Youre Being Forced To Make Higher Payments

Consumers already burdened by higher energy costs are being saddled with another drain on their finances : higher minimum credit card payments.



The higher minimum credit card payments are the result of January 2003 guidelines issued by the Federal Reserve, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Office of Thrift Supervision. The Office of the Comptroller of the Currency, or OCC, regulates national banks and is concerned that many cardholders have credit card debts that will take decades to pay back. To prevent this problem, these regulatory agencies proposed that, by the end of 2005, credit card issuers establish reasonable periods for paying back balances, such as a seven- to ten-year payback or amortization period



Card issuers were supposed to adopt the raised minimum payments by the end of 2003. The federal regulatory agencies acted after years of seeing credit card issuers lower minimum payments because of "competitive pressures and a desire to preserve outstanding balances." Credit card lending consistently yields greater profits for large bank issuers than other services, Federal Reserve data show. But these profits could decrease if consumers pay off debt faster or default on payments, leading to debt write-offs.



The agencies expressed alarm that some banks were setting minimum credit card payments at levels that did not even cover interest. These were seen as predatory lending practices targeting low-income and financially naive consumers. The result was predictable: consumer debt load surged. Consumers were being encouraged to accumulate debts they could not service, resulting in high levels of default and bankruptcy.



Before the new government guidelines were issued, many banks required only 2% of outstanding balance to be paid off each month. For example, take the case of a credit card with $10,000 of debt and an 18% interest rate. Almost 58 years would pass before this debt was completely paid off, assuming the cardholder stuck to the minimum payment each month, according to Bankrate.com's credit card calculator. Total interest paid during that time would be almost three times the original debt, or $28,931. Now, the same cardholder paying 4% of outstanding balance each month would pay back the debt in a more reasonable 15 years and would pay only $5,916 in interest.



In recent years, banks have also raised the charges for cash advances, late payments or spending over the credit limit, helping push more consumers further into debt. These latest changes target credit card holders who don't pay their bills in full at the end of each month. A 2005 survey by the American Bankers Association (ABA) showed that 43% of consumers carry a balance on their cards.



Nearly three years after regulators said minimum monthly payments should let cardholders pay off debt in a "reasonable period of time," most banks finally acted. The majority of the top 10 credit card issuers raised their minimum payments in 2005, in most cases, during the last quarter.



Regulators encouraged banks to adjust their minimum payments by the end of 2005. The banks' delayed response to the January 2003 guidelines caused consumers to be hit with higher credit card bills during the 2005 Christmas season. The increase was combined with a new bankruptcy law which has made it more difficult to erase debt with a Chapter 7 bankruptcy. More consumers are now allowed to declare only Chapter 13, which forces them to repay their debts on a fixed schedule.



Banks say the delay was caused by the time it took to update systems in accordance with the regulators' instructions. "These are not simple changes," stated Alan Elias, a spokesman for Washington Mutual. Still, most banks were in compliance at the end of 2005.



Contrary to some rumors, regulators did not require minimum payments to be raised by a fixed amount. However, they said payments should cover fees and finance charges, plus 1% of principal. Some card holders are seeing their minimum payment double, to 4% of the balance from 2%. On a $10,000 balance, payment could rise from $200 to $400.



In the long run, the change is healthy for consumers, since it forces them to pay off credit cards more quickly. Until now, some of the banks charged minimums which did not even cover the interest owed, so debt would just keep growing, resulting in more indebtedness by consumers. But initially, consumers not prepared for the higher payments can experience financial hardship, especially those with lower incomes.






Original pictures take http://www.creditdonkey.com/credit-cards-work.html site

Your Ticket To Financial Freedom

Now days it is nearly impossible today for the average family to thrive on a single income. However, the skyrocketing cost of child care makes it difficult for both parents to work. Fortunately, the internet has made making money online a suitable income option without the need for commuting or day care.



Making money online means much more than entering contests and sweepstakes; it is not uncommon to see a professional create a home business in computer programming, accounting, medical billing, and many other fields. Making money online has never been easier! All that is required is a computer, a reliable internet connection, and an idea.



Often times, the most challenging task involved in making money online is coming up with the perfect idea. We're not all computer programmers, web developers, or content writers. However, we all have some talent or skill that others will pay for. Making money online is as simple as figuring out what you do well and deciding how to leverage that talent into an opportunity.



For example, a friend of mine had little computer experience, but was interested in making money online. I suggested that she think about what she enjoyed doing and using that as the basis for her home business. She said that her greatest skill was the creation of unique homemade jewelry items. She hired another home business professional (a web designer) to build a website for her and she is now making money online selling her jewelry creations.



Making money online by starting a home business is not the daunting task that many budding entrepreneurs assume. If you carefully consider your skills and talents and figure out how to leverage those abilities on the internet, you'll be making money online in no time!






Original pictures take http://www.hea-employment.com/services/legit-work-at-home-jobs-for-moms.html site

You Gotta Have a Plan

How that is some people can retire at 50? Or not lose their shirt when theres a stock market crash?



Why are some people able to earn high incomes or even have multiple streams of income?



How come some people retire to a life of luxury and world travel, while others barely have enough to feed and house themselves?



Of course, one part of it the answer is that some people are more intelligent and industrious than others. No matter what anyone says, we are not all the same. We may have been created equal, but no one has ever guaranteed us equality of results. That depends on our own efforts.



Another part of the answer is that some people consider the risks they will face and do something before they occur to mitigate the damages. One obvious way of doing this is by buying the proper kinds and amount of insurance to protect your home, health and life if you have an income stream to protect.



Less obvious, but still a very helpful plan is to become an expert at whatever you choose to do to make yourself indispensable to your employer.



If you work for yourself, you want to be the best at whatever it is youre doing, from practicing medicine to baking bread. You also have to have the will to persevere and work long hours at making yourself a success.



Yet another part of the answer is having a plan. Some people get up in the morning and let events carry them along through their day. Others plan what they will do with their life and stick to it.



They will learn about investments and how to diversify, so that when one asset goes down another holds its own or goes up. Or they will hire financial profesionals to do the work for them.



They save as much money as possible, using every tax sheltered vehicle allowed, including 401-Ks, IRAs, Health Savings Plans and 529 educational savings plans. And then they will invest even more in taxable accounts.



They live well within their means. Some like Warren Buffet, one of the worlds richest men, lives well under theirs. They will use credit judiciously or not at all.



Successful people will invest in businesses, rental real estate or work part time, while maintaining their full time job just so they have many streams of income. If one is lost, their world does not come to an end.



Many people play the lottery and hope they will strike it rich. The sad fact is that many think this is the only way get rich. But anybody with the will can find the way.



Our public libraries are filled with books on how to invest, how to insure yourself, how to set up a financial plan or how to open and run a business.



Many employers have tuition reimbursement plans they will pay your way if you want to better yourself. Or community colleges offer free adult education courses to help you learn new skills or improve on the old.



The internet now makes it easy to set up an online business while you continue with your day job.



The bottom line is you have to rely on yourself to earn and save as much as possible. If you do you can be one of the lucky ones who retire young with lots of money to spend.



If you dont youll be living hand to mouth on your Social Security check.



The choice is yours.






Original pictures take http://www.smartnancials.com/insanely-amazing-tips-financial-freedom/ site

You Deserve More Money!

You deserve more money. Everyone does. We work too hard to only get paid what we currently get paid. Its not a scam. Its simply using the assets you have to leverage a greater investment!



Here are a few ideas to help you increase your income. But if youre reading this while youre on a website that highlights secured loans, youre probably wondering what increasing your income has to do with a secured loan. There are actually many reasons, so youll have to read on.



But first, one of the ways you may want to increase your income is by finding a part time job to do in your spare time from the comfort of your own home. For example, you may increase your income by selling things on eBay or by working over the Internet to design websites for people. This way, you can keep your current job but build up some additional income. Who knows? You may eventually end up becoming so busy that you have to quit your day job! This is using your asset of time to make money.



The second thing you can do to increase your income is to invest in the stock market. This is not as scary as you might think and it involves the same principle that you know from owning a home. When you bought a house, how did you think you would make money on it? Simple: Just by hanging onto it for some time, many homes rise in value over time. Its the same with the stock market. Sure, not all homes (and not all stocks) rise in value. But if you give even half the thought choosing stocks that you gave to choosing a house, you should find one that should generally rise. But the key is to hang onto it. You dont sell your house every time the market fluctuates! In fact, you probably dont know or care how much your house is worth until youre ready to sell it. It should be the same with the stocks you buy and sell. This is using your assets of shares to make money



The third thing you can do to increase your income is to get a secured home improvement loan. As you already know, your house is an investment and if you can do something to increase its value, you should! Getting a home improvement loan is an easy and affordable way to increase the value of your home so that when it comes time to sell your home, it will be worth more. This is using your assets around you to make money.



The fourth way to increase your income will surprise you. Consolidate your debts! Get a debt consolidation loan to pull all of your outstanding debts together and put them in one secured loan. The interest rate will be less, the monthly payment will be less, and the monthly payment will be fixed. A lower rate and payment will mean more money for you and a fixed payment will mean it will be easier to budget! This is using your assets of current habits to make money






Original pictures take http://debtpayoffspreadsheets.com/student-loan-payoff/how-i-paid-off-46500-of-student-loans-in-2-years/ site

Working Out A Family Budget

When you and your family are considering a budget, you may be missing the values that are held within rebates and coupons. In general, because of the time it takes to actually clip these things out of your local newspaper or a magazine, people tend to over look these big money savers all too often. Coupons should be an important part of your family budget. The money you could save using coupons could easily add money to other areas of your budget, like family entertainment.



For decades, people have been clipping and using coupons of a variety of sorts. It is something that is done by grabbing your favorite pair of scissors and scanning through your magazines or newspapers, to find coupons that will help your entire family saved money on your favorite products. Many people commonly skip over coupons because the savings tend to look small and insignificant. However insignificant they may look, once these savings add up they could equal a good sum of money saved EACH time you go to the grocery store.



Using and clipping coupons or rebate forms have been known to be an art. People often plan their entire budgets around the coupons or rebates that they have and save a good deal of money in the process. It is impossible to account for coupons during the actual creation of the monthly budget, because you never really know how many coupons you will be able to use and just what the savings will be. Many people choose to stash away the money saved from coupons into a special place to use for a special treat for the entire family. You will be able to enjoy treating your family to a special night out or something of the like, without having to place an impact on the familys budget.



Stick close to a few rules when you decide to use coupons, this will allow you to get the greatest value from them. When you are using a coupon, try to find the item on sale. This will help you reduce the price in a dramatic way, for items that you would generally purchase at regular sale price. In addition, some stores have what is called Double Coupon Day; these actually double the amount of savings that is listed upon the coupon. Giving you DOUBLE the money to put away for that special treat and what could be better.






Original pictures take http://www.businessinsider.com/heres-40-stock-market-terms-that-every-beginner-should-know-2017-2?utm_content=buffer334d6&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer site

Working In Retirement

Most experts on the subject believe that the Social Security system will be bankrupt in about 15 years. However, some new studies have offered a ray of hope. They seem to indicate that the assumption that the boomer generation will retire at 65 or 67 and sit back to collect their social security checks is incorrect.



They believe a sufficient percentage some estimates are as high as 80% - will continue to work in some capacity or another, relieving much of the pressure on the system.



This is probably the only ray of hope for many who have visited financial planners or bought personal finance software to see how much they need for retirement. These usually show you need a million or more dollars to retire with your current lifestyle. But again, they dont take continuing earnings into account.



Many in the baby boomer generation plan to retire at around 65, but then start a second career, doing something they enjoy. Most dont want to continue on in their present jobs or move to low paying work at fast food restaurants or supermarkets.



Rather they would rather make their accumulated knowledge work and, if possible, also give something back to society at the same time.



Health experts say this trend will be beneficial in that by staying involved, those past retirement age will stay healthier and will be happier with their life.



So it seems that several trends are converging. Those in their 60s, 70s and early eighties are healthier than ever. Because of their increased longevity and the shortfall in their retirement savings, they need to continue to earn. And many companies who once looked on older workers with distain, now seem to realize the value they can contribute to the company and to society in general.



There is speculation that colleges and universities may allow retirees to earn fast track degrees, taking into account their prior education and work experience. Also some states are already loosening license requirements for teachers to allow those with degrees in fields other than education to become teachers with little if any further training.



Another way to continue to earn in retirement is by making wise investment choices now.



Buy rental properties, learn how to manage money effectively or start your own business now in your part time so that you have something up and running by the time you retire.



The internet has opened up new ways to earn, be it drop shipping, affiliate marketing or selling goods on Bay.



If you always wanted to be an author or if you can write software programs, it is simple to self publish and sell electronic goods through services such as Clickbank.



Or you could just do something youve always wanted, like baking breading or making shoes. If youre good at whatever you choose, you should have little trouble finding a clientele.



But if you are depressed because you have to continue to work after 65, dont. Youll have a lot of company and youll will also be healthier and happier for it.



For more advice on retirement planning and personal finance, visit http://www.credit-yourself.com/financial-planning.html






Original pictures take http://maximizeyourmoney.com/investing/6-things-to-take-care-of-before-you-start-investing/ site

Women Fear Theyll Have Little Gold in Their Golden Years

Nearly 40 percent of women aged 30 to 55 are worried about spending their retirement years at or near the poverty level because they cannot adequately save for retirement, according to a recent survey.



The National Women's 2005 Retirement Survey found that women of color are most concerned about their ability to save for retirement. While 53 percent of women of color report that they expect to live at or near the poverty level in their retirement years, just 33 percent of all men expect to face the same dilemma.



The survey was commissioned by the Heinz Family Philanthropies under the direction of Teresa Heinz, founder of the Women's Institute for a Secure Retirement and chairman of the Heinz Family Philanthropies.



Here are some of the survey's other key findings.



* Fifty-two percent of women expect to continue to work once they reach retirement age, including 57 percent of Hispanic women.



* Fifty-four percent of women have little to no money left to save for retirement once they pay their bills, rising to 62 percent among Hispanic and African-American women.



* When asked, "At the present time, do you feel that you are saving enough money for your retirement?" 62 percent of the women surveyed answered "no." Among women of color, 74 percent of African-American and Hispanic women said they are not saving enough.



* When asked about barriers to saving for retirement, African-American women are more than twice as likely as white women to cite "financial responsibility for adult children or grandchildren" as a reason for not saving for retirement. Of the African-American women supporting their adult children or grandchildren, 63 percent report spending between $100 and $1,000 on them each month.



The Heinz Family Philanthropies commissioned this survey with the Christie Foundation, the Barbara Lee Foundation and others to identify the critical retirement savings issues facing women and to use the data to develop ways to help women secure their financial futures.



The survey polled 1,700 adults and has a margin of error of plus or minus 2.4 percentage points.






Original pictures take http://www.hoyes.com/blog/how-does-bankruptcy-work-an-infographic/ site