High Yield Savings Accounts

The news website maintained by CNN.com offers headlines from around the world but it is also a resource for consumers who are struggling financially. People who have trouble paying their debts or truly realizing how much it is they owe out to creditors. With a full understand of one’s debt situation, there is little chance outstanding debt will be paid off or if it is, the time it takes will cost consumers a lot more than they imagined.

CNN’s website offers several money tools available at no cost to consumers who want to better manage their money. In particular, their Debt Planner tool offers the opportunity for consumers to calculate how much debt they owe and how long it will take to eliminate that debt. The tool makes it easy for consumers to figure out which payment options will eliminate debt in the fastest time period possible.

The Debt Planner tool is just one example of the kind of free information out there to support consumer goals of eliminating debt and managing money more efficiently. While some debt issues will necessitate third-party intervention (attorneys, debt assistance, debt counseling), the majority of consumers have the necessary tools at their disposal to repair past credit mistakes and work to eliminate the linger debts they have in their financial life. Using such tools as well as a budget not only helps consumers get their finances back on track, it helps them to keep their money matters moving forward positively.

Why Debt Elimination Timelines Matter

Consumers do not always understand the importance of pay debts off in the quickest manner. Many feel that as long as they are making payments, the debt will eventually come to an end satisfactorily. However, there is an urgency to eliminating debts as fast as you can because it will save you money.

Loans, credit cards, and other financial agreements involve interest rates. For each payment you make, only a portion of this money goes toward the principal of the amount you actually financed. The longer it takes you to pay off the balance of the loan or credit card, the more interest you accrue. Depending on the total of your balances due, you may end up spending thousands or more in finance charges. If you are able to orchestrate an early payoff, you’ll be able to save that money and put it somewhere useful like an interest-earning savings account.

Another benefit of early payoffs on debt is the affect it will have on your credit report. If you have struggled in the past making on-time payments towards your debts, your credit score likely experienced a drop. By paying off accounts and putting them back in good standing, your credit score and history will reflect a significant improvement with each debt you pay off in full.

Preparing for Payoff

Once you have utilized the Debt Planner tool, you need to sit down with your budget and see where you stand financially. It is highly recommended that you allocate as much cash as you can each month towards debt payoff. This may mean some sacrifices such as not eating out, reducing spending on clothing and things that are not included in the basic needs category, or even taking on a part time job to add supplemental income directly to your debt payoff planning.

As you free yourself from debt and repair your credit standing, the most important lesson to retain moving forward is to avoid debt in the future. Learn to balance your cash to prevent having to accrue debt. Implement a savings plan that will ensure your financial needs are covered and you will not have to end up facing debt issues you need to settle ever again.

Spending money comes easily to some people, and spending money on credit cards comes even easier – as this detached way of spending can often make it seem like you’re not spending at all. That is, until the monthly statement comes in and you realize that you have gotten yourself into a bit of a mess financially!

So, before you let things get that far, you should try to take the time to learn some of the rules for using your credit card. If you start out using credit correctly, you will be able to increase your credit score and depend on the convenience that credit can provide to you.

Credit Card Rules – Avoid the Pitfalls of Uncontrolled Spending

The first and most important of all credit card rules is to pay off your balance each and every month. You don’t want to leave a balance and end up paying interest on it.

Using a credit card doesn’t have to be a costly option. If you pay it off each and every month, there is no chance for interest to be charged. This means that there is no penalty for using your credit cards. It also means that you aren’t paying more for something because you put it on the plastic.

Don’t spend more than you can pay back. This is where credit becomes a slippery slope.

You can use credit to pay for something that you don’t have the money for right now. However, the goal should be to only purchase something that you would be able to pay for in a month. This is the point where many people lose control of their spending.

Whether you want to go on vacation or purchase a new piece of furniture for your home, you need to have enough money to pay for it. That means that you can put it on credit but you need to have a steady income that ensures that you will be able to pay all of the money back that you borrow.

Keep an eye on your statements, reading them carefully and don’t just throw them in the trash.

Once you get the hang of using credit cards, you may think that you can keep track of all the spending in your head. While this may be true, it is important to read every statement that you receive. You are checking for a few key points.

Double check the amount that you owe as well as the last payment received. While it doesn’t happen very often, mistakes are sometimes made and you don’t want it to be at your expense. This can add up quickly.

Keep an eye on the interest rate. If you don’t read any of the other correspondence sent to you by the credit card company, you may not realize that your interest rates are rising or that there is a minimum finance charge after a certain amount of time.

Shred all of your statements or keep them in a secure location. In the United States, identity theft is a real concern. If you don’t want that credit card number floating around, be careful with the statement and receipts.

Some credit cards offer customers a chance to use a “one time” credit card number in place of the card’s actual number in order to protect their numbers and identity.

If you keep everything locked away, you probably won’t have any problems. When you are done with any documents that have your card number on them, shred them before placing them in the trash.

An actor, portraying a victim of identity theft, bewails the damage done and the hours spent putting back the pieces of a ruined credit history, working to get bank charges and penalties waived and getting their good name back. While many of these stories may depict actual events, advertisers are using fear to motivate consumers to buy their protection service or product.

And although there are some legitimate actions that can help prevent someone from stealing your identity, any sales pitch that suggests they can guarantee against the theft is not being honest and should be avoided. One method that slips past the best attempts to protect your identity is data breaches from a major retailer or bank. The responsibility for securing against these threats is companies, financial institutions and banks.

What is often omitted from ID protection service sales pitches is what you actually get for your money. Your identity can be stolen in a variety of ways that can be defended against – phishing, malware, stolen mail and even from sensitive documents in your trash.

Each identity protection company offers different services to guard your personal information. There are two questions you should ask yourself before signing up. Is what they’re providing beneficial and can and will you do it on your own? If you see a benefit, yet know you won’t follow through with the necessary steps on your own, it’s time to select a company. Here’s what you need to look for when choosing an identity protection service?

1. Is the company doing more than observing of your credit reports? If that’s the entire provision of the service, go elsewhere. Monitoring your own credit reports is easy, as federal law mandates a free annual copy from the three major credit reporting agencies for consumers who request them. A reputable identity protection services company will not only monitor your credit report but have sophisticated means of scanning public and court records, monitor against medical benefit fraud, and actively search known “bad neighborhoods” which feature websites that sell stolen Social Security Numbers and stolen credit card numbers, places that are less available to the average consumer.
2. Are you paying for advice or assistance? Some services merely provide advice, if you are in the unfortunate situation of becoming a victim. Look for a one that provides recovery assistance and advocates for you as you deal with financial institutions and creditors. Also, be sure the company is independently securing your credit reports and not requesting the free reports you are entitled to by law.
   
3. Is it worth the investment?Some people claim that the peace of mind is worth the price, but if you’re only paying for credit report monitoring, save your money and do it yourself. While many banks provide their customers with a variety of protection services for a monthly fee, these are typically report monitoring only.You may already have some credit card monitoring protection without being aware of it. For example, some AAA auto-club chapters or credit card providers may offer some level of credit monitoring as part of your membership. Some services require an annual payment upfront and may not provide a pro-rated refund if you cancel before the term expires. Read the fine print for the cancellation policy.

One last step to ensure that you’ve chosen the best service is to do a web search for complaints against the company. Contact the Better Business Bureau and ask if there are deceptive practice complaints. And remember that much of your security is in your hands.

About The Author: Noreen Ruth writes for several popular finance websites. She is interested in educating consumers about using credit responsibly and about legislative action that will affect their ability to borrow the money they need. She has contributed hundreds of articles to various online sites that provide content to educate consumers on credit card offers, debt consolidation services, loans and other finance related topics.