Credit card finance charges defined

If a consumer carries a balance on their credit card beyond a single billing cycle, they will be charged for it. This is called a finance charge and is associated with the APR on the consumer's account. The amount charged will be affected by the card's APR, how the card was used, and how much was charged. It is important to know that rates, even on Low Interest Credit Cards, vary according to how a credit card is used, so a new purchase will have a different APR than a cash advance or balance transfer.

Credit cards can be a bit overwhelming, and the fees associated with them are understood by very few people who use them. This can be dangerous can lead some people into a debt spiral that can be very difficult to get out of. Although creditors should be clearer when presenting their services, it is the consumer's responsibility to do the necessary research before entering in to any kind of financial agreement. One of the more confusing aspects of credit cards is how interest is calculated.

The two most common methods of calculating credit card interest are:

• The Two Cycle Average

• The Average Daily Balance

The Two Cycle Average:

This is the most common method used to calculate credit card interest, and not surprisingly it is the most complicated. Interest is calculated by taking an average of the amount charged to an account by the number of days in the current and previous billing cycle.

A good example would be if during the current billing cycle, the consumer has $500.00 carried over from the previous cycle, and the interest rate of the credit card in question is only 11%. For purposes of this example say the card holder only pays $100.00 on their account.

If the two cycle average daily balance is used, the consumer must average the current balance, as well as the previous balance and take a daily average. One way to look at it is this:

(Previous Balance + Current Balance) / Two Billing Cycles * 30 = (Amount Applied to Interest)* APR

Using the above figures for our consumer, and assuming both billing cycles are 30 days in length, we get:

($1000.00 + $500.00) /60 *30 = $750.00.

The consumer would be paying interest on $750.00 instead of the current balance of $500.00. This means a higher interest payment, and it is clear this method favors the creditor.

Average Daily Balance:

This method averages the amount charged for new purchases over the number of days in a particular billing cycle. An example would be if a consumer purchased a chair for $400.00, then the next week purchased a meal for %25.00. If no additional purchases were made during the current billing cycle, the average daily balance would be $14.17. This should mean that it doesn't matter if you make a purchase on the first or last day of a billing cycle, the amount pain in interest is the same.

The best way to maximize the value of any credit card is to not carry a balance, but of course this is not always possible. Only carry a balance when you must, and then only for as long as absolutely necessary.

Holiday shopping money tips

If you are like most people, you severely UNDER-estimate what the holiday gift list is going to cost. Here are some time-tested tips to help you not overspend on gift giving.

The biggest mistake you can make is to start out on your holiday shopping trips with NO GIFT PLAN and NO SPENDING PLAN. That usually causes spending to double and you end up a Grouchy Grinch after the holiday when you have to pay the bills or you are short on money.

1 – Decide what your total spending budget is for gifts. Hopefully you have stashed some money away for this ahead of time and don’t have to use credit cards you can’t pay off immediately. Add some to the budget to cover gift wrap, sales tax and shipping to out of town recipients.

2 – Make a list of everyone you have to buy gifts for. In large families, draw names so you don’t have to buy everyone a gift, that way your budget goes further and you can get nicer gifts for fewer people. Don’t forget the kids’ teachers, your beautician and the mailman if you usually get them something.

3 – Next to each person’s name write down the amount you want to spend. Add these up and make adjustments so you don’t OVER-spend on your plan.

4 – For each person, write down a list of gift ideas that can be purchased within the gift limit. Make a list of stores where you can shop to get a great selection of that item at great prices. The more ideas you have for each person, the more likely you are to find a great gift that is within the price limit.

5 – Consolidate your shopping trips to the places on the list and shop well in advance so you get the best selection. Even if you don’t usually read the newspaper, at least get the Sunday editions starting the week before Thanksgiving. That way you can see the sales at your targeted shopping destinations, get some great discount coupons and get some gift ideas for those hard-to-shop-for family members and friends.

6 – For long distance gift giving, consider gift certificates so the person can pick out what they actually want. Restaurant gift certificates are great for women who will be tired of cooking during the Holiday and will really appreciate a relaxing meal that someone else had to shop for, cook and clean up after.

7 – As you find the gift items and decide to buy, scratch the person off the list as a DONE so you won’t be tempted to buy more.

8 – Shop for the recipient. A well thought out gift that the person will truly use is better than a designer label anything that they wouldn’t think of wearing or using, no matter how much of a bargain it was.

Gift Ideas with Flair

Make the box or container a part of the gift. Forget the gift wrap and shop for unique containers that can become part of the gift and used later. If you buy someone a scarf and one other item, wrap the item artfully in the scarf and tie on a nice ribbon bow.

A gift of homemade cookies in a nice container to keep them in can be a much appreciated gift for about $11; especially for a single guy who never cooks.

Buying someone a book or book store gift certificate? Find a unique container and include something to enjoy with the book like a selection of tea and organic chocolates; A nice gift for about $35.

A pound of organic coffee, a bar of organic chocolate and a great music CD can be boxed up for under $30.

How to get an air miles credit card you will be proud to carry

If you are one of those people that often stand in lines at the airport in order to do business as usual, then you may already know the value of an air miles credit card. Not all air miles credit cards are equal, however, but it will take some research in order for you to find the best one for you. Here are some tips for things to look for as you try to get one that you can be proud of.

Airline Card Vs. All-purpose Card

There are two different kinds of air miles credit cards to choose from - ones that are put out by the airline, and those put out by the credit card companies. The airline cards, while possibly offering a better deal when you travel on their airline, may not be as handy overall. This is especially true if you will ever have to fly on another airline. If your destinations are always the same, and the airline operates out of both airports, then this is good. However, if you visit other airports as your business demands, then an all-purpose type of air miles card is the better way to go.

Comparing Up-Front Points

A number of air miles credit cards promise to give you a large number of points up front after you make your first purchase. While any free points are a good thing, 5,000 points on two different cards may represent two entirely different things. The question you need to ask to get a true picture of the value of these points is how many points are needed to get the first free flight? This will indicate the percentage of points that they are actually giving to you.

Check The Interest Rate

Interest rates on your credit card generally do not apply at first - but they will eventually. If you typically leave balances on your credit card then this is a figure you need to be concerned with. These rates will vary anywhere from as low as 7.9% up to around 18.24%. Of course, the actual interest rate you get will depend on your credit rating, but you need to go as low as you can.

Tips On Air Miles

Some air miles credit cards have an expiration date on their air miles. This means that they will only stay on your credit card for so long - after that they are gone if you do not use them. If you are saving them for a big trip later, check into this feature or they may not be there when you need them. The good thing is that on some cards your miles never expire. Be sure to check to see if there are a maximum number of miles that you can earn each year, too. Some cards have blackout dates on which you cannot use your miles for tickets.

Other Rewards

You can get a certain percentage of all your purchases on some air miles credit cards. Know what these things are in order to get even greater savings. Some cards will give one point per dollar spent, and some will give two. Also, find out where these points can be redeemed in the way of stores, products, restaurants, hotels, etc. If you do not normally go to those places, then the card will not do you much good.

Be sure to look at the various fees, too. Some air miles credit cards have an annual fee as well as a high interest rate. If you have balances on any other credit card, then try to get one that allows balance transfers - it will save you more money. Finally, stay away from any card that has a universal default clause.

Tips regarding setting up of merchant account

Merchant account is a kind a service offered by banks or merchant account providing companies to business owners or traders. Merchant account enables a business man or a trader in providing credit card processing services to its customers or buyers. Also, it supports a trader with easy transaction of money by swiping a credit card.

In-spite of merchant account being such a big business tool there are many business owners or traders who end up making mistakes in implementing this tool. Merchant accounts are more or less like a deal that can prove a blunder if not dealt well.

It is a fact that credit card processing service adds to the growth and enhancement of business. Customers lurk for opportunity where they don’t have to face hassle like carrying cash or getting short of it while shopping. Thus, with a merchant account you tend to attract such wealthy buyers. But if you open a merchant account with a bank or a company that does not provides you with the offers cherished by your rival trader, then you surely to lose your benefits of credit card processing and competition in the market.

There are some small businessmen or traders who either end up giving up on the service due to the heavy charges or fee demanded by the banks or else they end up choosing the wrong bank for their merchant account. No doubt that merchant account is often opened by bigger business companies, thus banks tend to charge big. But there are also banks providing low monthly charges and sometimes no rental fee. You can always search and find the bank or merchant account providing company that offers just a percent or two per transaction. Here the key point is research, never go for a merchant account without looking for two or than two banks or companies offering merchant account services.

The main thing to be kept in mind while selecting the right merchant account is the type of business you do i. e. the merchant account you open should be flexible enough to benefit the kind of business you do. Also, if you are an online business trader then you should always check for the terms and conditions offered by the merchant account providing company you wish to tie up with.

Apart from basic suitability and fee charges, the main thing that matters while selecting for the right bank or company is the safety factor. Do not forget to ask yourself how safe and reliable is the deal with the company you chose for opening your merchant account? Is there any hidden charges or loop holes that might create or ad to your burden at later stage?

For those who do their business on internet and have to choose an online merchant account providing company, such precautions play a big part and act as a savior from any fraud or troublesome deal.

Thus, never deal without thinking and thinking hard. Always be sure of what kind of benefits you want from your merchant account and be clear of your objectives of setting up a merchant account.

The 7 secret keys to wealth - key 1 add value

This article is one out of seven that I wrote about wealth. The whole series contain a lot of free valuable information about key factors that can help you become wealthy. The rich do things in a different way. That difference is the one I want to explain here. Let’s scrutinize together these strategies that can make you more money and help you boost your income.

The whole series contain the following articles . . .

1. Add Value.

2. The Multiple Streams of Income.

3. Passive Income.

4. Residual Profits.

5. Leverage.

6. Specialization.

7. Compound Interest.

Now, based on my own experience I believe that one of the faster and safer methods to create wealth is to add value to other people’s lives. You see. I believe that wealth can be created. The rich often become rich by offering better technology to other people than the one they already have. After all, that’s the idea behind capitalism.

The idea is to become rich by enriching other people’s lives. If you focus on making money, chasing money, growing money, getting money, you may stay poor. If you think about solutions, how to come up with solutions to other people’s problems you may become rich one day.

The beauty of this is that you don’t have to force people to give you their money. You don’t have to steal, cheat, lie, deceive. In fact you don’t need to make big efforts. You don’t need to beat up anybody in business. If you come up with creative solutions to common problems and learn how to market the ideas effectively, people from all around the world will be willing to give you their money in exchange for the products and services that you offer them.

Your goal like mine is to make money. That’s how we exchange values today. Money is turning into a drug in society lately, because many people can’t understand how the system works. Before money was invented people could understand much better the concept of creating wealth.

This is how it used to work. Let’s say that you were a farmer, so you had lots of food. Other person in the same town was a carpenter. So, whenever you needed some furniture for your house, you went to the carpenter and exchanged values with him. He agreed to make the furniture for you in exchange of some food for his family and himself.

In some way you agreed to work certain amount of time on your farm rising crops for others while others agreed to spend time working on their businesses for you. That’s how it used to work and that’s how it still works today but with a small change. Today we use money as a mean of exchange.

The reason we exchange values is because we humans can’t be expert in everything. We use a special kind of social leverage. I do something for you because this is my specialty and you do something for me because that’s your specialty.

The only difference is that today we use money as an intermediary which makes it even easier to exchange one value for other. Now I don’t have to waste time with the carpenter agreeing how much I think a bag of beans is worth compared with a chair. The carpenter sells the furniture for certain amount of money and I know since the beginning if I want to purchase it or not.

Money is simple. Some people want to make it complex but it is not. Now I don’t know if you have noticed something here. If all we do is to exchange value, then society doesn’t advance. We would still be in stone age. It would be something like this: I get some bananas for you and you hunt some animals for me.

You reap what you sow. That’s why when you enrich society, you yourself become rich! So, adding value can make you money, but it won’t necessarily make you wealthy. In fact even if you work for yourself and you are able to become financially free at a young age, it is probable that you still will have to work a lot if all you do is to exchange values.

Then how do you become wealthy? By creating values. You need to find solutions to common problems. The better your solution is the more money you can expect to make. Most people still get it wrong when they discover this.

Let’s say that you find a common problem and you decide to write a book about it. Your book contains information to all those people that are facing this problem and it helps them solve it. Now, analyze this, how many books about the same subject aren’t out there containing information about how to solve that problem?

Unless your book is among the best ones on the market then you still have not created something new. You have added value but your perceived value in the eyes of the general population is too low.

Wealth is not directly proportional to your efforts. In fact it has been said that “Poverty is a big effort that produces a small result while riches is a small effort that produces a big result.” You may think that you have created a diamond, but if most people don’t like it, think it is too expensive or are not willing to buy it, then you won’t make any money and you will be frustrated.

It is important to understand what people want so you can give them what they want. People want better technology, cheaper energy prices, more money, more knowledge, fresh new information, among other things. Your income will be directly proportional to the general perceived value of your efforts to improve the lives of others.

Of course there are people that make some money stealing and committing illegal acts, but graves and jails are full of those kind of people don’t you think? I don’t blame nor judge those who take that path. It is their own decision and I respect that, but as I said before, there is a safest path.

Most people in society make money by adding value to others, otherwise society as we know it couldn’t exist. If you wake up every day and go to work on your job, whatever your job is, if it is legal, then most probably you are adding value in some way to the life of others.

If you choose to work for yourself because you want to become rich or financially free and you do something, make something, build something or offer some services to other people, you may still not become rich until you realize that you need to create values. If your perceived value is too high, even if you do not create something huge you still may become rich.

For example if you have the funds required to build houses or residential real estate and you hire a custom home builder company, you may generate a huge income this way. One general problem that people have is that they need a house where to live. Houses are very expensive.

A new house is a general solution to a common problem. You are still not creating something new. There are millions of houses out there, but the perceived value of what you are doing is so huge that you may become rich within a few years. “The easiest way to make money is to help other people make money.” The easiest way to become rich is to enrich other people’s live.”

If you lie, steal, cheat or deceive, you may be disappointed of the results. No body is stupid. People that make money the wrong way and get away with it are experts on their field. Amateurs often get caught and get in trouble. You see. Society is competitive. Life is though, but it is also pretty, specially if you play by the rules.

Some people like the gray area. Gambling and trading fall under this category. Both of these are quicksand. Today you are above and tomorrow you are bellow. I trade the financial markets and I love it. I gamble from time to time. I play the lottery sometimes just for fun.

I don’t lose the real thing from my sight though. This includes the time and effort that I devote to my activities. Instead of sitting in front of a slot machine for hours, I sit down and write a few articles that could help or improve the life of somebody, somehow, somewhere. I devote must of my working time to adding value and whenever I can I create some values I do it too.

I understand you. Creating value is very hard. I know. To come up with creative solutions to common problems is not easy. That’s the beauty of it. If it were easy someone would have done it already. If no one have discovered a solution to that problem is because it is hard.

You don’t have to do it yourself though, but there is always a price to be paid. You can spend time and think hard how to do it or you hire someone to do it for you and pay them. That’s what many company do. They hire qualified employees like engineers, software developers, etc, to come up with the solutions and pay them substantial incomes for their efforts.

Some employees feel exploited because they have to produce more than they earn otherwise the company would go bankrupt. Did you understand what I just said. If you have a job, you will probably have to produce more than what you earn, otherwise the company that you work for would go bankrupt. It is how the system works, believe it or not.

In the other hand, no one prohibits you from starting your own company if you live in a free market economy. If you ever find a way to work for yourself, you will realize how productive your efforts really are. When you no longer have a boss who tells you what to do, when you are on your own, you will see if as an employee you were underpaid or overpaid. You never know for sure unless you try it.

I have being working for myself for quiet some time and I used to work for other companies in the past. Now I can compare. In some jobs I was underpaid, while in others I received more than I deserved.

Some people start working for themselves and become millionaires within 6 months. Others go back, find another job and stay as employees for the rest of their lives.

The bottom line is as follows. The first key to creating wealth in your life is to add value to the life of others. Your wealth will depend on the perceived value of your efforts in the eyes of society. On a free market economy people bid with their wallets.

If you are a doctor working for a hospital and you make a quarter of a million dollars per year, within four years you can become a millionaire based on your income alone if you save it all. If you use part of your income and save another portion of it, you still can become a millionaire even if you don’t save it all.

That’s because the perceived value that you add is high and your income indeed is also high. The same with lawyers and home builders. The same with many other professions, products and services that are in high demand. If in the other hand you do something that anyone can do, then your perceived value by society will be too low. Unless you become very good at it, you won’t make a lot of money. Then you have the second choice.

Create something new. Create something that’s really new. A new market that didn’t exist before. A product that is really innovative and solve a real problem. A service that truly help people solve a problem. Something that do not exist yet. Simply something new. Create a good solution to a common problem.

Next you will have to learn how to capitalize on your idea. Creating is not enough. Other people will try to still your idea. The better your stuff is the more coveted it will be. Others may hate you because you are smart. Expect to make money with this for a few years. The very moment that people find out your thing is profitable, they will start trying to copy it even if you patent it.

They will attempt to go around it. They will make a big effort to make money from it. It seems that is easier to copy/steal other people’s work than to burn neurons and come up with a solution to a problem. That’s why if you do it, if you take the time to develop something new, create values and help people to really solve a problem, you stand the chance to be on top of everybody else on that field. You simply created it. You are the owner.

When in two or three years people start copying you, it would be too late for them. You already made your millions. You became wealthy. You reaped what you sowed. Now you may move on and create something else if you want or retire and live in peace.

Just don’t forget that the better your idea is, the more envy it will generate as well as others will try to steal it. If you can stand all that and discover how to market your ideas effectively you will be on your very own path to wealth.

Last but not least. Add more value than what you expect to receive. What? You may ask. The only way you can possible do that and be joyous at the same time is through leverage, which I explain on one of the other articles on this series. People will happily exchange their values (money) with yours if they perceive that what you are giving them is greater than the money they are paying you for it.

There is a lot of manipulation going on in today marketplace because of this. All to make the clients feel that they are getting more than what they are paying for. That’s not good. You can be honest and make lots of money at the same time.

Remember this, to be successful, people need to perceive that they are getting more than what they are paying. The only way you can achieve this is through leverage. Otherwise you will have to work too much to satisfy your clients tastes and needs.

I share more information about leverage in my other article. I hope this article was helpful to you and increased your understanding of how to create more wealth in your life. There are many myths surrounding this subject, but the basics have always being the same.

EasyWebRiches © 2006

Bring order to your finances with a personal debt consolidation loan

There comes a time in your life when you will find that you are caught neck deep in debt. Look at all the cash you can easily borrow and spend - there are credit cards for the asking, personal loans, home loans, you ask for it and the money is bang on the table. And, given the ease of so much available money, anyone can get carried away and go on a spending binge. Even you. And then debt piles up. And troubles begin.

Once money has been spent, the payback clock starts ticking and if you have taken multiple loans, then you will naturally have to pay multiple installments. And there's a high chance of anyone with multiple loans getting into a situation where he cannot pay back his loans. And, if you can't pay back your loans comfortably, your credit ratings will be downgraded and when that happens, no one will be willing to lend money to you at a lower rate of interest.

And that is where personal debt consolidation loans come in. They get rid of your burden by giving you a low interest loan that sets you free from your debt trap and helps you get a grip on your finances.

Personal debt consolidation loans are loans that consolidate all your high interest debts (credit card, personal loans, etc.) and give you a loan - at a lower rate of interest - to pay them off, thereby reducing your monthly cash outflow and leaving you with enough cash for running your house.

Advantages of personal debt consolidation loans

1. These loans put your mind at ease because they replace a higher outflow with a lower, more manageable one.

2. They simplify your debt by reducing the number of bills you have to pay every month to just one.

3. These loans are given for a longer period of time and hence the payouts are small and in tune with what you earn every month.

4. If your personal debt consolidation loan is secured by your home, then the rate of interest is much lower than an unsecured consolidation loan.

5. They help you rebuild your credit history, if you pay their installments in time.

6. The biggest advantage of these loans is that they kind of get you out of a mess: out of a hole you have dug for yourself. And that's worth a lot in both monetary and non-monetary terms.

Sure, a personal debt consolidation loan will help you reduce your debt and make life hassle-free (financially), but you need discipline and commitment when it comes to paying back the loan - you just cannot afford to go back to your old ways of being a spendthrift.

There are a whole lot of companies who offer personal debt consolidation loans and it is up to you to choose the loan that is right for you. If you already have a financial advisor, then it would help things if you could take his opinion about the loan you are planning to take. So, if you are stuck in debt, go right ahead and take a personal debt consolidation loan and get rid of all the financial irritants that are causing you a pain in the neck.

How to keep your get out of debt resolutions this year

Getting out of debt is one of the top New Years resolutions made every year. Unfortunately, like many New Years resolutions, most people generally forget about or give up on their resolution to get out of debt before the first month is even up. Here are some tips to help you keep your 'get out of debt' resolution this year:

1. Stop borrowing. The first thing you should do to get out of debt is to stop borrowing. You can't get out of debt if you're continuing to add to your burden each month. So cut up those credit cards, or freeze them, or put them in a safe place where you can't get to them easily, and start using cash for all of your purchases. This simple step will keep you from over spending and will make you stop and think "do I really need this?" before each purchase. You will be surprised at how powerful this one strategy is!

2. Take an inventory. This is a painful step, but you absolutely have to know where you stand before you can make a plan to get out of debt. Write down who you owe, how much you owe them, and the minimum monthly payment required to meet that obligation.

3. Track your spending. In order to pay off your debt you have to know were you are spending your money. You should keep track of your spending, either in a software program such as Quicken or MS Money, or using spreadsheets, or even pen & paper. Whatever method works best for you, it is very important that you know were you are spending your money so you know how much cash you have available to put towards your debts each month.

4. Set short term goals and milestones. Getting out of debt can be a monstrous task, especially if you're deep in debt. Many people give up simply because the goal itself seems so large that it's unachievable. To get around this, I encourage you to set smaller goals to help you achieve the greater goal. For example, if you have several credit cards, and the total debt is $5,000, instead of focusing on your goal to pay off the $5,000 total, focus on paying the smallest balance card off first, or focus on coming up with an extra $50 per month to put towards your debts. The point is to set goals that can be achieved in a short time period so that you see results right away and are encouraged to continue towards the larger goal.

5. Reward yourself periodically. Just as important as setting goals that you can achieve, you should reward yourself for goals and milestones reached. Another reason why people give up on their goals is because they feel like they have to give up too much to achieve that goal (i. e., skipping that latte, cutting back on spending, etc.). To keep you motivated, you should reward yourself every time you achieve a goal or you see that you are making progress toward reaching a goal. If you don't ever celebrate your successes, you may end up resenting your goals, and giving up on them.

Finally, the best way to make sure you keep your 'get out of debt' resolutions, is to know why you want to get out of debt. Is it to reduce stress? Is it to spend more time with your family? How will you feel when you are out of debt? Putting some feeling behind your goals and reminding yourself why you want to get out of debt will help you stay on track and achieve your goals.

Taking advantage of the best credit card offers

Do you own a credit card? If you do, then you must be familiar about the numerous promotions and programs that are currently on hold to motivate you more to use your credit card for many important transactions.

Credit cards are the modern money. You could buy food, shop for groceries and pay services bill using your reliable credit card. Furthermore, if you aim to buy goods and services from the many online auctioneers and shops, the credit card would be the sole way on how you could proceed with the transaction.

Almost all people are now having a single or several credit cards. Because people recognize the advantage of not needing to take cash when going out to shop, more and more people are aiming to own one, if they still do not own a credit card.

If you also do not have enough money to buy anything, you could also buy the item by charging the amount to your credit card. There are many installment promotions and pay-light offerings that are being rolled out by credit card firms for their clients.

Nowadays, credit cards are also being used for money-advance or loans. Through using credit cards, you could easily withdraw cash from the ATM and have it as a cash-advance or loan. You could opt to pay the amount in full or opt to pay in installment terms.

Credit cards sure impose interest rates on every transaction coursed through the card, but did you know that you could skip the usual rates? If you do not want you r purchase to be imposed interest charges, then you must pay the bill on time and in full. By doing that, you are like paying for the item for its original tag price and there would be no credit card charge at all.

Almost all people nowadays own their own credit cards. And for those who still do not, they swoon to own one. There is now an exciting landscape in the credit card industry and competition is truly becoming more intense.

Every credit card firm is surely doing anything it could to outpace rivals and get the most of the market. As a result, there are numerous credit card offerings that are almost too attractive just to be ignored by the consumers. Some of these offers are also so attractive that some people open credit card accounts just to participate and enjoy them.

Modern credit card offers

Just to dominate in the expanding credit card market, credit card products are now coming with different offers aimed at attracting more users. A credit card can now offer subsidies or waived interests just to boost client numbers. That is the power of competition.

Aside from the usual charging waives, several credit card firms also offer more. The cash advance service is one of them. Through cash advance transactions, people can just withdraw money using the credit card. The amount would be treated as usual credit card transaction and could be paid in full and on time to prevent imposition of interest and other additional charges.

Credit cards can now be used to pay different bills, like utilities, telephone and other consumer services. Through using accredited and recommended automated teller machines, proper payment of bills can be done using the credit cards.

Almost all credit card firms are also currently offering different rewards schemes to loyal clients. These schemes work by motivating customers to use the credit cards through different forms of transactions. Through using the credit cards, there are corresponding points assigned to each transaction. The more points you earn, the more chance you get at having the rewards.

Nowadays, the most popular reward schemes are those that are related to air travel. Different miles points or flying reward schemes are now offered to credit card users. However, the program is not applicable to ordinary credit cards.

There are special credit cards that offer the frequent-flyer rewards. You are advised to apply specifically for such a scheme. If the current and usual credit cards are offering waived annual fees, for the frequent flyer and other reward schemes, these annual and membership fees are not waived.

That is the premium you would pay for taking part and getting a chance to have these many offers credit cards can provide.

How to get cheap car insurance in michigan

Finding cheap car insurance in Michigan isn’t similar to conducting brain surgery, though at times it may feel like it. You just have to know what you need, what you could use, and what is out there being offered to you.

Purchase Michigan’s minimum car insurance requirements. Michigan requires three kinds of car insurance coverage: personal injury protection (PIP), bodily and property damage (BI/PD) and property protection insurance (PPI). None of these kinds of car insurance coverage protect against damage and theft, though; for those kinds of protection, you must purchase comprehensive and collision car insurance policies.

Purchase a multi-line policy. A multi-line policy means you have more than one kind of insurance policy from the same insurance company. For example, some people purchase both their health insurance policies and their life insurance policies from the same insurance company. Talk with one of your current insurance companies about the different kinds of insurance they offer. You may end up purchasing a cheap car insurance policy from your homeowner insurance company, or vice versa.

Consider a multi-car policy. A multi-car policy – when you have added more than one car to your current car insurance policy – provides a discount on your car insurance in Michigan. This doesn’t mean you should run out and purchase a new car to get a multi-car policy; however, if your spouse or teenager has his or her own car and insurance policy, join up and get a discount.

Ask about other special discounts. Other special discounts include those intended for good drivers, good students, senior citizen discounts, and discounts based on the location in which you live as well as the car you drive and its safety features. Some car insurance companies in Michigan offer discounts specific to their insurance company. For example, one Michigan car insurance company may offer discounts to drivers who drive for a certain period of time with no accidents or traffic infractions.

Drawbacks of not having a credit card

There are very few things that are as ubiquitous as the credit card. This little rectangle of plastic can give us so much convenience, but to the unwary can also bring so much misery. Credit cards may be the easiest way to get a standby line of revolving credit, always available when you need it, but it can also be the fastest way to get mired in credit card debt. People may complain about credit card debt but everyone agrees that despite the risks, there are too many drawbacks to not having a credit card.

Credit cards as we know them today are relatively new and are continuously evolving. The major laws protecting consumers’ rights involving credit were passed in the mid-seventies. It may be timely that Congress is currently considering added measures to enhance consumer protection. Yet, for a long time, people were using credit cards as a convenience product rather than as loans. Many people paid their entire balance each month. Credit cards were not as essential then as they are now.

Banks do not make money if people did not carry balances since a grace period for purchases, where no interest is charged for one month, is usually standard. As far as banks are concerned, the best credit card customer is one who carries a balance each month after remitting the minimum payment on time. Credit card issuers got really creative and have managed to make credit cards a necessary part of daily living. They worked to have credit cards accepted in more and more establishments, and to have credit card holders understand the many benefits and conveniences that they stood to gain from using their credit cards.

In our times, credit cards no longer a luxury. If you travel, you need your credit card to book flight reservations and reserve hotel rooms. You also need credit cards to rent cars, to purchase gas, and buy products by telephone or online. Being without credit cards today would make your life as difficult as traveling by horse and buggy. Without our even being aware of it, credit cards have become a business standard.

A credit card is one of the quickest ways to build a credit history. When you apply for a credit card and you still have no history, there are credit card issuers that you can approach. These issuers specialize in providing credit card products to customers who, because they are still attempting to establish or expand their credit history, are generally evaluated as higher credit risks. Many college students, for example, fall into this category, along with those who have limited employment income, or otherwise have poor credit history.

Today, having credit is a necessity. An inexpensive, reliable new car costs thousands of dollars, and although most people may want to pay in cash, the reality is they will need a loan. The rates and terms of that loan will be determined by your credit history, which is easily obtainable from the credit bureaus throughout the country. If you have used credit wisely in the past and repaid previous loans on time, you will be in a favorable position. If not, the result will be a more costly loan with higher interest rates.

The use of the credit card as a source of loans is illustrated by the fact that overall credit card debt now runs several hundred billions of dollars. Credit card debt has risen quickly to unimaginable proportions, and still banks continue to compete heavily for your business. Every year, billions of credit card flyers with invitations to transfer to another card issuer are sent out. The average American credit card holder is now in possession of almost a dozen credit cards, with average debt of $13,000. The credit card has indeed become a cornerstone of everyday living. Other than its necessity in making flight and hotel reservations, credit cards help the credit card holder with:

• “Cashless” transactions that avoid the risk of carrying around too much cash

• An interest-free loan from the time of purchase until the payment is due

• Cash advances from an ATM, in emergency cases

• The ability to shop by telephone or online

• The ability to purchase items when cash is not sufficient

• The ability to withhold payment when dissatisfied with a purchase or to dispute erroneous billings

• An instant source of credit that is available without filling out forms or undergoing further credit checks.

Cash, when it gets lost, is irretrievable; unlike cash, if you lose your credit card you can get a replacement no matter where you are. You also get protection against fraud or unauthorized use, which means you have minimal or even zero liability. Credit cards can be a resource in case of emergencies, such as a large car repair bill or an unforeseen expense.

Credit card companies normally provide the card holders with copies of their monthly statements. These statements list down in detail all charges that have been made against your credit card account. The monthly statements can thus serve as a complete financial record which, to the prudent credit card user, can become a guide for budgeting and controlling expenses. If the card user is a student, the monthly statements can become a tool for learning financial responsibility. Indeed, for personal finances and small businesses, credit cards have become a necessary financial tool.

There is also the prospect of being able to save money on future transactions because the usual credit card offers a number of rewards privileges that include frequent flyer miles, cash rebates, discounts or free telephone calls, points that go towards reduction of the cost of airplane tickets and hotel stays, points that can be redeemed as consumer products or gift certificates. All of the major credit cards — Visa, MasterCard, American Express — offer a multitude of card products with endless permutations on rewards, benefits and privileges that you can enjoy to maximize the value you get from your credit cards.

Ownership of a credit card entails certain responsibilities on your part. If these responsibilities are not exercised dutifully, you could unwittingly put yourself in a difficult situation where you lose your credit card privileges and suffer the drawbacks of not having credit cards. Your primary responsibilities as a credit card holder include the obligation to pay your bills on time, to stay within your pre-set spending limit, and to maintain the worthiness of your credit.

The convenience of having credit cards may tempt you to live beyond your means. You need to remember that excessive credit card debt and late payments will impair your credit rating and make it more difficult and costly to obtain credit in the future. Remember it is very easy to lower your credit ratings, but painfully slow to raise it.

It is now more important than ever to be effective at managing credit card debt. This is particularly true for people living from paycheck-to-paycheck and who must dip into their credit sources to make ends meet. If you are able to plan your credit spending and payments to your account, you will be rewarded with higher lines of credit and better rates. Otherwise, if you’re not efficient and disciplined with your credit card, you’ll have very few options available.

Basic types of health insurance

Health care insurance can be confusing even for those who have some experience with it. For those who are new to it, it can be downright unfathomable. A good place to begin learning more about the issues behind health care insurance is with the basics.

There are, generally, two types of health care insurance: indemnity and managed care which is often referred to as HMO.

Indemnity health care insurance is also known as "fee-for-service". This type of insurance will offer the most flexibility because it allows you to pick your own doctor, clinics, hospitals, etc. The downside is that it will cost a good deal more than the managed types of health care plans. These added costs may be reflected in the premiums that you pay, but they will certainly be reflected in the out of pocket costs that you have to pay when you go for care. For many people, the out of pocket costs can make indemnity health insurance a non-option.

In addition to much higher out of pocket cost you will also be required to pay an annual deductible, which can range from a few hundred dollars to a few thousand dollars. This amount must be paid before the insurance will even begin to pay.

Once the annual deductible has been paid into your account, the insurance company will then pay a portion of what is owed. You will normally have to make a co-payment of around twenty percent or so, and the insurance company will then pay its eighty percent. If the doctor or other health professional charges high rates to begin with, you may end up paying a higher rate because the insurance company will normally pay only what it considers to be "usual and customary" fees for the service.

Generally, indemnity health care insurance covers only illness or accidents, and does not pay for preventive care such as flu shots or birth control medication or devices. Depending on your policy, it may or may not pay for prescription drugs or psychotherapy.

Managed care can be thought of as the opposite of indemnity care. With a health maintenance organization (HMO), your deductibles are often smaller than with other plans. In some cases, there may not be any deductibles at all. Co-payments are almost always fixed and kept low. Most preventive care, drugs, and mental health treatments are covered but you should always check on this.

The downside to managed care health insurance is that you must choose from doctors, hospitals, and other health care providers who have contracts with your HMO. In other words, you cannot simply go to whomever you want. Also, you are limited to receive only those medical services authorized by the plan that you have. If you use non-authorized providers or receive non-authorized care, your insurance will not pay any portion of the bills.

Because many people did not like these restrictions, managed care has begun to evolve to include hybrid plans that blend HMOs with some of the features of indemnity health care coverage.

One example is the Point-of-Service plan. If you are under a point-of-service plan (POS), you can keep your overall costs low by using a network of doctors and hospitals that have contracts with your insurer. If you decide to go outside the network that has been set up for the plan, you will have to pay an added deductible as well as higher co-payments for the services rendered.

Chase credit card-home page

The current Chase Bank was created through a variety of historical mergers. Chase Banks most successful acquisitions was in the 1930’s when it acquired the Equitable Trust Company. John D Rockefeller, of the influential Rockefeller Family was one of the most influential stockholders in the trust company and his influence helped make the Chase bank the largest bank in the United States in 1955 when the Chase National Bank and the Bank of the Manhattan Company merged.

The Chase Credit Card is really a Visa card offered by the Chase Bank.

One of the features found on the Chase Credit Card home page is a section for their financial resources. Chase offers a variety of sources ranging from educational planning tool, mortgage tools, and advice and planning. The educational tool is information about all sorts of educational loans; loans for medical students, loans for private students, loans for parents of students, and information about the Stafford loans. The mortgage section offers a mortgage calendar and a home equity calculator. The mortgage calculator answers questions like; what type of home is in your budget, and wether you should take a short term or long term mortgage. The home equity calculator provides the answers to questions like; how long it will take to pay off a line of credit and if you should consider consolidating your loans. The advice planning section provides advice on topics such as; financial planning, retirement planning, and an educational resources library.

Chase Credit Card also has a page dedicated to financial tools which includes credit information, student credit and a innovative section called smartscents. Smartcents is a place customers can go to learn how banking works from budgeting to borrowing. Smartcents even has a section designed for kids.

The Chase Credit Card home page features the Visa Freedom card. The Freedom card features a three percent cash back bonus for every doller spent at grocery stores, fast food restaurants, and gas stations. It also features a one percent cash back bonus every time you spend a doller every where else. If you stock up two hundred dollars worth of rewards on your Freedom card Chase will send you a check for two hundred and fifty dollars.

The Chase Credit card website offers customers four ways to apply for a card. They can choose by category. The company will help them choose the best card. They can shop by comparing card features. I all else fails clients can simply browse through Chase’s list until a card catches their eye.

Once you have gotten your chase card you can take advantage of Chase’s paperless accounting by receiving your credit card statement online instead of through the postal service.

Two features somewhat unique to the Chase Credit Card are their fraud detector and payment protection plan.

The Chase Credit Card website is simple to use and full of clear concise instructions for navigation. It lacks the bells and whistles of some of other credit card sites but the simplicity is refreshing. The one feature that would benefit the site is information about their customer service department.

How to reduce your homeowner s insurance costs

Buying home insurance should not have to take the joy out of owning your home. High costs, though, make some homeowners struggle to keep their home. Here are some ways that you can actually reduce the price of your coverage and still know that you are adequately covered.

Look At New Quotes

One way to reduce your home insurance costs is by looking around and seeing what other companies have to offer. When it comes to how much you pay, you should look for savings where you can find them, and not stick with any company simply because you have been with them a long time. Although, you should know that staying with one insurer often does give you a discount, you may want to weight whether the discount outweighs the monthly payments another company might give you.

You can easily obtain home insurance quotes by going online to an insurance broker's website. These are not a particular insurance company's Website, but are owned by an independent agent who does business with a number of different insurance companies. By entering in your information there, you will be able to get several quotes by entering it only once. Go to more than one broker's Web site and get at least 6 or 7 different ones. Then compare them carefully.

Add Safety Features

Most home insurance companies will give discounts if you have some sort of safety feature in your home. This will include things like alarm systems - burglar, fire and smoke, fire extinguishers, deadbolt locks on all exterior doors, fire-retardant materials, and even hurricane proof materials.

Increase Your Deductible

Whenever you reduce the potential liability of an insurance company, they will nearly always reduce your rates. By increasing your deductible amounts to, say, $1,000, you will see your rates decrease - possibly up to 25%. You always want to be sure, though, that you can meet this amount in the amount of any disaster effecting your home, because the insurance company will only pay after you do.

Put Policies With Same Insurer

Insurers often give discounts if you have more than one insurance policy with them. If they have both your auto and home insurance, check to make sure there is a discount being given. It may not be a good idea, though, to automatically switch your policies to the same insurance provider, until you do a comparison and see which company offers the better deal overall. Although switching may give you a discount, you may get an even bigger one simply by moving to a new company.

Keep Your Credit Record In Good Shape

Believe it or not, your credit record may effect how much you pay for your home insurance. It seems that more insurers are looking at people's credit and charging accordingly. You need to get your free credit report each year in order to check it and see if there is any incorrect information on it. Then, correct it quickly, and keep it in good working order.

Which forex trading system to choose

What Are Forex Trading Systems?

A Forex trading system is a set of rules which are aimed to ensure that you are trading in a way that is free of bias and the influence of emotion. Most beginner traders will look to learn a forex trading system whereas more experienced traders will eventually move to build a trading system of their own.

A good Forex trading system should look to encompass and cover for all possible eventualities which the markets may through up. In that respect, they should comprise of rules which govern, amongst other things the following:

1. Which currency pairs to trade.

2. When exactly to enter and exit a trade.

3. Where to place Stop Losses and Take Profit rates.

Forex trading systems must always be tested against historical data (known as back-testing). Beginner traders, when looking to purchase a forex trading system, should always ensure that the system was properly backtested and that the results are genuine. There are certain software packages available now which back-test trading systems automatically.

Which Forex Trading System To Choose?

This will depend upon your trading style. Some traders are swing traders and will look to keep positions for days, weeks or even months. Others prefer a day trading style and will be in and out of a trade within the same day. A typical swing trading system will look to take larger moves ranging from 100-300 pips over a period of a few days or weeks. On the other hand, an intraday forex system looks for smaller opportunities ranging from 25-50 pips.

Forex scalping systems have become popular of late as well. Scalping is a trading style which looks to take profits on very small price changes, usually soon after a trade has been entered into and becomes profitable. It is a strategy that does not look to capture 50+ pip moves; rather it is more about watching the price and getting in and out of trades for quick 5 pip moves which little by little add up.

While this might sound risky, it can be quite a low risk strategy if performed correctly. As with all trading systems, the most important parameter which has to be addressed here is money management. Having a strict exit strategy and rules on how much of your equity to risk per trade must be clearly outlined.

Getting ready for credit card consolidation

Credit cards are useful for almost all other purposes. You can use them to shop either online and offline without the hassle of bringing in cash that are not convenient in terms of management. However there are cases when the use of credit cards is abused and may lead you to a more problematic situation.

In such cases, it is very best that you decide on how you could possibly work on these debts and lower the sum interests of credit cards that you are using.

This is also applicable for people who use three or more credit cards at a time. Perhaps, its about time to gear yourself towards consolidating your credit card debts.

Financial Institutions Offering Credit Card Consolidation

Most banks and credit card institutions offers credit card consolidation. However, it should be noted that banks differs entirely on the terms they provide to clients in settling credit card debts.

Credit card companies on the other hand provides more financial leeway to clients more than banks does so it is very important that you decide which financial institution offers a more competitive rates for consolidating your credit card debts.

Why exactly people resort to credit card consolidation? There might be thousands of reasons for consolidating debts incurred from using credit cards but the most answers frequent reasons are provided here below. Go check ‘em out.

Saving money in interest and finance charges

For people who uses more than three credit cards are prone to debts in terms of interest charges. When these debts become unmanageable, consolidation is usually most approved.

Charges may give you an idea that the individual interests of each credit card alone are eating up your monthly salary and there seems to be no way out.

While regularly paying off interest each month for each credit card is a way to managing your credit card debts, it also an unpractical way inasmuch as money-saving practices is concerned with that, credit card consolidation is badly needed.

Competitive APR Rates

At the outset, it was stated that credit card companies and banks offers competitive pricing for credit card consolidation. The sum interest may vary but each financial institution offers terms that usually are better than other institutions that may apparently seem to charge minimal fees but higher APR rates and other hidden charges.

This very same reason should require you to exercise more vigilance and scrutinize each terms that are not understandable to you. Discuss all the details of the charges with your credit card consultants and have them explain all the details of individual charges and probably consult a comparison shop consultant that will help you decide which financial institution offers the best credit card consolidation terms.

Introductory Rates

The goal of each credit card consolidating companies is to help people manage their debts. They help people pay all their debts all at the same time and put them on a certain bank where they will pay a competitive sum of interest charge that is otherwise more costly if one would pay individually for each credit card institutions.

Balance transfer, transferring credit cards companies which charges you high interest rates to another credit card company that charges minimum fees, also works in most cases and is handled by most credit card institutions.

As an incentive, these credit card companies would usually provide clients with competitive introductory pricing that are not usually available to individuals who are laden with debts. Having such incentive will put your finances on a more stable position.

How to trade successfully in the forex market

To trade successfully in the Foreign Currency Exchange (Forex) Market, there are certain principles that must be adhered to at all times. There are a lot of investors who have made some really questionable trades when everything looked so good. The investors and speculators I’m referring to have sunk good money into investments and lost it within days, weeks or months. Some have done their homework and still received the short end of the stick, but the vast majority who turn what looks like a good investment into something that a savvy investor can smell a mile away, more times than not haven’t done their homework. This article talks about the Forex (Foreign Currency Exchange) Market and lists key elements needed to make money effectively.

Liquidity is Key:

Believe me; I know from personal experience how to lose good money after bad…as do many in my family. I keep telling myself it must be genetic. One way to really get yourself in deep is to play the pink sheets, also known as penny stocks. These are the stocks which typically have very low trading volume each day and if you have enough shares it is nearly impossible to trade them without severely affecting the price of the stock. And the more volume you trade the more you begin to affect your own price whether you are buying or selling. Needless to say, I have crossed those investments off my list as of a few years ago. They just don’t have the liquidity you need to give yourself an advantage. Sure, you can find a needle in the haystack, that one in a million stock, but for every successful penny stock, thousands go under or don’t return much if any on your investment.

This brings us to the Forex Market. What better market to get the best liquidity possible. With my days of trading penny stocks, complete with their thin trading volumes, over, I am naturally attracted to trading which takes place in an arena where the definition is liquidity. When a trading arena is liquid, you can always trade your investment without affecting other positions you want to buy or sell. You don’t have the problem like you would trading penny stocks where a small move here or there dramatically affects the price of the stock you are trading. The Forex Market is too big and too many governments, organizations, funds and individuals participate.

Perfect Your Strategy:

Some of the most successful Forex Trading occurs when a person perfects their strategy and executes it to perfection each and every time based on the core belief that their strategy is the best for them. It takes practice to perfect a strategy, but most successful Forex Traders have one. They don’t simply jump on every new “potential strategy” or “tip” that comes along. From time to time it is good to try new aspects of other strategies to see if you can improve on a good thing, but to know your strategy inside and out and be able to duplicate it makes all the difference. A good rule of thumb to use is when you aren’t sure of a trade, do nothing. Don’t trade if you are not positive it fits your strategy. It also helps if you concentrate on one market at a time. Like the old adage, you literally don’t want to be a “Jack of all trades and a Master of None”

Go Long:

Trading successfully in the Forex is about longevity. The longer you can keep trading the Forex, the longer you have to perfect your strategy and the longer you can stay in the game. It reminds me of craps when I occasionally have time to play. I have friends that can blow through $1,000 in an hour or two and then they have to take the rest of the day off so they can have enough funds left to try it again another day. I take a different approach. I can survive all day long on $500 and most of the time I can double or triple that amount and be able to stay at the table all day if I want. It is both entertainment and profit that I am after. If I stay entertained longer, I have the chance to make more money.

The reason I can last longer is because I have perfected “My” strategy and I don’t try every new one that comes along in the multitudes of craps books that my friends read. The point I am making is this: Staying power is key with any investment. The longer you can “hang in there” to increase your education and perfect your strategy, the more you will enjoy the Forex Market and the more you will profit from it. And speaking of profit, you will want to remember to keep your profitable positions for a longer time than you keep your losing positions. Let your profits ride and you will be more successful. Fight the urge to get out of a position when it makes you a quick profit. Getting out of a losing position takes brute courage, but you will thank yourself for getting out quick if the position is not going the way you would like. You should always check your pride at the door when trading any market. Many of us don’t want to admit defeat, but it is necessary to be successful. It can really get in the way of successful trading.

Foreign Currency Trading (Forex) Trading is exciting. With the tips and thoughts above, hopefully you will feel right at home trading the currencies of the most powerful nations in the world. As long as you stick to your strategy and make sure you let your profits ride and cut your losses, you will become successful in Forex Trading.

Bankruptcy may not be your best option

(The following is not legal advice. For legal counsel regarding your situation, please consult an attorney licensed in your state).

The most widely held misconception about bankruptcy is that it’s the debtor’s version of the “get out of jail free” card in Monopoly. While most people know that bankruptcy affects your credit for 7 to 10 years, very few people know that it’s possible that you’ll have to pay back the debt anyway, even if you file a Chapter 7 “straight” bankruptcy. The formal definition of bankruptcy is “a proceeding in federal court in which an insolvent debtor’s assets are liquidated and the debtor is relieved of further liability.” On the other hand, the commonplace definition of bankruptcy is probably “the process of completely wiping out your debts for free.” In the majority of cases, the latter definition may be appropriate, but in some scenarios, it’s likely that even with bankruptcy, you’ll still have to pay back at least a portion of the debt.

So when is it likely that you’ll have to pay back your debts? Here are the most common scenarios when you’ll get all the negatives of filing bankruptcy (severe credit impact for 7 to 10 years), but none of the benefits (you’ll still have to pay back at least part of the debt:

1) You make more than the average person in your state. If this is the case, then it’s likely that you’ll be forced into a Chapter 13 bankruptcy plan. In a Chapter 13 bankruptcy, the court orders that you pay all your disposable income to a court appointed trustee, who in turn disburses payments to your creditors. Keep in mind that the court determines your disposable income by national and county statistics on average necessary expenses, not what you’re paying. So just because you’re paying a lot for a car doesn’t mean the court will approve it. There are numerous cases when a judge ordered families to stop sending their children to private schools so they can have more money to pay back their creditors. In Illinois, here are the latest statistics on the Illinois median income by size of household:

1 - person families41,650

2 - person families52,891

3 - person families62,176

4 - person families72,368

2) You have assets. If you own a home or car, then it’s possible that the bankruptcy court will force you to sell them to generate sufficient cash to pay back your creditors. Chances are if have a good chunk of change invested (unless it’s in an exempt account like an IRA) then you’ll also be forced to liquidate it. If you have a second home or another vehicle (assuming you own both completely), then you’re really out of luck. Fortunately, there are some safeguards to protect consumers from bankruptcy hell. In Illinois, every resident is entitled to at least $7,500 of the value of their home, $1200 of the value of their vehicle, and $2,000 for anything that they want (known as the wild card exemption). Also, these values double if you’re married (assuming the property is in both of your names).

What does this actually mean? Consider the following example.

Let’s say you have a house that’s worth $250,000, and it’s in both yours and your wife’s name. You still owe about $200,000 on your mortgage, and you decided to file Chapter 7 bankruptcy. In this example, you would be forced to sell your home, and with the proceeds you would pay back the mortgage company what you owe on the outstanding balance of the loan ($200,000), you’d pay yourself the Illinois real estate exemption ($15,000), and then you’d pay back your other creditors whatever was left ($250K-200K-15K=$35,000).

Let say your house was only worth $215,000, but everything else in the above example remained the same. In this case, you wouldn’t be forced to sell your home because the proceeds from the sale wouldn’t amount to anything after you paid back the mortgage company and then paid back yourself the Illinois real estate exemption.

3) The creditors can prove that you were fraudulent and never had any intention of paying them back.

For those of us that fall in the aforementioned 3 categories, it usually means that unless a) you don’t have a lot of equity in any of your property, b) you don’t have any investments like stocks, real estate, ect., c) you don’t care about having to sell anything mentioned in points a and b, or d) you don’t care about having to give up your disposable for 5 years in a Chapter 13, then bankruptcy may not be your best option.

5 tips for cheaper home insurance

Home insurance is a basic term for two different types of insurance policy. Buildings insurance to cover the construction of your property and home contents insurance to protect your valuables and other household objects.

The problem is that not all home insurance policies are created equal making it difficult to compare like with like. The areas and level of cover provided vary from policy to policy along with the premiums. So having a definite idea of what you need to insure and for how much will help minimise the overall time and money spent buying it.

TIP 1: Cut the risk, cut the cost

All insurance policies protect against the risk of financial loss. So to cut the cost, cut the risk to the insurer and you'll get a lower premium. To give you an idea, here’s a quick summary of the most effective tactics...

• Contact your home insurance company or local neighbourhood watch scheme and they will send you a list of steps to make your house more secure and less likely to be targeted by thieves.

• Fit locks to all windows and level 5 (BS3621) mortise deadlocks locks to the doors. Most insurance companies will give you up to 10% off your home contents insurance if you have these kind of locks fitted around your house.

• Having a good alarm fitted by a recognised alarm fitter, which your insurance company can recommend, can give you up to 10% off your policy. Bear in mind that these are expensive alarms which require an annual check up.

• Higher policy excess. You will usually have to pay the first Ј50 of any insurance claim, but if you're willing to pay more then, your premium will fall now.

• Neighbourhood watch schemes. Some home insurers offer discounts if you live in a neighbourhood watch area; however this is less common.

• No claims bonus. As with your car insurance; a record of no previous claims will reduce your premium. If you need to make a claim, consider whether it may be cheaper to pay for the loss yourself and avoid an increase in premiums.

• Your age. Statistically, the older you are, the less likely you are to make a house insurance claim. So if you're a lower risk this will be reflected in your premiums. Some companies offer extra benefits to those over 50 such as Saga.

• Extra security. Declare any special safety precautions you've made for your valuables such as a home safe.

• Your lifestyle. If you have a dog, are teetotal and don't smoke, be sure to declare this as such factors are used by some insurers to reduce premiums.

• Occasionally applying to your existing insurer as a new customer can reduce your premiums. Many insurers offer discounts to new customers which won't be repeated when you come to renew.

• If you can apply online you will normally get a discount of around 5%.

Before you carry out any security improvements to your home, always check with your home insurance company first. They will confirm which improvements will have the biggest cost cutting impact.

TIP 2: Know what home insurance you need

Working out an accurate figure for the buildings and contents insurance value can be awkward, which is why a lot of homeowners are either under insured or paying for levels of cover they don't really need.

Buildings insurance covers the re-build cost of your property not its market value. The re-build value of your home is the cost of re-building it in the event that it is destroyed by fire or subsidence for example. The re-build value of your home can usually be found on your mortgage agreement, or property deeds. The Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS) produces a range of detailed information on the cost of rebuilding houses and flats together with a re-building cost calculator.

Alternatively, you can opt for a policy that has an unlimited or high standard buildings sum insured so you don't have to worry about insuring the right amount.

Then there is the home contents insurance which covers almost everything else you would take with you if you moved house. Make a list of the rooms in your house and write down all the items contained in each with there value. Then, total the individual amounts to see what contents insurance protection you need. Remember to value items such as music CD's, videos and clothing as their total cost is often missed or under insured. Whether your wardrobe is full of jeans or designer labels, make sure you include the cost of replacing them.

TIP 3: Look at separate buildings & contents insurance

If you need both buildings and contents insurance, get quotes for separate policies for maximum potential savings. Most insurers do provide them as separate policies and just because one is cheap for buildings cover doesn't mean they are equally competitive to insure the contents. Find the cheapest providers for each component and consider buying each from different insurers.

TIP 4: Shop around for home insurance

Shopping around will yield the biggest savings on home insurance.

Firstly, don't simply opt for the home insurance supplied by your mortgage lender. They can be convenient when your busy sorting your mortgage but they're often over priced and chances are they won't have been compared against other policies on the market.

When shopping for insurance you basically have three options; go direct to the insurer, browse the web or use a broker. If you have the time and commitment you can do all three, but the fastest and most effective route is to log on and use the reach of the internet.

The best insurance websites compare dozens of brokers and home insurance companies in minutes. You only have to fill in one form to get a list of premiums displayed on your screen from major insurers and brokers. However, if you have unusual or very specific requirements the final premium may increase when confirmed direct with your chosen insurer.

TIP 5: Ask for a bargain

Home insurance has a margin of profit built into it which can be negotiated down if you're armed with the right information. Not all insurers will buckle and concede an additional discount but if you don't ask you won't know.

• First, find the cheapest quote after using internet comparison sites and phoning a few brokers.

• Select the cheapest quote and contact your existing insurer first asking them to beat it. If they won't budge contact the second cheapest insurer and do the same.

• If after your best efforts, the insurer won't budge, ask them to throw in some extra cover to sweeten the deal or move on to the next home insurance company and repeat the same steps.

What are credit card fees

Credit card companies are in the business of making money. It really is that simple. They earn their money through two principle methods. One is through the finance charges that they levy when you make purchases on the card, and the other method is through the use of credit card fees. It should be understood that these are not one in the same. They are different, and knowing more about the fees that a company charges (or does not charge) its customers can help you save money.

Credit card fees can (and do) vary from one company to the next. There is no set schedule for credit card fees. This makes it very important for consumers to read carefully the literature that is supplied by the company in order to know exactly what you will be billed for during the course of your association with the company.

Some of the more common types of fees include:

Annual Fees: Many credit card companies are moving away from this particular fee, but there are still some that use it. The annual fee is generally just a yearly fee, billed monthly, for having the card. Whenever possible, you should avoid credit card companies that charge an annual fee. You get nothing but the card in return for this payment.

Set Up Fee: This, too, is becoming less popular with most companies, meaning they do not charge it any longer. Again, however, there may be some companies that do charge a fee for setting up your account. Read carefully exactly what the fee is and the explanation that the company offers for charging this fee. You may find that working with another company that does not charge this initial fee is a good idea.

Cash Advance Fee: This is one fee that you will find with many credit card companies. This fee is applied to your account if you take a cash advance from the card. It can be a flat fee or it can be a percentage of the cash amount. Keep in mind that this is in addition to any finance charge the company will levy as well.

Late Payment Fee: This fee is assessed when you make a late payment. The trigger date for this fee is the "due date" as it is stated on the bill.

Transfer Balance Fee: Not all companies will charge this fee, but some will. This fee is levied when you transfer a balance from one credit card to another one.

Exceeding the Limit Fee: This fee may be assessed should you exceed your credit limit. Modern technology has made it harder to exceed your limit in that online approval or disapproval from the company is immediate.

Increase Limit Fee: Some companies will charge a small fee when you want to increase your credit limit. Not all do, but some will want to charge this fee.

Bad Check Fee: As with most companies, if you send a bad check the credit card company will usually want to charge for this.

These are just some of the possible fees that a credit card company may charge to your account. It is important to read their literature carefully in order to know what they will charge for and what they do not charge for.

The stock market and forex trading

More books and articles have been written on the stock market than on perhaps any other business subject in the world.

Most of these have as their purpose instructing the reader on exactly how he can invest to make a sizable amount of money, and if he really applies himself, how he can become rich in either three or five years.

One of the most useful books written appeared in 1961. It did not tell you how to get rich. It emphasized the difficulties of investing in the stock market and it performed a tremendous service in this way, plus isolating the significant factors which record and explain the ups and downs of the market.

To invest in the market by following the procedures outlined in that book is anything but easy.

It requires a considerable amount of work every day the stock market is in operation. The book is written more for the professional investor to tell him how to make maximum profits out of both the rises and falls of the market.

The average investor will not take the time or perform the work necessary to maximize his profits, and he is satisfied with something less than maximum profits over a period of time. It is this type of person that we are writing for, not the professional investor who often spends 100% of his time on investments. We are, furthermore, writing for the smaller investor, not for the larger, professional one.

When we talk about the stock market we are not trying to write one more treatise on how to get wealthy in the stock market.

We do not present it as the only outlet for funds, although it certainly is for many people who know only the stock market on the one hand and the savings bank on the other. We treat the stock market as one outlet for funds, an outlet that can be almost the only good outlet at certain times, and a terrible outlet at other times one that offers too much risk.

In 1960 the stock market for the non-professional investor was, in my opinion, a substandard investment. Other investments in my portfolio yielded 12% and 14% and sent checks monthly, and the underlying businesses grew stronger while a number of the major firms listed on the Stock Exchanges showed declining profits and the trend of the market was down until late in the year. An inexpert investor in the stock market during most of the year 1960 would have had the cards stacked against him.

If we consider investments primarily of the loan type, those in which a person or organization is obligated to return a given number of dollars, plus a profit, over a period of months or years. Above everything, the proper investigation of these risks and safeguards against losses have been stressed.

The stock market is good for long term investing especially through investment trusts

and unit trusts.

Forex is more risky but greater profits can be made. Good software will help you to reduce the risks if you trade the Forex.