It is important to get in the habit of using credit responsibly. The first step in establishing this habit is to understand the cost of credit. Did you know that if you had a balance of $500.00 on your credit card and only paid the minimum balance every month it would take you almost seven years to pay it off?* The total interest would end up costing you $404.64. That means your $500.00 purchase on your credit card actually cost you $904.64! When you make a purchase on your credit card, an Annual Percentage Rate (APR) is charged. An APR is the percentage rate calculated on a yearly basis. Some banks have higher APRs than other banks. Before you apply for a credit card, find out what APR the bank is charging.

Being responsible with your credit means not spending beyond what you can afford. When you use your credit card, keep an index card in your wallet and write down the purchases you make. That way there will be no surprises when your credit card statement arrives in the mail. You will also be able to keep a handle on what you are spending. Make sure you are charging only what you can afford to pay.

Be cautious of the discounts that many stores offer if you sign up for their credit cards. Have you ever been to a clothing store and the clerk asked if you would like to open up an account and save ten percent on your purchase? Those cards usually carry high interest rates and, in the long run, will cost you more than the ten percent you saved on your initial purchase. If you choose to apply for one of these cards, be sure to inquire about the interest rate and grace period.

Always pay off your credit card balance in full every month. Since you will already know the balance due before you get your statement (because you wrote down your purchases on the index card), put money aside to pay the bill. When you get the credit card statement, pay it on time. By paying off your credit card balance in full and on time, you should be able to avoid some interest charges, late fees, and potential debt.

If you are having trouble disciplining yourself to pay off your balance every month, consider getting a card that requires you to pay the full balance every month.

Get in the habit of using credit responsibly while you are young and it will help you in your future. Be proud on graduation day, not only because you made it through college, but also because you made it through college debt free!

*Figure is based on minimum payment of 3% of balance and 1.75% interest per month; may vary by bank.

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We couldn’t be happier for our hard working settlement, client services, accounting, support staff and sales personnel. Thanks to all the great clients who voted with their feet and made DMB Financial their #1.

We’re also celebrating two new milestones. As of January 10, 2010 we’ve saved over $123,000,000.00 for more than 13,000 clients nationwide. We’re looking forward to another mega year of restoring financial freedom to thousands of Americans!

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The major difference between debt settlement companies comes down to the client payment, account settlement, and company fee model the company uses. Some companies employ such lopsided arrangements that the Federal Trade Commission has named debt settlement as one of 5 industries it will study in-depth in 2010. What does this mean for the average person looking for a solution to debt problems? It means do your research and choose wisely when looking for help.

The vast majority of debt settlement companies take a considerable percentage of the total debt owed up-front. These types of companies also charge their total fee in the first 6 – 8 months of the program. Therefore once the company has collected their fee they have little or no incentive to see the client through to complete debt resolution and settlement of all accounts. As a result, most clients drop out of these programs in disgust with few or no actual settlements having taken place, but not before the company has milked them of hefty program fees.

There are a few debt settlement companies, on the other hand, that prefer to operate with a more fair and responsible payment and fee arrangement. These companies charge a reasonable up-front enrollment fee, and charge clients a percentage of the money they were able to save the client through successful negotiation and account settlement with creditors. Therefore it is in the interest of the company to get the best possible settlement arrangement for their clients, as their fee is derived from the total savings amount rather than the total debt owed.

Most reputable debt settlement companies are also accredited members of The Association of Settlement Companies (TASC), a trade organization working towards reform and standards for the entire industry. TASC accredited companies have been independently evaluated by a third party to conduct fair and responsible practices in debt settlement.

Deciding on which debt settlement company to enter into a relationship with should not be made lightly. But by doing your research and understanding the business model these companies utilize, you can find a responsible and ethical professional to help you reach your debt resolution goals.

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·     Don’t take a vacation you know you can’t afford. That warning may seem obvious enough, but it’s amazing how many people blithely commit themselves to a trip or a destination that’s going to end up clobbering them in the wallet. Even worse, many pay for their expenses with a credit-card cash advance—then, months or even years after that vacation is only a dim memory, they’re still repaying that advance at exorbitant interest rates.

·     Don’t be so smitten with your destination that you overlook how you’ll get there. The economy resort that looks like a pretty good deal may not be quite so good if your airfare ends up costing more than the accommodations. A vacation spot you can drive to may not be quite so exotic, but it could spare you from a major dent in your bank account.

·     Think about roughing it in the great outdoors. Do you really need the fancy amenities of a costly hotel? Instead, stay at a campground for as little as $20 per night. Most campgrounds offer all the basics: electricity, bathrooms, and showers. And the kids will love it! (Well, they might complain about the lack of a TV unless you bring one along.)

·     Consider a motel as a lodging alternative. If camping out isn’t to your taste, check out some motels near your destination. You should be able to find at least one with a weekly rate—and after all, why spend a big chunk of your vacation cash on a place to sleep? Save it for the fun activities you’ll be enjoying while you’re awake.

·     Don’t eat every meal at a restaurant. Eating at restaurants is convenient, but it can really add up. Try to vary the Denny’s routine with some home cooking. If you’re going to camp out, find out if your campground has a grill. If you’ve decided to stay at a motel, look for one with a kitchenette—or at least a microwave and a refrigerator.

·     Try not to overload your days. It’s natural to want to see and do it all, but trying to cram too much into every day can lead to exhaustion. Better to start with your top-of-the-list places and events, then move on to a few others only if time permits and the kids aren’t too cranky by then.

So enjoy your well-deserved summer vacation. Come back refreshed and rested—but preferably not broke.

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But if you’ve been considering that course of action, you should be aware that bankruptcy is far from a panacea. Quite the contrary, the truth is that it’s accompanied by some substantial drawbacks.

— First of all, the filing will appear on your credit report for as much as ten years. That means every time you apply for credit, you’ll probably have to go through the same tedious routine of explaining the reasons that prompted the bankruptcy. And even then, your potential creditor may not be convinced. Obtaining credit in these harsh economic times can be a major challenge even for someone with a spotless credit record.

— Once you’ve filed for bankruptcy, you’re going to lose all of your property except what the law exempts. That isn’t going to make for happy days.

2005 Act Changed Everything

Despite these rather harsh penalties, many debtors used to find that, on balance, bankruptcy really did seem like a pretty good deal—until quite recently. Then, in October 2005, Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act, and suddenly the party was over.

The act requires that a debtor enter into consultations with an approved consumer credit counseling service—the idea being that people must pay their debts if at all possible, rather than resort to bankruptcy as a first course of action. If a debtor is still determined to file, he or she must first get certification from that credit counseling agency.

“But wait, there’s more!” as those late-night TV commercials like to tell us at ear-splitting volume. Provisions of the 2005 act also include the following:

— More documentation from the debtor is required before a filing will be accepted.

— Subsequent filings are actively discouraged.

— The waiting period between Chapter 7 bankruptcy filings has been extended from six to eight years.

— Final discharge of the obligation is withheld until the debtor completes a course in personal financial management.

Magic bullets just don’t exist. When you add up all the negatives, you can readily see that filing for bankruptcy is a long, arduous process littered with roadblocks at every turn. That’s why entering into a debt settlement program is a better choice for many, letting experienced debt negotiation specialists settle with their creditors for less than they owe. It’s certainly a viable alternative for peace of mind and a fresh start.

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You know that old saying, “When the going gets tough, the tough get going.”

You know that old saying, “When the going gets tough, the tough get going.” One way the tough “get going” is to keep their eyes and ears open as new trends emerge and opportunities unfold. That’s good advice for anyone who’s trying to keep their head above water in today’s tough economy – and that means just about all of us.

Keep a sharp eye on prices. Some will go up, some will go down. Follow pricing trends and don’t make a major purchase without first checking price-comparison Web sites such as www.nextag.com, www.pricegrabber.com, or www.shopzilla.com.

Don’t buy on autopilot. It’s not a good idea to assume that your favorite product or company will always be your best bet. For example, perhaps a competing brand may drop its price enough for you to consider making a switch.

Take advantage of bargains. As the economy continues to flounder, more and more stores will be advertising clearance sales and so-called “liquidation pricing” on all sorts of products. If you can wait to buy until those bargains appear, you’ll be dollars ahead of the game.

Be ready for the “oh-ohs.” Stuff happens – and it isn’t always good stuff. Be prepared for unexpected financial emergencies such as when, for example, a car repair, a major appliance breakdown, or a sudden medical problem requires immediate attention.

Take your time making major financial decisions. You might experience the overwhelming urge to hastily sign on the dotted line for that attractive mortgage or spiffy new car. But hold on! First, carefully consider all of the pros and cons. After you’ve made what you think is the right decision, give it some more thought. Then sleep on it.

Watch for opportunities. Even in times like these, opportunities can pop up in surprising ways. Read the want ads and Craigslist (www.craigslist.com) regularly. Consider bartering goods or services in return for something you want or need. Be creative!

Keep your cool. Giving in to stress isn’t going to help you cope with financial pressures; in fact, it will only make them more difficult to deal with. Now more than ever, you’ll need to combat stress by watching your diet, exercising regularly, and getting plenty of sleep. Approach your workday with all the enthusiasm you can muster. At home, try to engage in relaxing activities like reading or listening to music as often as possible.

These tough times aren’t going to last forever. While they’re here, though, stay alert and take advantage of trends and opportunities that will help you keep your head above the financial waters. The good times will roll again!

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There’s an art to successful negotiating, though, so keep these tips in mind before you get started:

Don’t Be Afraid to Ask

Have you ever seen a store sign that says, “We’ll be happy to negotiate a lower price with you”? Of course not. Stores will be happy to have you to pay full price, so they’re not about to advertise any willingness to bargain. That means you have to ask. Ask the salesperson about reducing the price on a specific item you’re interested in. If he or she doesn’t have that authority, ask to speak to the manager. Be persistent, but …

Be Polite and Diplomatic

The surest way to doom your chances of success is to make arrogant, my-way-or-the-highway demands. Merchants being human, they’ll resent your attitude – and there goes any chance of getting a deal. Instead, bring a polite, diplomatic manner to the counter. The folks behind that counter will be far more likely to consider your offer.

Don’t Start by Low-balling

Perhaps you’re not sure of the true value of an item but still would like to bargain. Fair enough, but try to avoid the trap of low-balling; making an offer that’s ridiculously low. Instead, do some online research, check newspaper ads, or call some other stores that carry the items. That way, you can be sure your initial offer is at least realistic.

Compare vs. the Competition

Is the store’s competition advertising a better price? Bring along the proof – a newspaper ad or a printout from an online offer – and ask the salesperson or manager if they’re willing to meet or beat that price. This approach often works because the merchant gets a chance to kill two birds with one stone: He gets your business – and the competitor doesn’t.

Make the Transaction Easy

Once the merchant has agreed to a deal, show your appreciation by doing whatever you can to streamline the process. Pay in cash so that the merchant can avoid having to pay check or credit card processing fees. If you’ve purchased a large item, pick it up without delay; bring friends to help if necessary. The merchant will remember you favorably – and might be even more willing to negotiate next time.

You want to buy; the store wants to sell. Particularly in these difficult economic times, negotiating for a better deal is hardly a sin. On the contrary, it’s just smart shopping – so go for it!

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More than 40% of a bank’s revenue comes from fees. Taking advantage of the services a bank offers while avoiding the fees is a win-win for the consumer.

Opening an Account

The checking account is still the most basic bank service available. There are free accounts with no minimum balance, NOW accounts that pay interest by maintaining a minimum balance and money-market accounts that offer higher interest, but require a larger balance and limit the number of checks you can write. Ask for detailed information about each, including all monthly fees and penalties before deciding which is best.

Once you’ve opened your account, avoid overdrafts. The fee for non-sufficient fund (NSF) checks has risen to an average of $30 and usually the largest check is honored first, leaving less money to cover smaller checks. As a result, you could end up paying an NSF fee for every smaller check you’ve written, as well as the fee charged by each business that was shorted! Also, be aware that certain deposits, such as deposits made at a remote ATM, may take up to 10 business days to become available.

Many institutions offer a Bounced-check Protection Service, which covers you up to a certain amount. But until you pay what is owed, you’ll end up paying the bank’s NSF fee PLUS daily fees until you’ve made amends. Another option is Standard Overdraft Protection where the bank will draw on your savings account, credit card, or line of credit for a small fee to cover bad checks.

Debit or Credit

You’ll receive a debit card with your new account allowing you to access cash at ATMs or to make purchases. However, if you use your card at an ATM owned by another bank, you’ll pay a fee as high as $3, and your bank will also charge a fee. Being charged $6 to withdraw $20 doesn’t make sense. Avoid this trap.

Many institutions also charge a fee when you make a purchase with your debit card. When the cashier asks “Debit or credit?” choose the credit option and avoid the fee. Additionally, if you use your debit card at a gas station that does not require a PIN, your bank will regularly “block out” an amount greater than your actual purchase for up to 72 hours. Be aware of this practice to avoid overdrawing your account.

Savings

Banks offer basic, low-interest savings accounts and higher-interest money-market accounts. Money-market funds, available through mutual fund companies, generally pay a higher yield and don’t have an early-withdrawal provision. Certificates of deposit (CD) mature and pay interest in 30 days, although the longer the term, the higher the interest rate. A penalty is charged for early withdrawal, so make sure you won’t need the money. And again, shop around for the best deals.

Convenience

Today, you can have your paycheck direct deposited, use online banking to review your records, or choose automatic payment for bills that don’t vary from month to month such as a mortgage or car loan. In the end, it only makes sense to take advantage of your bank’s service offerings—especially if it simplifies your banking needs.

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Overall, it gives some very solid advice about how to evaluate debt settlement companies and pick one that’s the best fit for you. It’s also a very honest appraisal of the pros and cons of debt settlement. Take a read:

The Ultimate Debt Relief Guide

Debt Damage Control – The Truth About Debt Reduction Programs

I am constantly hearing horror stories about how people looking for debt relief are being misled and given bad advice about their debt relief options. It is ridiculous that the people who need the most help get treated the worst. Some people would rather suffer in their debt than seek the help they need.  This is largely due to companies that are unethical and only interested in taking your money or that they have bought into false information about these programs.  We’re going to clear the air and debunk the myths about debt as well as arm you with the information you need become debt free…

Read more here: http://debtskinny.com/2009/06/05/ultimate-debt-relief-guide/comment-page-1/#comment-661

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Convenience and Security

According to the Federal Reserve, debit cards, which draw money directly from your checking account, have been used to make more purchases than credit cards since 2003.

The popularity is attributable to improved money management, convenience and security. With the high interest rates and late fees charged by the credit card companies, consumers see debit cards as a way to budget their money more effectively. For example, one doesn’t have to carry cash or have exact change any longer, and because all transactions are on your bank statement, it simplifies your record keeping.

Rewards Still Count

Though not as robust as credit card rewards, debit card reward programs are still good enough for those who use debit as an alternative to credit cards, cash or checks. With most debit cards, however, points are earned only on signature purchases and aren’t earned on all transactions, including ATM withdrawals, balance transfers or payments made to prepaid or reloadable cards.

The rewards and point systems vary from bank to bank. So as always, do your homework and compare one bank’s card to another – choosing the best solution to meet your personal needs.

Equal Protection

Another feature that has been added to debit cards is fraud and loss protection. Most debit cards now have the same fraud and loss protections as credit cards. The Fair Credit Billing Act and the Electronic Funds Transfer Act (both acts can be found under DMB’s Helpful Links page on the web) provide procedures for consumers to follow if a credit or debit card is lost or stolen.

The Electronic Funds act, which covers debit cards, states that your liability is dependent upon how quickly you report the loss or theft. For example, if you report the theft within two business days, you are liable for only $50 in unauthorized use. If you don’t report the loss in two business days, according to the Federal Trade Commission, you could lose up to $500 because of an unauthorized transfer. You also risk unlimited loss if you fail to report an unauthorized transfer within 60 days after your bank statement containing the unauthorized use is mailed to you. Moreover, take note that it may take time to restore the funds in question into your account.

The Future of Debt Cards

While debit cards offer much in the way of convenience and protection against fraud and loss, they don’t appeal to everyone. Consumers who always pay their credit card balances in full will find that a rebate credit card is far more attractive than a debit card due to the higher rewards and additional float time on their money.

Nevertheless, it is anticipated that the use of debit cards will continue to proliferate as consumers find them effective in managing their money while avoiding the pitfalls that credit cards present.

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