Unfortunately, banks are aware of the poor spending habits of its customers, and have really sucked people in, thinking a debit card serves them well.  For the record, debit cards can be real evil;  I have not discovered the good!

In the “old days”, banks charged their customers sometimes just a monthly fee on a checking account and sometimes, a fee per check, and sometimes, both.  Slowly, due to competition and needing depositors, “free checking” was incorporated into the banking industry.

What most people do not understand is that the banks invest any money you deposit.  For the most part, a lot of the deposits are actually invested in the stock market.  Then the bank will pay a small amount of their returns to you as interest on your checking, CD or Money Market account.

Another way that banks generate revenues, is by lending your money to other customers as loans.  The interest paid on your loan is bank revenue.  Types of consumer loans are personal, mortgage and auto.  As assets(deposits) drop, banks will advertise their “special” rates for their various products (checking, CD’s and Money Market accounts) to increase deposits.  When they have an abundance of deposited assets, then they will advertise competitive rates on loans.

Now that we have looked at a little background as to how banks operate, let us take a look at debit cards.  Debit cards work like cash. . . you spend directly from your account at the bank.  Before the emergence of the debit card, if you were making a purchase, you would pull out your wallet or a wad out of your pocket and quickly count how much money you had to determine if you could cover your purchase.  The debit card is supposed to be a more convenient and safer way to pay in cash.  However, it rarely works as planned because when you are making your purchase, you probably are not aware of what your balance is or know you do not have enough to manage the purchase.  The banks love this system because they make a lot of money on your overdrafts which ends up costing you a lot more for your purchase.  To make matters even worse, the banks, up to now, have been processing your most expensive purchases before the smaller ones . . hence, you would be charged for more overdafts than if the bank processed your purchases as they would come into the bank.  Example:  You purchase items for $6.00, $5.00 and $200.00.  The bank would process the $200 purchase first and then the $6.00 and $5.00 so you would be charged 3 overdraft charges, not just one for the $200 purchase.

To consider the debit card as a safer way to pay for purchases is a misnomer.  Plastic cards are no safer (and probably less safe) than credit cards.  Lose one or have someone hack your account number or steal your identity, and your problems are just beginning. If you know someone that has experience with this, ask them about their nightmare !

I conclude that a debit card can be a real nuisance, costly and a number of headaches but mostly, evil.  Some people find them good. Personally, I long for the simplicity of the past and will never apply for a debit card where all costs are borne by me for the benefit of the bank and, on top of that, they are using my money to make money!  Is it any wonder, that all banks have big, beautiful and new premises?

1)  You have bad credit, and it’s been that way for a while.
2)  You’re shopping for something big like a car or home, but your bad credit is getting in the way of your ability to make the purchase.

Now you’ll start on your credit repair adventure, and if you persevere, you’ll wind up on a path to greater prosperity.

The reasons for having good credit should be obvious, but I’ll go over some of the main points:

If you have good credit you can buy large items at affordable prices that you probably wouldn’t be able to purchase with bad credit.  Relatively few  people  have enough cash stashed away to buy a home.  This is why it’s necessary to borrow money from a bank or mortgage lending company.

When people have good credit, they’re able to get loans with low interest rates and favorable terms.  With poor credit, or with none at all, your options are really limited in terms of how much you can purchase on credit which will affect your lifestyle.

Now that you’ve made the decision to improve your credit report, you’re already on the road to turning your credit around and finding your way through your present financial crisis; this will soon bring you to a point where you can easily manage your money and where you can live without the stress and anxiety connected with bad credit.

How Difficult Is It to Repair My Own Credit?

All too often people assume that repairing their credit is difficult, or that it’s necessary to hire a credit repair company to help them with the process.   This couldn’t be further from the truth, and as it happens, it’s even illegal in some cases for these companies to accept up front payment.  Lots of people decide to forego this service and make the credit repair journey on their own; this is helpful in two important ways:

1) It really causes you to think deeply about how you got into this situation in the first place.  This kind of self-observation is important if the you truly want to understand the nature of the problem to avoid repeating the situation.

2) You will learn the value of credit; which wouldn’t happen if some credit repair firm does all the work.  In all reality, credit repair isn’t a rocket science, not even close.  If you can type a coherent letter and stick it in an envelope, put on the postage and send it off, then you have all of the skills you need to repair your own credit.

Since many credit repair outfits are actually run by scammers, and the legitimate ones charge high fees, you really ought to do the little bit of learning that is required to if you are to improve your own credit.

There are only a few things you’ll need to repair your credit, you must be willing to learn, able to face the past and take on your financial future.  The most important skill you will need is perseverance.

The Internet is the best place to look for information on how to repair your credit score.  You’ll find that there are communities with a ton of helpful information offered by people who have already been through the process of repairing their own credit.  The first step on the road to credit repair is acknowledging the problem, but once you’re on the path, you’ll soon realize that your future will be much better than your past.

T. Harv Eker

Have you heard about T. Harv Eker?  If not, you should have!  He became a millionaire in only two and a half years, using the principles he now teaches to others. He founded Peak Potentials Training to help other people follow in his footsteps.

I was skeptical about Eker’s claims when I first encountered them.  After all, it seems like it’s impossible to do this well in such a short time.  Then I heard about the principles behind his methods.

Basically, what Eker has to say is that in order to be a millionaire, you have to think like one.  We all have a basic blueprint that guides how we think about and use our money.  It dictates our financial success throughout our lives.

Because of this, even those of us with a lot of financial knowhow could be holding ourselves back.  Fear, doubt, and worry are all signs of a poor financial blueprint.  Millionaires have a different way to think about money, and it helps them be successful in every part of their lives.

Eker’s parents were poor European immigrants who had only a few dollars when they came to North America, and he grew up fairly poor.  However, he was able to change the way he thought about money and turn things around. Now he’s willing to share that knowledge with everyone else!  Using the Peak Potentials Training group and his books, you’ll have the ability to learn how to succeed.

The process here isn’t necessarily a comfortable one.  T. Harv Eker’s methods of opening our minds and changing how we think about success and finances can be rather difficult.  If you don’t have the kind of dedication that’s needed to change your life completely, you should avoid this kind of program.

Of course, if making a difference in your success is important to you, you might benefit from T Harv Eker and his work.  A change to your personal financial blueprint could be just the thing you need to turn your life around.  The high intensity style of Eker’s programs makes it easy to keep going, making it through even the worst road blocks to success.

If you’re like most of us, you’ve been working to be successful for a long time, but haven’t had much luck; don’t give up!  I can change the way I think about money and take control of my life, and so can you.  All that’s needed is to show us how.

While it might seem like the road to success is a long one, remember to pay attention to your progress.  When you change your internal blueprint, you actually start seeing results right away; they’re just small ones.  Those are the signs that you’ll get to your personal peak in the end.

Not sure that the methods Harv Eker uses are the right ones to help you succeed?  Well, I was skeptical, too! Check out what he has to say, examine his methods and decide for yourself.  You’ll be surprised at what you find.

A poor credit report is caused by making late payments on your credit cards, accounts that are have been turned over to collection agencies and bankruptcy.   If you want to fix your credit score, you must change your habits. If you can change your habits over time your credit score will start to improve.  Once it does, you will start to see lower interest rates offered by lenders and  better credit card offers.

Check out the 4 tips below to help you repair your credit :

1. You Must Pay All of Your Bills on Time

Companies lend money based on your past credit history. Once they know your history, they can then figure out how much of a risk you are to them.  By paying off your debts promptly, you signal to lenders that you will take responsibility for any future debts.  To them, you would be less of a risk.

2. Carry the Right Amount of Credit Cards

Most people these days carry around too many credit cards.  How many should you have?  Credit experts recommend having 2- 4 credit cards. Having more than that doesn’t mean you have to use them!   Better to pay them down to 0 because credit reporting companies, not only consider the number of cards you own, but also the balance of each card.  The best idea is to pay them all down.  Then, determine which ones you should keep and, if you do not trust yourself to not use the extra cards, cut!

3. You Must Make No Less Than the Minimum Payment

You must always to remember to pay at least the minimum payment and, if possible, a little more.  Never pay less than the amount you are required to pay.  By paying less than the minimum amount, you will accumulate late payments and fees which will affect your credit score.

4. Watch Your Credit Report Closely

You must keep a constant eye on your credit report.  Make sure you check your reports from all 3 credit bureaus which keep track of your score.   Once you receive your report, take note of any negative information, mistakes or accounts you did not open.  This will let you know what you need to do to start fixing the problems plus, you will can see if your identity has been tampered with or stolen.

It’s vital that you work on developing good financial habits.  The faster you can do this, the better.  The new habits will help you maintain a better credit report which will save you money.   If you need to repair your credit score do so, immediately.

You always need to stay up to date, as there are constantly new requirements and laws being passed that change the composure of bankruptcy and what is involved with it, and this is better known as bankruptcy law reform. The bankruptcy law changes from  state to state.  If you relocate or move to a new areas you will need to know the differences.  A tax advisor or financial advisor would be knowledgeable in this respect.

The following information should be very helpful to you whether you are looking specifically at personal bankruptcy or business bankruptcy or just want a better general idea of what bankruptcy itself is all about.

Bankruptcy Outcome

Essentially, bankruptcy law allows for the development of a plan that allows a debtor to resolve his or her debts through the allocation of their assets among their creditors and approved by the court.

Bankruptcy law reform has one main goal in particular, that is to obligate people who can afford to make some payments towards their debt to make these payments, while at the same time still affording them the right to have the rest of their debt forgiven.

There are certain status exemptions that you will need to be aware of before going ahead and filing for bankruptcy.  Prior to filing, you should consult with a tax or financial advisor who will be able to assess your financial situation and determine whether or not bankruptcy is the answer.

They will discuss with you bankruptcy law reform in detail. There will be a determination of your financial standing is and whether it is advantageous for you to  file for bankruptcy.    Then the advisor will outline your next steps you are going to need to take.

You may want to look into that personal bankruptcy law and learn what you can and cannot do if you find you are in a tight financial dilemma and the bills are more than you can handle.

You will feel a lot better and a great deal more comfortable and ready for your decision of declaring bankruptcy if you are educated and informed on the matter..  Just bear in mind that although there are certainly a lot of advantages offered by bankruptcy, there is also a downside.  Consider  the advantages and disadvantages carefully.

Just be sure that you look specifically for whichever bankruptcy law you need, so if you are dealing with a business you will need to become educated specifically on business bankruptcy law and, if it’s for personal debt, you need to learn about personal bankruptcy law.

If You Need It

There are a few steps that you are going to want to take first if you think that you should declare bankruptcy. Learning about federal bankruptcy law will assist you in deciding if filing for bankruptcy is going to be the right solution for you.

The first thing  you should do is look for the help and advice of a bankruptcy lawyer in your area. They will be able to provide you with all the implemental information and review your financial situation. From this they will come to the conclusion on whether bankruptcy is the answer or if there is another solution that they think will be more amending in your case.

Another thing you need to remember is that while federal bankruptcy law absolutely does offer some benefits, there are also disadvantages that come along with it as well. You will definitely need to take some time to decide exactly what your expectations are, and if bankruptcy is going to be the proper choice for you. When considering federal bankruptcy action you need to consider all your options and weigh out all the advantages and disadvantages offered by federal bankruptcy law.

The main and most obvious benefit that one receives from declaring bankruptcy is you will be  rid of all of your debts and will be allowed to start over.  There are negative points to this as well.

For a lot of people, the worst drawback of bankruptcy is the shame of having to declare themselves as bankrupt when carrying out certain dealings publicly. There are other important drawbacks of bankruptcy, including a requirement that if you, as a business owner have been granted a bankruptcy, you are required to close your business immediately.

Another thing to think about is that  your bank, building accounts and credit card accounts will be closed by the issuers.  You will essentially lose all of your financial freedom.  If you are up to you neck in debt you probably don’t have much freedom anyway and this may be the reason you are considering filing bankruptcy.

However, problems arise when people do not pay attention to what they are spending and do not or can not  pay the full amount off at the end of the month. If you don’t have the cash, then you shouldn’t  be spending is a simple rule to follow.  Prevention is better than a cure and if you are considering a personal bankruptcy action, then it is not too late to take the steps to avoid legally declaring bankruptcy.

When it comes to buying certain things, one often makes an emotional decision (impulse buying), rather than a rational one.  Emotional decisions, if not controlled, can lead to  having to declare personal bankruptcy.

If you are in the situation where you need to file a personal bankruptcy action, then it will be a shocking blow because without credit, it is very hard to finance anything.  Declared personal bankruptcy will make it very hard for you to make any credit purchases like buying a house, a car or even opening new accounts for many years.

Possible Steps To Avoid Declaring Personal Bankruptcy

Now that you are facing having to declare personal bankruptcy you may feel like burying your head in the sand, but you must take action!  Start saving immediately and write down all the changes you must make. Sell what you can and definitely cut up your credit cards.  Neither of these two options are going to be easy.  You might even have to sell your car or your house.  Talk to a financial advisor, as long as they don’t charge for their services.  If you are in a relationship and your partner has not been employed, perhaps now is the time for your partner to return to work.  A second income can’t hurt. It probably took some time to get to this point so don’t expect miracles to happen overnight.

Learn from your errors and do not repeat them.  If you got into debt from gambling or some other kind of addiction, seek professional help pronto and deal with the issues that brought you to this point.  If you get out debt and repeat the same behavior, you will just continue the cycle.  Life always teaches us lessons and this is a big one.

A payday loan has very high interest rates and means you do not have the money to do responsible borrowing.  Better to hold off on your purchase until you have the money available.

When you take a payday loan, you must give the loan company your bank account number (this means you are giving them access to your bank account) and credit card numbers which is very dangerous and financially stupid.  Dangerous because you are now sharing your bank account with the loan company.  What makes you think you won’t be struggling with the next payday or the one after that or the next one?

If you manage to avoid paying the loan off on time, your credit rating is affected and the late fees and finance charges will be overbearing.  The loan company will harrass you until you break down and pay them or, maybe, commit suicide from their pressure and, then, they will go after your estate or relatives.

The payday lender reminds me of a shark just waiting for the opportunity to strike its prey. This is where the term, “Loan Shark” was borne.  Lots of people have been conned into this scheme and when you are down and out financially, you are most vulnerable.  A payday loan is usually used for impulse buying because it is so quick and easy to obtain.

If the lender files a legal claim against you, you will need to arrange time off from your job (and maybe lose pay from your employer) to appear in court.  You could be required to appear in court many times, another hassle.

If you would not stand in the path of a train, then do not borrow from a pay day lending company!

Buying Your First House Bulletin Board

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© Norine Peardon, May, 2009

The initial thing you need to do when looking for a loan is to work out how much you can actually afford to borrow. Think about the impact of your loan as if you couldn’t afford to pay it back you could find yourself getting into some financial difficulty. The amount you can borrow is usually up to $750 and this is set at the maximum figure allowed.

If you have considered the amount of money that you need to borrow, think about what the money is to be used for.  A payday loan can be used for almost anything you need to spend your money on and there is little limitations on what the money is used for once the money enters your bank account. As long as you are able to repay your loan,  the payday loan company will not question your intention.

A thing that you would be able to use the loan for that may help you get back some of the interest paid would be to use the money to do some work on the house that you currently reside in. If you think about it, the money that you invested into the house that you have borrowed may be returned when you sell the house.

Another thing you could use the money for would be to pay off credit card charges that get bigger and bigger. With cash till payday the money is paid into your account swiftly and this would subsequently help you to pay the charges that the credit card company have put on your account. Once the charge had been paid, it would not continue to rise.

If you are considering applying for a payday loan, then think about whether or not you are able to pay it back, as the payday loan company would expect their money to be paid back. The financial agreement is a legal agreement that you established with the payday company and of you were unable to repay the loan, they would pursue additional charges. If you are unable to meet the repayments, seek advice, but my advice would be  to not borrow money.

A payday loan is fast loans service that is effectively an unsecured loan that is paid back when you next receive your pay check. There are a number of different payday loan facilities available within the online market place. As with all borrowings, always ensure you check the Annual Percentage Rate (APR) and make sure you can meet the payday loan repayments

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