Walk With Money » Credit Cards http://www.walkwithmoney.com Take A Walk On The Wealthy Side Thu, 10 Feb 2011 16:32:42 +0000 en hourly 1 http://wordpress.org/?v=3.0.3 Review: Financially Stupid People Are Everywhere http://www.walkwithmoney.com/review-financially-stupid-people-are-everywhere/ http://www.walkwithmoney.com/review-financially-stupid-people-are-everywhere/#comments Mon, 20 Dec 2010 03:20:03 +0000 Robert Wilkinson http://www.walkwithmoney.com/review-financially-stupid-people-are-everywhere/ Read the whole article...]]> Every Sunday, The Simple Dollar reviews a personal finance book or other book of interest.

fspaeThe title of this book convinced me to pick it up at the library recently, but it was the introduction that caused me to actually take it home and give it a full read.

The introduction, entitled “Life as a Sucker,” makes the case that society is stacked against individual financial success unless you already have a lot of capital. Almost every element of modern society and government works against you without a large bankroll in your hand with which to generate more money.

In some ways, I agree with him. The path to personal finance success is not an easy one. I receive far more notes from people in financially disastrous situations than I can ever possibly address in my reader mailbags. There are, of course, reasons for that phenomenon, many of which the author, Jason Kelly, addresses in this book.

1: The First Rule of Finance
Live within your means by spending no more than 80% of your take-home pay. That’s the first rule of personal finance and I absolutely agree with it. If you can commit to doing that on average, you’re going to find yourself building up a lot of money in your savings over time, money that will keep financial disasters (like a job loss) at bay and make moves like buying your own home or buying a replacment car much, much easier. A big key, though, is to bank on that money, meaning that if you take money out of your savings, make extra payments beyond that 20% to restore what you took out.

2: Credit, Cars, and Castles
Kelly identifies these three elements as the most devastating opponents of personal finance success. Your credit cards (and the availability of easy consumer credit, your automobiles, and your home – together, they eat up a lot of your monthly resources if you’re paying off all of these loans. If you’re taking out a big debt for a home or an automobile that goes beyond what you minimally need, you’re essentially locking down your finances each month for the sake of having something beyond what you actually need. You’re chaining yourself to your job and walking a tightrope because you wanted more stuff.

3: Toxic FSP in the Alphabet Industry
The housing bubble only happened because people forgot the first rule of personal finance and allowed themselves to live beyond their means. When lots of people start doing this, you’ll eventually see a financial bubble of some sort, and when the people with a lot of money decide that the bubble is going to burst, they move their money and lo and behold, the bubble bursts. Prices revert to the mean and people who ...

]]> http://www.walkwithmoney.com/review-financially-stupid-people-are-everywhere/feed/ 1 The Debate Between Debit Cards and Credit Cards http://www.walkwithmoney.com/the-debate-between-debit-cards-and-credit-cards/ http://www.walkwithmoney.com/the-debate-between-debit-cards-and-credit-cards/#comments Tue, 09 Nov 2010 12:20:04 +0000 Robert Wilkinson http://www.walkwithmoney.com/the-debate-between-debit-cards-and-credit-cards/ Read the whole article...]]> More than half of all card transactions are now being paid with debit cards rather than credit cards, according to the Nilson Report. The debate between debit cards and credit cards continues on.  Many people made the switch to debit cards in an effort to avoid racking up too much debt and to help manage their budget more efficiently. The problem with this theory is the costly expense of overdraft fees if you mistakenly overdraw your account – and the fact that you lose out on many benefits by not using credit cards.

Credit Cards

Photo by Classyshot via Flickr

Despite the reinvention of the credit card industry and the recent legislation changes during a troubling economic period, there are still many benefits to using credit cards over debit cards which you may have overlooked, including:

  1. Build credit - People who only ever use debit cards or cash to pay for their purchases are going to have a lower credit score than people who use and pay for credit card purchases in a responsible manner.  A credit score is calculated based on a number of factors, including the types of credit you use, how much credit you have available, and the average age of credit accounts.
  2. Buy now, pay later - If your paycheck doesn’t always come in at the same time as your bills, you can benefit from paying all of your monthly expenses on a credit card and then paying it off at the end of each month.  Just keep track of what you’re spending or paying for with the card, and make sure you have enough money set aside to pay it when the bill comes in.  This is a much better alternative to payday loans and debit card overdrafts.
  3. Avoid usurious fees – It’s somewhat counter intuitive, given their reputation, but credit card fees are 100% avoidable.  Meanwhile, many of the prepaid ...
    ]]> http://www.walkwithmoney.com/the-debate-between-debit-cards-and-credit-cards/feed/ 1 Promises, Promises (To Yourself) http://www.walkwithmoney.com/promises-promises-to-yourself/ http://www.walkwithmoney.com/promises-promises-to-yourself/#comments Mon, 05 Jul 2010 23:20:02 +0000 Robert Wilkinson http://www.walkwithmoney.com/promises-promises-to-yourself/ Read the whole article...    ]]> Connie writes in with a great question whose answer got far too long for the Mailbag:

    My biggest problem with money is that I lie to myself. I keep telling myself everything is going good and at first it is. Then I start slowly falling back into old habits but I keep telling myself everything is good. Eventually, everything is worse than before but I still keep saying everything is good, and then I’ve racked up thousands of dollars on the credit cards again. I don’t know what to do anymore.

    I think that lying to ourselves is something we all do to some extent. Most people tend to believe they’re above average in most categories, which indicates some degree of self-delusion among practically everyone out there.

    A little bit of self-delusion is very good, actually. It gives us self-confidence, something we need to have to overcome difficult situations. We can tell ourselves we can do something just a bit beyond our skill and talent level and thus by pushing ourselves to doing it, we’re able to achieve something that was previously just beyond us.

    Yet, as Connie points out, self-delusion can sometimes be a very, very dangerous thing. It can push us into making some terrible mistakes under the guise of “everything being fine.” It can cause us to undermine our own progress and goals. It can sneak us into ever-greater problems, like an endless sink into debt or obesity or career mediocrity.

    My biggest current problem with self-delusion is with my weight. I’m not gaining any – that’s not the problem – but I often delude myself into thinking I’m doing very well at losing weight when I’m actually treading water or losing it very slowly.

    In the past, however, I’ve been able to battle self-delusion in many different areas: my career, my personal hobbies, and my time management abilities immediately come to mind.

    Here are four techniques I’ve found that really work for cutting through self-delusion.

    Make yourself directly accountable to others
    This is the top strategy I’ve found. You’ve simply got to make yourself accountable to others in your life. Lay out your situation to them. Explain where you’re ...

    ]]>     http://www.walkwithmoney.com/promises-promises-to-yourself/feed/ 1 Best Money Tips: Survivor’s Guide to Stockpiling Food http://www.walkwithmoney.com/best-money-tips-survivors-guide-to-stockpiling-food/ http://www.walkwithmoney.com/best-money-tips-survivors-guide-to-stockpiling-food/#comments Wed, 09 Jun 2010 22:20:07 +0000 Robert Wilkinson http://www.walkwithmoney.com/best-money-tips-survivors-guide-to-stockpiling-food/ Read the whole article...]]>
    canned food

    Welcome to Wise Bread's Best Money Tips roundup. Today, we share how-to's on stockpiling food, making emergency plans to include your pets, staying positive at work, and more!

    Top 5 Articles

    How to Stockpile Food for Survival — "Most families don't buy a year's worth of food in one trip, mostly because it's expensive. But if you learn to combine sales and coupons, you can easily and inexpensively build your store."  Frugal Dad

    Emergency Preparedness for Your Pets — It's important to have a plan to make sure your family — the humans and the animals — is safe during an emergency.  Funny About Money

    A Positive Mental Attitude At Work — Your attitude can help you go a long way at work, but make sure it's in the right direction! Green Panda Treehouse

    Travel and Credit Cards: 7 Tips Before Hitting the Road — Start by shopping around for a card that's travel-friendly. Master Your Card

    Are You REALLY Saving? 3 Ways You Could Be Overspending — What looks like a great deal may not translate to real savings.  MoneyNing

    Other ...

    ]]> http://www.walkwithmoney.com/best-money-tips-survivors-guide-to-stockpiling-food/feed/ 1 Why Was My Credit Limit Lowered? http://www.walkwithmoney.com/why-was-my-credit-limit-lowered/ http://www.walkwithmoney.com/why-was-my-credit-limit-lowered/#comments Sun, 07 Mar 2010 17:20:27 +0000 Robert Wilkinson http://www.walkwithmoney.com/why-was-my-credit-limit-lowered/ Read the whole article...]]> Jennifer writes in:

    Yesterday, I received a notice from [my credit card company] that my credit limit had been lowered from $10,000 to $4,000 on my primary credit card. I was immediately worried that my credit had been damaged by identity theft, so I checked it on annualcreditreport.com and there was nothing there at all. I’ve always paid all of my bills on time and my life has been pretty much normal and unchanged for a long time. Why would they make this change? I’m not concerned about reaching my credit limit, but that reduction in my limit does alter my debt-to-credit ratio, which could negatively impact my credit rating.

    Jennifer describes a pretty typical scenario today. A credit card company sends a letter out of nowhere, for no obvious reason, announcing a significant drop in one’s credit limit.

    One big effect that such a drop has is that it alters your debt-to-credit ratio, as Jennifer mentions. Simply put, your debt-to-credit ratio tells what percentage of your credit limit across all of your credit cards you’re actually using. So, let’s say Jennifer had a $3,000 balance on her $10,000 card – that’s a 30% debt-to-credit ratio. When the company drops her credit limit, she then had a $3,000 balance on a $4,000 card – that’s a 75% debt-to-credit ratio. The higher your debt-to-credit ratio, the more negative impact it has on your credit score.

    This type of behavior seems alien, particularly after a decade where credit card issuers would commonly raise credit limits without you even asking. What gives?

    The reality of the credit card industry has changed. For one, the econmic downturn has seen a large spike in the number of people who have simply defaulted on their credit card bills, not bothering to pay them. For another, the Credit Cardholders’ Bill of Right Act recently became the law of the land, restricting some of the business practices of the credit card companies.

    Credit limits are not a right. Another issue is that many people, particularly after the last decade of rampant growth in credit limits, view their limits as something of a right and when credit card companies reduce those limits, their rights are somehow being infringed. In truth, ...

    ]]>     http://www.walkwithmoney.com/why-was-my-credit-limit-lowered/feed/ 1     Getting Out of Debt Quickly pt 2 http://www.walkwithmoney.com/getting-out-of-debt-quickly-pt-2/ http://www.walkwithmoney.com/getting-out-of-debt-quickly-pt-2/#comments Tue, 02 Mar 2010 07:20:28 +0000 Robert Wilkinson http://www.walkwithmoney.com/getting-out-of-debt-quickly-pt-2/ Read the whole article...]]>

    3b5e5 9cents Getting Out of Debt Quickly pt 2This is part 2 of a 4 part series on getting out of debt quickly. Make sure that you read all four parts in order to get the most out of this sequence of hints on getting yourself or your family out of the debt trap.

    Next you are going to want to try to consolidate all of your debt onto a single credit card with an interest rate that is lower than what your current credit cards are requiring for you to pay. By doing this you are going to be lowering your monthly payments dramatically while paying your credit card debt off much more quickly.

    Step #3 - The third step in the process is to find out what your credit score is.

    Your credit score is a really important number, because what it represents is essentially how reliable you are going to be when it comes to returning any money that you have borrowed from banks or other lending institutions. When you have a high credit score, it is going to help you qualify for things like low-interest credit card opportunities. Your score is also going to have an impact on how much money you end up paying for auto insurance, home owner's insurance, deposits on utilities, and it may even play a role in whether you can get certain jobs, rent a home or an apartment and a number of other things.

    You can easily find out what your credit score is by visiting http://www.myfico.com. You can also visit http://www.creditkarma.com in order to see your TransUnion credit score for free. The number, like an SAT score, is capable of ranging from approximately 300 to approximately 800 depending on the credit reporting agency. If you have a credit score that is higher than 660 then you are more than likely in good shape. Scores over 720 are considered to be excellent. If your score is currently below the 660 point, then you are going to need to spend some time working to improve this number before you are going to be able to obtain a better interest rate on any of your loans or credit cards.

    Step #4 - Next, you are going to want to track your spending and make some cuts where necessary.

    For a period of thirty days or so, what you are going to want to do first and foremost is to keep a complete record of everyplace that your money goes, leaving nothing out. You can do this using a checkbook register, a notebook or a computer program like Excel or Quicken depending on what your individual needs are. As you go from one day to the next, save all of your receipts for each and every single item that you buy, even the smallest purchases, and then at the end of every day you should sit down and take the time to record as well as categorize every single expense that you make.

    …Continued in part 3.

    Photo credits: Jonathan Pobre

    Originally posted 2009-09-29 03:26:23. Republished by Blog Post Promoter

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      ]]> http://www.walkwithmoney.com/getting-out-of-debt-quickly-pt-2/feed/ 1 Does a Credit Score Matter to Someone Living a Debt-Free Lifestyle? http://www.walkwithmoney.com/does-a-credit-score-matter-to-someone-living-a-debt-free-lifestyle/ http://www.walkwithmoney.com/does-a-credit-score-matter-to-someone-living-a-debt-free-lifestyle/#comments Thu, 04 Feb 2010 07:20:24 +0000 Robert Wilkinson http://www.walkwithmoney.com/does-a-credit-score-matter-to-someone-living-a-debt-free-lifestyle/ Read the whole article...]]> Mary writes in:

      My husband and I have been debt free for seven years. Hooray! We cancelled all of our credit cards in 2001 and paid off our home mortgage in 2002.

      A few weeks ago, our homeowners insurance premium went up substantially. I called our agent to ask why and he told me that our premium was automatically raised because our credit score was low.

      I got worried and checked our credit report at annualcreditreport.com (as you suggested before) and found nothing at all on our credit report. So, I called our agent back and told him the story. He did some follow-up and found that because we didn’t have any outstanding credit of any kind on our credit report, they couldn’t verify that we were responsible payers, thus we were placed into a higher risk category.

      This seems nonsensical! I am shopping around for new insurance but I wanted to know what you thought of this policy.

      Obviously, on an individual level, this is nonsensical. A person with no debt at all and a long history of never having debt is the type of person that ought to be considered a great client for an insurance company. I can’t think of anything that screams “stable and reliable” than a person without any debt.

      Yet, if you step back and look at the broader view of society, this policy does somewhat make sense.

      First of all, the insurance company has to have standard rules and practices for setting their rates. They have to know cold the risks associated with different factors, from the color of the car to the reliability of the driver. When they know these risks, then they can calculate the exact rate to charge to simultaneously be competitive with other companies and earn a profit for themselves.

      Hand in hand with that is a society that lives and thrives on personal ...

      ]]>       http://www.walkwithmoney.com/does-a-credit-score-matter-to-someone-living-a-debt-free-lifestyle/feed/ 1       25 Best iPhone Apps for Personal Finance http://www.walkwithmoney.com/25-best-iphone-apps-for-personal-finance/ http://www.walkwithmoney.com/25-best-iphone-apps-for-personal-finance/#comments Wed, 03 Feb 2010 05:20:10 +0000 Robert Wilkinson http://www.walkwithmoney.com/25-best-iphone-apps-for-personal-finance/ Read the whole article...]]> iPhones are often criticized as expensive and ostentatious. Why buy a smart telephone when you can make calls from a $10 pay as you go telephone? It may seem like a waste of money, but used properly an iPhone can be a powerful tool in your personal finance arsenal. Here is just a small sampling of the best personal finance applications that are accessible for your iPhone or iPod Touch. These are my leading 25.

      Finances and Banking iPhone Apps

      1. Mint.com iPhone App — Mint is a nicely recognized personal finance management site, but its’ app is the #one app that was talked about by iPhone users while I was researching this article. On my own iPhone, I use Mint much more often than any other personal finance app. It has a clear style, and is extremely user friendly.
      2. Snap Tax by TurboTax — You can do just about anything on your iPhone, so why not your taxes?! TurboTax brings you a $9.99 app that will help you file your taxes rapidly and effortlessly.
      3. Paypal on the iPhone — Need to deliver money on the go, pay for that merchandise you stalked and won on Ebay? Use your current Paypal account to deliver money to anybody!
      4. Bill Tracker (and Bill Tracker Lite) — I use my calendar for bill tracking but this is a easy, and nicely created app that keeps track of when expenses are due.
      5. Debt Tracker Pro (and Debt Tracker Lite) — Attempting to get out of financial debt? This app helps you track your credit cards, and other debts, and use the popular financial debt snowball method to pay off financial debt. Automatically calculates payment quantities to take the guess function out of paying off financial debt. Much prettier than an Excel spreadsheet.
      6. Wells Fargo Mobile — Offers each a personal app, and one for business customers. The business one is especially helpful since it tells you about pending transactions, and even permits you to approve payments. Perfect for the mobile CEO.
      7. Financial institution of America Mobile Banking — With BoA’s app you can transfer money between accounts, deliver money to other BoA customers, track investing, and check balances. This is one of the most useful user friendly apps I reviewed.
      8. USAA Mobile App for the iPhone – USAA is, in my viewpoint, one of the best companies in the US. Their app lives up to that standard, supplying you with an simple to use interface, and the most amazing function actually: the capability to deposit a check by way of your telephone!
      9. More banks-ING, Uncover, Chase, and much more — I haven’t attempted each and every bank’s app, but every one is various. Would adore to listen to your feedback in the feedback if you have a financial institution with an app you discover useful.
      10. Yahoo! Finance for iPhone — Want everything finance at your fingertips? This app has it all. And for the pricetag (free) nicely worth downloading. Quotes, tracking stocks, ...
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        ]]> http://www.walkwithmoney.com/25-best-iphone-apps-for-personal-finance/feed/ 0 Teach Your Kids about Money Management http://www.walkwithmoney.com/teach-your-kids-about-money-management/ http://www.walkwithmoney.com/teach-your-kids-about-money-management/#comments Sun, 03 Jan 2010 21:20:21 +0000 Robert Wilkinson http://www.walkwithmoney.com/teach-your-kids-about-money-management/ Read the whole article...]]>

        1b68a money Teach Your Kids about Money ManagementIt is never too early to teach your dren the fundamentals wht comes to good monanagement. Teaching your children good habits is usually smart, and money management is certainly a set of good habits that is better taught sooner rather of later. If you teach your children how to value and handle their money very young, then it will be useful for them in the future. In order to make children discover the value of their money and money management, parents and guardians can practice a few very easy actions, such as the following:

        - Parents can include their children when they are speaking about actions relating to money. They can consist of their children when they sit down to discuss household budgets and other similar money associated subjects, so that they can teach their children what actions include money and what elements of the family require money in order to run easily. When children comprehend why money is essential, they can better comprehend its value.

        - These days a lot of our money is being used in the form of credit score cards and checkbooks. When you make use of these alternative payment types, you should explain to your children what you are doing and how it works. Tell them about the ease that financial institution accounts and credit score cards can provide, and detail the role that they play in the money management procedure. You should also make an work to teach them the difference between credit score cards and debit cards so that they can make good use of all the money mediums accessible to them in the future.

        - As early as possible, it would be advantageous to allow your children to handle, organize and save their own pocket alter. They can be taught more than time to count their money, use financial institution accounts, open a financial savings account, draw money out through checks, and maintain their own distinctive private spending budget and so on. When you first start to teach your children about money management, they will probably be more most likely to mess issues up than to get every thing correct.

        -In order to assist them in this regard, you can introduce your children to online money management software and other choices like a checkbook register as quickly as possible. This will display them how to keep track of their financial savings and their spending. This will also assist them set up alerts and reminders so that they can keep track of spending, earning and saving. As children, individuals are simply not very adept when it comes to money management. Teaching them early and impressing them with the ideas of money management frequently will assist them overcome their issues with money management, allowing them to get better control of their finances from day one.

        When it comes to money management, the previously you teach your children about taking care of their money, the better off they will be as they start to have their own financial savings, incomes and expenditures.

        Photo Credits: one

        Originally posted 2008-12-22 05:25:49. Republished by Blog Post Promoter

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            <a href="https://mail.google.com/mail/?ui=2&view=cm&fs=1&tf=1&su=Teach+Your+Kids+about+Money+Management&body=Link:%20http://www.walkwithmoney.com/teach-your-kids-about-money-management/%20(sent%20via%20http://shareaholic.com)%0D%0A%0D%0A----%0D%0A%20%0A%09%09%09%09%09%09%09%09%0A%09%09%09%09It%20is%20never%20too%20early%20to%20teach%20your%20children%20the%20basics%20when%20it%20comeso%20good%20money%20management.%20Teaching%20your%20children%20good%20habits%20is%20always%20wise%2C%20and%20money%20management%20is%20definitely%20a%20set%20of%20good%20habits%20that%20is%20better%20taught%20sooner%20instead%20of%20later.%20If%20you%20teach%20your%20children%20how%20to%20va" rel="" class="external" title="Email this via Gmail"0478nbsp;

          ]]> http://www.walkwithmoney.com/teach-your-kids-about-money-management/feed/ 1 Signs That Your Teen Needs Money Management Help http://www.walkwithmoney.com/signs-that-your-teen-needs-money-management-help/ http://www.walkwithmoney.com/signs-that-your-teen-needs-money-management-help/#comments Tue, 29 Dec 2009 11:20:30 +0000 Robert Wilkinson http://www.walkwithmoney.com/signs-that-your-teen-needs-money-management-help/ Read the whole article...]]>

          a72b4 teen Signs That Your Teen Needs Money Management HelpIf you teen went off to college tomorrow, how soon would they call you asking for money? Would they be able to purchase their own groceries by the end of the month? Would they end up moving back into your basement when they cannot afford their apartment any longer? The idea of your teenager going into debt so early is definitely a frightening one, but it is a very real one as well. Does your teen have the money management skills necessary in order to survive out there? Here are some signs that your teen needs money management help.

          - If your teenager has no "cash" concept, he or she probably needs money management help. It is really easy to overspend without realizing how much money you are using when you use debit cards, credit cards and the internet to do your shopping. If teenagers don't associate cash with their transactions, they will never really understand how much money they are spending. It is vital that you wean them off of debit and credit cards over the span of 30 days, forcing them to use cash instead so that they can see what it means to run out of money. Suddenly their necessities may seem much less necessary when their cash gets low.

          - If your teen constantly "needs" things, he or she probably needs money management help. The only things that your teen really needs are sunshine, air to breathe, shelter, food and basic clothing. Teens don't need video games, CDs, cell phones or accessories. Break them of the "I need it" habit.

          - If your teen is constantly running over their balance, then he or she probably needs money management help.           If you find your teenager running over his or her cell phone minutes, or racking up NSF fees and overdraft charges, take this to be a serious sign that something is wrong. The unfortunate side of giving your teen some responsibility is that it can allow them to mess up a little. The first time you see them going over their limit, reduce their amount of freedom and instill some basic money management skills in them before they can have their responsibility back.

          - If your teen is not working more for the money they need, then he or she probably needs money management help. There is an amazing formula that you need to learn for money management: If you want more money, you have to work more. Or work smarter. If your teen does not understand this formula, then you need to explain some of the principles of money management to them. Sometimes despite the simplicity of the concept, it does not occur to these teens that they may simply need to work harder or smarter to have more money in their pockets at the end of the week.

          Photo Credits: 1

          Originally posted 2008-12-26 05:48:07. Republished by Blog Post Promoter

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