Do you have debts?

If your answer is yes, you must immediately try to get rid of them. The Bible states that “one man cannot serve two masters”. But when you are in debt, you will have to serve your creditors apart from God. In order to fulfill your responsibility towards Christ, you must become debt free. For this, you can seek help from a Christian debt relief company. When you seek help from a relief company, a certified counselor will offer you free Christian debt counseling.

Some of the ways a counselor will help you are:      

Assist you in preparing a budget: A counselor of the debt relief company will analyze your financial situation. Keeping your income, expenditures and credit needs in mind, a representative of the counseling agency will prepare a budget for you so that you can maintain a good standard of living without obtaining a loan. They will also suggest ways by which you can save money to repay debts.

Suggest you a debt relief program: The counselor of the debt relief company will get hold of your credit report and scrutinize your debt accounts. Based on the types of debts you have, your outstanding dues, the rate of interest on each of your bills and your income, he will suggest you to opt for a particular debt relief program. For instance, if you have multiple debts, you will be advised to enroll in a debt consolidation program. If you are not in a position to repay your debts even at a lower rate of interest, the counselor will suggest you to go for settlement.

Advise to not obtain new loans:  When you enroll in a debt relief program, the counselor will advise you to not apply for a new loan. If you obtain a new loan, you will have to pay towards it and you may not be able to make the payments required for successful completion of the program you have enrolled in.

If you find it difficult to make timely payments to the debt relief company for repaying your creditors, the counselor will also help you find ways by which you can trim your expenses and use the saved money to pay off debt. In this way, Christian debt counseling will help you become debt free and dedicate most of your time to serve the almighty.

How Payday Loans Work

With a payday loan you can typically borrow from $50 to $500 and all the lender will require is some basic contact information along with verification of your employment. They will also require that you write out a post-dated check in the amount of the loan plus the amount of the finance charge and/or interest rate.      

If for some reason you are not able to make the payment in its entirety on the due date, you can simply contact the payday loan company and ask for an extension. Most of the time this is doable, but you will then have to write another post-dated check for the previous amount plus an additional finance charge. Your loan company may also require that you give them permission to electronically withdraw the funds from your account to automatically repay what you owe.

Payday Loan Advantages

While most payday loans carry a higher finance charge and interest rate, they are easier to get and therefore, some people prefer them on a short-term basis over a bank loan or borrowing from family and friends. One thing that attracts people to payday loans is that the loan is not dependant upon you passing a credit check; in fact, a credit check is typically not even performed. The application process is easy and a loan can be acquired over the phone, in person, or online.

The approval process is generally very short and often times can be completed in a matter of hours with the amount of the loan credited to your bank account and ready to use. There are no upfront costs incurred so that you will have access to the full amount of the loan right away.

Payday Loan Disadvantages

As with anything else you do in life, there are naturally going to be some disadvantages to taking out a payday loan. The first disadvantage is that the interest rate is much higher than with most other types of loans, and when it is calculated over a 12 month period, you may actually be paying about 360% interest in cases where you are unable to pay it off on time. Another thing to consider is that your rates will continue to climb each time you extend the payoff date. And as for that post-dated check you wrote, if the loan company sends it for payment and it bounces, you will own a bounced check fee as well. your credit rating will be negatively affected by this and you may lose your checking account for repeated offenses.

What Should You Do?

If you find yourself frequently in need of a little financial assistance to get you out of a crunch in the money department, you really should take stock in the way you handle money. If you find that you are spending more than you should on frivolous items, cut back and place the money you save from this endeavor into a savings account so that you will have that much needed financial fix when you need it.

Do not use payday loans as a source of funds unless there is NO other way to get the cash!

How Is A Credit Score Used?

When you apply for any credit (loan, credit card, mortgage, etc.), the lender typically approaches any one of the three major credit bureaus and pulls out your credit information and score. He checks the score to determine if you are worthy of a loan, what interest rate should be charged and what credit limits can be given to you. Many third parties check your credit score and these could include mobile phone companies, insurance companies, property owners, government, etc.      

How Can You Get A Credit Score?

To get a FICO score, you must have a financial account running and active for at least 6 months. The three major credit bureaus will latch on to this account and use it for calculating your credit score.

What Is A Good Credit Score?

FICO scores range between 300-850. 300 stands for a poor credit score while 850 means you are close to Warren Buffett. The average American credit score lies between 600 and 700. Anything over 700 is viewed positively and anything under 600 makes you a risky asset.

What Factors Determine Your Credit Score?

Your payment history gets the highest consideration – it makes up 35% of your FICO score. A good, on-time payment history can really boost up the score. Next come your total loan balances, which make up 30% of the FICO score. If you owe more, your score goes down. Your credit history length accounts for 15%. If you have been responsible with your credit for many years, your score bumps up.

New credit is given 10% consideration, and if you keep applying for credit your score will go down. The final 10% is reserved for miscellaneous factors like, are you focused on one particular type of credit, or have you taken loans from all possible sources, etc.

How Can You Fix Your Credit Score?

Your credit score matters a lot. You may be refused loans or given very costly loans if your credit score is below average. Here is how you can fix your credit score:

1. Get a copy of your credit report from all the three major credit bureaus and check for errors or omissions. If you find any, file a dispute with the credit bureau. You must obtain a report from all three bureaus because there is no telling which bureau your prospective lender will approach.

2. Always make payments on time. Late payments influence your credit score and therefore, you must set up appropriate reminders (SMS, calendar) to remind you about your payments. You can also opt for automatic debit so that you are never late.

3. Do your best to reduce your loan. Sell some assets, if possible, and repay your loan. Use your credit card only for necessities. Focus on eliminating higher-interest loans first and then tackle the rest.

Budgeting

The way you start investing is by budgeting how much money you want to earmark for investing. There is no right or wrong way to budget it but it would be best to put a decent amount of money into investment vehicles. 10% of your salary, for example, could turn into enormous sums over time.      

Short Term and Long Term Investing

How long do you wish to invest your money?

Are you seeking a quicker return or do you want one that can last for the long term?

Short term can be defined as five years or less and anything over five years can be dubbed a long term investment.

Investment Vehicles

There are many different ways you can invest your money. Purchasing real estate is among the oldest in existence. Acquiring stocks in a company would likely be the most common strategy most people employ. Stocks can be purchased either directly from the company or they can be purchased in the form of a mutual fund or an IRA where several stocks are combined into a single fund, managed, and the return is based on the average of all the funds.

Bonds are quite popular as they are extremely low risk when backed by the government. Precious metals and currency remain other investment strategies that have grown in popularity in recent years.

There really is no right or wrong method of investment vehicle. Any legitimate investment vehicle will have good potential.

Risk Assessment

We return to our previous point of risk. The more volatile the investment, the greater the potential will be for both a high return and a potentially higher level of loss. Those returns with moderate or lower levels of risk will offer a lower return but the odds of losses are quite rare. You simply need to determine which level of risk you are interested in prior to investing. Generally, you need a risk level that you are comfortable with or you might not find your investing experience delivers on expectations.

On a side note: it is not impossible for a low risk investment to become a lucrative one. A stock traded for $2 a share that is reasonably expected to grow to $3.75 in four years could potentially grow to $9.87 within a year.

Portfolios and Hedging

It is not wise to have all your investment dollars in one investment opportunity. Rather, you will want to acquire a number of different assets into an overall portfolio. That way, the successful and growing investments can act as a hedge against the losses. Seeking the advice of an investment manager could be a great help in this regard.

Of course, even though you might have done that already, there is still a chance that you could have all of your information stolen and used. This is why you need to take things a step further and learn just what it is that you would have to do exactly should you find yourself to be a victim. Also by doing some research you may be in position to assist someone you know that has been a victim of identity theft.      

Once you have realized that you have been a victim of identity theft, you are going to want to contact the credit reporting agencies. However, do not just contact one of them, you are going to need to contact all of them. When you do this, you are going to have them place a fraud alert, where all creditors can see, on your credit report. The three main credit reporting agencies are Transunion, Equifax and Experian.

The next thing you are going to want to do is to contact the Federal Trade Commission, or the FTC. You can do this online and it really only takes a few moments. By doing this, the FTC will be able to look for patterns in these particular crimes that are being committed. Next, you will need to contact the police and file a police report. Now, this is not a life or death emergency, so you will not want to call 911. Simply call your local police department or stop in.

While this might be a little stressful and time consuming, you are going to have to make sure that you are going through all of your accounts online, including everything from your online banking to your emails. Do not forget to change the passwords of your online credit card accounts and even your social networking sites.

You really have to clean up everything, just as a precaution. Remember, you know that your identity has been stolen to one extreme or another, so you want to assume that everything is at risk and everything has been figured out about your personal information.

Go through all of your debit cards, credit cards and bank accounts. If you have had your bank account tampered with, you will need a brand new account, complete with a new debit card. If your wallet was stolen or your house broken into, you may need a replacement driver’s license, social security card and even insurance cards.

As you can see, there is a lot that has to be tended to when it comes to dealing with identity theft, but it is all extremely important. You do not want to miss a step. Therefore, the moment you know that you have been a victim of identity theft, you have to get started getting everything protected.

Aw the Christmas holidays, you have to love them.

What if you could experience a better holiday this year?

How would it feel experience New Years with no remorse for the money spent on gifts?

Christmas savings is possible and even very plausible if you will follow a few simple rules.

Budget

Everyone would love to hit the mall with an unlimited budget and purchase any and every gift possible. The reality is the only people who can do that are Warren Buffet, Bill Gates and a few others, but guess what? They do not even shop like this! Therefore, it is important that you set your Christmas savings budget before you even make a list of gifts and then stick to this budget as if your life depended upon it.      

Small Children

Have you ever noticed that toddlers will spend more time with the boxes their gifts came in than with the gift itself? This should be a clue about what is important to a young child. Children of this age are not picky and they are not concerned about what the toddler next door got for Christmas, so get them something nice, but do not break the budget.

5-11

This age group is a little more conscious about the gifts they receive. That does not mean that you cannot enjoy Christmas savings on their gifts. If they have their hearts set on an IPod, you may be able to provide their gift wishes, but be smart about it. Look online for potential deals and watch the upcoming sales ads. Retailers are going to be offering serious deals this year in light of recent economic woes and you can benefit from them.

Teens

This is the one age group that can really break the bank, however you should keep in mind that they too could enjoy simple gifts. In fact, instead of showering them with expensive toys offer your time. Set up a special “date” night where your teen will have your undivided attention! Of course, also get them a nice gift or two also!

Adults

If you have a very large family, you can quickly spend hundreds of dollars before you even get to the adults on the list. One simple way to keep costs down and enjoy Christmas savings is to draw names among the adults.

Decoration

Some people spend hundreds of dollars every year on decorations, but if you are thinking about Christmas, savings there are several ways to decorate on a budget. Have an old-fashioned holiday where you decorate the tree with strings of popcorn and cranberries! You can also spend some quality time with young children creating stars, angels and other figures out of pipe cleaners! Your tree will look fantastic!

Food

Christmas comes with lots of gifts and huge dinners, which can cost you a fortune. This is a perfect time to test your bargain shopping skills. Watch for cheap sales on turkey and trimmings and then take advantage of any store that offers to meet or beat competition ads. Wal-Mart’s all across the country offer to honor competitor advertisements. You can also set up your dinner as a potluck, make a list of popular foods and your guests then ask each to bring a specific dish.

Conclusion

Christmas saving does not have to be difficult; all it requires is some rational thought and a little creativity. There are many places online where you can find great food, gift and decoration ideas to keep you in the black this holiday season.

Here’s a simple step-by-step guide to setting up your customized personal budget plan:

First, list your fixed, unavoidable expenses in a spreadsheet and put the dollar values you are committed to paying each month for each item. That means rent or mortgage amortization, homeowner’s fees, all out-of-pocket insurance fees, tuition fees, etc. Remember we’re talking about fixed and unavoidable, so your gym membership fee isn’t part of this definition.      

Second, jot down your income sources. These might be variable amounts, as you may be paid overtime, or you may get deductions for unpaid days. However, for budget planning purposes, write down your net pay without considering overtime pay or other unforeseen deductions.

Third, it’s time to line up your variable expenses. These are items you can’t do away with but don’t really know how much each month you should or you actually pay for. Groceries, utilities, clothing, gas and similar budget items would appear on this list. Leave your dollar value column blank. Arrange these items in the order of priority. (Of course, you need both food and clothing.

But which item must be spent on each month?

Do you really need to buy clothes each month?

Fourth, look at your lists. Take out the total amount of your fixed expenses from your income figure; keep this amount intact and pay your bills as it falls due. Do not, I repeat, do not ever miss a payment or pay late. Where bill collectors are concerned, early birds get discounts; late payers get penalties and surcharges. Go for the discount and avoid penalties like the plague. Whatever discounts you get off of your fixed expenses budget, set that aside as savings for the month.

After your fixed expenses have been taken care of, it’s time to examine your variable expenses closely and sift through these items. Chances are, there are wants in this list. Our goal at this point is to trim this list down into necessities and assign a dollar value to each item.

Are You Ready?

Fifth, take your variable expenses list and examine closely. Groceries are needs, dinners out are not. Gas is a need, entertainment and amusement is not. Utilities, including home phone and internet are needs; cellular phone subscription is not necessarily a need. In case of doubt, the item should not be considered a need.

Sixth, you are now going to place an amount for these needs. Take out your credit card bill or charge slips and get to work. If you don’t have these items filed, request for a copy of your charges from your bank over the past three months. The key here is averages and you need at least three months for these. On a per item basis, compute you three-month average spending and fill your dollar value columns with the result of your calculations.

Lastly, for whatever is left of your income figure after providing for your fixed and variable needs, split it for your wants and your savings account.

If so, you may be able to get help from the government. This may sound like a stretch but the US government is offering grants to pay off credit card debts to qualified individuals. It should be mentioned that a grant is different from a loan in that you do not have to pay the money back. After your debt is taken care of, there is nothing you owe to the government.

How Do I Find Government Grants?

These grants are programs that are designed to reduce debt problems and jump-start the economy. The key is finding these grants in the first place because information on them is very scarce or misleading. You will want to start looking for grants on the grants.gov site. There are also lists that you can purchase but you should look to your state’s official page for some resources.      

After you’ve gotten a hold of some information about the types of grants that you can apply for, you will want to start calculating your debts. Start figuring out how much you actually owe. Then you will need to provide proof that you simply cannot pay off your debt with the income you are bringing in right now. You will also need to show the government what kind of financial situation you are in right now.

Take a look at the registration requirements and make sure you meet what they are asking for or you will be just wasting your time. In most cases, these grants are set up to help individuals below or near the poverty level so most people will not qualify. However, there are other programs that may help you.

What Situations Do Government Grant Programs Look For?

For example, there may be programs that will help you pay for your education if you cannot go to school because you are in debt and don’t have the funds. These programs are for both students that need to stop attending school because of their financial situation or for those that want to attend school.

Please be aware that these grants cannot be used to pay off your shopping expenditures. Don’t expect a grant when you’ve spent thousands of dollars on clothing you don’t need or on a personal vacation. On the other hand, debt accumulated as a result of caring for dependents and personal hospital bills are accepted by these grant programs. Simply collect information on how you’ve accumulated the debt to provide proof.

So if you are currently in debt because of any of the reasons listed above, you should seek a government grant. It’s another option that is available if you are currently in a situation where you cannot get out of debt and your debt is accumulating as the days go by.

There are financial planners that may be able to help you apply for a grant. Just be aware that many programs and companies that claim they can help you for a fee. Not all of them are legit so you have to do your due diligence before making a decision.

After all, the IRS gave these deductions so that they may be used. Learn as much as you can about the tax saving tips so that you may start to keep more of your hard-earned money in the bank.      

Invest In An Accountant

This should be a no-brainer as an accountant will be able to give you all of the best advice possible when it comes to your taxes. In addition, the expense of hiring the accountant is a tax deduction that you should be taking advantage of. Don’t want to hire an expensive accountant? Even the purchase of quality tax software is tax deductible.

Go Green

If you are making improvements to your home in order to make sure that it is energy efficient and friendly to the environment, you might just find yourself eligible for another deduction. You might be able to receive a nice tax break of up to thirty percent of the price of the purchase and installation of energy efficient windows, doors, air conditioners, furnaces and water heaters. The maximum allowable deductible for this is $1,500.

Pay Your Student Loans

The interest that you are paying on your student loans is a tax deduction that you are not going to want to miss out on. Even if you are not someone that itemizes his or her deductions, this is still a deduction that you can take on your 1040.

Donate To Charity

Whether you are donating a television, computer, couch or some outdated clothes you no longer fit in, you might want to make sure that you are taking your stuff to a qualified charity in order to be eligible for the tax deduction. Monetary deductions can also be deducted as long as the donations are being made prior to December 31.

Put Money Into Your IRA

All of the money that is put into your IRA counts as a deduction and it is one that does not even need to be itemized. Why wait any longer to start saving for your future. If you simply make a few small changes, you should be able to put in a little money between now and tax season.

Pay Those Medical Expenses

This is something that not a lot of people are aware of. If your out of pocket medical expenses for the year exceed 7.5% of your AGI, or annual gross income, then you are able to take them as a deduction. You will want to make sure that you are prepared with receipts of payment. Remember, this is medical expenses that you have paid for, not for what you have simply been billed for. Regular check ups, purchase of contact lenses or glasses, medications and various other medical expenses can be deducted.

Plan Ahead For Changes

By making large changes in your life, personal or professional, you may be affecting your taxes in a major way. When you prepare ahead of time for things such as the birth of a child, adoption, marriage, new business start ups, investing, making child support payments or alimony or getting a company vehicle are all things that can change the way you file your taxes.

Car Mileage

If you are self-employed or you have to travel for medical care, you will be able to write off the mileage according to specific amounts per mile, which may vary from year to year. You will want to keep a notepad handy in order to make sure that you are able to document beginning and ending mileage for the trip and what the trip was for.

As you can see, there are a lot of different tax saving tips out there. You will want to make sure that you are taking advantage of as many as you can. By doing this, you will find that tax time is no longer a time you have to fear, but rather, look forward to.

You can surely imagine what it would be like to spend four years of your life without any income. Then you add in the expense of a college education. When you take your first step into the real world of a college graduate, it is often filled with worries about mounting bills. Thoughts of debt can sometimes take the thrill out of the first full paycheck. The current economic climate we find ourselves is not helping either. However, the federal government has brought into play some programs intended to help college graduates to better manage their student loan debt.      

Income Based Repayment Program

Many new graduates qualify for the Income Based Repayment Program, which can help them pay down their student acquired debt. This entails grants that can be used to pay off all or just part of the debt incurred while attending college.

Anyone can apply for this program, but not everyone will be approved. The process is simple, but it is important that the individual provide proof that it will create a hardship if they had to add their student loan to their other living expenses. At the present time, the federal government is focusing a great deal of attention on helping those recent graduates who are overwhelmed by debt.

Federal Government Work Exchange Programs

The federal government is also offering what is called a work exchange program to those who are covered up in student debt. This program involves certain student loans to be forgiven under specific guidelines. There are a number of venues where a graduate may be given the opportunity to work for a certain number of years and their student loans will be written off.

Some of those venues are working in a low-income area school, or for a non-profit charity like the Red Cross, or in a public service situation. This is a rather unknown student focused program, and during the application process you will be allowed to demonstrate whether or not you are already working in such a situation or would be willing to do so. The length of service will determine the amount of your student loan that will be forgiven.

Loan Consolidation

Student loan consolidation is another means for recent graduates to better manage their student debt. This approach can also reduce the interest rates as well as make the terms of repayment more manageable.

Record Keeping

You can be sure that it will be important for you to keep good records of the entire process. Details about where, why and how you spent the funds from your student loans will need to be kept along with details of your current financial condition. Maintaining accurate records will be necessary as you determine how to pay off your student loan debt quickly.