Debt Solutions: How to Get Your Struggling Finances Under Control

If you are struggling with finances, it can be difficult to get them under control and get a handle on your debt, but there are ways to do so that don't take a lot of effort.

Set a budget

Budgeting is important especially now in days. Having a budget allows you to have better control over your personal finances in terms of how you save, invest and how you spend your money. One reason your finances may be out of control is that you aren't keeping track of how much money you are spending. 

If this is the case, you need to set a budget. Do a monthly accounting of all your must-haves, such as car insurance, food, rent and utilities. Once you have done that, decide how much you have left over. If you are spending more than you are taking in, make cuts where you can.

Look for ways to save

Discretionary income should be the first place to cut if you are spending too much. Eat out less and go to fewer movies and concerts, for example. There may be other ways to save, too. For example, if you aren't bundling services, such as phone, cable TV and Internet, you are probably missing out on discounts. You might also be able to save on those services by not paying for more than you need. You may find you don't need unlimited data and texting on your wireless phone or unlimited movie channels through your cable service.

Use credit sparingly

You need to have good credit, but credit cards often make unnecessary purchases more tempting. Many people think that they can buy something now and pay it off later when they have more funds. The problem with that sentiment is, is that kind of mentality becomes a habit. It becomes a bad habit to the point where you find yourself in credit card debt because you’re spending too much now and paying it off later and not having enough money to do so. If you are using your credit card like free money, you are headed for trouble. 

Credit cards should only be for emergencies or for things you can pay back right away. If you are using your credit cards to live beyond your needs, you need to stop right away. Also, if you have too many credit cards, you might want to consider closing some of those accounts and limiting yourself to one and maybe two credit cards if necessary. Keep in mind that you do need credit. There might come a time where you need to take out a loan to buy something such as a house, but you need good credit, which is why you should only use your credit cards sparingly to make sure it doesn’t get out of control.

Consolidate debt

If you are carrying credit card balances, you likely are paying high interest rates. To get better control of this debt, you should consolidate the balances onto cards with lower rates. If you do so and concentrate on paying down the balances, you can slowly eliminate your debt and take better control of your finances.

Take advantage of sources of cash

If you are getting payments through a structured settlement, lottery winnings or other financial vehicle, you can work with a company like myLumpsum.com to sell your future payments and get a lump sum payment, which you then can use to pay down debt faster.

With a little planning and effort, you can get your spending under control, which will then allow you to pay off debt and no longer have to struggle with your finances.

Personal Finance Tips: Financial Freedom for you at Any Age

Financially free can sound like an idea that most single women would love to adore. An average American spends more than he earns and gets trapped into financial problems. But becoming financially independent is not a big deal. Keep reading and may be you will find a way to become financially independent. 

Steps that lead to financial freedom

Your first step should be to make a budget irrespective of your income. This will help you to know your exact position where you stand financially in terms of your debts, requirements, needs, desires, income and all. Imagine your budget to be a road and finance your destination . Without a proper road map you would not reach your destination and end up wasting time and fuel; same is the case with your finance. Why would you work so hard if you do not how to manage four financial condition and what you should do with your hard earned money. Budgeting will help you to figure out your priority.

Savings and staying away from loans

You should start saving early. If you save every month it will improve your financial condition. It gives a back up for our tough times and also help us to follow a disciplined way of spending the money. Saving money secures your future. Saving will help you trust your own funds rather than trusting on some credit card services at the time of emergencies. You should save enough for any kind of emergency that may pop up. Once you have saved enough of emergency fund, start planning your retirement funds. It is never too late or too early to plan your future. If you keep waiting for better times to come like better jobs and all then there are chances that you might never begin.

Take care of your debts

To get financially free the debt need to be calculated and moreover eradicated so that you could start saving for future you should begin by paying the smallest debt and once that debt is over than you should pay the next smallest and slowly and steadily you should pay off all the debts. If you get any kind of raise in your salary you should devote it to cover your debt instead of spending it. The little things contribute to the most when it comes to saving money. If you spend $5 extra everyday then this could sum up to $150 in one whole month. But if you save this amount then this could contribute to your savings a lot and effect them. This may be difficult especially for single women but controlling the finance is all about behavior if you change some of your habits then this could result in a large and positive impact on your savings and finances.

Taking to some of the simple steps can give you results which you might have never expected. When you are young and have just begun earning, there are two paths in front of you. Either you start spending into acquiring all the luxuries of life or you start on calculated spending, and go on a planned savings wherein you always divert a portion of your income towards investments. 

The latter is a difficult path and one needs to take a long term approach towards the same. One can actually get very good returns on the investments they make over a longer time period. Looking at this one can really enjoy the efforts they have put in into building their lives and finances and over a period of time they can always become financially free. For more information you can visit our website.

Teach your Kids How to Build Good Credit While in College

After graduating from High School, new financial responsibilities become prevalent in a college student’s life. In addition to college choice and preference, classes, grades, staying in contact with friends, and freshman year roommate stresses, the need for thoughtful financial decisions becomes very important. Although it may be foreign to most incoming freshman, college is the very first exposure to important financial decisions in life. These decisions should not be ignored and learning how to organize your finances can become a key driver in your future financial goals. By practicing and developing effective financial habits in college, you will better prepare yourself for larger financial decisions in the long run.

When discussing successful financial habits in college, people tend to avoid suggesting credit cards. Although this can be great advice, it is important to consider the idea that developing a good line of credit in college will be significantly easier to attain while in school. Establishing a good line of credit can be frightening as it is new and foreign to many students, however it becomes much more difficult after college, stressing the importance you understanding how to build good credit. 

Compare Banks

A good first step in the process of building your credit is to compare banks and asses which one best suits your current needs. It can be helpful to pursue banks that offer high interest rates and minimal fees. I would advise comparing all your bank options to find the best savings and checking accounts offered by prospective banks. Depending on the savings and checking accounts you decide to open, you will know if signing up for a credit card is right for you.

Select a Credit Card

If you have decided that signing up for a credit card is best for you, it should be noted that there are several potential benefits that you may stand to qualify for. One of the benefits of qualifying for a credit card is the opportunity to receive rewards on the essentials in college such as gas, groceries, or cash back for every dollar spent. When using your credit card at a gas stations, drug store, or restaurant, you can often earn 2x and 3x the rewards. Some cards allow you to receive 5% cash back at any of these locations as well.

It is always recommended to look for a card that has a minimal or no annual fee. Whether you use your card actively or not, you will be charged an annual fee. I would also suggest looking for cards that have low fees and penalties for late payments and overcharging. As a college student, this is the time to get your financials organized and finding a card with low penalty fees will encourage you to make better decisions that will keep you on track with your payment and spending schedule.

The Annual Percentage Rate (APR) is important when looking for the right credit card. APR is the percentage rate that is applied to your unpaid monthly bill and can be based on your current credit history. This can be tremendously risky for students who have never owned a personal credit card or have not been taught by their parents or friends on how to properly handle a credit card and statements. If you have a high interest APR card, and you do not pay your monthly balance in full and on time, the high interest is added to your unpaid bill. In any case, having the lowest APR is the best choice and some cards offer 0% for an introductory period. 

Takeaways

Regardless of your age, whether in college or recent graduates, it is important to build a good credit history. Make sure to account for your spending and make wise purchasing decisions. Creating a consistent payment schedule in order to get organized will help keep your bills inexpensive and in control. By prioritizing your credit and making sure to stay updated with your billing statements will allow you to make larger purchases later in your adult life when seeking a mortgage loan or buying a car. Learning how to build good credit will prove to secure your financial life and make financial decisions in the future much easier and attainable.

Simple Steps To Getting A PPI Refund

Payment protection insurance serves as a helping hand if you are unable to repay the borrowed amount due to illness or unemployment. They policy is also mis-sold by making lenders along with mortgage loan or credit card. The customer pays a huge amount without the knowledge of being insured with a PPI policy. Many PPI policies are mis-sold by the lenders so make sure that you get the right policy that serves your need. Talk with the lender and find out whether your credit has covered this policy. If you are one among the people who are suffering with this mis-sold issue then it’s the time to refund your ppi claim. 

Check out your claim: Firstly, it is important to know whether you have a PPI cover or not. If you feel that you are paying huge charges for your credit, contact the lender and ask for the credit reports. Analyse your payments. Take the help of the lender company and know whether you have the right to refund the compensation.

Know its status: If you owe the policy, find out its status. This can be done by gathering documents, files and statements regarding your finances. Go through the reports and know the amount you have deposited. If you think that the lender gave you a faulty cover then keep the documents safe with you and demand for your payments.

Identify how it is mis-sold: Before claiming the refund find out the way it has been sold.

• Did the lender explained you about exact terms and conditions of your policy 
• What is the exact cost of your policy 
• Were you forced to take the cover? 
• Know about your payment duration. 

Take the help of claiming companies: Plan for claiming the policy by yourself or by consulting the any PPI claims management company. These companies will do the work on your behalf and reduce your burden.

Wait till the process completes: It takes certain time to get back your compensation. Wait patiently till the time arrives. Meanwhile contact the claiming company and know about its progress. Go through their plans and statements.

Take the advantage of ombudsmen: Ombudsmen offer free services regarding these issues. They can reclaim the policy on behalf of you. You can claim the policy even if your debt has been paid off. It does not affect your credit score and you can claim different policies at the same time though they are offered by different banks.

Learn from the experienced people: Millions of people faced this problem and got the solution. Web sites such as consumer action group is popular where you can get the help from the people who has solved this problem.

Complain: make a complaint to the lender about the refund. Then your bank will intimate you whether they are responsible for this complaint or not within a specific time. If you feel that the creditor has not responded properly then take the help of financial ombudsman or the court.

Follow these simple steps and claim for the amount you deserve. Utilise the consumer’s right and get the instant refund from those financial institutions.

Author Bio:
My name is Maria. I am a tech writer from Manchester. I am into Finance, Technology, Travel, and Health :). Catch me @financeport

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Is Financial Literacy Out of Reach For The Ordinary Person?

Many college students have just recently completed college and have graduated. They have gained a vast knowledge of their chosen realm of study and are about to start their first job. They will be making more money than they ever have before in their young lives. Yet, for the most part will be completely ignorant about financial matters. 

These new graduates will be starting at their new jobs confused which investments are good for their 401(k) or how they should be paying back their student loans. After all that education they will be lost in all thing financial. So much time and money is spent on their chosen subject of study but almost no time is put into educating them about financial subjects.

It matters so much more these days that you know what your doing financially. Having to juggle credit card debt, student loan debt, and participation in a 401(k) can make someones head spin. Statistics show that this lack of knowledge has made them wholly unprepared for the future retirement.

Are financial subjects to complicated for us to be knowledgeable about? Yes, it is complicated for beginners, but it's something that can be learned over time. It is your responsibility to educate yourself. There can be no excuse to not learn how money works. There are many professionals who can help walk you through your financial life. Or if you are a do-it-yourself type you can educate yourself with many online services, books, and knowledgeable websites.

To get started on the financial journey I can recommend financial guru Dave Ramsey. He has a daily radio show and has written many books on financial success. He has created a plan for the average person he calls the "Baby Steps". These baby steps walk you through the process on step at a time. If done in order and correctly you will enjoy a great financial life.

Dave Ramsey’s 7 Baby Steps

• Step 1 – $1,000 to start an Emergency Fund: Before you even get started on the rest of the plan, you need to save up a little bit of cash just in case small emergencies happen.
• Step 2 – Pay off all debt using the Debt Snowball: You list your debts from smallest to largest. Pay the minimums on all of your debts. With any leftover money you may have you pay extra on your smallest debt until it is paid off. You then roll that amount over to the next smallest debt.
• Step 3 – 3 to 6 months of expenses in savings: Save up 3-6 months of expenses in case of extreme misfortune like a job loss, illness or other long term problem.
• Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement: Save for your retirement.
• Step 5 - College funding for children: After saving for retirement you can save for your children’s education and college expenses.
• Step 6 – Pay off home early: Make extra payments on the mortgage to pay it off early.
• Step 7 – Build wealth and give! (Invest in mutual funds and real estate): Continue building wealth through mutual funds and real estate, and give, give give!

These steps are the culmination of Dave Ramsey's 20 years experience in financial counseling. He has written many books on this subject, I recommend you read them.

How Much Do I Tip - 10 Ways To Tip Correctly

Image by juliejordanscott via FlickrI remember when I was just a young man my first job was delivering the daily paper that was my first exposure to tipping. Besides delivering the paper I had to go door to door collecting the money for the subscriptions. I met a lot of fine people and along the way I got myself some nice tips. 


Being on the receiving end of tips I never forgot how appreciative I felt when I received one. It made me appreciate the whole tipping process. If you ever go to dinner with someone who has work as a server in a restaurant, they are the first to speak up if they think you are under tipping.

Those days of my paper route are long gone but I never give it a second thought to include a nice tip when I am treated well by a hair stylist, server, or someone that you deal with on a regular basis. Remember when you tip, put yourself in the place of person you are tipping because it will give you a better perspective on the process.

You can get as many opinions on how much to tip as there are people. So I wanted to see if there were any guides to help in deciding how much is the proper amount to tip in different circumstances. At couponsherpa.com and itipping.com there are some great lists to get you started.

Here are a few tipping suggestions to get you going:

1. Take-Out Food: 10 percent when you pay. Tip based on total cost if you use coupons.

2. Chain Coffee Shops: 25 cents tossed in the tip jar.

3. Hair Stylist: 15 to 20 percent.

4. Taxi: 10 to 15 percent is standard, 20 percent if the driver helps you with heavy bags.

5. Grocery Baggers: $1 to $3, depending on the number of bags loaded into your car. (What if you bag your own groceries?)

6. Tattoo Artists: 10 to 20 percent, depending on complexity.

7. Movers: $10 to $20 per mover.

8. Dog Groomers: $10 per pet.

9. Hotel Housekeeper: $2 to $5 per night.

10. Gas attendant: No tip.

Looking through this short list and the more complete list at couponsherpa.com I realize that I have been over tipping in some categories and under tipping in others.

Tipping in our society is a pleasant way to show appreciation to someone who has served you well and maybe made you happy. To others it is the bane of our culture.

Big Bird Wants To Teach Your Children About Money

Image by LR_PTY via FlickrBecause of our current economic climate, financial literacy, or lack of it, is in the forefront. Teaching of these vital skills have been put on the back burner at many schools. Researchers and educators think it's time to bring financial education back to the schools and even to the very youngest of children. Even without a basic organized education, children are being educated by their parents whenever Mom and Dad use a credit card or use an ATM. Through observation of their parents behaviors in life, children are learning behaviors, both good and bad.

There is a lack of educational materials to help teachers in the classroom. To combat this lack of educational materials for children to use to learn about money, Sesame Workshop has started a program called "For Me, for You, for Later: First Steps to Spending, Sharing, and Saving". With a 100 million dollar program, over a ten year period, Sesame Workshop has developed a learning experience for children. This program is being paid for by PNC Bank.

All this is happening at sesamestreet.org/save and pncgrowupgreat.com. Also more video content is available at Itunes and Amazon.com VOD. The titles to search for are called "Learn Along with Sesame".

At Sesamestreet.org/save there is a large amount of teaching materials amount money lessons. There are games to play, videos to watch, and printable items for fun and learning. All the Sesame characters are used in the videos to teach about money and the proper ways to use your money.
What's Being Taught?

The foundational teaching is concerned with showing the children to properly use their personal money. They are taught that you divide your money up three ways. In three separate piggy bank jars you label each jar "Saving, Giving, and Spending". The saving jar is to teach how you must save for future wants and needs. The Spending jar is for current purchases, and the giving jar is used to help others. In the videos, children are shown with their parents shopping with their spending jar, at the toy store. Also the children use their savings jar to save money to buy a more expensive item, sometime in the future. There are videos showing how the giving jar is used to buy cat food for abandoned cats at a shelter.

These videos are at the perfect level for small children. There are no religious subjects mentioned. Also purchases by a small child is are mainly things a 8 year old would like to buy. All the materials are politically correct and do not step on anyones toes. It's nice to see how basic moral values could be taught without bringing in any specific religion.

The website has many things to explore. Your child's favorite characters like the Count, Elmo, Cookie Monster, and others also appear. There is a mobile site if needed. Also there are parent-educator materials to help in implementing the great content. Also on the site are more links to Sesame Streets interesting educational websites.

I liked the idea of using Sesame Streets well known characters to teach a basic foundation on money. The three jar system is a great stepping stone to more mature teachings in the future. I was surprised at the section on the teaching of "Giving". That was the hook that got me interested in the program. They could of just of taught about saving and spending, but the giving part, helps you teach on being unselfish. A hard concept for to teach a 5 year old. 

12 Financial Facts About Women

Image via WikipediaFed Governor Elizabeth A. Duke recently gave an interesting speech called "Women and Money: Challenging the Myths". She was nominated to the Board of Governors of the Federal Reserve by President George W. Bush on May 15, 2007. The Board of Governors of the Federal Reserve consists of 7 members with Ben Bernanke as its chairman.

One of Elizabeth A. Duke's many interests is financial education. It seems the myth is that men make most of the financial decisions in our families. But this is wrong, women overall are in the drivers seat for family finances.

Even women are under the impression that leaving it to their spouse or significant other is the norm. Elizabeth A. Duke has been integral to setting up financial education for women and encouraging them to seek it.

The following is a list of facts that indicate that most women will someday need the knowledge coming from financial literacy.

• Women are quite likely to be solely responsible for financial decision making at some point in their lives. Indeed, as women age, the probability of living alone increases.
• According to the Social Security Administration, the average life expectancy for women is 81 years, compared to 73 years for men.
• Census information tells us that the average age of widowhood is 55 years old.
• The current divorce rate is estimated at between 36 and 50 percent.
• Statistics indicate that the earlier in life one marries, the higher the probability of divorce.
• Women are more likely than men to be single parents.
• Women have lower average wages, lower lifetime earnings, and are less likely to be covered by a pension plan.
• The Bureau of Labor Statistics reports that median earnings for all women are $638 a week, compared to $798 for men–approximately 80 percent of what men earn on average.
• The Department of Labor reported in 2008 that less than half of working women participated in a pension or retirement plan.
• Women are more likely to work in part-time jobs that don’t offer retirement plans.
• The typical woman spends 10 years out of the workforce for care giving, while the typical man spends just 2 years out of the workforce,
• Nearly two-thirds of U.S. women ages 40 to 79 have already dealt with a major financial “life crisis,” such as job loss, divorce, the death of a spouse, or serious illness.

These facts indicate the importance of financial education for women. After all, women are central to our national prosperity as workers, taxpayers, voters, consumers, and financial managers. Today, half the labor force is composed of women, compared to 38 percent in 1970. While the overall civilian unemployment rate is 9.7 percent, the unemployment rate for women 20 years and older is 8.0 percent. And nearly one-third of married women workers now out-earn their husbands.

Reader: What do you think?

When Is It Best To Ignore Money Advice?

Image via Wikipedia

Retirement, IRA's, emergency fund, saving, debt so many things to keep track of. It can get a little overwhelming. Managing your finances can be confusing. Do you save for a house first or do you pay off debt? Both options are good if done in the right order. 

We all receive good financial advice, but is it appropriate to the current situation. Buy a house, don't rent is the one bit of advice you here the most. It's only good advice if your financial prepared, it could be disastrous advice if your not prepared. Good intentioned advice acted on at the wrong time will torpedo your financial goals.

Everyone has unique situations, it's the knowing when to do the right thing that will give you the results you want.

Buy a house, don't waste your money on rent.
It's the first thing you hear after some life changing event like a new job, marriage, or baby on the way. The advice is that your making the landlord rich while you could buy a house and be paying yourself instead. But being ready financially is the first step to buying a house. Do you have an emergency fund in place. Will the payment be affordable? Don't forget you don't just have the mortgage payment to worry about. Add to that insurance, property taxes, insurance, furnishings, utility bills, maintenance and repairs. Maybe renting sounds like a better idea now.

Are you saving enough for retirement? Are you getting the match on you 401k? Don't miss that match!
Again the wisdom of saving for retirement in a tax deferred account makes sense. Getting the match makes more sense. It's good advice. But is it good for you at this moment in your financial life. You have to weigh this good advice against do you have an emergency fund of 3 to 6 months savings. Do you have credit card debt still to pay off? It's not smart to ignore these more important things. What if you were sick or got laid off? How would your 401k help then? I would rather have a hefty emergency fund. These are things you need to consider.

Get life insurance so your family will be protected when your gone.
On the surface getting life insurance sounds good. How could leaving someone a large amount of money when you die not be seen as a loving and caring thing. You must decide if life insurance is even necessary. The purpose of it is to meet a financial need the deceased can no longer provide. Money to replace an income in the raising of a child or providing funds for a college education would seem appropriate goals. If it's not used to replace the deceased financial responsibilities , then it's not needed. If the deceased is leaving a spouse with no children, mortgage or other financial need; Insurance is not necessary.

These are only three examples of how good financial advice can be misapplied or applied at the wrong time for the wrong reasons. But there are many more.

Reader: Do have any examples of misapplied financial advice?

Financial Education Is Not Enough To Save You From Yourself

Do you think you have enough financial knowledge to handle your own finances? I'm talking about all facets of your finances, from soup to nuts. If your response is no, thanks for being honest, I'll get back to you in a minute. If you said "Yes", we need to pursue this further.

I believe there are 3 types or levels of financial knowledge. The first is "Financial Literacy". Financial Literacy is a general knowledge of financial vocabulary, financial instruments, and when and why they are used. This consists of knowing of what an investment is and the different types. In banking you know the difference between a checking and savings account.

Next there is "Financial Knowledge". This a deeper knowledge of all things financial. You know about investments. You know the difference between mutual funds, ETF's, IRA's, cash accounts, derivatives, and types of brokers. You can actually tell me if a mutual fund is better than another mutual fund. You know when it's good to own bonds and when it's not. You have knowledge of health, disability, life, and long term care insurance. You can tell me all about fixed and variable annuities.

The third and final type of knowledge is "Financial Capability". This kind of knowledge is when you actually put into effect what you know and are successful at implementing it. The evidence of this knowledge is an emergency fund, a hefty retirement account in the correct vehicles, your living below your means, you have no credit card debt, you have a college fund for your children and your home is paid for or your close to paying it off.

Financial Capability is the final step in the journey of financial education because it describes financial knowledge, competence, confidence and practical skills, such as balancing a checkbook or household budgeting.

Are you at this last step yet? If not, why not? Where on the journey are you? You will never succeed financially if you don't reach this last step. We all know what's good for us, but do we do it?

For those of you who were honest enough to say No to my question, what are you going to do? You admit you don't have the knowledge to run your own finances. Is this a lack of knowledge or a lack of will? If this is a lack of knowledge then find the knowledge. Read a book. A complete book that will help you is Dave Ramsey's Total Money Makeover, read it, do exactly what it says and you will be successful with money.

If you have a lack of will, we call that being lazy in my house. That can be fixed to but not by reading a book. That problem has to fixed on the inside. Make the decision and be a financial winner.