The Non-scrimp Savings Plan

By Chris Garner, Sr. Credit Specialist

Talk to anyone, walk into any store, log on to any Web site, and you’ll find that “saving money” are the buzz words of the moment. “Women are online comparing notes on cool ways to stretch a dollar,” says Ellie Kay, mother of three and author of Living Rich for Less: Create the Lifestyle You Want by Giving, Saving, and Spending Smart (WaterBrook Press 2008). “Frugality truly is the new black.”
Certainly, there are some crucial steps everyone should take -- creating a monthly household budget and sticking to it probably tops the list. But there are many smaller, simpler changes that can add up to a profound boost to any family’s bottom line. Jill Hart, for instance, reduced her cable bill by $60 a month simply by cutting out the channels and features her family didn’t need. “Our kids haven’t even noticed the difference,” says the 32-year-old mother from Bellevue, Neb. The additional savvy, cost-cutting strategies below won’t take a major bite out of your lifestyle either.
Challenge your charges Just about everyone is struggling to hold on to business these days…including the folks who are billing you. Pull out your phone, heating, utility and other regular bills. “If you take just 10 minutes to tell your insurance company or cable company that you are paying too much or tell your credit card company that you don’t like their interest rates, it’s amazing what they are willing to negotiate,” says Kay.
While you’re at it, arrange to pay those monthly bills online. The average American household would save $55.44 a year in stamps, gain one to two days in free time and dump 6.6 fewer pounds of paper into the environment,” according to Qwest Communications, a Denver-based Internet service provider.
Pocket the plastic Save your credit card for special situations and rely on good old-fashioned greenbacks instead. You might even want to take credit cards out of your wallet altogether. “People who do not use debit or credit cards are less likely to throw that extra item into the shopping cart or make an extra purchase,” says Ethan Ewing, president of an online debt-consolidation Web site called Bills. Then be sure to pay every bill on time, to avoid increasingly high late charges, penalties and fees. Most important, “never, ever charge more than you can pay off at the end of the month,” says Ewing. That way, you will avoid high finance charges and build your credit score at the same time.
Shake up your shopping habits Plan your family meals for the week around what you see on sale in your supermarket flyer, create a shopping list and don’t add anything else to your cart. By all means, hit the wholesale stores and buy in bulk when you can, but again, stick to a shopping list so you don’t go in for olive oil and come out with a year’s worth of plant fertilizer. “You’ll tie up money that could probably be better used elsewhere, like paying down credit card debt or put into savings,” says Ewing.
Downsize your groceries When you get home from the wholesale club, consider dispensing bulk items down into smaller, household-size containers. “If you keep something like fabric softener in a huge 128-ounce container, you’re likely to use it more freely and waste more,” says Kay.
Check out the library Of course you can borrow books, but libraries today are also the place to find movies galore, free kids’ activities, free adult seminars, book groups and even computer training. “Most people don’t realize that their neighborhood library can save them tons of money throughout the year,” says Malika Granville of the Brooklyn Public Library in New York.
Size up what you don’t spend Take shopping off your recreational roster and hit stores only when you have a specific purchase you need to make. Keep a small pad in your purse, and if you find yourself tempted by an impulse purchase, resist the urge and write down the amount you avoided spending. At the end of the month, add up your “postponed purchases” and deposit that amount in a savings account. You’ll be surprised to see how much you’ve avoided spending and how fast those fleeting impulses fade. If there’s something that still beckons and you can swing it, go back and buy it.

Three Tips to Taking Control of Your Student Loan

By IsaBella on July 1, 2009

Have you just graduated and have genuine concerns about how you are going to repay your student loan (s)? Studies show that two-thirds of graduates from four-year universities have student loans, with an average debt of $22,000. Here are three tips to taking control of your student loan
1. Select the Plan that right for you. Most student loans allow you up to 10 years to repay them. Remember, the longer the term, the lower the payment BUT your will pay more interest. Strive to keep the repayment time to a minimum. Beginning this month, the Income Based Repayment Program is going into effect. The name actually says it all. Eligibility is based on your debt to income. If your income is less than $16,000.00 per year, no monthly payment is required.
2. Understand How the Plan Works: Know when the interest begins accruing. Although the interest rate on most federal loans is quite low, the interest begins the day the loan is taken out. You may not be required to make payments until after graduation, but the interest will be building from day one. The exception is a subsidized federal loan. That means that the government picks up the interest.
3. Defer Your Payment: Graduate school is an excellent way to defer repayment. Keep in mind, the interest clock is still ticking. You can also qualify if you are unemployed or if you have an economic hardship. Yes, proof is required; they don’t just take your word for it. For unemployment, you have to be able to show that you are looking for a job. An economic hardship can be valid if you receive public assistance, work in public service of your annual income in under $16,000.00

Author Bio: IsaBella, Senior Credit Specialist at Credit Alliance Group 866-540-3134

Free Money!

By Lucinda Ramos, July 2, 2009

Where to find money? Look for coupon clips from newspapers and use as cash at the supermarket. Get them organized and use them. Some stores will double the face value of the coupon up to a certain amount, so if you happen to find the item on sale and use a coupon to purchase it, you may get the item free.
Author: Lucinda Ramos, Client Relations at CreditAllianceGroup (886) 543- 9073

How To Create a Budget

By: Natasha Hopkins

1. Creating a budget may not sound like the most exciting thing in the world to do, but it is vital in keeping your financial house in order. Before you begin to create your budget it is important to realize that in order to be successful you have to provide as much Gather every financial statement you can. This includes bank statements, investment accounts, recent utility bills and any information regarding a source of income or expense. The key for this process is to create a monthly average so the more information you can dig up the better.

2. Record all of your sources of income. If you are self-employed or have any outside sources of income be sure to record these as well. If your income is in the form of a regular paycheck where taxes are automatically deducted then using the net income, or take home pay, amount is fine. Record this total income as a monthly amount.

3. Create a list of monthly expenses. Write down a list of all the expected expenses you plan on incurring over the course of a month. This includes a mortgage payment, car payments, auto insurance, groceries, utilities, entertainment, dry cleaning, auto insurance, retirement or college savings and essentially everything you spend money on.

4. Break expenses into two categories: fixed and variable. Fixed expenses are those that stay relatively the same each month and are required parts of your way of living. They included expenses such as your mortgage or rent, car payments, cable and/or internet service, trash pickup, credit card payments and so on. These expenses for the most part are essential yet not likely to change in the budget.Variable expenses are the type that will change from month to month and include items such as groceries, gasoline, entertainment, eating out and gifts to name a few. This category will be important when making adjustments.

5. Total your monthly income and monthly expenses. If your end result shows more income than expenses you are off to a good start. This means you can prioritize this excess to areas of your budget such as retirement savings or paying more on credit cards to eliminate that debt faster. If you are showing a higher expense column than income it means some changes will have to be made.

6. Make adjustments to expenses. If you have accurately identified and listed all of your expenses the ultimate goal would be to have your income and expense columns to be equal. This means all of your income is accounted for and budgeted for a specific expense.If you are in a situation where expenses are higher than income you should look at your variable expenses to find areas to cut. Since these expenses are typically essential it should be easy to shave a few dollars in a few areas to bring you closer to your income.

7. Review your budget monthly. It is important to review your budget on a regular basis to make sure you are staying on track. After the first month take a minute to sit down and compare the actual expenses versus what you had created in the budget. This will show you where you did well and where you may need to improve.
detailed information as possible. Ultimately, the end result will be able to show where your money is coming from, how much is there and where it is all going.

Good business management practices

By: Kourtney Nelson
Leading Through Layoffs: 7 Steps
It is often said, the measure of a leader is not how they lead while things are going good, rather, how they lead during times of distress.
Unfortunately for most leaders today there can be more distress then good times, especially with the constant restructuring, merging, and laying off of employees. In fact, in the past 7 years the company I work for has gone through regular and quarterly layoffs of thousands of employees.
The worst part is the company is not losing money nor is it performing poorly, rather, it has simply become a part of the culture. This culture in return, has created a lazier, non-loyal, and me'istic employee base that is nearly impossible to motivate. Yet, due to the type of industry we are employed, the vast majority choose to take their chances in the American Idol style ranking and cutting; with one exception, they don't try to give their best performances, because they have learned that giving 110% doesn't guarantee their survival. Rather, most give the bare minimum on a day to day basis. Just enough to scrape by.
A second result is the employees stop believing in the executives and their direct management. This distrust creates a separation and a mutiny in rallying the teams or getting higher results.
The third symptom is that the Managers/Directors refuse to tell the Executives that perhaps their team performs a redundant task or would be better served being absorbed into another similar organization. Why? Because they know the executives will lay off the entire organization, rather than reward the potential cost savings to the organization. What also becomes apparent is the constant grab bag for taking on tasks and projects that create a mirage of value or display enough redundant tasks to hopefully fool the Executive head choppers to bypass their group for this quarter.
Of course there are more symptoms and issues that this harsh environment creates. However, as a line leader it is your job to lead your team through this. Whether the environment will change through the years or remain the same. It is YOUR responsibility to protect your team from falling subject to the negative influences of poor decisions made by the good ol' boys and girls that hold the positions of power above you.
What I am going to share with you are some techniques that I have used to keep a top producing team that runs at 110% despite the distractions going on around us.

Putting off your Debt

Putting off your debt reduction costs you money in the form of higher interest charges every month. You have done research, you checked the debt reduction calculators, and you have even come up with a plan in your mind, but if you have not started yet, you have wasted your time. I have heard many excuses from people who are waiting for a better time to start reducing their debt.There are a lot of people who think their bills are under control and although a little help could pay them off faster, they are not in a financial crisis, so they do not need to hurry. Others have a goal in mind, but the debt calculators say that to achieve this goal they need to use 10% of their monthly income for debt reduction, and they can not spare that 10% so they are waiting until they can. Still more are waiting for some sort of windfall to take down a big portion of their debt, so that they have a smaller hole to dig themselves out of. Then there are the people, like me, who want to start now, but something always comes up. The something that comes up can range from major necessary expenses such as needing a new refrigerator or furnace, to trivial things such as that new video card that, although it will be obsolete in 6 months or a year, you just have to spend the $150 to obtain. I am being generous here, because most people in this category want to have the really good card so they can say they have one of the best until its own need to be replaced arrives. These will cost $300-$500 easily and some may even require new secondary cards to achieve their full potential. I am not saying that you should wait until you are debt free to upgrade your computer equipment, but instead of shelling out every cent that you have to do so now, you could put aside $100 this month and use the rest to pay down your highest interest credit card. In a few months, you have enough for that upgrade, and you have made an impact on your debt. Those waiting for a windfall may have a little extra money each month, but their debt is either too large for them to see this money as able to make a difference, or small enough that said windfall will pay it off so why not wait. Perhaps they are waiting for their tax return and see no need for debt reduction for two months or so while they wait. Maybe they are expecting a bonus check or a raise at work, or a gift is on its way. Paying what they can at this time may actually result in tens or hundreds of dollars saved in interest, but they would prefer to wait. The other important thing for this type of debt reducer to think about is that if they adjust their monthly spending a little to generate a small amount to pay down their debt while they wait for their ship to come in, so to speak, they can send this money to some sort of savings account or retirement fund once the debt is no longer looming overhead. People who feel that they cannot free up the amount that the calculators or economists recommend, need to look at the big picture. Sure, most say that you should use 10% of your income to tackle the debt that you allowed to get the best of you, but you can start with whatever amount that you can spare. Every $100 that you can afford to send on top of the minimum payment on a credit card with 12% interest is roughly $1 saved on every month's interest charges for the remainder of the time you pay on said card. This may not sound like much, but if you are due to pay on a large credit card for several years, those $1 savings each month add up fast. The second month you are actually sending an extra $101 if you consider the decrease in interest. This makes the interest savings $1.01 this time, because you are not paying interest on that $1 you saved last month. So in two months you have knocked $202.01 from the principal and saved $2.01 on the third month's interest charges. Once you get this bill paid off, you can add the minimum deposit from it to your $100 and work even harder on the next bill that you target for elimination. If you think you are in control of your debt and therefore are not interested in paying it off sooner than the minimum payments will accommodate, are you aware how much interest you pay each month? Take a look at all of your monthly bills. Add up the interest paid on all credit cards, car loans, student loans, and any other loans that you may have. The total amount of interest that you are being charged is effectively a monthly fine that you are paying for allowing yourself to live with debt. I don't know about you, but I try hard to avoid paying any fines as I have enough things that I want to spend my money on, or save it for. Reducing or eliminating even manageable debt is the smart choice.

Understanding the Credit to Debt Ratio

Understanding the Credit to Debt Ratio can help you improve your credit score. You need to know what happens when closing credit card accounts and how that affects your FICO score as an important part of getting out of debt and improving your credit rating.Fees
Consider debt consolidation to pay off those credit cards. One payment, usually a lot lower than your credit card payments, can help you get back on track.
One of the biggest fallacies I’ve seen perpetrated on the web, at the bank, etc., is that you should close credit card accounts that you are no longer using to improve your FICO score. When you close the account, your “history” is gone for that credit card … yes, it will still show up on your Credit Report; but the “good history” will no longer be included in the calculation of your FICO score. One thing that is very important to your FICO score is called the credit to debt ratio. The credit to debt ratio is calculated as follows:
Debt Used divided by Available Credit = Debt Load Example:$2,000 of debt charged to a credit card with a limit of $5,000 $2,000/$5,000 = a debt to credit ratio of 50% $10,000 of credit card debt with total available limits of $10,000 (means you are maxed out on all your cards!) = $10,000/$10,000=100% debt ratio
Banks and other financial institutions place a lot of emphasis on your credit history (obtained from you and your credit report) and on your FICO score. Based on this available information; they can easily calculate what your debt to credit ratio is to see just how close to being in financial trouble you are. The closer you are to being over your head in debt, the higher the interest rate you will pay, if you get the loan at all! The debt to credit ratio is used in the calculation of your FICO score as well; so the higher your debt load to the available credit you have to draw on, the lower your FICO score can be. If you can keep your debt load (the debt part of the debt/credit ratio) under the 50% mark, the better off you will be in the long run. In summary, if you consider the above, you can see why it wouldn’t be a good idea to close a paid off account:
it also closes the good history on the account
it reduces the available credit and increases the debt ratio
What you want to also consider is how you will handle the paid off account. If you can have it and not use it; then do so, providing you aren’t paying outrageous annual fees to have the card sitting in your wallet or at home. Once you have paid off several accounts, then you can review your financial situation and decide if closing one account would be a good idea; after all, you don’t want a lot of unused credit either as it can impact your ability to borrow for a home or car loan; and it’s harder to keep track of multiple cards/accounts as well.

By: Sr.Credit Specialist Evan Cox

Lower Your Interest Rates

Call your credit card companies, tell them you've got offers for cards at lower rates and ask them to lower your rate. If you've paid regularly, they are likely to negotiate. If the company says no, tell them that you will be closing your account this week and transferring your balance to a competitor who offers better rates. So there's no doubt about your seriousness, tell them the name of the competitor you have in mind. (It shouldn't be difficult to come up with a name, since you're probably constantly getting applications in the mail from credit card companies who want you to transfer your balances to them.) Ask to speak with a supervisor. Supervisors have the authority to give you a lower rate right then on the phone. In many cases, you can cut your rate in half simply by asking.Not sure what to say? Follow this sample script:"I have [name of card] with you and my interest rate is [X] percent. I received another offer in the mail from [other bank's name] for [X] percent, but before I take it, I want to see if you can lower my interest rate instead."If the representative says they're not authorized to do that, you say:"Look, you and I both know that if I transfer my balance today, next week your bank is going to send me an offer to come back at an even lower rate. Why don't you just save the bank the cost of that effort by giving me several points today?"If the rep says it's not possible because your credit card is at a fixed interest rate, you say:"Actually, that doesn't have anything to do with whether or not you have the ability to lower my interest rate. A fixed interest rate only means that my rate doesn't vary with fluctuations in the prime rate. In fact, the bank can raise it on my account at any time by just giving me 15 days written notice. And the bank can, if it chooses, lower the rate today."If the rep still says they're not authorized to do that, you say:"I'd like to speak to your supervisor."Then speak to a supervisor and follow the above script again.

5 ways to Better Personal Finance Management

(By: Chris Garner)

Personal Financial Management is not easy and you have to learn what it means to better manage your finance.
Here are 5 tips to better Personal Finance Management:
Teaching children about money management
Do you find your children often want things that are expensive and out of your range for any budget? If you find that you don’t have the money to buy your children everything they want, you need to teach your children a little more about money. Children should be given an allowance, but only for the chores and things, they help you do around the house. Simple things like folding the clothes, sweeping the floor, doing the dishes and feeding the pets. As your child earns money, and receives money for their birthday or special occasions, they can then buy their own things they want. As they realize how long it takes to save that money they will treat it better, and they will appreciate it more. Money management can start at a young age, and children will learn easily, taking their habits to their older years.
Money management and your home
Do you need to save money in the home? Managing your money is all about saving money, finding more money to do things you want, and to create savings accounts for rainy days. If you need to save a little more money and to spend less on household things, you can start with your utilities. Shut off the lights when you are not using them, and shut down that computer when you are not working on it. This will lower your bill a little. Look at the lights you are using in the house, if you have forty or sixty watt bulbs you are using less energy than seventy five and one hundred watt bulbs in all the lamps in your home. Cut costs by starting with the electric bill. Manage your budget; manage your money by adding more to your monthly household budget.
Saving for a rainy day
The basic thoughts behind any type of savings plan is that you should have at least three months savings in the bank, or at least have access to three month of your pay in case of major disaster or problems in the home. Right now, if you were unable to get to work for three months, how would you survive? Prepare for the future and start now. Your personal finances demand that you prepare to protect yourself. You can start by putting just ten dollars a week in a savings account. If you find this is easy, up that to twenty dollars per week. If you have the money taken out before you get your paycheck, you won’t even miss the money. When you are putting, at least $200 a month away you are preparing yourself for a great savings and in the long run, you will find it easier and easier. Yes, it is going to be difficult to start, but after a few weeks, you will adjust and your household budget will as well.
Spend less on entertainment
Are you finding it difficult to pay your bills on time all the time? If you are not paying your bills, your heat, your credit cards, and your utilities on time, you are putting yourself at risk for bad credit, and a lower credit rating. To keep your personal finances on track you should sit down and write out a list of all the bills you have every month. Next, you are going to write down everything that you spend other money on. If you are not able to pay all the bills every month, you need to find where you can cut back on money spent. Generally, this is going to be in gifts, gas, going out to the bar, to the movies, renting movies, your television channels, the subscriptions for your cell phone, and the long distance bills you pay for your landline. Review your budgets, cut back on expenses so you can afford your bills, and when they are paid off, you can get back out there, and have a bit of fun!
Personal money management and your future
Your personal life involves more than the job you are working at, but also the welfare of your family. If you were unable to work, or if you died, how would your family continue on, paying the bills and getting groceries? If you don’t have an answer, you should look to personal lines of insurance. Insurance policies are a form of money management that will protect your family in case of emergencies or in case of death. Many families find that disability insurance comes in very handy when someone breaks their legs, or perhaps needs an operation and can’t get back to work for a few months. Insurance in the case of an accident, for a disability or in case of death is going to protect your family and everyone’s financial future. Get some amount of insurance and protection for the future.

3 Ways to Find Happiness during the Recession

By IsaBella on May 12, 2009

Spend money on an experience rather than an Item: Research has shown that people feel more alive and invigorated by doing things than by purchasing things... Remember the old adage, “Money can’t buy happiness” well scientist have shown that to be true. Studies show that more gratification is received from activities like, going to dinner and a movie rather than buying the newest cell phone.
Make a gratitude list and read it every day. Stop and count your blessings. Focus on what you do have not what you don’t have. Helping others who are less fortunate can also bolster your feelings. Doing for others gets your mind off of yourself and your problems as well as making a contribution. Some examples are visiting hospitals and nursing facilities, participating in the Meals on Wheels program, buying lunch for someone you know who struggles more than you.
Exercise. Yes, get those gym clothes on a break a sweat. When you exercise your brain will release endorphins. It can also allow you to have more restful sleep. Studies indicate that burning off 350 calories three times a week in sustained, sweat-inducing activity can reduce symptoms of depression.

Author Bio: IsaBella, Senior Credit Specialist at Credit Alliance Group 866-540-3134

Reduce Your Debt

( By: Sr. Sales Specialist Chris Garner)

Do you want to reduce your debt? Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car? You're not alone. Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. Your financial situation doesn't have to go from bad to worse. If you or someone you know is in financial hot water consider the options below. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future. Developing a Budget: The first step toward taking control of your financial situation, is to do a realistic assessment of how much money you earn and how much money you spend. Start by listing your income from all sources. Then, list your "fixed" expenses - those that are the same each month - like mortgage payments or rent, car payments, and insurance premiums. Next, list the expenses that vary - like entertainment, recreation, and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education. Your public library and bookstores have information about budgeting and money management techniques. In addition, computer software programs can be useful tools for developing and maintaining a budget, balancing your cheque book, and creating plans to save money and pay down your debt. Contacting Your Creditors: Contact your creditors immediately if you're having trouble making ends meet. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you. Managing Your Auto and Home Loans: Your debts can be unsecured or secured. Secured debts usually are tied to an asset, like your car for a car loan, or your house for a mortgage. If you stop making payments, lenders can repossess your car or foreclose on your house. Unsecured debts are not tied to any asset, and include most credit card debt, bills for medical care, signature loans, and debts for other types of services. Debt Consolidation: If your objective is to reduce interest rates and lower your monthly payments, avoid bankruptcy, consolidate your bills and have one monthly payment, or simply get out of debt the fastest way possible, then a debt consolidation loan could provide the answer. Are you paying out too much every month for your credit cards, store cards and loans? Then why not replace them all with one, lower, convenient repayment through a consolidation loan? Consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.

Good Debt vs. Bad Debt

It's almost impossible to live debt-free; most of us can't pay cash for our homes or our children's college educations. But too many of us let debt get out of hand.
“Good” debt is normally the kind of debt we take on to better ourselves and our situation - college loans, mortgages, business start up loans, etc.. These generally have much lower interest rates that are set in stone, and their repayment schedule is spread out a little further. Chances are that the companies will not ring you up one day to change your rate - you know what you are getting ahead of time and you can set up your payments to match. Houses normally appreciate in value over the long run, so we don’t mind taking on a mortgage payment to hopefully get that growth. Student loans can enable you to get higher paying and/or more rewarding jobs, so borrowing money for them is not seen as a bad thing. And starting a business can be a step towards financial freedom. This is all what the experts call “good” debt in that it can be very helpful, whereas “bad” debt could be debt you have been carrying from buying too much stereo equipment.
Bad debt includes debt you’ve taken on for things you don’t need and can’t afford. It does nothing to improve your financial position and is most often used to purchase items that depreciate in value. Credit card debt is almost always bad debt not only because of the nature of the items that are purchased with credit cards but also because of the high interest rates that credit cards have. Even though you might consider a car something that could help you earn more money, an auto loan is most often considered bad debt because cars (typically) depreciate in value.

Just because some debt can be considered "good" doesn't mean it's any easier to pay than "bad" debt. Good debt often has a lower interest rate which lowers the cost of borrowing, but it's also often accumulated in higher amounts than bad debt. Good or bad debt, at the end of the day, you still owe money and more of your paycheck goes toward paying others. If you're a student, don't take out more loans than you need just because you qualify for them. And homeowners should decide for themselves what they can afford in a monthly mortgage payment, not what the banks say they can. Credit card balances should stay well below their limits, and ideally be paid off in full each month. These choices will lead to a higher credit score, and more importantly, less financial stress. The only debt you have left will be the kind that hopefully will be helping your financial situation and not hindering it. Not all debt is created equal, and when you only have a set amount of money each month to work on paying it off, be sure to concentrate on the bad stuff. When you put all your efforts into paying it off, it most certainly can be done!

Recipe to Make Your Money Grow

By Lucinda Ramos, June 19, 2009

You must work to make your found money grow, so every time you come home from shopping, separate the coins. When you pay for an item, use only bills to make sure you are given change in return which you can save. If you feel a little rich, buy some coins; ask the cashier to give you a dollar or two in quarters. You will be amazed at how you never miss this change, yet it seems to grow by the month. If you are diligent, you should be able to save several hundred dollars a year in this manner, which you keep in the security box for emergencies or deposit in a special account.
Author: Lucinda Ramos, Client Relations at CreditAllianceGroup (886) 543- 9073

Texas: Attractive to Jobseekers and Corporate Relocation Specialist

By IsaBella June 18, 2009
Has your area of the country hit hard by the recession? Well, consider relocating to Texas. While Michigan, Rhode Island and California have been hit hard; Texas has a milder recession than the rest of the country, a jobless rate well below the national average and a brighter forecast than many other regions have. The state's relative health might help it attract corporate bosses and recession refugees alike when the economy improves, according to economists, economic development officials and site selection analysts.
Texas is vying hard for the best of the best. Texas has a cluster of large cities, a web of transportation links and relatively low costs of living. Getting all these in one package is a rare combination in the rest of the country. John Boyd, a business location consultant in Princeton, N.J., added up the corporate headquarters operating expense in 55 cities and found that Dallas had the second-lowest cost That may give North Texas and the rest of the state a distinct advantage in the current environment, said Boyd, who heads up the Boyd Co. Last year Dallas-Fort Worth led all U.S. metropolitan areas in absolute population gains.
Author Bio: IsaBella, Senior Credit Specialist & Team Leader atCredit Alliance Group 866-540-3134

Money Budgeting

(By: Natasha Hopkins)

Money budgeting vital for financial success
One should learn the art of money budgeting if one wants to succeed financially in life. In the absence of money budgeting, chances are that you will land into dangerous debt traps without knowing how to come out of it. This is because most people tend to spend more than they earn without even realizing it. Money budgeting, if done properly, can check this tendency which is widespread in this era of easy credit with the use of various kinds of credit cards. Money budgeting can help you to control your finances and prevent you from getting into serious financial trouble.
Effective money budgeting
To begin with, you should list incoming money over a period of time, say on a weekly, monthly or fortnightly basis, and then list the outgoing money, like mortgage payments, credit card bills etc. You should also keep a close watch on how your budget is performing and if necessary, change it to account for unforeseen problems without overspending. Divide your expenses into categories like housing, living, work, personal etc. and find out how much is being spent on each category and what can be cut down to improve the existing financial condition. If you had begun to treat luxury items as essentials, you can now save a lot of money by weeding them out of your budget. Money budgeting will help you achieve this objective by pointing out how much you actually spend on such items. Money budgeting should always factor in a contingency fund – say, about 10 percent of your income - that can be used in emergency situations such as when you lose your job or have an unforeseen expense. This fund should, however, be used only in emergencies.
Money budgeting is not as tough as it seems at first, and is one of the best ways to give you the things that you want and ensure for you a stable financial future.

Financial Planning…

My grandmother's idea of financial planning was a small emergency fund in a mason jar stashed in the furthermost corner of the closet. Things have really changed. It doesn't seem like that long ago but, our world is growing in leaps and bounds. I guess the smart thing to do is grow with it. Although, the simpler times sure sound nice from time to time. Substantial increase in consumer debt is a good indicator that spending is out of control. "Mason jar planning" probably isn't going to cut it in today's financial world. At least not for the average family.
Finances are out of control for most families. The financial plan of the day seems to be borrow, borrow, and then borrow more money! Many are finding it necessary to get a second mortgage to meet rising debt obligations and reduce monthly bills. Families are putting their homes at risk to resolve issues that originate from overspending. Sort of like treating the symptom and not the cause. Planning your finances will not only treat symptoms of financial chaos, it will cure the problems that create it.
To start your own plan you'll need to first take control of your money. A simple statement that could prove to be much more complex than you first anticipate. Following a proven, step by step, process makes it so much easier to implement your finance plans. A good personal finance plan starts with a realistic budget. By realistic, I mean one that balances. Your income must be sufficient to meet your expenses. If not, you have two options, increase income or reduce expenses. You'll most likely find it more practical to get your spending under control first. Tracking your money is a crucial step in planning your budget and finances.
Your plans should include goals to manage debt and increase savings. Get spending and debt under control first. Then, set financial goals for future plans. If you have children, you may need to plan for college. And, it's never to early to make plans for your retirement. Work these goals into your budget as if they were monthly expenses. Commit to pay yourself every month in planning for your future goals. Build an emergency savings so you will have something to fall back on when unexpected events arise. Grandma had the right idea. She knew that unexpected things sometimes happen. Planning for these events is the only way to keep your personal finance plan from derailing. It will keep you on track and headed in the right direction!
Personal finance planning is all about you. It's about you and your family's individual needs, dreams, and security. While you can simplify the process by using a standardized financial planner, budgeting software to walk you through the steps, or prepared worksheets, the data is all about you. Only you can plan for your future. To get that clean slate that through good financial planning could make life less difficult contact aurthor with, Credit Alliance Group and the toll free direct number is 866 903-2917 (by: Sr. Sales Specialist, Chris Garner)

Saving Money Has Become Fashionable Again

By IsaBella June 11, 2009
Well, there is one good thing that has come out of this recession… Americans have started saving money again. Savings had been on the decline throughout the 1990’s and started to make a comeback after April 2008 when it hit an all time low … like zero. The personal saving rate began to increase in May 2008 and has steadily risen each month. Results from a survey conducted in February shows that the number one financial goal of pre-retirees and second-highest goal of those already retired is to “pay off loans, overdue bills, and other debts.” Ranking third for both groups is to “save money for emergencies.” Personal debt is the main reason that people are not able to save adequately for retirement. When people have large amounts of debt outside of a mortgage, their priorities change.
Excluding the balance owed on a mortgage, $25,000 seems to be the so-called tipping point. That’s when someone’s focus tends to switch from saving for retirement to paying off loans, credit cards, and other I.O.U’s. The survey also found that, compared to two years ago, pre-retirees are slightly less likely to use debt to finance a major purchase such as a new home, car, furniture, or vacation. Instead, individuals say they intend to save up the money needed. “The old-fashioned value of saving before you buy is going to have to be learned by a whole new generation,” predicts Kerry Geurkink, marketing director for Securian Financial Group.

Author Bio: IsaBella, Senior Credit Specialist & Team Leader at
Credit Alliance Group 866-540-3134

Consumer Borrowing

By EVAN COX sr. credit Specialist

WASHINGTON - Borrowing by consumers fell by $15.7 billion in April as U.S. households continued to trim spending and put away their credit cards amid a severe recession.
The Federal Reserve said Friday the April decline was the second largest ever in dollar terms following March's drop of $16.6 billion. March's decline originally was reported as $11.1 billion, which had been the most on records dating to 1943.
The April decline was more than double the $6 billion drop that economists had expected. Analysts believe consumers will remain cautious as long as the unemployment rate keeps rising, which it did again in May.
In percentage terms, consumer credit fell at an annual rate of 7.4 percent in April, following a 7.8 percent drop in March. The two declines were the largest since an 8.1 percent drop in December 1990.
Households have been spending less and saving more as they try to replenish their nest eggs in the face of huge declines in home values and investment holdings.
Americans' personal savings rate jumped to 5.7 percent in April, the highest since February 1995, according to government data released earlier this week. The level of savings — $620.2 billion — was the most on record dating to January 1959.
The category in Friday's report that includes credit card debt dropped at an annual rate of 11 percent in April, following an 11.2 percent plunge in March.

Benefits of a Debt Management Company

Whether you decide to go for credit card debt settlement, or settlement on personal loans, payday loans etc, you can get the benefits explained below when you enroll in a debt management program.

Avoid bankruptcy: With debt settlements, you can reduce your debt burden and pay off bills comfortably. You can negotiate with the creditors or collection agency and settle your debts for as much as you can afford to pay. Therefore you may be able to avoid filing for bankruptcy.

A Single payment: Instead of paying multiple bills each month, you'll have to make a single monthly payment to the settlement company. The monthly payments are kept in an escrow account in order to be paid off to your creditors after negotiations are made. So, you can avoid the stress of paying debts at different rates and dealing with several creditors at a time.

Avoid unfair collection practices and harassment: You can avoid unfair collection practices and harassment by debt collectors if you negotiate a settlement. Sometimes the elimination of the stressful and often times aggressive debt collector calls can make a world of difference.

Lane Watson Client-Creditor Relations

Cosas que los cobradores no pueden decir

Hay ciertas cosas que los cobradores de deudas pueden decir.
No pueden implicar falsamente que son abogados o representantes gubernamentales; falsamente implica que usted ha cometido un delito; representar falsamente que operan o trabajan para una oficina de crédito; tergiversar el monto de su deuda, indique que papeles para ser enviados a usted son formas legales cuando ellos no son; o indican que papeles para ser enviados a usted no sean formas legales cuando ellos son. Ellos no pueden decir que usted será detenido si usted no paga su deuda; que aprovechen, adornar, adjuntar, o vender su propiedad o salarios, a menos que la agencia de cobranza o el acreedor tiene intención de hacerlo, y es legal para hacerlo , o acciones, como una demanda, se tendrán en contra de usted, que legalmente no pueden ser tomadas, o que no tienen la intención de adoptar.

SUCCESSFUL CARPOOL TIPS

1. Determine your route and schedule. Establish the morning pickup point(s) and designate a place(s) to meet for the trip home.

2. Draw up a schedule for driving responsibilities. If all members of your carpool alternate driving, decide among yourselves if you want to alternate on a daily, weekly, or monthly basis.

3. Establish a method for reimbursing driving expenses. Is all members of your carpool do not share the driving equally, come to an understanding of how the costs will be shared and agree on payment dates.

4. Be punctual. Decide how long the driver is expected to wait. When home pickups are utilized, do not disturb everyone in the neighborhood by honking if a rider is running a few minutes late.

5. Establish policies. Smoking or nonsmoking; music and volume; food and drinks. Your carpool will have a better chance of success if possible irritants are discussed initially.

6. Make carpooling service on purpose. If it is for commuting to and from work, do not let it become a shopping or errand service.

7. Establish a chain of communication. If a driver is ill, or will not be going to work one day, an alternate driver should be notified to ensure that other members of the carpool will have a ride. If a member is ill or will not be working, the driver must be contacted as soon as possible.

8. Drive carefully and keep the vehicle in good repair. This includes keeping the vehicle clean and safe. There are others involved. There should be no excuse for excessive speed, use of alcohol, or reckless maneuvers.

9. Respect your fellow carpooler's wishes. Especially in the morning when some people like a time of quiet.

Things debt collectors can’t say

By Lucinda Ramos, June 5, 2009
So what debts are secured & which are unsecured.

There are certain things that debt collectors can’t tell you. They can’t falsely imply that they are attorneys or government representatives; falsely imply that you have committed a crime; falsely represent that they operate or work for a credit bureau; misrepresent the amount of your debt; indicate that papers being sent to you are legal forms when they are not; or indicate that papers being sent to you are not legal forms when they are. Also they may not tell you will be arrested if you do not pay your debt; they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or actions, such as a lawsuit, will be taken against you, which legally may not be taken, or which they do not intend to take.
Author: Lucinda Ramos, Client Relations at CreditAllianceGroup (886) 543- 9073

Understanding the Requirements for a Re-Fi

The companies specializing in bad credit home loans are now getting hit with rising foreclosure rates as well as the possibility of heavy-handed regulation from the federal government. In May, the number of foreclosure filings was up 90% from the same time last year. What does this mean for you, the bad credit borrower? It might be harder to get a home loan refinance now. Here are some of the key requirements you'll likely need to meet:
Income verification:
You'll probably only qualify if you can prove you can afford the loan and prove your income.
Debt-to-income ratio:
Some lenders have allowed high debt-to-income ratios--how much you owe compared to how much you make--in the past, but now you may only qualify if your debt payments are less than 40% of your income.
Loan-to-value ratio:
Also referred to as LTV, this term refers to how much you owe on your home, or how much equity you have. In recent years lenders were willing to loan 100% or more against the home, but that has changed. In today's market you might only qualify for a 60% or 70% LTV.
Contact Your Mortgage Lender
If you think you might qualify for a home loan refinance, start checking out lenders. Shopping online allows for faster price comparisons--check with your existing lender but also shop to see if you can get a better deal on a home loan refinance elsewhere. If you find that you keep stumbling over your bad credit score you may need to spend some time cleaning up your credit before you apply. However, there are still plenty of mortgage lenders willing to work with bad credit borrowers, so don't be afraid to look!By EVAN COX

Repairing you credit with Credit Alliance Group using Debt Settlements

By: John Kendrex, May 28, 2009
Many times you may set out to repair your credit using the method of disputing to the credit bureaus alone. While this may work some of the time, there is a large percentage that remains unaffected by this. Another alternative to repairing your credit permanently is to do it through an accord and satisfaction also known as a restrictive endorsement and validation of debt.
How it works
When you have a charge off or collection account and it has been verified as accurate from the credit bureaus, that is telling you that the credit bureaus have questioned the item to the source which is usually the creditor or collection agency. They have replied back that the negative account is accurately listed. Once that has taken place you are usually at a dead end to repair your credit but... you do have another option. Credit Alliance Group will offer a settlement for full satisfaction of the debt to be reported as paid in full once enough funds have been accumulated for settlement.
Credit Alliance Group starts by offering in writing about 30% of the total debt as full and final payment. If they agree, CAG will make sure it has all been done in writing not via phone. Writing preserves your rights and shows a paper trail. Once your offer to settle the debt for less is sent off by certified mail, CAG waits for a reply of either yes or no from the creditor (usually a collection agency). If yes, CAG will simply make several copies of the signed agreement and forwards the settlement amount to them via money order. CAG makes sure your offer includes a clause that the debt will be reported as “paid” upon settlement. If they fail to update their records, you have the proof to send to the credit bureaus.
Your ultimate goal here is to get the credit reported rating up. After all that is why you are paying on the debt to begin with. It is always good to have a team of credit professionals working for you and keeping you on your toes when dealing with creditors and collection agencies. They are quite savvy and one slip up by you could renew the Statute Of Limitations (or S.O.L. as we call it, ha!) or worse.
Good Luck in your financial endeavors and remember, Credit Alliance Group is your first line of defense in protecting you from the collectors and creditors and your first line of offense in helping you regain your debt-free and stress-free life back!

10 Steps to Eliminate Debt

By: Natasha Hopkins

All it takes to fall behind on credit card payments is one month of expenses that exceed your ability to pay. Suddenly, you're in debt. Many people feel overwhelmed at the first sign of trouble. After all, how do you pay bills with money you don't have?
Kerry York, executive director of the nonprofit Consumer Credit Counseling Service of New Hampshire and Vermont, says, "Half of our clients who seek debt counseling are new to this type of financial hardship, and they are embarrassed and uncomfortable. The worst thing someone in debt can do is ignore it." Fortunately, there are constructive steps you can take to turn your finances around.
Prioritize.
Organize your bills so you can see exactly how much you owe and who your most important creditors are. Personal debt is confusing enough without having to deal with paper overload. Unless you are crystal-clear about what you owe, it's easy to continue spending money.
Make a solid plan for attacking your debt.
List everything you owe and the corresponding interest rates you are paying. Pay the most important debt first. Then pay off the debt that carries the highest interest rate. What you're aiming to do is eliminate the debt with double-digit interest rates.
Keep only one or two credit cards.
Remember, every time you use a credit card you are in effect borrowing money. The more cards you carry, the more confusion you'll have when it's time to pay your bills, particularly if you forget which credit card you used.
Also, consider asking your credit card company to lower your interest rate, especially if you have a history of paying your bills on time. You'll never know unless you ask.
Make your payments promptly.
Try paying off as much as you possibly can every month. Always pay more than the minimum amount you owe, even if it's a small amount. When you pay a card off entirely, close the account and have a little ceremony as you cut the card in half. The satisfaction is hard to beat. Financial expert, Suze Orman says, "Once out of debt you'll find the pleasure of not creating debt far exceeds the momentary thrill of buying something on credit that you don't really need, can't afford, and won't really care about much beyond the time you get it home."
Cut out luxuries and extra items you can live without.
When tempted to spend money on an item or service you want but may not need, remind yourself of all of your monthly obligations such as mortgage or rent, food, health care and transportation expenses, and the temptation should pass.
If you own a home, look into a home equity loan or line of credit.
You can't borrow your way out of debt, but using an asset like your home is essentially borrowing money from yourself. The interest on a home equity loan or line of credit is generally deductible at income tax time, and you can benefit from the savings.
You should only take out a home equity loan, however, if you are determined to remain debt-free, according to experts. You don't want to run up new debt after you use a home equity loan to pay off the old balance. Since the equity in your home may represent your single largest asset, you might also want to consider refinancing your existing mortgage. There are costs involved, but interest rates are at near-record lows and the overall savings may be worth it.
Borrow from family or friends.
This option makes sense if they can lend you money at a low rate of interest. But more than any other debt-reduction technique, this requires an accurate paper trail to determine how much money you've borrowed and from whom. You will also need to adhere to your agreement. Consider this option only if you are willing to do what it takes to make regular payments until the debt is satisfied.
Renegotiate the terms of your loans with your creditors.
Getting your creditors to rework the terms of your loans is sometimes possible. "Most creditors have heard every sad story in the book and are forced to be pretty hard-hearted," says Mike Whitten, senior counselor at the nonprofit Consumer Credit Counseling Service of Mid-Oregon in Eugene. "Having an impartial third party negotiate for you often gets results. Sometimes creditors will lower the interest rate on a loan just to show support for the debtor and to assure that payments are on time."
Borrow against your life insurance or the savings in your 401(k) account.
Both options offer fast results but carry risk. Again, you are borrowing your own money but with high penalties in case of default. If you borrow against your life insurance and fail to pay your premiums, your policy will lapse. Most 401(k) loans must be paid back within 5 years. If you leave your job before then, you must pay off the entire loan balance at once or you'll pay income taxes and a 10% penalty on the outstanding balance. In addition, your new contributions will be used to reduce the loan, not add to your savings.
Get help.
This sounds simple but most people are not sure where to go when debt has them over a barrel. Professional debt counselors can help you strategize and negotiate lower interest rates. They can also simplify the process of paying down your debt by consolidating your payments into one. This way, your payment is made to the debt-counseling firm, which then disburses it to the various creditors. For information on becoming debt free contact Credit Alliance Group at 866 903-2917 or visit their website at creditalliancegroup.net

Some Credit Card Debt Solutions…

(By: Chris Garner)

If you are determined to pay credit card debt off you are making the best financial decision of your life. The reason credit card debt is so bad is because it carries such a high interest rate.
The quickest way to take back control of your finances is to pay credit card debt down or get rid of it completely. Here are the best and quickest ways for total credit card debt elimination.
Eliminate Credit Card Spending
You must immediately eliminate credit card spending because you will never pay credit card debt off if you continue to add to the outstanding balance. The interest on that debt added with a climbing balance will make it impossible to ever pay off.
There are programs that negotiate the total balance down which in turns saves you money. Credit Alliance Group offers quality programs that resolve your debt in 6 to 48 months and specializes in eliminating credit card debt!
Always pay more than the minimum payment on the credit card you want to eliminate first. Paying the minimum payment makes you keep paying that high credit card interest rate. That's exactly what the credit card companies want because they are making a fortune off of that interest.
The best way to pay credit card debt off is start paying off the credit card with the highest interest rate first. Pay the minimum monthly payment on the others. Once each card is paid redirect your funds to the next highest interest rate card so you can eventually get rid of credit card debt.
Snowball Debt Payments
Snowballing debt payments means to transfer credit card debt from a high interest rate card to a low interest rate card. By doing this you pay a greater amount of money towards the balance and less interest on debt.
This increase in the amount of money you pay toward your outstanding balance allows you to snowball your efforts and pay credit card debt off quicker. It's worth looking at each individual card and determine how much interest you are paying with each of them.
Renegotiate With Creditors
Contact your credit card company and ask for a lower interest rate. They may want your business enough to lower it. The interest savings to you will multiply your efforts to pay credit card debt off quicker.
One last tip is, if you choose to close your credit card accounts, do not close them until after the final bill has been paid. Some credit card companies will penalize you by raising your interest rate if you close an account that carries an outstanding balance.
If you are ever going to get rid of credit card debt it's important to set a realistic budget for yourself. Lower your spending in all areas so you can pool your available cash to pay off your balances quicker. Think of how you will feel when you pay credit card debt off and you are finally free of high credit card interest.

Unemployment Rate on the Decline

By IsaBella June 5, 2009
Good news America, the jobless rate fell to 9.4% in May. This is the lowest reduction in payroll jobs since September. The much smaller than expected reduction reported by the Labor Department adds to the evidence that the recession is loosening its grip. This is the fourth straight month that the pace of layoffs has declined. “The Tide is turning “ said Richard Yamarone, and economist at Argus, “We expect the trend of slower job loss to continue throughout the year.” Yamarone went on to say “Today’s report supports the notion that the recession will end this year.”
On the bright side, education, health care, leisure and hospitality were among the industries adding jobs in May. Evidence has been mounting that the recession is letting up, with fresh signs emerging earlier this week. The number of people continuing to draw unemployment benefits dipped for the first time in 20 weeks, and first-time claims also fell. Homebuilders are boosting spending on construction projects and home sales are trending upward.
Author Bio: IsaBella, Senior Credit Specialist at Credit Alliance Group 866-540-3134

Starting Early with Money Management

Teaching children to be responsible about money is not an easy task We often have a hard time managing money ourselves so it can be a bit overwhelming trying to teach your kids how to be good with money. Here are a few tips from the on steps you can take to make sure your kids understand the value of a dollar and how to manage it.

Consider an allowance: As early as elementary school, your child is going to have to start paying for things they want or need. Decide whether the child needs to earn an amount for extras – toys and candy, for instance – then stress why working for treats is important. When kids are younger, you should keep a frequent watch over how they’re handling their cash and whether or not they are being responsible.

Teach by example: Children learn by watching your everyday examples. Do you live beyond your means? Every time you go to the store, do you pull out a credit card to pay or do you pay with cash? Do you and your fight openly about money at home? Your child picks up on all of this. While parents are not going to be perfect, think about your actions in front of the kids, and try to make them positive.

These actions will help build the foundation for the way that your children handle money and financial situations. A little time and effort will go a long way in helping your children have a secure future.

Lane Watson Client-Creditor Relations (214) 317-4060

Building Blocks of a Solid Financial Foundation

1. An emergency fund. When you have an emergency fund, life’s just different. What would be a major financial crisis without one turns into just a small setback instead. I prefer to have at least a year’s worth of expenses in an emergency fund, but everyone is different. The general wisdom is 3 to 6 months of expenses.

2. Commitment. Building a solid financial foundation means being committed to your financial goals, whatever they may be. If you want to retire by 40, break down what you need to do to get there and then do it. If you want to buy a house, set aside money each week for the down payment.

3. Staying out of debt, or getting out of debt if you’re in it. This means not borrowing money to begin with, or stopping with the borrowing if you’re already in debt. It also means being committed to your goals, and recognizing that a lot of debt is cultural. It’s seen as a solution, when there are better solutions out there.

4. Good habits. Having good financial habits is the most critical building block. Get this one in place and chances are you’ll rocket to the forefront financially. Good habits to have include stopping to think before you buy something, tracking your spending, and viewing things from a long-term perspective so that you set aside a percentage of your income for savings, investing, and retirement that you just plain don’t touch. Good habits can also include little things like balancing your checkbook, making it a habit to eat in, being willing to learn, or saying no when you’d rather do something else with your money or when you can’t afford something

Kristi Allen
(214) 329-9217

Crédito Prestado

Si usted conoce a alguien (un amigo bueno o padre) quién tiene el crédito bueno, usted puede "tomar prestados" sus listados de crédito buenos.
Este amigo debe tener naipes de crédito y debe confiar en usted bastante para permitir que usted se hiciera 'un usuario autorizado' en su tarjeta.
Hacen que su amigo llame su compañía de tarjeta de crédito y solicite que usted ser colocado en su tarjeta como un usuario autorizado. Una copia de la tarjeta le será enviada pero usted nunca tiene que usarlo (usted puede devolverlo simplemente a su amigo).
Su archivo de crédito va a deber mostrar pronto una cuenta abierta con toda la historia positiva que su amigo ha creado durante los años de aquella tarjeta de crédito. Una pequeña nota al pie de la página mostrará que usted es un usuario autorizado de aquella tarjeta.
Recuerde, sin embargo, cuando un nuevo cedente de crédito examina su archivo, él puede insistir que el equilibrio en la tarjeta aparezca en su estado de cuentas de proporción de deuda a ingresos. Esto no debería descalificarle para el crédito si sus ingresos son suficientes y usted no tiene un exceso de deuda en su archivo.

Here to Help

By Lucinda Ramos, May 29, 2009
A debt settlement program can of great blessing to help you come out from your various debt related problems. When you sign up for debt settlement services with them, these companies negotiate with your creditors and try to bring about healthy and fruitful agreements. It is doubtless of course, that the reduction of these debts is dependent over various conditions, but one thing is for sure that the outcomes are always positive and very beneficial. If the debt settlement company you have opted for is a reputable one and has enough to its credit, then it can actually get the terms in your favor getting a reduction.
Author: Lucinda Ramos, Client Relations at CreditAllianceGroup (886) 543- 9073

Piggy-back on a Friend

If you know someone (a good friend or parent) who has good credit, you can "borrow" their good credit listings. This friend must have credit cards and must trust you enough to allow you to become an "authorized user" on his card.
Have your friend call his credit card company and request that you be placed on his card as an authorized user. A copy of the card will be sent to you but you never have to use it (you can simply return it to your friend).
Your credit file will should soon show an open account with all of the positive history that your friend has created over the years from that credit card. A small footnote will show that you are an authorized user of that card.
Remember, though, when a new credit grantor reviews your file, he may insist that the balance on the card appear on your debt-to-income ratio balance sheet. That shouldn't disqualify you for credit if your income is sufficient and you don't have an excess of debt on your file.

12 steps to good money management

(By: Natasha Hopkins)

1. Pay bills on time to avoid late fees.Tips for eliminating late fees; 16 rules for paying your bills; Your credit card statement made simple
2. Pay more than the minimum on your credit cards.Calculate the true cost of paying the minimum; Pay biweekly to bring down balances; 15 credit card terms
3. Read your bank statement regularly.Anatomy of a bank statement; 7 ways to keep your account in check; Find the best account for you; 10 most common checking account terms
4. Build an emergency fund of at least three months' living expenses.FAQ about emergency savings; Kick off a savings plan; 17 easy ways to save more; Calculate what it'll take to save for a goal
5. Prepare a will.Everything you need to know to write a will; What's a living will?; More personal finance advice
6. Shop around for the best insurance rates and coverage.Comparison shop for coverage online; Cut costs with combined coverage; Tips for cutting auto insurance costs
7. Look around for and switch to credit cards with lower rates.How to transfer a balance safely; Ask for a lower credit card rate; Form letter to request a lower rate
8. Follow a monthly budget.Develop your own spending plan; What's your spending style?; Money-saving tips
9. Adjust your W-4 annually to make sure you are not giving the government too much money.Understanding withholding ; Open a flexible spending account; How to adjust your withholding; More on taxes
10. Check your credit report annually for accuracy.Why you should check your credit report; Understanding your credit report; FAQ about identity theft; Credit report form letter
11. Contribute to a retirement account.FAQs about 401(k)s; The ABCs of IRAs; Retirement savings reduce taxes; 401 (k) calculator; How much will I need to retire?
12. Comparison shop for the best deal on your mortgage or refinancing.Is refinancing right for you?; Estimate your savings with refi calculator; Save time and money by shopping online first; More on mortgages

7 Useful Tips To Manage Your Money During Global Recession and Financial Crisis

Global recession has been tremendously impacted to every aspect of our life. I guess started from sky rocketing world’s oil price. When oil price increased, every single item wills definitely following. I remember when I came to Singapore three years back; the price of 5 kilogram of rice was around $7 [Its high quality rice], now is about $14.00. Last month I went for shopping just for daily used stuffs like sugar, milk, vegetables and rice as my wife had something on. She was surprised when I bought different brand of rice. As I don’t really particular on the brand, I just grabbed package of rice which is within the budget which was stated on her shopping list.

Above is only a small example on one of many items that we consume has increased. Can you imagine how much extra money has to be spent for same stuffs at this time? There nothing has to be done unless your wages get increased. Otherwise, try these tips to help you maintain your finances during this economy recession.

1. Make fixed monthly shopping list.Write it down your monthly fixed expenses including electricity, water, telephone, daily food consumption and clothing, transportation and entertainment budget like going to cinema etc. Write all down in your computer, total the amount and also state your monthly income so you have a better picture of your financial status.

2. Reevaluate your monthly expenses.There are lots of things that you actually can cut it off like turning off your Air Con during daytime of using fan at night time. Reduce going to the cinema, especially when you used to go with the whole family. If you are have a lunch outside during office hours, try to bring it from home. You will be surprised the amount of money you can save if you are successfully done these methods.

3. Pay out your bills.Clear all your bills, save rest of the money. Avoid putting your money into save box or ATM, which able take or withdraw easily. Put them as time deposit, insurance or some investment [to whom with high pay]

4. Buy clothes at discounted shopsLook for discounted shops who offers their product in reasonable price. I am not really particular in clothing; I maybe buy new clothes every year. Anyhow, you don’t need to buy clothes every month right?

5. Avoid using credit card, if you hold more than one try to terminate some.I can say its ‘killer’. Why? It really can kill me end of the day when I received my credit cards statement because of lack of control. I had a bad experience with credit cards. Yes, it’s convenient to shop using credit card during transaction. You better use them wisely.

6. Cooperate with your partner. Encourage your family members on saving money and learn how to manage finances. Involve your partner to be financial controller. If you have a same vision and mission, it will be better in terms of money management and cash flow.

7. Look for extra income sources.You might better then I in term of how to create more income. I just want to say that get more income base on your ability. Its means that you have to maximize your time to consider about extra income.So stick to your financial budget. I know it isn't an easy thing to be implemented, but we have no choice, especially during economy crisis and global recession. We just started and we don’t know when it’s over.

By Donna Millen

US Economy is Showing Signs of Recovery

By IsaBella May 28, 2009
Yes, the Economy is showing signs of improvement and the recession is beginning to ease. The worst of the downturn is behind us," said Allen Sinai, chief economist at Decision Economics, a Boston financial markets advisory firm. "You're looking at a patient that was in critical condition, near rigor mortis, and now it looks like it's going to make it."
The economic data has begun to show improvement over the past several weeks. Consumer spending has rebounded , and is projected to rise according to leading economists. Business spending is up as orders for computers, equipment and other big ticket items rose beginning in February after a 6 month decline. Credit markets, which nearly dried up, have begun to stabilize, and loans for businesses and consumers are being made. Short- and long-term interest rates, including mortgages, are at an all time historic low. Over the past few weeks, realtors nationwide, have reported increasing activity; particularly by first-time homebuyers attracted by low mortgage rates, lower prices, and an $8,000 federal tax credit.
Realtor Suzanne Koller, said she's off to her best start in nine years of selling homes. She closed nine sales in the first three months of this year, compared to just three a year earlier. A year ago, Koller added, buyers seemed in no hurry to make a deal. But with the tax credit available only until the end of the year, and uncertainty about how long low prices and mortgage rates will last, "buyers are starting to feel a little bit of pressure to buy," Koller said.
Another piece of good news is the number of people seeking first-time jobless aid fell last week, a sign that companies are cutting fewer workers. The downward trend began in late March, when claims reached a peak for the current recession of 674,000. The drop since then indicates that companies are cutting fewer jobs, economists said, and is a sign that the recession is bottoming out.
Author Bio: IsaBella, Senior Credit Specialist at Credit Alliance Group 866-540-3134

Secured or Unsecured?

By Lucinda Ramos, May 26, 2009
So what debts are secured & which are unsecured.
Unsecured debts :
v medical bills
v credit cards
v department store cards
v personal loans
v student loans
v bounced checks
Secured debts :
v home
v auto
With a secured debt, it is tied to property as an automobile or a home promised if the debtor can't finish making payments, or defaults, on the loan. You will not be able to settle these debts, as the creditor will simply accept the promised property as the settlement.
With unsecured debts, there is nothing attached to the loan promised as repayment. Unsecured loans are typically given to people with good credit, due to the fact that they have good credit. These are the type of debts that a creditor is willing to settle, as they have no way to guarantee they will receive anything from you.
Author: Lucinda Ramos, Client Relations at CreditAllianceGroup (886) 543- 9073

Teens feeling the Economic Pinch

In our economic climate, many adults are worrying about their retirement funds, job security and house foreclosures. With all the anxiety and nerves , people have forgotten about one key group that can be greatly affected by this situation – America’s teenagers. This core group is often forgotten when we think of debt and how to handle it.

• One-third of all teens report less job availability.

• Nearly half said their parents had discussed family finances with them as a result of the economy.

• More than 50 percent say they talk about the economy with their friends.

Even though this group may not be watching the news, they’re staying informed on the status of our nation’s economy and adjusting their lives and the way they live it. What about the teens that you encounter throughout the day- does this affect their life? Take this as an opportunity to talk about it with them if you haven’t yet because chances are that its something they think about more often then you realize.

Lane Watson Client-Creditor Relations (214) 317-4060

Bankruptcy

Like most big, bad scary things, bankruptcy has a reputation based on a few tidbits of truth and lots of embellishment. It's not nearly as frightening once you know the truth.
With a mind toward de-clawing the monster, here are a dozen misconceptions about bankruptcy:
1. Everyone will know I've filed for bankruptcy.
2. All debts are wiped out in Chapter 7 bankruptcy.
3. I'll lose everything I have.
4. I'll never get credit again.
5. If you're married, both spouses have to file for bankruptcy.
6. It's really hard to file for bankruptcy.
7. Only deadbeats file for bankruptcy.
8. I don't want to include certain creditors in my filing because otherwise I can never pay them what I owe.
9. Filing for bankruptcy will improve my credit rating because all those debts will be gone.
10. You can't get rid of back taxes through bankruptcy.
11. You can file for bankruptcy only once.
12. I can max out all my credit cards, file for bankruptcy and never pay for the things I bought.
And here are the details:
1. Everyone will know I've filed for bankruptcy.
Unless you're a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors. While it's true that bankruptcy is a public legal proceeding, the number of people filing is so massive that very few publications have the space, the manpower or the inclination to run all of them.
Kristi Allen

Successful Money Management Skills

Make A Monthly Budget
One of the keys to successful money management is a monthly budget. Before you consider looking at your spending habits, you must know what you spend your money on. Gather all of your bills and monthly expenses that you are aware of, but don't forget to include incidentals, such as gas and dry cleaning. These variable expenses should also be included in your monthly budget and can be labeled as miscellaneous or however you see fit.
Clarify Your Financial Goals
Looking towards the future is always much more exciting when you know where you want to be - whether it's only 2 months down the road or 5 years. Goal setting is an important process that can help you secure your financial future. Write down your financial goals and keep them in a place where you can see them frequently. Don't be shy when you do reach a goal, however small you might think it seems. Reward yourself for your achievement.
Start Saving For The Future
Even if it's only $10 a month, start putting that $10 aside in a savings account or money market account that can generate some interest for you. The act of saving money can be very rewarding - not to mention very smart. Savings can be used as an emergency cushion, for retirement, or for something to reward yourself with when you complete a goal!
(By: Natasha Hopkins)

Financial Education

By: Chris Garner
Financial education is a subject that has been denied for most people. Most Americans lack some form of financial education. It is not surprising since money management skills were not taught in schools. A foundation to management and wealth strategies are essential to meeting your life's needs and future retirement.
Financial education consists of management skills, wealth creation strategies and a 'wake up' call to a person's financial reality. Having a 6- month emergency fund, getting out of debt, saving money for retirement is the name of the game of life. This means less worries, less arguments with significant other, and peace of mind for not only the present but for the future.
Fortunately, money management skills can be taught. Financial education and money management seminars and classes are beginning to appear and become available to the masses. Some public schools are offering classes on money management and/or financial planning to students of impressionable age.
With today's lackluster economy with many people losing their jobs, the stock market plummeting and real estate market going downhill, now it is the perfect time to learn how to get your finances in order and learn money management skills. Take the initiative to find the best investment vehicles for yourself and not rely solely on so-called experts and others who may not even be qualified to give out financial advice. Learn to save wisely. Seek out competent financial advisors to assist you with your financial planning.
It is never too late to take action. Management skills can be taught and learned. By obtaining the proper financial education, money worries and related stress may be alleviated. Take proper action and look forward to a brighter and more secure future.
Chris Garner is an expert in hearing your needs and getting you enrolled in an appropriate program to save you money and help you become debt free again. To learn more about how you can get started today , go to creditalliancegroup.net for more information.

Look for the catch

No money down! 12 easy payments! No interest financing! All those messages sound attractive, but in most cases, there is a catch (or two). Make sure you understand all the terms (including late penalties, prepayment penalties, basically anything involving a penalty) and that you have a solid, unshakeable plan to take advantage that can’t be derailed by life before you accept terms. In our personal world, life still derails things quite often, so we eschew payment plans no matter how nice the terms.

Is The Smart Money Really All That Smart?

Written By Chris Garner
Two approaches to improving financial performance in terms of the impact on profitability. In recent years, a somewhat heated debate has developed regarding the most appropriate approach to improving financial performance. In simplest terms, the two approaches are an operations approach and a working capital approach.
The Operations Approach – This view, which is more traditional, suggests that firms should focus on the income statement side of the business, emphasizing modest sales growth, gross margin management and the tight control of expenses. Small improvements in performance are suggested. In this perspective, inventory and accounts receivable are viewed as necessary investments to generate required levels of sales volume.
The Working Capital Approach – This more-contemporary view suggests inventory and accounts receivables are major cash traps that must be drained. The cost savings associated with lower investment levels will provide the higher profit for the firm. The emphasis is on making dramatic changes in investment levels rather than small ones. From a Wall Street perspective, this would be characterized as the “smart money” approach to improved results. This report examines the two approaches to improving financial performance in terms of their potential impact on profitability.
The Profitability Impact The chart on page 40 presents financial results for the typical AED member. Typical means half of the firms will perform below the results shown and half will perform above the results. According to the most recent CODB Report, this typical firm generates $25 million in sales volume, operates on a gross margin of 22.0 percent, and produces a pre-tax profit of $375,000 or 1.5 percent of sales. The key issue from a working capital perspective is that the firm requires $13.9 million in total asset investment in order to generate this level of sales and profit. Of this amount $10 million is in inventory and $2.5 million is in accounts receivables. With this investment, the firm produces a return on assets of 2.7 percent. The second column of numbers, Operations Control, looks at how the same firm would have fared if it had been able to produce 2 percent improvements in three areas of business. That includes (1) a 2 percent higher sales volume, (2) 2 percent more gross margin dollars on those higher sales (moving the gross margin percentage from 22.0 percent to 22.4 percent) and (3) a 2 percent reduction in payroll expenses. The operations impact is straightforward – an increase in both sales and gross margin and a decrease in payroll. There is also an increase in inventory and accounts receivables to support the sales. The overall result is that profits are increased sharply, from the $375,000 current level to $655,700, an increase of 74.9 percent. In addition, the ROA increases to 4.6 percent. In short, even modest improvements in operations have a large profit payout. In contrast, the final column of numbers, Working Capital Control, examines the impact of a rather dramatic 10 percent reduction in both inventory and accounts receivables. To make the best case for the working capital approach, it is assumed that the investment reductions can be made with no decrease in sales. Clearly, there is the potential that such large changes could undermine the entire business. The working capital approach rests upon generating costs savings from the lower level of investment. In the analysis, a carrying cost of 15 percent is assumed for both inventory and accounts receivables. This reflects the interest expense and related costs associated with maintaining such investments. With the 10 percent reduction in both inventory and accounts receivables, total assets fall by $1,025,000. Using the 15 percent carrying cost, the total cost savings is $153,750. When the expense reduction and investment reduction are combined, the ROA is 4.1 percent. Some financial observers suggest the actual carrying cost is in excess of 15 percent. However, in a low-interest-rate environment, 15 percent is high. This presents the best-case scenario for the working capital approach. The net result is that small changes in operations are much more significant than even large improvements in working capital management. This is not to say that the working capital approach is without merit. Surely, excessive investment should be avoided. However, it clearly points out that massive changes in investment are required to generate a significant profit improvement. The implication for AED members should be obvious. There is certainly a need to control the investment level. However, the operations side of the business must continue to be paramount. An Integrated Approach The debate as to whether firms are best served by dramatically reducing investment or by improving operations should not be a debate at all. Improv-ing operational performance will increase profitability quicker than any other approach and with less effort. At the same time, the challenge of managing cash flow has led firms to look at the working capital approach more than ever. What most firms should focus on is making small improvements in investment levels, not large ones. They must make the changes without reducing the effort that must be devoted to the operational side of the business. Following are some suggestions for highly specific goals for AED members. They are larger than the two factors used before, but are reasonable expectations for every firm. If implemented, they will allow the firm to grow without facing cash flow challenges and produce a sharp increase in profits.
Sales increase - 3 percent to 5 percent
Gross margin percentage increase - .2 to .3 percentage points
Payroll percentage decrease - .1 to .2 percentage points
Inventory turnover increase - .1 to .2 turns
Average collection period decrease - .5 to 1.0 days
This list is for a typical firm. Since no firm is exactly typical, every firm should tailor these goals slightly. Guidelines for doing so are contained in the Profit Improvement Profile that is contained in AED's Cost of Doing Business report.Moving ForwardTo ensure adequate profit levels in the future, AED dealer members must focus on the factors that matter. For the vast majority of firms, the factors that matter are on the operations side of the business. The control of both inventory and accounts receivables can be a valuable adjunct to improved operations. However, they should remain an adjunct only, not the primary focus of the firm.

Don’t Make Sacrifices — Spend Smart

It seems that all of us are having to make some changes to adjust to the shifting economy. But trying to save money shouldn't force you to sacrifice your way of life. That's why it's important to learn how to spend smart.
Additionally, it's important to learn why your efforts to save aren't — as some might suggest — prolonging the recession. Finally, it's critical to learn the best way to save so that you have a personal safety net. Find out how you can adjust comfortably to the new economic climate.

Why Do I Need to Save?
While this question might seem silly to some, the United States had the lowest rates of personal savings when compared to 19 other major industrialized countries.† Savings as individuals and as a nation are critical to provide a safety net for unanticipated expenses and times of economic turmoil. Additionally, with decreasing access to credit, a focus on personal savings has become imperative. Savings can also help generate capital that can be invested, promoting economic growth and keeping interest rates low.

Doing Your Part:
We often hear that our efforts to save could, in fact, hurt the economy.
While this may be the case if every American began hoarding all of his or her discretionary income, preventing this money from circulating back into the economy, simple steps to increase personal savings will undoubtedly boost the economy by providing stability and increased capital. In this current climate of depressed home values and shrinking credit lines, building up a strong savings can help provide you with a safety net should an unexpected expense arise. If everyone took steps to create these personal safety nets, the economy would benefit from the increased stability.

Saving Doesn't Have to Hurt:
Now that you know the importance of saving, you can rest easy; saving money doesn't have to mean giving up all of life's little pleasures. In fact, focusing on the little things may help you save MORE in the long run! How many times have you heard that cutting out your trip to the coffee shop could save you $60 a month? But, if you enjoy that daily cup of coffee, you could just as easily save that money by spending a weekend night in, watching a DVD instead of going to the movies, or consolidating grocery trips and sticking to a list. In many ways, those changes are much easier than sacrificing a coffee break — or whatever small indulgence makes you feel good — during your day.
Additionally, make your savings automatic and you're far less likely to feel the sting. If you are able to have part of every paycheck directly deposited into your savings account, you'll hardly notice the difference. Also, try to be frugal with what you otherwise might have considered "found" money. Your tax returns, for example, are a great source of money that can be saved for when it's needed. You worked hard for that money, and it's important to spend it wisely. Taking simple steps could save you big — literally — without having to sacrifice your way of life.

Sweeping Reform for the Credit Card Industry is One Step Closer to Reality

By IsaBella on May 21, 2009
The U.S. Senate voted on Tuesday to put new restrictions on the credit card industry. The bill had overwhelming support from both sides of the aisle. The bill’s backers say it will make the credit card issuers define their terms in more clear concise English. The differences in the bill that came up from the US House of Representatives will have to be worked out, but given the enormous support both bills have, it seems very likely that the negotiations will go quickly and smoothly between both houses.
“This bill cleans up the fine print so consumers can’t get blind-sided by their credit card companies,” Senator Harry Reid of Nevada, the Democratic majority leader, said recently in urging passage. “This bill will not only level the playing field and keep the rules consistent from beginning to end, and it can also save families thousands of dollars a year.” The banking industry of course does not see it that way. They fear that fewer credit cards will be issued and at a cost that is much higher for the consumer. They also fear that consumers will not be able to get credit when they so desperately need it. But with public sentiment that is running high against the financial industry, it isn’t likely they will be heard.
The Senate version would also prevent companies from raising interest rates on existing balances unless the cardholder was 60 days behind. It would require the rate to be restored to previous level after 6 months of on time payments. Credit Card companies would be required to notify their customers 45 days before the higher rate takes effect. Rates could not be increased within the first year, and promotional rates would be in force for at least six months. Also, it will also be more difficult to issue a credit card to people under 21.
It is most likely that the President will be receiving a copy of the bill on his desk before the Memorial Day recess.
Author Bio: IsaBella, Senior Credit Specialist at Credit Alliance Group 866-540-3134

Establishing credit

It can be frustrating when trying to obtain a credit card or other type of loan if you don’t have a credit history. How can you establish credit if nobody is willing to give it to you?

Lenders look at other factors that can help them decide if you are a credit risk or not.

1)Employment History. They have to see if you are able to hold a job or if there are periods of unemployment. Your ability to hold a steady job can improve the likelihood of getting approved.

2)Residence History. Just like your employment history, it pays to have a stable residence. Owning a home, even if it’s just jointly with a spouse, carries some weight as well. They look for how often you move and whether you rent or own.

3)Bank Accounts. Your account history can be vital component when lenders consider giving you a credit card or loan for the first time.

4)Utilities in your name. Having the utilities bill in your name also helps. Just having your name on these accounts won’t establish a credit score, but it can be helpful for first time borrows.

Establishing a good credit history takes time. Your credit score is based on a number of factors such as payment history, length of time you’ve had credit, and much more. While it is important to initially establish credit, it is even more important to take the time to do the right things to maintain good credit.

Is The Smart Money Really All That Smart?

Two approaches to improving financial performance in terms of the impact on profitability. In recent years, a somewhat heated debate has developed regarding the most appropriate approach to improving financial performance. In simplest terms, the two approaches are an operations approach and a working capital approach.
The Operations Approach – This view, which is more traditional, suggests that firms should focus on the income statement side of the business, emphasizing modest sales growth, gross margin management and the tight control of expenses. Small improvements in performance are suggested. In this perspective, inventory and accounts receivable are viewed as necessary investments to generate required levels of sales volume.
The Working Capital Approach – This more-contemporary view suggests inventory and accounts receivables are major cash traps that must be drained. The cost savings associated with lower investment levels will provide the higher profit for the firm. The emphasis is on making dramatic changes in investment levels rather than small ones. From a Wall Street perspective, this would be characterized as the “smart money” approach to improved results. This report examines the two approaches to improving financial performance in terms of their potential impact on profitability.
The Profitability Impact The chart on page 40 presents financial results for the typical AED member. Typical means half of the firms will perform below the results shown and half will perform above the results. According to the most recent CODB Report, this typical firm generates $25 million in sales volume, operates on a gross margin of 22.0 percent, and produces a pre-tax profit of $375,000 or 1.5 percent of sales. The key issue from a working capital perspective is that the firm requires $13.9 million in total asset investment in order to generate this level of sales and profit. Of this amount $10 million is in inventory and $2.5 million is in accounts receivables. With this investment, the firm produces a return on assets of 2.7 percent. The second column of numbers, Operations Control, looks at how the same firm would have fared if it had been able to produce 2 percent improvements in three areas of business. That includes (1) a 2 percent higher sales volume, (2) 2 percent more gross margin dollars on those higher sales (moving the gross margin percentage from 22.0 percent to 22.4 percent) and (3) a 2 percent reduction in payroll expenses. The operations impact is straightforward – an increase in both sales and gross margin and a decrease in payroll. There is also an increase in inventory and accounts receivables to support the sales. The overall result is that profits are increased sharply, from the $375,000 current level to $655,700, an increase of 74.9 percent. In addition, the ROA increases to 4.6 percent. In short, even modest improvements in operations have a large profit payout. In contrast, the final column of numbers, Working Capital Control, examines the impact of a rather dramatic 10 percent reduction in both inventory and accounts receivables. To make the best case for the working capital approach, it is assumed that the investment reductions can be made with no decrease in sales. Clearly, there is the potential that such large changes could undermine the entire business. The working capital approach rests upon generating costs savings from the lower level of investment. In the analysis, a carrying cost of 15 percent is assumed for both inventory and accounts receivables. This reflects the interest expense and related costs associated with maintaining such investments. With the 10 percent reduction in both inventory and accounts receivables, total assets fall by $1,025,000. Using the 15 percent carrying cost, the total cost savings is $153,750. When the expense reduction and investment reduction are combined, the ROA is 4.1 percent. Some financial observers suggest the actual carrying cost is in excess of 15 percent. However, in a low-interest-rate environment, 15 percent is high. This presents the best-case scenario for the working capital approach. The net result is that small changes in operations are much more significant than even large improvements in working capital management. This is not to say that the working capital approach is without merit. Surely, excessive investment should be avoided. However, it clearly points out that massive changes in investment are required to generate a significant profit improvement. The implication for AED members should be obvious. There is certainly a need to control the investment level. However, the operations side of the business must continue to be paramount. An Integrated Approach The debate as to whether firms are best served by dramatically reducing investment or by improving operations should not be a debate at all. Improv-ing operational performance will increase profitability quicker than any other approach and with less effort. At the same time, the challenge of managing cash flow has led firms to look at the working capital approach more than ever. What most firms should focus on is making small improvements in investment levels, not large ones. They must make the changes without reducing the effort that must be devoted to the operational side of the business. Following are some suggestions for highly specific goals for AED members. They are larger than the two factors used before, but are reasonable expectations for every firm. If implemented, they will allow the firm to grow without facing cash flow challenges and produce a sharp increase in profits.
Sales increase - 3 percent to 5 percent
Gross margin percentage increase - .2 to .3 percentage points
Payroll percentage decrease - .1 to .2 percentage points
Inventory turnover increase - .1 to .2 turns
Average collection period decrease - .5 to 1.0 days
This list is for a typical firm. Since no firm is exactly typical, every firm should tailor these goals slightly. Guidelines for doing so are contained in the Profit Improvement Profile that is contained in AED's Cost of Doing Business report.Moving ForwardTo ensure adequate profit levels in the future, AED dealer members must focus on the factors that matter. For the vast majority of firms, the factors that matter are on the operations side of the business. The control of both inventory and accounts receivables can be a valuable adjunct to improved operations. However, they should remain an adjunct only, not the primary focus of the firm.

An Escape out of Debt

By Lucinda Ramos, May 15, 2009
If you're drowning in unpaid bills and desperately looking for a way out, chances are you've come across an offer that sounds something like this: For a fee, a professional debt-settlement company will help rid you of your debt for as little as half the amount you owe. Sounds like a scam? Or like you're finally getting the break you deserve? The answer may surprise you. Debt settlement is, in fact, a perfectly legal solution for consumers who are in deep and seeking an alternative to bankruptcy. After we have settled a debt the creditor forgives the rest of your debt and starts reporting it to the credit bureaus as settled. This is continued until you save funds for another settlement. On your credit reports, the balances of settled debts will show $0.

Author: Lucinda Ramos, Client Relations at CreditAllianceGroup (886) 543- 9073

If………………

If there was a way to eliminate your debt? If there was a way to save 60% off your debt amount? If there was a way to rebuild your credit score through the process, by closing the debt to income ratio…..why wouldn’t you do it.If you are looking at debts that your are staggering under the weight, it is time to look for new solutions. Our banks have been very creative with the way they are addressing their needs. Does it feel like you are the only one without any choices? You can choose to get out of debt.
In this time of our nation, everyone is scrambling to figure out what to do.
Debt management is a solution. Consider, the average household has $10,000 in debt. However, I rarely hear that number, the clients I speak with have between $20,000 to $50,000 in unsecured debts. If they have, or can keep a 18.9% interest rate a rate that was considered usury only in 1989, twenty years ago, that is now a middle road rate – and you make minimum payments anywhere from,32-40 years, you will eventually eliminate the debt. People tell me they can handle their credit cards, they are more concerned about their mortgage. The house does come first, but consider when your debt to income ratio is too high, you can’t get that re-fi or modification loan you need, but you can do something about the unsecured debts, that have taken on a growth rate that is staggering. Consider enrolling the debt in our program, where the payments go into an FDIC insured account. That is 100% safe. Your creditors know how debt management works, they know you are not defaulting on your debt, you are going to pay it by choosing this method.
You can be debt free in six to thirty-six months (we do have longer plans). Your goal is to eliminate your debt. You will close the debt to income ratio, and rebuild your credit score through this process. Bankers are not the only ones, who have to think outside of the box. The average American Family, is facing an economy, we never dreamt of in our life time. Where everything seems out of control, you do have the option of taking control back. You can be in charge of your financial future. You can make decisions, get things turned around. You can be debt free.

¿Cansado de las Llamadas telefónicas?

Una manera fácil de conseguirlos parar es de ejercitar sus derechos bajo las Prácticas Justas federales de Cobro de morosos Actúan (FDCPA) y otras leyes que aplican a cobradores de deuda.
Aquí está un acoplamiento al FDCPA para que usted aprenda las sus derechas.
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf
Si usted consigue llamadas de sus colectores esto significa que usted necesita crear un plan y el acto sobre llegar a ser libre de la deuda. En el CreditAllianceGroup nosotros tenemos programas que recorren de 6-48 meses y le pueden dar el control y respiración que usted desea de ser libre de deudas. Denos una llamada para una consulta libre con uno de nuestro Especialistas.
1-866-359-5677

A few reasons to use a Debt Management Program.

There are many reasons to use a debt management program when you are trying to get your credit back on track and several can help reduce your amount of stress almost immediately.

When using a debt management program you are able to eliminate the harassing and often upsetting calls from your creditors. We use a feature called the DAAN module which deals with the persistent creditors.

You will no longer have to deal with late fees or other added charges that can pile up when handling your debt on your own. As many people know the extra fees can sometimes wipe away any progress you may have made in the previous months, with a debt management program you can avoid all of this.

Debt management programs provide an alternative to filing bankruptcy that will enable you to eliminate the harassing calls and still pay off your debt.


Lane Watson Client-Creditor Relations (214) 317-4060

Eliminate Credit Card Debt

Credit card debt is at an all time high and while credit card debt is easy to get into, getting out can be a long and hard process. You can get ideas that will help quickly reduce or eliminate your credit card debt so you can answer a question like : How do I eliminate that credit card debt and which solution is best for me?
When comparing your monthly income to what you owe, you may feel a permanent solution is not possible. However, there are ways you can reduce credit card debt.
Putting a little time and research into this subject can make a world of difference. For some people they have a small amount of debt to deal with while others are in need of a substantial plan to get back on track with a good credit score and good credit history.
When dealing with credit card companies ask for their rates and compare them with others. If they are legitimate then they should provide you with information for free and with no problem. Look at their website to get more information and for answers to other questions you might have. Be prepared with a list of questions to ask and call them or have them call you. This will point you in the right direction of being debt free.
Natasha Hopkins Client- Creditor Relations (214) 377-1562

Is Bankruptcy always the best choice?

May 15, 2009- customercare@creditalliancegroup.net (866) 454-5044
Have you thought if Bankruptcy is truly the best answer for your debt problems? Here are some reasons to why Bankruptcy is not always the best choice:
Bankruptcies on a Credit Record
A Chapter 7 bankrutpcy may display on your credit for 10 years from the date of filing. Chapter 13 may stay for 10 yeas also, but it is customary for those to be removed after 7 years.
Here is more specific advice and input from various FAQ:
Ten (10) years for a discharged chapter 7 or 13. Seven (7) years for a dismissed chapter 13, ten (10) years for a dismissed chapter 7.
Although it is true that the federal Fair Credit Reporting Act does provide that bankruptcy entries will remain for 10 years, there are some creditors that will only leave a chapter 13 bankruptcy on your record for 7, rather than 10 years. They do this to encourage people to pay part of their debts rather than discharge it all under a chapter 7.

· In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs, and schedules, the debtor must compile the following information:
1. A list of all creditors and the amounts and nature of their claims;
2. The source, amount, and frequency of the debtor's income;
3. A list of all of the debtor's property; and
4. A detailed list of the debtor's monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.

Contact a Sr Credit Specialist Today: customercare@creditalliancegroup.net (866) 454-5044

DO YOU QUALIFY TO REFI?

By IsaBella on May 12, 2009
While interest rates are at their lowest since the 1950’s (under 5% on 30 year fixed rates) many people are eager to refinance their mortgage. The news is full of stories about the government bailouts and a large segment of Americans believe that due to the current economic crises, they can refinance their mortgage and get a lower monthly payment, no problemo . The reality, however, is much different. The banking institutions have tightened up their requirements and only a small portion of the population will qualify. Here is an overview of what it takes to qualify for refinancing.

To qualify for the lowest rates, you need:
A FICO score of 720 or higher
20% equity in your home. This is based on the current appraised value, not the purchase price
No second mortgages or home equity line of credit
Stable employment history

Well, have I dashed your hopes for a lower house payment? Then start working to get your credit report in tip top shape so you CAN refinance. Pay off any second mortgages or HELOC loans you may have. Review your credit reports and check for inaccuracies. For example, debt being reported twice or information that is 7 years or older that has not fallen off your credit report. Charge accounts that you have paid in full, have those accounts update properly? How about those unsecured debts …credit cards, personal loans & medical bills. Are they raising your debt to credit ratio and bringing your score down?
Well, chin up; there is a sound financial solution. You can enroll in Credit Alliance Group’s Debt Management Program. The credit specialist at Credit Alliance Group can combine those unsecured debts into one low monthly payment and have you completely debt free in 6 to 48 months. By eliminating your unsecured debts, you will have a credit score that will allow you to refinance your mortgage, purchase a new vehicle and get credit offers that have lower interest rates than you currently have. CAG can also review your credit reports from the three major bureaus and have any inaccuracies updated or removed. Ask your credit specialist about this and other benefits they provide as part of their exceptional customer service designed to effectively help you achieve your goal of becoming debt free. You maynot be able to lower your monthly payments by refinancing, but you can with debt management. Give yourself the the “breathing room “ you are looking for.
Author Bio: IsaBella, Senior Credit Specialist at Credit Alliance Group 866-540-3134

Your 5-minute guide to budgeting

'Budget' is not a four-letter word, but many people avoid it like one. These 20 tips can help you face up to your finances and achieve your monetary goals.
Budgeting isn't a punishment for not being born wealthy.
It's an avenue to know where your money goes and help you reach your financial goals, whether it's a new home, a comfortable retirement or just making it to your next paycheck.
When all is said and done, you simply can't spend more than you make, at least not for long.
What's going out?
The first step is figuring out where your money goes right now. Use an online worksheet or a plain old notebook to keep track of your spending for a few weeks. Go through your checkbook and credit card statements. Add up the amounts, and you'll have a good idea about your spending habits.
A few things to consider:
Common budget categories include housing (rent or mortgage, homeowner dues), recurring bills (cable, utilities, insurance and credit card minimums), food and entertainment.
Let your categories fit your life. You might have expenses for school-related items (tuition and books), pet care or travel. If your hobby is your passion, make it a category.
Account for big expenses that occur once or twice a year, such as car insurance.
Consider making your vehicle its own category. Payments are only the start.

When your expenses are tallied, go through your pay stubs and calculate your average monthly income. Don't forget to include interest income, dividends, bonuses and alimony.
Once you know how much you earn and how much you actually spend, decide where and how much you want to spend. Divide by 12, and voilà -- you've got a monthly budget. Adjust as necessary until your monthly budget equals your monthly income.
Some things to keep in mind:
Figure out which of your expenses are wants and which are needs. Actual needs are fairly limited: food, shelter, clothing. Nearly everything else is a want, but even the way we fulfill our needs involves choice.
Try "The 60% Solution." Essential spending comes out of the first 60% of your income. The rest includes retirement, emergencies, debt repayment, fun money, etc.
Prioritize. Fund your retirement first, no matter what. Put enough in your 401(k) to grab the employer match. Then start tackling your debts.
Don't forget an emergency fund. This will go a long way to keeping you out of debt should the unexpected happen -- and it will. If you don't have funds now, use your income-tax refund or set up a regular electronic transfer from checking to savings

Take a little off the edges
Once you're on your way, keep track -- at first weekly, then monthly -- of where you're going off budget and adjust your allocations.
Food, for instance, often goes unchallenged. You might wince at the checkout counter, but you do have to eat. Still, there are ways to cut the food budget without sacrificing quality or quantity.
Many stores reduce their products based on a 12-week cycle, so notice when something goes on sale, but don't buy until it hits the rock-bottom price.
Keep a notebook for a while so you get to know the rock-bottom prices on items that you frequently purchase. Keep track of which products are cheaper store by store.
Food isn't the only place for savings. Here are some other ideas for keeping your budget on track:
Bookmark deal-finding Web sites and check them before making any purchase online or any big purchase offline. Check sites such as MyBargainBuddy.com, AbleShoppers and Dealnews for online bargains and coupons.
Review your habits. Do you need the full-on cable package or caller ID? Do you pay full price at a convenience store for items you could buy for less on your weekly grocery shopping trips
Some people fritter away cash; others use a debit card as if it had unlimited credit. Whichever you might be, consider converting. A debit card devotee is more likely to think twice about spending cash, especially if you leave your ATM card at home.
If things still aren't adding up, look at whether you need to adjust your allocations or change your spending habits.
Building the budget habit
Successful budgeting takes time and persistence, so don't be discouraged if you don't hit your monthly goals at first. Here are some ideas to make it easier:
Write it down. If you don't, you probably won't stick to it.
When good fortune comes your way in the form of an "extra" paycheck or a bonus, pay an annual premium, make an additional mortgage payment or use it for seasonal extras, such as summer vacation costs or Christmas presents.
If you can't spend less, earn more.
Get into the habit of thinking ahead. If you know your situation is going to change -- a new baby, new winter clothes, a new job -- plan for it and try to pay cash.
Remember, budgeting is the means, not the end. Keep spending "mistakes" in perspective.
As your income climbs, don't splurge until you're sure you're staying ahead of inflation. A good budget grows with you, so it's worth re-evaluating your budget every year.

CHANGING YOUR LIFE THROUGH BETTER MONEY MANAGEMENT

Life is a challenge. As the saying goes, just when you're about to make ends meet, someone moves the ends. While it can be a struggle to pay bills, make the rent payment and provide food and clothes for the family, we keep on doing our best.Ultimately, the life we want—a better place to live, enough money to pay our bills, and fewer concerns about finances—is possible if we keep focused on our goals.That's where this site can help. By providing personal financial planning tips and information, it provides concrete advice on how to manage money so money doesn't manage you. By… Chris Garner

Tired of the Phone Calls yet?

By: Eric Pinola May 11th, 2009
One easy way to get them to stop is to exercise your rights under the federal Fair Debt Collection Practices Act (FDCPA) and other laws that apply to debt collectors.

Here is a link to the FDCPA for you to learn your rights.
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

If you are getting calls from your collectors that means you need to create a plan and act upon it to become debt free again. At Credit Alliance Group we have programs that range from 6-48 months and can give you the control and breathing room you desire to become debt free. Give us a call for a free consultation with one of our Sr. Credit Specialists.
1-866-359-5677 toll free
Author bio, Eric Pinola is the Director of Enrollment at CreditAllianceGroup 1-866-359-5677

Emergency Funds

When something comes up that requires an unexpected use of money, where do you turn? Emergency or financial setbacks can be frustrating to deal with. It is impossible to predict every possible scenario that could occur, but just having an emergency fund in place can go a long way.
If you don’t have emergency funds you will probably turn to credit cards or loans. They can work in a pinch, but the problem will become worse. You will be required to make monthly payments plus pay interest. Having an emergency fund is the first thing you should try to accomplish.
You should have 3-6 months of expenses saved up. If you are just getting started, this may seem like an aggressive goal. One must realize that you can still get there by starting small. If you have to start by saving $20.00 per pay check and as you get use to it you can set aside a little more. Include your fund in the budget. You can slowly increase this amount. It won’t happen overnight, but slowly you will watch your emergency fund begin to grow. Being prepared can mean the difference between getting through it and bankruptcy

Types of Bankruptcy

By P. Grainger, May 05, 2009
Although bankruptcy allows a debtor a way out of a vicious cycle of debt, it should not be taken lightly, and should be a means of last resort. This is understandable as bankruptcy will have a major impact on your life for a number of years after the act. If you have tried all other options and have found that Bankruptcy is your only option, you must determine which filing status you will need. The options are Chapter 7, Chapter 11, and Chapter 13.
Chapter 7 is the most severe. It can be used by all individuals and businesses. All unsecured debts are terminated, and are paid if any money remains after secured creditors are paid and after various exemptions permitted by law are claimed by debtors. Chapter 13 is typically used by wage earners and small businesses. Chapter 13 Bankruptcy filing is also known as the Chapter 13 Plan, or an individual reorganization. This filing will delay and reduce the amount of payments to creditors over a period of time. Chapter 11 is used by larger businesses, and resembles a Chapter 13, with many more requirements. If all a debtor needs, is a plan to pay off debts, then a Chapter 13 or Chapter 11 is preferable, rather than a Chapter 7, particularly when trying to reestablish their credit worthiness.
Before any debtor decides to looks into Bankruptcy, a Debt Management Program should be considering. It’s almost the same as a Chapter 13 Bankruptcy filing because a Debt Management Program allows you to consolidate all of your bills into one monthly sum so that you can free up some of your money while paying these debts back over period time. You can compare our Debt Management Program versus a CCCS or even a Bankruptcy option using a Debt Calculator. If you have any questions or believe that this would be a great option you can contact Credit Alliance Group.

Author Bio: P. Grainger, Accounting-CreditAllianceGroup

Commonly made Mistakes during Debt Elimination

Debt elimination can be a very stressful process. Before you start, you’ll want to know how it works. Debt elimination, simply put, means eliminating your debts. You prepare a plan to address and eliminate our debt. This may present some challenges when attempting it on your own. Don’t get discouraged, you can do it yourself.
Debt Elimination Strategy
Before you do anything, you have to establish a budget. Without a solid budget, you may fail before you get started on your journey to eliminating debt. Your strategy should begin with a budget in order to get your financial picture in focus. Once you know what’s coming in and what has to go out, you’ll know what’s left over. You can use the leftover to eliminate and pay off your debt.
Stay away from these mistakes
Common Mistakes
Below are some of the most common mistakes made when attempting to eliminate debt.
Obtaining new debt.
Paying only the minimum amount due each month.
Not devising a budget and sticking to it.
Canceling credit cards before they are paid off.
The final one – putting off dealing with your debt

Dealing with Debt

Not being able to manage debt is a major cause of many stress related health issues as well as marital difficulties. It’s important to learn how to control your debt and if it's already a problem, what you can do to make it through the situation. Recognizing the warning signs of too much debt, negotiating with creditors and, if necessary, handling bankruptcy can sometimes be vital to dealing with your debt. One of the most important things is to know your legal rights, responsibilities and options. Consumer debt continues to increase and many consumers find themselves looking for any way out of what can often seem like an impossible situation.
It is unfortunate but one option that many choose is bankruptcy, although there are other ways of dealing with the situation. Another is hiring the services of a debt management company to help when the situation seems too daunting. Instead of purchasing expensive clothing go only on sale days where prices are marked down substantially. Cut up all the credit cards you have except one. Keep it on hand, at home, for emergencies. Then, buy only with cash. When you get your monthly bills and review them you may feel overwhelmed by the amount of money that you’re spending simply because of debt. Don’t get discouraged because there are always ways of reversing this situation and solutions to your problems. Good debt should be obtained through wise decision-making about your current situation but also about your future as well.

Lane Watson Client-Creditor Relations (214) 317-4060

Are you spending habits causing you to spend more than needed?

May 8, 2009- customercare@creditalliancegroup.net (866) 454-5044
Do you ever think you are spending money on things you really don’t need in life? Here are a few facts from Joan Goldwasser, Senior Reporter, Kiplinger's Personal Finance:
Does the avalanche of news about layoffs, business losses and a declining stock market have you looking for ways to cut your spending so you can beef up your savings?
Afternoon snacks. Do you munch protein bars as a healthier alternative to a chocolate pick-me-up? You could easily be paying more than $2 per bar and consuming just as much sugar as you would with your favorite candy bar. Stock up on fruit for a fraction of the cost when you do your grocery shopping. You'll be fitter and save a bundle.
Bottled water. Yes, it's important to drink water every day. But picking up the bottled variety with your lunch is an expensive way to stay hydrated. Rather than spend $2 a day for water, buy a pitcher and a filter for about $20 and drink as much as you want for pennies a glass.
A caffeine fix. Can't get through the day without at least one cuppa Joe? Stopping at Starbucks or Dunkin' Donuts can set you back as much as $1.65 per cup. Splurge on a pound of gourmet coffee for $8 to $13 and you can make 40 cups for about 20 cents to 33 cents each.
Favorite tunes. Do you rush out to buy the latest CD by your favorite group even though there are only one or two songs you really like? Instead of paying up to $18 for the CD, download those cuts you want from iTunes for 99 cents each, or from Amazon for as little as 79 cents.
A night at the movies. An evening for two at your local theater costs an average of about $20, including the popcorn -- and closer to $30 in major cities. And that doesn't even count the babysitter. For just $5 a month, you can watch two movies from Netflix or pay $9 for unlimited viewing. If you're willing to wait a little longer for new releases, borrow them free from your local library. (See Cut the Cable Cord for other inexpensive entertainment options.)
Fresh flowers. A bouquet of spring blooms brightens up a room and your mood. But purchasing it from a florist at $25 and up can quickly put a dent in your budget. Check out your local grocery store, which offers a selection of seasonal bouquets for $5 to $10.
Fruits and veggies. Sure, precut vegetables and salad mixes that are washed and bagged save a little time. But you'll pay for the convenience. Broccoli florets and sliced peppers cost $6 per pound, compared with one-third to one-half the price for the uncut versions. Lettuce varieties that are pre-washed and bagged sell for $5.98 a pound. But it takes just minutes to wash and spin dry enough arugula for your evening salad, and you'll pay one-third as much. Buying whole strawberries rather than sliced ones that are prepackaged cuts the price by 75%.
Credit-card fees. Every month, millions of credit-card customers pay their bills late, and they're assessed as much as $39 each time. Set up an automatic debit and you'll never incur another late fee.
ATM fees. Each time you use an out-of-network ATM you pay an average of $3.43. Do that once a week and you'll rack up almost $180 in ATM fees every year. Avoid those charges by selecting a bank with a large ATM network or an online account that reimburses your ATM fees -- such as the eOne no-fee account from Salem Five Direct bank. Another alternative: Get cash back at the grocery store.
Fax and mail services. Instead of paying FedEx $1.49 to fax one page, sign up to send free faxes from a provider such as faxZero or K7.net. Save on shipping with the U.S. Postal Service's priority mail service. You'll pay just $4.95 to mail an envelope or small box anywhere in the U.S., and your parcel is likely to arrive within two days. Larger packages cost $10.35. That saves at least 50% compared with UPS's two-day service, the cost of which varies by weight and distance.
Contact a Sr Specialist Today: customercare@creditalliancegroup.net (866) 454-5044

Plan Your Debt Elimination Program with CAG

May 8, 2009- customercare@creditalliancegroup.net (866) 454-5044
1. What can be done.
It’s important to know that even if you have accumulated a lot of debt, it’s still possible to succeed with keeping it under control and eventually eliminating it. However, if your financial situation is really weighing heavily on you and you find yourself overwhelmed, it would be a good idea to seek help and support elsewhere. There are a lot of resources out there that can help, such as CAG. Debts can be eliminated over time with settlement options. During the time of collections you would receive a DAAN device to better assist you with collection calls so you won’t be stressed in a day to day routine.
2. Set goals.
Making a promise to ourselves to deal with our debt is one thing, but we need to do something that will make the commitment concrete. Setting a date for when we expect to reach our goals will give us a roadmap against which to measure our progress. Goal setting is a great tool to ensure that we keep ourselves focused and headed in the right direction as we tackle our debt reduction program.
3. Set a financial goal.
A lot of people who’ve been able to banish their debt have made sure that they stick to their priorities. For these folks, when events and situations come up that may entail that they fork over some money, their reaction has been to either defer or abstain from succumbing to those temptations. CAG helps you to save funds to the side to better assist you with settlements towards a goal on your debt.
WHAT ARE YOUR GOALS ON DEBT YOU NO LONGER CAN CONTROL
Contact a Sr Specialist Today: customercare@creditalliancegroup.net (866) 454-5044

House Passes Credit Card Holder’s Bill of Rights

By IsaBella on May 6, 2009
Last Thursday, the US House of Representatives passed the Credit Card Holder’s Bill of Rights. The legislation is fueled by consumer’s anger over government bailouts and antibusiness sentiment. The legislation, which was strongly endorsed by the White House would eliminate abrupt increases in interest rates, eliminate the double-cycle billing and adds restrictions for credit cards issued to college students. It would also require consumers to be notified 30 days before their accounts are closed as well as better definition of disclosures in the fine print.
Now the bill moves to the Senate. "This is a unique opportunity to end abusive practices that afflict millions of families across the nation, to contribute to our economic recovery and to take a stand for American consumers," said Sen. Christopher Dodd, chairman of the Senate Banking Committee and the bill's primary sponsor. "Now it is the Senate's turn to act." The White House echoed their endorsement as well, "The nation's credit card system must have more accountability, including more effective oversight and more effective enforcement of credit card issuers who violate the law." the White House said.
The bill now moves to the US Senate, where their work can begin on this as early as next week. If the bill becomes law, the new provisions will not take effect for one year, except the requirement that consumers be notified 45 days before their interest rates increase. That notification would go into effect in 90 days.
Author Bio: IsaBella, Senior Credit Specialist at Credit Alliance Group 866-540-3134

'Zombie' debt is hard to kill

Companies now buy ancient bad debts for pennies and squeeze you to pay. Here's how to get them off your back.
By Liz Pulliam Weston

There's money in old debt
A decade ago, few creditors tried to collect on old accounts, figuring it wasn't worth the effort.
Today, however, collecting on old debts is a rapidly expanding industry. Aggressive companies can buy charged-off credit card accounts from the original lenders for pennies on the dollar or less. Then, they use credit-scoring and other new technologies to identify which debtors are most likely to pay. The players in this "junk debt" market range from fly-by-night outfits to well-established companies funded by Wall Street investors.

Your old debts sold for 3 cents on the dollar
Buyer
Asset Acceptance
Encore Capital Group
Portfolio Recovery Associates

Bought debt worth:
$4.2 Billion
$5.9 Billion
$5.3 Billion

Paid:
$102.3 million
$195.6 million
$149.6 million

Cents on $
2.4
3.3
2.8

Nice People in the World

Evan Cox, Sr. Credit Specialist

Haven't you always wanted to be nice to people? To have them be nice back? Being nice is not difficult, but it needs some polishing for others to realize your effort. A smile on your face makes others smile also. A kind word to someone, or holding a door open to the person who is about to enter, is really easy to do, and in the long run will make you happy also. I strive for people to say “wow, what a nice guy”. I also am working on removing cuss words from my vocabulary as this projects an ugly image of you.

The Real Culprits to the Housing & Bank Crisis

By: Eric Pinola , May 8th, 2009
Since most of the people that I speak with each day demonstrate a lack of understanding of the events that led us to the recent economic bailout; and the true culprits that caused it I have compiled a summary of events for you.
The background story that brought us to the vote began during the Carter administration. The Community Reinvestment Act, which was well-intentioned, encouraged lending institutions to invest in their local communities by offering loans to qualified buyers of properties in disadvantaged communities.
Ten percent of their residential loans were supposed to go to under-qualified applicants. As is the case with too many good ideas, this humble attempt to help hard working people buy a home in their community soon took on a life of its own. Over the next 20- plus years, bureaucrats and liberal politicians continued to rewrite lending regulations to penalize banks that did not advance their social engineering plan. Organizations such as the Association of Community Organizations for Reform Now (ACORN) were allowed to lodge complaints against banks alleging discrimination. In response to the pressure from the federal government, which was at least in part based on ACORN's input, lenders continued to loosen the requirements for loan qualification. The absurdity ended with the infamous "liar loans," or loans where no proof of income or employment were required. This housing crisis was the result of another attempt at social engineering.
Terrie Gonzalez would have us believe that the Bush administration and the federal deregulation of the lending industry are responsible for the economic crisis, when the opposite is true. The fact is there was no deregulation of the industries or agencies involved, only the failure to regulate, which was opposed by those seeking to increase home ownership in the segment of the population that had been "traditionally underserved."
The strengthening of the Reinvestment Act under the Clinton administration, and the oversight provided by Chairman Barney Frank of the House Financial Services Committee and his senate counterpart, Christopher Dodd Chairman of the Banking, Housing, and Urban Affairs committee are responsible for this debacle. Wall Street bankers should not be tried before Frank and Dodd are. Bankers were simply marketing loans they were coerced into making. Politicians, intent on guaranteeing the equality of an outcome, in this instance home ownership, are responsible and should be held accountable for this crisis. Plus you have to consider the foolish people who bought a home that they knew they could not afford; now we have to bail them out??? So much for trying to “spread the wealth,” another foolish concept.
As is usually the case, more government intrusion in what should be a free market will spring from this case. Politicians will point to the bailout as justification to place cumbersome and expensive regulations on the lending industry. The legislation Secretary Paulson asked for was less than five pages. By the time Congress was through with it the document contained over 400 pages and $1.1 billion of pork spending.
Which do you prefer, a congressman that votes on principle or one that can be bribed by the inclusion of some lame appropriation to provide relief for NASCAR? Unless and until politicians on both sides of the aisle start voting on legislation based on whether it is good for America, we will continue to lurch from one crisis to the next.
Author: Eric Pinola is Director of Enrollment CreditAllianceGroup 1-866-359-5677

Top Ten Features of a Successful Budget (By: Chris Garner)

What makes a good budget? In all the budget bloopers and blunders I've seen, the same few problems keep rearing their ugly heads. To avoid them, here are the top ten most important features of a successful budget.
1. Categories that fit your personal situation and your spending habits, not somebody else's.
2. Accurate income projections.
3. Enough categories to give you a meaningful picture of where your money goes and where you might be able to cut costs, but not so much detail that tracking is a chore that you'll soon tire of.
4. Inclusion of expenses that don't occur on a monthly basis, such as auto maintenance, homeowners insurance, personal property taxes, service contracts, etc.
5. Regular review of categories to determine if you need more or fewer, review of expenses, and brainstorming about ways to trim costs in each category.
6. Cash expenditure tracking and recording. Cash spending is the biggest leak in most budgets. Cash disappears quickly and if you don't write down everything you spend it on, you'll have a distorted look at your spending.
7. A line item for savings so you treat a contribution to your savings account just as you would a bill you owe.
8. Realistic written goals. Budgeting isn't about tracking your costs, it's about setting financial goals (saving for a downpayment on a house, buying a new car, getting out of debt, saving for retirement, putting your kids through college, traveling, etc.) and finding ways to meet them. Without goals, your budget is just a pair of handcuffs.
9. Identification of spending patterns you may not have been aware of when you weren't tracking your spending.
10. Most importantly, internal motivation and a positive attitude!

How to Manage Your Debt

How to Manage Your Debt ( By Chris Garner)
Let's look at tried and true ways to manage your debt that won't leave you scrambling to meet unrealistic goals. Perhaps the most important component of debt consolidation is canvassing your cash flow system to determine where you are losing money, how much your money you are losing per month, at what rates you are losing that money, and how your spending habits have evolved over the past six months to two years.
Debt consolidation experts can help you with the accounting. But doing a budget is essential to any debt consolidation mandate. In other words, until you name the problems you have, you won't be able to identify discrete solutions that can fit neatly with your financial goals. Of course, debt consolidation is complicated because most individuals lead somewhat unpredictable lives.
Even married couples on fixed incomes with few debts and numerous assets can get into financial troubles, since the tumultuous economy continues to evolve around them. Interest rates go up, impacting mortgage payments, which in turn impact monthly budgets, for instance.
The way to deal with this constant economic change is to create a budget that's flexible enough to allow you a degree of debt consolidation and yet provide enough ?free cash? in your accounts to let you reach your goals comfortably.
In other words, you can't budget out every dollar you spend (under most circumstances), since the time cost benefit of doing so generally doesn't make sense. For instance, if you spend 30 hours every month figuring out what you spend down to the penny, you are likely wasting at least a dozen hours that you could otherwise be using to work (and thus earn more money), invest (and thus make your money work harder), or simply have fun.
Another debt consolidation idea is to draft a savings plan that will slowly accumulate an emergency fund for you and your family. Budget experts recommend that this fund should store up at least six month's worth of living expenses, but don't try to sock away all that money at once. Allocate a certain amount of cash in your budget per month for your emergency plan, and protect that money from your general spending accounts. And finally, look into a debt consolidation loan to help you reduce reliance on expensive creditor loans and simplify the planning process.

How does your debt compare?

The Basics
How does your debt compare?
A snapshot of American debt shows a troubling picture. See how your mortgage statements, credit card balances and payment practices compare with other Americans' bills.
By Kim KhanPolonius wouldn’t have gotten very far in America today. He's the Shakespeare character in Hamlet who warned, neither a borrower, nor a lender be.Modern society, as we know all too well, is overrun with both borrowers and lenders. But just how big is the typical family's debt? How fast is it growing? How does your mortgage compare to the Joneses next door? And how might consumer debt -- your debt -- affect the U.S. economy?We decided to look at the most recent numbers and take a snapshot of household debt in the United States, circa 2004. What emerges is a picture that's both familiar and unsettling. Yes, consumer debt -- encompassing credit cards, mortgages, student loans and more -- is growing like a well-fed St. Bernard puppy. No, there's no sign that the growth will slow. Yes, some economists worry about the ill effects, but no, not many of them are sounding urgent alarms.It's hard not to be worried when confronted with numbers such as these:
About 43% of American families spend more than they earn each year.
Average households carry some $8,000 in credit card debt.
Personal bankruptcies have doubled in the past decade.
It's not clear exactly where the debt trend will take U.S. consumers or the U.S. economy. But it is clear that both are sailing in uncharted waters.

The article above really is food for thought.

The banking industry has been very creative for years in their lending practices. Now, most Americans are used to available credit, and are shocked to see their limits being halved, and their interest rates soaring from the teens into the twenties, and from the twenties into the thirties! It is time for consumers to realize, their banks have changed all the rules, now we have to access our own approach to debt and credit.

As a consumer, we should be thinking of ways to take back control of our finances and our future.
Credit Alliance Group can help you do that, the hardship of these banking practices are crippling households, and destroying our future.

The Hole Will Not Get Dug Looking at the Shovel.

By: Eric Pinola , May, 1st 2009
I talk with between 50-200 people a day, as I strive to help people make sense of their debts and find the best solution to their struggles. Frequently I have to explain that there is not a one size fits all solution to unsecured debts; that includes the solution that I have the ability to provide for a client. Debt is as complex and diverse as the people’s lives that accrue it.
No matter how many times it happens each day; I am still thrown for a loop when the people I speak with believe they can get rid of their debt without it affecting them or their credit score in a negative way.
OR even worse
When people believe that our government or president is going to “bail them out.”
This is an absurd thought or notion for anyone to conceive and dwell on for any amount of time; especially to the point of believing it!
I will state it once and for all right here: IF YOU HAVE DEBT, YOU HAVE TO PAY IT!
How you go about making right the wrong that you took part in creating is a complex decision. First I would recommend writing a full and complete budget of all you earnings and spending for any given month. Then write down a complete list of your short and long term goals. With these two simple; yet not easy tools at your disposal you can have a clear picture of where you would like to be and what you have to accomplish to get there.
“It is the set of your sail that determines your destination; not the direction the wind blows.”
Next, spend some serious time online or in your local library researching the rules, laws, and your rights pertaining to your state and debt.
1. Can your wages be garnished in your state?
2. Do you live in a homestead state? (foreclosure)
3. How do you respond to a summons? How long do you have to respond?
4. Is bankruptcy a possibility?
5. What is the Fair Debt Collection Practices Act? Your rights?
6. How do you report collectors when they are harassing you?
7. What type of program is out there, that could help you? Could it also hurt me?

Create a plan that works for your situation or family and stick to the plan that you choose. Debt is an ever increasing challenge for all of us. The most important thing to keep in mind is that as long as you keep your old spending habits you will always be stuck in the hamster wheel of interest rates and you will slowly lose control of your finances again and again. Make the decision that you will never be in this place again and make it happen!
U.S. credit card debt has jumped 25 percent in the past 10 years, reaching $963 billion in January, according to figures from the White House. The average outstanding credit card debt for households that have a card was $10,679 at the end of 2008, according to CreditCard.com, an online market.

5 Ways to Quickly Increase Cash Flow

By IsaBella, on April 29, 2009
Are you one of the millions of Americans that is looking to save money and increase your cash flow at the same time? Do you have more month than money? Well take heart; you have a lot of company. Since it is impossible to add more hours to the day, you must learn to be a shrewd money manager. Learn to save and invest to keep more of your cash and make it work for you…. You will have to be a strict disciplinarian with yourself; but with some effort and awareness, you will be able to reap the results. Go ahead, take the challenge… you may surprise yourself.
Look for a high interest savings account….. I know the term high interest and savings don’t go together much these days, but be a conspicuous consumer. Don’t settle for the rate at your local bank, look at the large banks (that are now posting profits) you may be surprised at what you find. Remember, our ancestors who went through the Great Depression didn’t have “high interest” rates and look at what so many have done to recoup and grow their money. When shopping for a high yield savings account, important points to look for are the ones with no fees, above average interest rates and are FDIC insured
Credit Cards with No Annual Fees…. Most American households have at least one credit card from a major banking or financial institution. Examine your cards and see if they do or don’t have annual fees. You can visit websites like CreditCards.com that can do the leg work for you. They will search for cards that meet your requirements, such as no annual fee and/or offer a cash back program.
Give your insurance programs a checkup. Never assume you have the best rate with your home or auto. Always look around. You may qualify for discounts that you are not aware of. Many companies offer “Multi Line Discounts” for policy holders that have more than one line of insurance with them… i.e. home and auto. Many states offer a discount for taking a defensive driving course on your auto insurance Do you have a youthful driver that is also a good student? You may qualify for an academic discount. Reviewing your policies with your agent can be very beneficial. Do you have “Emergency Roadside Assistance” reimbursement and also have AAA ? That’s a few dollars a year that you can save or spend more wisely.
Do an inventory of your home and office and see what you are not using that you could sell on Craig’s List, or EBay. You will be amazed when you look with a discerning eye what you will find. Not internet savvy, the good old fashioned Garage Sale is still a money maker. Or you can donate to a church or charity and get a tax right off
Adjust your paycheck withholdings for tax stimulus credits….. You may not be in favor of all the stimulus money going around, but investigate and see if you qualify for any. If you do, rather than claim it when you file your tax return next year, adjust your withholdings and get the stimulus payments sooner, thereby increasing your monthly cash flow.
Author Bio: IsaBella, Senior Credit Specialist at Credit Alliance Group 866-540-3134

Here's ways you can improve your credit score

A healthy balance of credit and loan accounts is key to achieving a high credit score. It is important to build a record of responsible credit use over time with different types of accounts. Consider opening a new account to strengthen your credit report.

Time is one of the most important factors for a healthy credit score. The longer your accounts have been opened, the better they are perceived by lenders. Opening new accounts can cause your credit to appear unstable, because a record of responsible use has not yet been established for the account. Your borrowing power should improve as you keep your new accounts open, active and paid on-time.

Negative records such as collection accounts, charge-offs, judgments and bankruptcies can cause substantial damage to your credit score. These records will remain on your credit report for 7-10 years, whether or not you have paid the debt. You can help your credit recover from these derogatory records by paying your bills on time, reducing your debts and using credit responsibly.

Experian Credit Score Categories

Risk Categories: Where are You?

High Risk
330-550

Medium - High Risk
551-625

Medium Risk
626-699

Medium - Low Risk
700-725

Credit Alliance Group can Help you fix your risk level!

Low Risk
726-830

FCRA Rights

Para informacion en español, visite www.ftc.gov/credit o escribe a la FTC Consumer Response Center, Room 130-A 600 Pennsylvania Ave. N.W., Washington, D.C. 20580.

A Summary of Your Rights under the Fair Credit Reporting Act

The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA. For more information, including information about additional rights, go to www.ftc.gov/credit or write to: Consumer Response Center, Room 130-A, Federal Trade Commission, 600 Pennsylvania Ave. N.W., Washington, D.C. 20580.

You must be told if information in your file has been used against you.

Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.

You have the right to know what is in your file.

You may request and obtain all the information about you in the files of a consumer reporting agency (your "file disclosure"). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if: a person has taken adverse action against you because of information in your credit report;

you are the victim of identify theft and place a fraud alert in your file;
your file contains inaccurate information as a result of fraud;
you are on public assistance;

you are unemployed but expect to apply for employment within 60 days. All consumers are entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.ftc.gov/credit for additional information.

You have the right to ask for a credit score. Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.

You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.ftc.gov/credit for an explanation of dispute procedures.

Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.

Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.

Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need -- usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.
You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to www.ftc.gov/credit.

You may limit "prescreened" offers of credit and insurance you get based on information in your credit report. Unsolicited "prescreened" offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt-out with the nationwide credit bureaus at 1 888 5OPTOUT (1 888 567 8688).

You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.

Identity theft victims and active duty military personnel have additional rights. For more information, visit www.ftc.gov/credit. States may enforce the FCRA, and many states have their own consumer reporting laws. In some cases, you may have more rights under state law. For more information, contact your state or local consumer protection agency or your state Attorney General.

If you would like information about Debt Management go to CreditAllianceGroup.

Credit Cards: The Next Big Financial Explosion

CreditAllianceGroup

A number of bank analysts believe that the reason industry earnings will not improve next year is a sharp spike up in credit card defaults.

In many cases, financial companies are faced with more than the direct losses of customers who walk away from their obligations. These debts have been put into pools not unlike those which were created for mortgages. Those pools could become toxic quickly if the underlying debt begins to sour at an increasingly rapid pace.

According to The New York Post, "WASHINGTON is so nervous that credit cards will become the next financial sinkhole that the government will soon ask banks to go through the arduous task of running tests on hundreds of millions of their cardholders. On Oct. 7, the Office of the Controller of the Currency put together a test called Definitions of Data Fields Collected Monthly at the Account Level, which asks banks nationwide to put the 700 million or so credit cards in existence to a test of 74 questions."

That is probably another indication that the government is concerned that the $700 billion Paulson bailout fund may not be enough to see the financial system through 2009.

Douglas A. McIntyre

INFO THAT HITS US WHERE WE LIVE

Last Tuesday Citigroup joined JPMorgan Chase and Bank of America in announcing a major loan modification program. The bank's CitiMortgage unit is offering to modify the terms of mortgages for borrowers at risk of falling behind on their payments.

The Citi Homeowner Assistance program plans to contact about 500,000 homeowners in the next six months, involving up to $20 billion in mortgages. Citigroup's loss mitigation efforts have already prevented about 370,000 foreclosures on $35 billion in loans since early last year.That same day, administration officials in Washington announced a plan for refinancing delinquent loans held by Fannie Mae and Freddie Mac, the now government-controlled giant mortgage companies. This could result in lower payments for hundreds of thousands of homeowners. The program builds on the Hope Now program already in place. The goal is to reduce mortgage payments to no more than 38% of a family's monthly income. Slowing the pace of foreclosures is key to our recovery and these programs all help.You probably heard foreclosure filings were up in October, 25% over the previous year. But foreclosure filings were up only 5% over the previous month and some states actually had declines. Lost in all the noise was the fact these filings don't all wind up as foreclosures. Borrowers are able to refinance their mortgages, negotiate loan modifications, workouts or short sales with lenders.

Usted no tiene que sentirse abrumado durante la crisis financiera

Por Cristina Gomez , 14 de noviembre 2008

Mientras muchos de nosotros sienten el pellizco durante esta crisis económica, parece más bien estamos siendo obligados a tomar decisiones resistentes sólo para sobrevivir. ¡Si usted es abrumado con la deuda, hay opciones diferentes disponibles! Una opción para examinar sería la dirección de deudas, este puede tener un impacto a corto plazo en su valoración crediticia pero en comparación a la bancarrota, puede ser una opción mucho más segura.

Empezando también puede estar agobiando, pero una compañía de establecimiento puede ayudarle a negociar su deuda total con sus acreedores para una cantidad menos que usted realmente debe y podría ayudar a salirle de deuda más rápidamente que usted puede en su propio. ¡Siéntase libre de acer su investigación y buena suerte en su camino hacia la libertad financiera!

Por: Cristina Gómez, Relaciones de Clientes y Acreedores en CreditAllianceGroup 866-543-9073

Usted no tiene que sentirse abrumado durante la crisis financiera

Por Cristina Gomez , 14 de noviembre 2008

Mientras muchos de nosotros sienten el pellizco durante esta crisis económica, parece más bien estamos siendo obligados a tomar decisiones resistentes sólo para sobrevivir. ¡Si usted es abrumado con la deuda, hay opciones diferentes disponibles! Una opción para examinar sería la dirección de deudas, este puede tener un impacto a corto plazo en su valoración crediticia pero en comparación a la bancarrota, puede ser una opción mucho más segura.

Empezando también puede estar agobiando, pero una compañía de establecimiento puede ayudarle a negociar su deuda total con sus acreedores para una cantidad menos que usted realmente debe y podría ayudar a salirle de deuda más rápidamente que usted puede en su propio. ¡Siéntase libre de acer su investigación y buena suerte en su camino hacia la libertad financiera!

Por: Cristina Gómez, Relaciones de Clientes y Acreedores en CreditAllianceGroup 866-543-9073

By Lucinda Ramos, November 14, 2008

By Lonnada Green on November 14, 2008

Here are some tips to help you keep your credit card debt situation under wraps during this Christmas season. Every year people spend more than necessary and even more importantly spend more than they can afford. There are 4 simple ways to avoid losing your handle on your debt this Christmas season.

1. Don’t spend unnecessarily- I know this easier said than done but if you are serious about keeping your finances under control you will find this easier to do.

2. Only put what you can pay back on your credit cards- APR is serious and you may spend up to the limit on your credit cards and you may think that the limit on a credit card is manageable but what you do not calculate every month is the APR. This is the percentage that company charges you every month on your debt. Spending up to the limit on your cards will cause you to go over your limit after the APR is assessed. This means an extra $39 over the limit fee.

3. Make a budget and a list and stick to it- If you know who you are shopping for and what you can afford before you even leave your door step it will be easier to stay on track. This eliminates buying random gifts in hopes that you will find someone to give them to, which saves you money.

4. Try making gifts- Things like fruit baskets, homemade pillows, and any other cheap arts and crafts ideas make great gifts. This lessens the money you have to spend on individual gifts. Plus, these gifts make the recipients feel as though you took your time and created something genuine just for them

If you think these simple tips are too hard to follow, you can always spend, spend, spend and enroll the unsecured debt into a debt management program. If you think this is better for you, these programs can clear up your debt in 6 to 48 months for anywhere from 40-60percent of the debt , which means you will be ready by the time Christmas rolls around again. If you have any questions ask CAG. These trained Senior Credit Specialist can help you identify what you will need to do to take control of your debt.

Lonnada Green, Client Creditor Relations Specialist, (866) 543-9073

Now That Its Over

By Lucinda Ramos, November 14, 2008

Wow!!! Now you are finally no longer in debt. Wait, before you go out, there are a few things to remember before you end up back to becoming in debt.

1. The thing to do is to maintain a planned budget, even if you know have extra cash.

2. Stop going out so much, for example, restaurants and entertainment don’t get into the hole.

3. When you use your credit cards just use what you can afford, and limit yourself to only one or two credit cards.

4. Save up for a rainy day, or something huge.

5. And now you can sleep better at night and not worry about your debt, and that is a reward itself.

Author: Lucinda Ramos , Customer Service at CreditAllianceGroup (886) 543- 9073

What makes up a FICO Score?

By P. Grainger, November 14th 2008

As most of you may know already, the FICO Score is what creditors and lenders look at in order to assess the risk of granting credit or lending money. But how do the credit bureaus come up with these credit scores?

Here is the general breakdown of how a FICO Score is extracted from a consumer’s credit report:

1. Payment history - 35%
2. Amounts owed vs. credit limit - 30%
3. Length of credit history- 15%
4. New credit - 10%
5. Types of credit used - 10%

Your payment history affects your credit the most. This is the main reason why you should always make on-time payments. If that’s not reason enough, think of the late payment fees.

Amount owed vs. credit limit is second most important factor. You should try to keep all your balances to at least below 40% of your credit limit. This will show your ability to manage and maintain your finances responsibly. If you have one or two credit cards that are near maxed out, you should apply for a new card and transfer some of the balance over. Spreading out your balances may help your credit score increase quite significantly in some cases.

Having an established credit history can help improve your credit score. Your credit history is sort of like your financial book report. It helps deliver a measurable assessment of your payment history. For people with little or no credit history, creditors and lenders are not able to properly assess their creditworthiness. This is the reason why first-timers have such a tough time getting deals on mortgages, loans or credit cards.

Believe it or not, obtaining new credit can actually help your credit score. On the same token, applying for credit too often may also hurt your credit. I recommend applying for new credit once every 3 months, but do not exceed this number.

The type of credit you use makes up 10% of your FICO score. By type, I mean installment or revolving. Installment credit is favored over revolving credit. The main reason for this is that installment credit is scheduled to be paid off within a specified time period, whereas revolving credit has no set timeframe and the balance owed can fluctuate. Common sense would tell you that installment credit is more predictable and less riskier compared to revolving credit.

Author: P. Grainger , Title at CreditAllianceGroup 866-454-5044

Consolidating smaller debts into a single larger debt

By Karen Snider on November 14, 2008

If you have a bunch of small credit card debts, it may be smarter to consolidate these debts into one or more larger debts. There are a several factors as to why or why not this will work for your situation. First, you have to be sure that the APR on the larger credit line is reasonable. If the smaller debts have higher APR or have the same as the APR on the larger debt then if you consolidate the smaller ones on to one large credit line you reduce the overall amount of APR you pay on your debts. This helps you pay down more of what you actually owe rather than paying only interest.

Secondly, you should consider your monthly payments. If you pay $60 on a bunch of small debts and the minimum payment on the larger credit line are equal to or less than what you pay separately on all of them, then consolidating your debts is definitely a good choice for you. This saves you time and money by making it easier for you to make only one payment on one due date instead of having to juggle all of your due dates and minimum payments.

The third and final reason why consolidating your debts is helpful is because it reduces the amount of debts you owe and will help you get approved for more credit by potential creditors. Consolidation improves your debt to income ration. Meaning that if you enroll the balance of smaller debts into one larger debt amount it shows positive on your credit report and builds your credit score as well as shows potential creditors that you will pay them back and in the end, this all that creditors want in the first place.

If you feel that something like this will not help or if your credit score is already too low to get approved for a credit line that is bigger, a debt management program can help you consolidate all of those little debts. These companies combine all of your payments into one low monthly payment, stops harassing creditor phone calls, and pays back your debt at a fraction of what you actually owe.

Author Bio: Karen Snider, Accounting Manager-CreditAllianceGroup, (866) 454-5044

About Evan Carmichael

By Eric Pinola November 14, 2008

Evan is an entrepreneur and international speaker. At the age of 19, he became an owner and Chief Operating Officer in Redasoft, a biotechnology software company. The company quickly grew to over 300 organizations as clients, including NASA and Johnson & Johnson, in 30 countries.

He started Evan Carmichael Communications Group and created www.EvanCarmichael.com with the goal to give entrepreneurs the motivation to follow their passion and the strategies they need to succeed. Evan has also delivered over 100 keynote presentations to entrepreneurs in North America, Europe, and Asia.

He has been featured as an entrepreneurial expert for magazines, newspapers, radio, and television and is a recognized small business authority. Evan also has a background in the venture capital industry working with Northern Crown Capital to help entrepreneurial companies raise between $500,000 and $15 million to grow their businesses.
Evan has also followed his passions for dancing salsa and baseball history. He is an instructor for Toronto Dance Salsa (teaching Tuesday evenings) and created the Honus Wagner Blog. Evan graduated from the University of Toronto with a Bachelors degree in Commerce and Finance.

“Evan’s passionate delivery was very awe inspiring, most especially for the entrepreneurs who came to learn from his personal perspective in the entrepreneurial pursuit for success. He certainly made a positive impact both on and off stage, and his enthusiasm certainly made it all the more an interesting presentation. This was further more confirmed through the various requests made by participants during the conference, who would like to see more of Evan and his insights, in future conferences.” – Fauziah Talib, organizer, YEAB, Brunei Darussalam.

Evan is available for speaking and media engagements. To contact Evan, click here.

Author Bio: Eric Pinola is a Sr. Credit Specialist at CreditAllianceGroup 1-866-359-5677

What Is Your Debt To Income Ratio?

By, Reggie Tinner,

Wednesday November 12, 2008

The formula for calculating your debt-to-income ratio is simple: monthly fixed expenses divided by gross monthly income (before taxes and deductions). If your result is a percentage greater than 36%, your credit score will be negatively affected because you are considered to have too much debt. This means credit card companies and banks will likely turn down your application. Of course, each lender sets its own policy. Some might only approve your loan if you have a ratio below 30%, while others will accept a higher one. But a general rule of thumb is to keep your debt-to-income ratio below 36% if you want to get financing.

Of course, financial experts consider a debt ratio of 36% to be way too high. The lower it is, the better, but generally, a ratio higher than 20% tells a credit counselor that you have too much debt and might be headed for financial trouble. Your goal in using this kit is to try and reduce your debt so that your debt-to-income ratio is 20% or lower.

Debt-to-Income Ratio Calculator

To calculate your score, you need to add up your monthly fixed expenses. Monthly fixed expenses include all debt, such as the following: house payment or lease, credit card and other revolving credit balances; car payments, alimony, child support, etc. Do not include grocery, telephone, and utility bills or any debt that will be paid off in the next few months. If your car loan will be paid off two or three months from now, don't include it in the equation.

Sample calculation:

Gross monthly household income: $5,000

Fixed expenses: $1,560
house payment $540.00 + car payment $370.00 + credit cards $250.00 + child support $400.00

Debt-to-income ratio calculation:
1,560
$5,000 = 31%

The above calculation shows that this person is headed for trouble. He needs to start paying down his debt rather than accumulating more. Unfortunately, he can probably still get approved for another credit card provided he has a good record of paying his bills on time.

Author Bio: Reggie Tinner is a Sr. Credit Specialist at CreditAllianceGroup 1-866-892-2148

Teething Symptoms

By Lora Milburn, November 14, 2008-

I am a new mother of a wonderful little boy. He is one now and I just thought the first teeth were a horrible experience for me and him, boy was I wrong!!! The molars are just as hard if not harder. He cries all day unless he is distracted and night time is even worse. He goes to bed, but around 4 he wakes up. He cries, throws fits, pulls on his ears and tries to hit his head. The only thing I can do to calm him is talk to him in a soothing voice, sing to him or her, rub his head, and pat his bottom. I really hope that this information can help all the mothers that are there experiencing what I am experiencing at this time. Just know that it only last a few days and your baby will be back to normal.

12 Signs of Teething in Babies

1. Drooling- This is the first sign of teething. It starts when your baby is 10 weeks to 3 or 4 months.

2. Chin or face rash- This happens when the baby drools and the saliva irritates the skin. Make sure to wipe their face and keep it dry.

3. Coughing- is caused by all the drool. The drool will make them gag and cough.

4. Biting- Teething will cause discomfort when the teeth are trying to come in. The reason for the biting is because counter pressure helps relieve the pain.

5. Pain- the gums become inflamed and causes a lot of pain

6. Irritability- your baby’s mouth will hurt very baby and every baby is different. Some babies cry and hurt for hours, days and even weeks.

7. Refusal to feed- Feeding will make the baby’s gums hurt. The baby will get very frustrated because your baby is hungry and very uncomfortable.

8. Diarrhea- Doctors say that diarrhea is not a cause of teething but who actually knows. I know that my baby has loose stool when he is teething.

9. Low-grade fever- could be a cause from teething but could also be because the baby is losing the immunity they acquired from their mother.

10. Wakefulness- This is something I am experiencing right now with my son. Pain doesn’t just happen during the day. I have learned that he is in more pain at night. It could be because he doesn’t have other things distracting him. When he finally does get to sleep he only sleeps a few hours and is awake again for a few hours. Try and soothe him or her with lullabies or patting and even rocking. Try not to do a feeding if you can avoid it, if you don’t it will be a routine that your baby will expect even after the teething process is over.

11. Gum hematoma- The gums will bleed and can even get a bluish looking lump. Cold press will help with that.

12. Ear pulling- nerves are shared with gums ears and cheeks. So they may feel pain in the ear this could be a cause from the teething, but keep an eye on things and make sure there is not an ear infection.


Author Bio: Lora Milburn, Sr. Credit Specialist- CreditAllianceGroup 1-866-582-3704

How much is TOO much to spend on shoes?

By Kristin Huling, Friday November 14th, 2008

I am a really big shoe person, always have been always will be! You can tell a lot about a person by the type of shoes they wear. I was recently looking at shoes online and came across the Christian Louboutin website…I fall in love every time! I’m not sure if it’s the distinctive red bottoms that ONLY Louboutin’s have or just the overall confidence that you get from wearing them. Call me shallow for allowing shoes to give me confidence or the extra “boost” of self esteem I sometimes need. As I browsed the inventory I found some boots that I would debate spending my rent money on. But even my rent money would not be enough to buy these. The boots (my new love interest) were $2,995.00 which is beyond ridiculous but I can honestly say if I had the money I would have bought them with no problem. Which made think how much is too much to spend on a pair of shoes? I “googled” it found a poll and an article and agrees with SOME of what the author of the article wrote.

By Jennifer Romolini, Shine

“There was a rather disturbing story in the LA Times last weekend about how "it" shoes are becoming the new "it" bags and "footwear is having its runway moment" and how retailers, sensing customer enthusiasm (desperation? Insanity?) are regularly pricing designer shoes in the $1,000-$2,500 range. The article's salient point was, whether or not these prices are ridiculous, people (women) are willing to pay them—Danielle Steel apparently spends $4 to $5 million a year on shoes!—and there was a quote from one customer who said, "I will literally think, 'Do I spend $600 on shoes or get new plumbing?''Listen, to each his own, but that's just not me. I do not believe you should go into debt for your footwear and I find the whole idea of an "it" anything offensive. That doesn't mean I don't want cute shoes. I do. And I want to wear them with dresses and jeans and to work with well-fitting skirts and I want to feel pretty. But I don't want to spend more than $200. And I don't think you have to.”

I definitely agree that you should not go into debt to have hot shoes! It’s tempting though. Millions of dollars a year is just crazy but a couple hundred thousand...not so bad. (I’m kidding)

Give us a call today and see what we can do for you!

Author Bio: Kristin Huling Sr. Credit Specialist at CreditAllianceGroup 866-501-0510

Red Cross like Relief for Mortgage Borrowers

by IsaBella on November 14, 2008

When choosing my topic to blog about this week, I was most intrigued with an article I read talked about help that is now available not only for people who have fallen behind on their mortgage payment, but also for those who are current. Why hasn’t this been splashed across the front pages and been a top story on the news? Gosh, let’s don’t let good news like this get buried on the back page of the business section of the paper!

Last Tuesday, the U S Government announced that Freddie Mac and Fannie Mae will be modifying the terms of mortgage loans for consumers who are at least 90 days behind on their payment. This is great news! But wait, it gets better… Citigroup, JP Morgan Chase, HSBC and Bank of America have announced they may be willing to renegotiate the loan terms with borrowers who are current on their payments as well. Remember, Bank of America bought out Countrywide. Did you realize that 90% of homeowners are current on their payments? I didn’t.
Citigroup is taking a preemptory move and talking with their clients BEFORE they fall behind. They are focusing on states they consider high risk such as Arizona, California, Florida, Indiana, Michigan, Nevada and Ohio and will offer modifications to borrowers who anticipate difficulty in making their mortgage payments on time. They are taking a lead from the Federal Deposit Insurance Corporation and patterning some of their changes to be like the ones the FDIC did when they took over Indy Mac.

Be prepared to run the race. To refinance, the lenders will be taking a hard look at you. You may feel as if you are under a microscope. They may ask for a hardship letter, paycheck stubs and tax returns. Be ready to prove you current income; something you may not have had to do when you originally took out your mortgage loan. You may be declined because the bank doesn’t think you are in enough of a financial challenge. That being said, who do you talk to if you think you may qualify for a loan modification? As you can well imagine the financial institutions are being overwhelmed with calls. Two important things, be prepared to hold… and when you are able to speak with a representative, ask to be transferred to a loss mitigation or workout specialist. Many banks have set up separate phone numbers to handle this. So, if you spend a large portion of your monthly income on your mortgage; you may very well qualify for lower monthly payments. Nothing ventured, nothing gained.

Author Bio: IsaBella is a Sr Credit Specialist and Team Leader at CreditAllianceGroup 866-540-3134

Travelers Beware: Free Wi-Fi Scam Strikes at Airports

In order to keep up in today’s world, travelers need to stay connected, even on the road. Many airports and other public spaces offer free wireless, or Wi-Fi, connections for the public to log onto the Internet from their laptop computers. The Better Business Bureau (BBB) warns that hackers are now taking advantage of this convenience by setting up fake Wi-Fi connections designed to steal your personal information and files without you even knowing. Find out how it works and what you can do to safeguard yourself.

How it works

Although hackers can and have set up fake Wi-Fi connections in a number of venues, usually they will target consumers at airports. When searching for connections, consumers may see a network connection available that could be simply named "Free Wi-Fi." Thinking it’s the free connection offered by the establishment, they’ll log on. Unfortunately, the network may actually be an "ad-hoc" network, or a peer-to-peer connection. The user will be able to surf the Internet, but they’re doing it through the hacker’s computer. And the whole time, the hacker is stealing information like passwords, credit card and bank account numbers, and social security numbers. Beyond simply stealing keystroke information as the user enters various types of data, if the PC is set to share files, the hacker could even steal whole documents from the computer.

Airports across the nation continue to report on Wi-Fi security issues. Officials in Atlanta, New York LaGuardia and Los Angeles airports have all reported the existence of ad-hoc networks advertised as free Wi-Fi connections. An investigation revealed that Chicago O’Hare had 20 ad-hoc networks present that were potentially designed with the intent of hacking into unsuspecting user’s computers and networks.

The BBB offers the following advice on how to keep yourself safe when you go wireless:
Never connect to an unfamiliar ad-hoc network — even if the name sounds genuine. A hacker can change the name of his network to anything he wants, including the name of the legitimate Internet connection offered by the airport. Just because it has the same name as the Wi-Fi advertised in the airport, don’t believe it.

Make sure that your computer is not set up to automatically connect to non-preferred networks. Otherwise your computer could automatically connect to the hacker’s network without your knowledge.

Turn off file sharing when you’re on the road to prevent hackers from stealing entire documents, files and unencrypted e-mail from your computer.

Create a Virtual Private Network (VPN) for your business. A VPN establishes a private network across the public network by creating a tunnel between the two endpoints so that nobody in between can intercept the data. Many companies allow remote users to connect to corporate networks as long as they use VPN. This keeps the users' communications just as secure as if they were sitting at a desk in the building.

For more information
on identity theft, please visit http://www.bbb.org/ or CreditAllianceGroup

© 2008 by the Council of Better Business Bureaus, Inc. Arlington, VAUsed by permission. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

Avoid Phishing Scams this Season

Analysts predict that the occurrence of "phishing" fraud could increase as much as ten-fold over the holidays — particularly during the post-Thanksgiving shopping rush. Phishing involves the fraudulent attempt to collect consumers’ personal information by sending e-mails that appear to be from reputable companies (charities, stores, banks, etc.).

Phishing can also occur through SPAM messages by using enticing offers or bogus attachments. Learn to recognize phishing attempts, and never click a link or download an attachment from a suspicious e-mail. These links or downloads are often the first step in pharming schemes — which aim to redirect a legitimate Web site's traffic to another, bogus Web site. Not clicking on suspicious links or opening suspicious attachments is one of the few steps you can take to protect yourself from phishing and pharming attacks.-->

Protecting Your Credit Score During the Holidays

With the holiday shopping season about to kick off, it’s important to understand your financial situation before heading to the stores so that you can create a sensible budget. By shopping smartly, you can take steps to make sure your credit score doesn’t suffer for the sake of the season. That way you can remain merry long after the holidays are over.

Know your Score

Your FICO score is the score lenders use most often to determine your creditworthiness. It is a number between 300 and 850 that basically represents the risk lenders incur in loaning you money or extending you credit. Your credit score determines what interest rates you might receive on loans and lines of credit. Higher scores usually mean lower interest rates that save you money. That’s why it’s important to know your score before making significant holiday purchases. Whether your score is high, low, or somewhere in between, knowing how your shopping habits impact your score can help you make wise financial decisions.

Shop Smart

There are a number of steps you can take while shopping this season to protect your credit score during the holiday rush. First, it’s a good idea to set boundaries. If your score is lower than you would like — or even if you want to maintain it — it’s important not to spend outside your means. A good rule of thumb is to try to keep your credit card balances well below 35% of your total credit limits. If you know it’s hard for you to resist buying just "one more thing," try paying with cash. That way, you’ll be more likely to stay within the budget you set. And, as appealing as it can be to save 15% on your holiday purchases, it’s best to avoid retail credit card offers. Opening too many lines of credit can negatively impact your credit score and could ultimately cost you more than you’d save.

Safeguard Your Identity

Becoming a victim of identity theft would not only take the cheer out of the festive season, it could also ruin your credit score. That’s why you need to take special precautions during this busy shopping time to safeguard your identity. It’s a good idea to only bring what you need with you on trips to the mall and make sure that your purse or wallet is safely secured at all times — in a bustling shopping center, your valuables could be stolen when you least expect it, without you even noticing! When making an in-store purchase, be sure the cashier returns your card, and put it away before leaving the store. With simple efforts to keep your head about you despite the holiday rush, you can help thwart the threat of identity theft.

Yes, Virginia, There is a Santa Claus and a Cloud with a Silver Lining

By: IsaBella, November 8, 2008

Are you tired of turning on the TV or glancing over the newspaper and the ONLY kind of news you get is Bad News? I am just about to boycott watching television for a month or so, until the trend is not always negative and defeating. However, there is a silver lining to this dark cloud …. Travel prices are falling and just in time for the Thanksgiving and Christmas holidays. Airlines, hotels, cruise lines, car rental agencies are all slashing fares, and cutting fees and rates to compete in our present economy. And no division of the industry is immune.

Travelers are finding some of the best deals in recent memory, from half-priced resorts to rock-bottom airfares.

For example, Delta Air Lines has fares from Los Angeles to Honolulu as low as $244 round trip…. So few seem to be traveling this winter that Walt Disney World in Orlando, Fla., has been offering three free hotel nights and three days of theme park admission for booking a four-day stay. Some resorts in Mexico have slashed hotel rates by half or thrown in free meals.

More people are holding back their travel spending dollars which leaves the airlines, hotels and resorts with even fewer customers making these industries face the prospect of another financial crisis.

"It looks like for January and February, we're seeing the lowest cruise fares since post-Sept. 11," said Mike Driscoll, editor of the industry newsletter Cruise Week.

Looking to travel overseas?

"Europe is a bargain these days, considering that with lower fares and a stronger dollar, it's about 25% cheaper to take a vacation there this winter than last year," said Simon Talling-Smith, an executive vice president with British Airways.

Add less crowded airports and fewer delays, and this winter could turn out to be a "golden age for travel," he said. With fewer flights, more planes are getting to their destinations on time, according to the site Flightstats.com, which tracks airline performance. Looking to travel overseas? Europe is a bargain these days, considering that with lower fares and a stronger dollar, it's about 25% cheaper to take a vacation there this winter than last year, said Simon Talling-Smith, an executive vice president with British Airways

Author Bio: IsaBella is a Sr Credit Specialist and Team Leader at CreditAllianceGroup 866-540-3134.

How to Save money while in debt?

By Karen Snider, November 7, 2008

Many of us, me included, are in debt and have no savings. While some people tell you not to save money while in debt, the fact is if you don't have money for emergencies, then you will increase your debt by having to turn to your credit cards. Here are some great tips to help you save that emergency money even with debt.

Step1

Know how much money you bring in every month. If you don't know this much, you're in even bigger trouble. But, make sure you account for all income in a given month. Do not count bonuses. If you work on commission, base your monthly income on what your worst month has been.

Step2

Know how much money is going out of your household each month. Most of us don't have a clue as to what this amount is. Here is my suggestion. Keep a notebook of everything you spend for the next 30 days. Include bills, automatic payments, everything.

Step3

Know the difference. Most people spend more than they make. The spending notebook will show you exactly where that money is going. That way, if you are spending more, you know how much more and you can find places to cut spending.

Step4

Get a temporary/seasonal second job. After you find that you're spending more than you make, you may find that even after cutting expenses, there is still a deficit. To make up the deficit, you are going to have to start selling stuff and/or make more money.

Step5

To start saving, save 10% of all money you get. I will defer to Dave Ramsey's advice on how much this should be. According to Dave Ramsey, this beginner emergency fund should be $500 if you make less than $20k and $1000 for those who make more and so forth.

Step6

Put your savings in an actual savings account. Don't keep it around the house. Don't keep it in your checking account. Don't keep it on a credit card or think you can use your investment or retirement account. Put it in a savings account and keep it there. When you reach your goal of $500 or $1000, you'll feel such a sense of accomplishment that you won't want to touch the money unless you have to.

Step7

When an emergency comes, and it will, use your emergency money, then immediately set about the task of replenishing what you have spent.

Step8

Look into a debt management program that will help you pay off your debt in a shorter amount of time, and will free up extra money each month by consolidating all of your unsecured debt monthly payments into one sum. This will allow you the extra money to invest, save, or donate,

Author Bio: Karen Snider, Client Creditor Relations-CreditAllianceGroup

Know What You Spend

By Lucinda Ramos, November 7, 2008

One huge, major thing we don’t do is keep track of where our money is going. We are just so busy that we don’t take the time to write down out expenses. You can write it down on, a memo pad and a pencil.

Write down, how much you spend, where you spent it and what you spent your money on. Track you money too, not just your expenses. There are also many other ways of tracking you spending, excel, your phone, anything you can take notes on.

Author: Lucinda Ramos , Customer Service at CreditAllianceGroup (886) 543- 9073

What is APR?

By Lonnada Green on November 7, 2008

When shopping for a credit card, one of the first questions you should ask yourself is “What is APR?” Because APR, or the annual percentage rate, can affect how much money comes out of your pocket if you fail to pay your bill in full, it is an important number to understand when it comes to your card choices.

APR is the annual percentage rate on a credit card. In other words, it is the amount you will pay in interest charges per year.

The APR on a credit card can vary due to several things. If you have a good credit rating, you will probably be offered a card with a low APR. However, if you are applying for your first card or have a poor credit history, your APR will be much higher. The rates can vary anywhere from a 3 percent rate to upwards of 21 percent.

Because APR can be based solely on your choice of credit card Company, your APR on most of those high credit line cards may be causing you to go further and further in debt. Fortunately, Debt Management Programs are great for figuring which bills are most important and which ones should be eliminated. They close all of your credit cards at the beginning of the program. This enables you to be able to use your money the way you want each month. If saving time, money, and lowering your overall debt amount seems to interest you, you should contact Ask Credit Alliance Group. These Trained Credit Specialist can explain the great benefits of one of these programs plus get you started up with no upfront fees.

Lonnada Green, Client-Creditor Relations, (866) 543-9073

¿Cuántas tarjetas de crédito son demasiado?

Por Cristina Gomez , 7 de Noviembre 2008

No sea engañados por solicitaciones de tarjeta de crédito en el correo o por teléfono, esto no necesariamente significa que usted es un riesgo de crédito bueno. Las compañías de tarjeta de crédito quieren a la gente que guardará equilibrios grandes. Tener muchos naipes de crédito puede causar problemas serios.

No sea abrumado

Más que unos tres naipes de crédito dicen a prestamistas que usted tiene el potencial para entrar en demasiada deuda demasiado rápido. Esto también puede hacer que bancos nieguen sus aplicaciones para préstamos, sabiendo que usted ya tiene un cacho importante del dinero efectivo disponible en sus naipes de crédito. Incluso si usted no tiene un equilibrio en los naipes usted posee, su banco sabe que usted podría dirigir gastos rápidamente en cualquier tarjeta abierta. El banco puede negarle la hipoteca que usted conseguiría si usted tuviera menos naipes.

Más de tres puede ser el problema

Es difícil guardar la pista de más de tres naipes de crédito. Como los términos, los períodos de gracia, y las tasas de interés varían, usted puede encontrarse pagando a honorarios inesperados y penas. Menos naipes son más fáciles para guardar la pista de, y significar menos interés. ¿Cómo sabe usted si usted tiene demasiados naipes? Si usted no puede pagar su deuda combinada en un año, usted se dirige hacia el problema de tarjeta de crédito.

Ayuda para demasiado tarjetas de crédito

Si usted encuentra que usted tiene demasiados naipes, encontrando que una compañía de dirección de deudas pagando sus deudas en una fracción del precio le ayudará a bajar sus riesgos de crédito y ayudarle a ser aprobado para aquellos préstamos que el banco no permitirá que usted tenga ahora. Pida CAG más detalle contra las ventajas de este programa.

Por: Cristina Gómez, Relaciones de Clientes y Acreedores en CreditAllianceGroup 866-543-9073

Debt Problems: Can a Debt Collector Contact My Employer?

By, Reggie Tinner, November 05, 2008

A debt collection agency may contact your employer to verify your employment, your work location, to find out whether you have medical insurance to cover a specific debt, or to garnish your wages. In order to garnish your wages, the debt collector must first sue you and obtain a judgment against you. Most states require debt collectors to make such inquiries of your employer in writing; however, they may allow the collector to contact the employer by telephone if no response is received within a few weeks of the written inquiry.

Can a debt collector call me at work about a debt?

Yes, a collection agency can contact you at work by phone or mail unless the debt collector knows or has reason to know that your employer prohibits you from receiving such communications. Any written communication sent to you at work must me marked "Personal and Confidential" and a debt collector may not reveal the reason for the call to your supervisor or any co-workers. If he does, he has violated the Fair Debt Collection Practices Act and you might have the right to sue him.

Author Bio: Reggie Tinner is a Sr. Credit Specialist at CreditAllianceGroup 1-866-892-2148

What Is a Valid Hardship

By Debbie Hinkle, November 7, 2008

Your hardship can consist of the explanation that it will take you 410 months to pay off 25K (that is 34 yrs and some months!) This is based on calculating 18 percent interest rates; yours may be higher or lower. You plan to pay your debt, but when you asked your creditors to get a lower interest rate; they would not help you out.

Usually, clients will try to get credit card companies to lower their rate with no success.

When the creditor gets the cease & desist letter from us, they will call you and be ready to lower interest rates. One client found he could get (on his credit card balance of 27K), a lower interest rate than he had to 13 percent which was 284 months. (23 years) He decided to stay in our program. The debt was settled and it was paid at 0.40 cents on the dollar: 17,550 was debt free in 36 months.!

CreditAllianceGroup– we work for you.

Author Bio: Debbie Hinkle is a Sr. Credit Specialist CreditAllianceGroup 1-866-204-4643

Credit Cards Through Your Bank.

By Lora Milburn, November 7, 2008

When you enter in to a Debt Management Program, make sure that the accounts that you enroll are not associated with your bank account. If you have a credit card with the same bank, the bank can go in and withdraw the money that you owe. That is not to say that you can’t enter that creditor into the program, but we suggest that you close your bank account and move it to another bank that way you know your money is safe and your account won’t be over drawn.

Author Bio: Lora Milburn is a Sr. Credit Specialist CreditAllianceGroup 1-866-582-3704

By Kristin Huling, Friday October 31st, 2008

Obama will usher in credit card reform, observers say Bankruptcy, mortgage reform and credit card industry rules on tap By Connie Prater

Tuesday may have ushered in a historic first for the White House, but that's not all the 2008 election may bring.

Consumer advocates, credit counselors, elected officials, debt managers and financial planners say the election of Barack Obama as the 44th U.S. president may mean a new era of consumer protection from oft-criticized banking and credit card industry practices.

If his campaign promises are any indication, an Obama administration will embrace efforts to disclose more clearly credit card and mortgage lending terms and rein in interest rate charges and fees. Observers, however, wonder how much the new president can accomplish given the magnitude of problems he'll face entering office.

Obama's platformObama, the candidate, put forth a pro-consumer platform that includes:
Creating a credit card rating system similar to the five-star rating system used for other consumer products to assess card features. Issuers would be required to display the rating on all credit card applications and solicitation materials.

Establishing a credit card bill of rights to ban universal default, prohibit unilateral changes to contracts and prohibit charging interest on fees.

Reforming bankruptcy laws to allow families with huge medical bills to have their medical debts forgiven and allow homeowners filing for bankruptcy to adjust the terms of their mortgage so they can keep their homes.

Capping interest rates on payday loans at 36 percent and requiring clear disclosure of loan terms.

Consumer groups are anxiously waiting for the president-elect to make good on his promises. However, just how much Obama, the president, can do to address these issues -- and how quickly -- is uncertain.

Cultural changeKeating, the NFCC president, said Obama should focus on changing Americans' attitudes about credit and debt -- an approach that takes a longer term view of the credit crisis.

"The attitudes and thinking around credit, money management and saving is really problematic in this country," she says. "We have all-time high debt levels, people who are completely overextending themselves, millions of people losing their homes and no savings. People don't have anything to fall back on at times when there is interruption of income. As a country, we have moved away from some of the fundamentals and we need to get back to basics. And we need to begin by saving and being responsible about managing the debt we are taking on."

Author Bio: Kristin Huling Sr. Credit Specialist at CreditAllianceGroup 866-501-0510

71,000 Complaints to the FTC about Creditor Harassment Last Year; up 500% from 2004!

By Eric Pinola, November 06 2008

According to the AP report, almost 39 percent of Federal Trade Commission complaints cited demands to pay debts that weren’t owed or payments that were more than legally allowed.

As more and more people get behind on their debts, the likelihood that they will experience creditor abuse will increase. If you are one of Credit Alliance Groups clients with a DAAN Phone Module who are on the receiving end of this abuse, be sure to contact let us know so that we can have the DAAN Group refer you to an attorney in your area proficient in this area of law for possible legal action against the creditor.

Last year almost 71,000 complaints about creditor harassment were filed with the Federal Trade Commission. That is twice the number that filed in 2003. But that’s not all. Over 14,000 complaints were reported to the Better Business Bureau, and thousands more were filed around the country with state and city officials.

Consumers have rights that they may not be aware of. The Fair Debt Collection Practices Act was created to protect and inform consumers of their rights.

Fair Debt Collection Practices Act

Take a moment and find out if you’re being subjected to harassment that is undeserved.
Wisdom is knowing what to do next; virtue is doing it. David Starr Jordan

If you find yourself in need of help taking care of your debts give CreditAllianceGroup a call for a free consultation with a Sr. Credit Specialist today.

Author Bio: Eric Pinola , Sr. Credit Specialist at CreditAllianceGroup 866-359-5677