some lessons. Let's examine some of those lessons.

 You can find all kinds of advice about how to get out of debt. The web is full of the stuff. But, when you boil it all down, there are three things that form a foundation for a get-out-of-debt effort.

 It’s a marathon, not a sprint

First, don't expect immediate results. You won't be getting out of debt in a matter of days or weeks. The only way to eliminate your debts quickly is to inherit a large sum of money, win the lottery, or declare bankruptcy. The first two are unlikely. The third may remove debts quickly, but you'll suffer with a lower credit score for years to come.

 Recognize that it will probably take about as long to get out of debt as it took you Read the full article »

By Justin Boyle

A lot of people I know are taking steps to get their personal finances under control for the new year. They're trying just about everything, from swearing off credit card spending to keeping tight budgets of entertainment and retail expenses.

No one's given up yet, as far as I've been told, but we are only a little ways into 2012. A recent survey by New York Life indicates that a majority of Americans are setting similar goals for themselves, and that a startlingly small percentage of us seem to know what it takes to succeed...

By Justin Boyle

This holiday season, I had a chance to catch up with some members of my extended family. I learned that a musician cousin of mine (let's call him Mark) had recently pulled himself back from the brink of bankruptcy and gotten his debt under control, which (no offense, Mark!) came as a small surprise.

I called Mark in Key West, to congratulate him as well as try and learn his secret. There were some pretty standard money management techniques involved, like consolidating debt and hunting up the best savings account rates and credit card APRs he could find, but there was another piece of the puzzle that I think merits sharing. For the past two years, Mark had been doing something he called "micro-saving." ...

By Jim Sloan

In recent months Americans in general have been making a determined effort to pay down their credit card debts. Maybe you've been part of this, changing your spending habits, and using your paycheck to pay down your credit card debt along with your student loans. That effort will only be helped by new legislation passed last year to combat some of ham-fisted habits of credit card companies.

How do these new regulations affect you?

New financial regulations to limit customer exposure to fees and rate hikes

New restrictions on credit card companies--and credit card users, for that matter--come from a combination of the 2009 Credit Card Accountability Responsibility and Disclosure Act and new Federal Reserve regulations mandated by the law. The Fed's rules, according to the law, must make sure that late charges and penalties--a major source of taxpayer headache and credit card company income in recent years--are "reasonable and proportional." The rules apply to many types of credit cards, from high interest credit cards to zero balance transfer cards to even the best cash back credit cards.

Just how effective the new law and regulations will be remains to be seen. But as a consumer, it's important for you to keep in mind what your rights are.

Credit cards and credit scores

Some of the new regulations are related to not only to credit cards but also to your