The effective rate is the interest rate you actually pay or receive, as opposed to the stated rate. For example, an 8% stated rate paid annually on a $1,000 investment is $80 per year. However, if interest is paid quarterly, you will receive $82.40 a year. So, the effective annual rate is 8.24% per year. Read the fine print, where effective rates are generally disclosed. (more…)

As of May 2002, consumers had about $712.2 billion outstanding in revolving credit, up about 6.8% from the previous year. Some of this credit is paid off each month; however, about 60% of U.S. households revolve some portion of their credit card balances. For those that revolve, the Federal Reserve Board reported that their balances were $4,100 in 1998. Other estimates show credit card balances as high as $8,000 in 2000 (McGinn et al. 2001). One out of five families with incomes under $50,000 spend at least 40% of after-tax income on debt servicing (Kennickell, Starr-McCluer, and Surette 2000). Needless to say, money spent on credit card debt is money that cannot go toward retirement savings. (more…)

If your debt problem is not totally out of control, why not handle it yourself? It never hurts to ask lenders to lower your interest rates. Interest rates typically are not reported to credit bureaus. Some lenders may lower the rate to keep your business.

Do you want to be debt free? Do you want to be to travel the country and around the world without having to pay the bills? (more…)

As you enter adulthood, you will experience many changes and are facing with financial responsibility. You may go to college, start a new career, get married, have children, or move to a new city. These new life situations will affect your financial planning. Your personal values also influence your financial decisions. (more…)

Paying cash means making some lifestyle sacrifices. However it has a concrete financial benefit: It will keep you from drowning in a sea of red ink on your voyage to the new economic world. But it also has an added emotional benefit: It adds meaning and value to the things you do buy. (more…)

Today most banks and commercial services companies offer their customers banking insurances. This insurances are associated with credit cards, debit cards and checks. However, the National Consumer Service clarify that these policies serve as a complement and not to replace the responsibilities of financial institutions to make proper arrangement for the safety of their clients’ funds/money. (more…)

Here we show the 5 steps to be followed to find the best credit in the market:

First and perhaps the most important, is to make comparison of the Financial Costs Total (FCT) which is to choose the best credit (not to compare the nominal annual rate (NAR)). (more…)

It’s unfortunate that it has to be this way, but everyone inherently knows that cash seems to make the world go around, and poor money management can lead to poor living conditions, less overall happiness and the inability to realize many of the hopes and dreams we have for our families and futures.

Don’t get us wrong; money does not necessarily equal happiness, and there are plenty of people out there with (more…)

When needed a business secured credit card is a great way for a company to reestablish themselves as a good credit risk. It is the path to do so by showing the financial industry that the business in question is willing to do what is necessary to build up its credit worthiness.

Like all lines of secured credit, a business secured credit card is not a line of credit but that draws off of a deposit made by the account holder. (more…)

Unfortunately, too many American consumers find themselves buried under a mountain of credit card debt. Besides the obvious financial strain caused by this debt, credit card debt can leave a family with incredible amounts of stress and even ruin physical health. While every situation has its own challenges, there are some general principles you can follow to improve your finances and get out of debt. (more…)