Building credit can be a very exciting thing. Avenues of great opportunities are available if you do it right. It is important to avoid scammers that claim to offer you a debt solution in little or no time at all. Many scammers on the market today are taking advantage of people in disarray. Do not become the next sucker. Any company that does not advise you of your rights or else let’s you know upfront before continuing that most of your credit issues can be dealt with on your own, is probably a fraud. Under the Federal Laws, many of the companies are prohibited in many areas and often a lot of them work out illegal arrangements just to get ahead. There is however, legit companies and organizations that can help you reestablish your credit for little or no charge. Researching the marketplace is the best solution for finding the right sources. Your local library has a wealth of information at your disposal and it is free to sift through the pages. Take advantage of any opportunity that presents itself and you are well on your way to building your credit.

It is important that you be cautious with your credit choices. Take each step very slowly and consider all of your options before making a final decision. When you have several creditors making offers, it can be very difficult to decide on which one to deal with. Follow these simple guidelines when deciding on and dealing with a creditor:

1. What Interest Rate Are They Offering?

a. The interest rate on your credit account plays a serious role in your ability to keep up with your payments. If possible, always make full payment. Keep in mind that making full payment may not always be possible. This is why you need to consider carefully the interest rate that you are agreeing to.

The interest rate will apply on all minimum payments. An example is below:
Balance owed on account: $350.00
Interest Rate: 5.7% (.057)
Minimum Payment: $19.95

Think about this, $19.95 only pays for the interest that is going to be added to the balance owed. You may think that you can subtract $19.95 from the $350.00 owed, however, do not forget to add the .057 to the balance. At this rate, your balance owed will go down very slowly and continue to accumulate interest on a monthly basis.

2. Make Your Payments On Time

a. Do not make payments before 30 days of the last payment and do not make a payment after 45 days of your last payment. Payments received after 45 days are considered late and payments made before 30 days also get a bad review by creditors.

3. Do Not Apply For Credit More Than 3 Times A Year

a. If you do, you can easily be denied credit because those actions are perceived as shopping for credit. If you are suspected of shopping for credit, your creditors will deny you. You can keep track of how many times you have applied for credit and with who by looking at your credit report. Your credit report shows all the people have inquired into your report for the last 2 years. After 2 years, the listing drops off your report. Once you begin paying a creditor, take it slow. You are going to get many offers for credit and it is extremely tempting to take them all up on their offers.

4. Keep All Of Your Receipts And Contracts

a. Keep all of your receipts for payments made to any creditor. Yes, creditors have been known to misplace a payment received, let’s hope it isn’t yours. Rest assured if it is, providing you kept your receipts. Saving your contract with any creditor is highly advised. In the event that a dispute should arise, the creditor will be sure to throw in comments concerning your agreement and signature on the contract.

The most important thing to do with regard to your credit is take pride, protect, respect and especially enjoy it. Having good credit is a luxury and can widen the horizons of possibility for you and your future providing your pursue your credit with caution.

If you have defaults on your credit record, it is possible to have some of them removed. Defaults are non-payments recorded on your credit files. When a person is in default, they are subjected to lawsuits, liens, judgments, and other complicated situations. If you are a student struggling to pay student loans, a renter struggling to meet monthly bills, or a homeowner battling to stay out of debt you might want to know what is available to you.

If you have a college loan, which means you have a loan from the government you can ask for a default, which gives, you time to repay the loan. Other types of defaults include insurance policies, bills, car loans, personal loans, and other types of credit lines. Sometimes we are subject to debts that may not be ours. There are thousands of collection agencies and credit reporting services throughout the US. Sometimes there are errors sent to the credit bureaus that put the default on your credit file.

Once the default goes on your credit file it remains there until the bill is paid in full. Now, if you did not make the purchase the first thing you want to do is file a dispute. The problem, however, defaults remain on your credit file for a period of time before they are removed. The upside is fighting for your rights and disputing the allegations made against you are telling creditors that some boo-booed. If either you have credit cards and purchased an item or service on the card and the service or item was defeated, you must first dispute the problem with the providers.

After you have disputed the issues with the providers, you will next contact your credit card lender and inform them of the defaults on your credit report. DO NOT pay on items or services that do you wrong, since this means the creditors will view you in a different light.

If you have, insurance policies are delinquent on your bills, you might lose your coverage, however, in some cases you might be in more trouble than you realize. Read all terms & agreements as well as any other fine prints before obligating your self to a contract. If there is a default against you on your policy contact your provider immediately and try to work out a plan. By making contact, you could save your insurance as well as additional debts added to your accounts. Anyone that lends you a line of creditor subjects you to defaults if you cannot make payments. If you have defaults on your credit files make sure that you work to pay the debts down to avoid complications.

Identity Theft

Now here comes the bad deal when it comes to dealing with defaults on your credit file. If you are subjected to identity theft, the ultimate resource is to continue fighting for your rights. People are robbed, beaten, murdered, and violated and so on every single day. The difference between these situations and identity theft is these people are survivors and identity theft victims are victims for the remainder of their lives. I can say this with confidence since it has been seven long years since I was robbed of my identity and today I am still fighting for my rights.

Today I cannot get an apartment in my name, nor can I get credit. The reason – My credit file has Freud Alert written all over it. Once a Freud Alert is posted on your credit, file it leaves creditors open as to who committed the crime. If I had known about the FREEZE option when I sent letters notifying my creditors that my identity was stolen, I would have had a much better chance in life. Instead, no one told me.

Now I am passing the word on to others, since I never want anyone to suffer as I have as a result of identity theft. When your identity is stolen, defaults hit your credit files continuously and remain there until the time allowed. If you are a victim of identity theft, make sure that you ask the credit bureaus to put a FREEZE on your accounts. This tells the creditors that you are a victim.

About 6 months ago my then girlfriend (now fiancé) and I bought a house together. Realizing this was a major financial decision we also decided to combine our finances. While we had been pretty open about money with each other up to that point, actually sitting down and going over all of our expenses was a different level of openness. But the benefits were unbelievable!

1. Openly Acknowledging Wasteful Spending

The first step we took was to go through all of our expenses and income to make sure we had everything identified. While this seemed simple, it turned into a much more complex exercise. By “coming clean” on all of our reoccurring expenses we were forced to openly defend our choice or realize the wastefulness of it.

“You’re spending what on video games!”-the girl

“You bought how many pairs of shoes?”-the guy

Nothing outside the normal, but saying it out loud to someone really makes you contemplate whether you need what you’re getting at that cost. Spending money on wasteful things is considerably easier when you aren’t accountable to anyone but yourself.

2. No More Worrying About Who Pays For More.

Four years into our relationship and there were still moments when one of us would passive aggressively point out that the other hadn’t paid for anything in a while. This would inevitably lead to a nice little debate where each of us would identify who had paid for what.

Inevitably the result ended up being that we were pretty much exactly equal to each other as far as spending. Combining our finances completely eliminated this disagreement from our lives and it’s been spectacular. We no longer exchanged a glance when the check came at dinner or wondered if we were going to get reimbursed for concert tickets that the other had paid for.

Instead, we knew that we both put the same percentage of our paychecks into our joint accounts, we had agreed to a budget for spending in key areas (leisure, utilities, travel, savings, etc.) and everything was equal. This may seem petty, but if you and your significant other are at all financially aware, I’m sure these thoughts have crept into your head.

3. Savings With Family Plans  And Redundancy.

This was one of the biggest bonuses of combining our finances and probably the most obvious. Sure we could have gotten a cell phone family plan or combined our car insurance without combining our finances, but in my opinion, this would have only resulted in more complexity than benefit.

Also, locking into combined plans is a major step in relationship! (Asking someone on the second date if they want to get on a family cell phone plan is a little off-putting to say the least!) While we were reviewing  our expenses we found a lot of areas that both of us were paying for that were redundant.

We saved a lot of money by eliminating one of our Amazon Prime accounts, savings on our car insurance, cell phone plan, and normal day to day purchases that we could assign one person to buy.

4. Combined Financial Strategy

We had had many conversations regarding money during our long relationship, especially when we decided to buy a house. But until we combined all of our finances, we didn’t really discuss planning as much as we should have. We also really couldn’t have a joint strategy together as easily until combining either. Once we had all of our finances outlined and setup we could discuss where we wanted to be financially in 1 year, 5 years, 10 years, etc.

We knew we were going to be getting married soon and that was going to be one big financial expense that we needed to plan for immediately. We also both knew we want to retire as early as possible. So we began to formulate a strategy based on our expenses and income that would get us to those goals as quickly as possible.

We began cutting things in our combined budget that weren’t worth delaying our financial goals for. We also made a detailed savings plan, one that would increase our retirement funds, maintain an emergency fund, and start preparing for things like the wedding, buying an investment property and a travel budget. Having an open conversation about this saved us countless back and forth and potentially years of savings benefits.

5. Efficiency

Efficiency was something we were aiming for going into combining our finances. I work in front of a computer all day while my fiancé works on her feet in a hospital. Clearly, I would have an easier time handling the day to day of our finances (paying the bills, monitoring our spending, etc.). I was already doing it for myself and the addition of her finances really didn’t add that much more work for me.

Taking away the work for her was like a weight lifted off her shoulders. While I could spend a little time at work managing everything, she had to tap into her precious free time to make sure her finances were being watched. Removing that burden from her gave her at least a couple hours a week back not to mention it relieved a ton of stress.

Conclusion

Being open and honest about money is one of the best things for a relationship. Combining finances shouldn’t be something you dread in a relationship but instead something you look forward to. It was a eye-opening experience for us and there are a lot of benefits to the process as well as the end result. I encourage all of you who are on the fence on whether to combine finances with your significant other to seriously consider it and begin having the conversation. I think you’ll find the benefits outweigh the cost!

Excuses are easy to come by in relationships. We spend so long conjuring up the ideal image of our partner and looking for them in a whole host of places, it becomes easy to latch on to anything that even remotely represents what we believe to be our “soul mate.”

Sometimes this means the red flags we can so readily see in other people’s relationships are invisible to us. We opt for excuses when we should be taking a hard look at our partner and what they are or are not bringing to the table.

This was precisely my predicament. My partner’s financial missteps and continued irresponsibility were blazing red flags – to everyone except me.

If you haven’t stopped to consider if your relationship could be headed down a path of financial turmoil, look for these red flags.

Red flag #1: Your partner isn’t taking care of his or her debt.

First things first – are you aware of how much debt your partner currently has? While some push this conversation off for months, or even years into the relationship, I’ve learned the importance of laying all the cards on the table early on. That way you understand the situation you’re walking into.

If you know your partner has thousands of dollars worth of debt that they are either avoiding altogether or don’t have a plan for tackling, this could mean they aren’t interested in taking care of their financial responsibilities. A walk down the aisle could suddenly make their growing debt problem your growing debt problem.

If they are willing to work on their debt but are simply too intimidated or don’t know how to start, that doesn’t have to be a red flag – it can simply be a jumping off point for working together towards a solution.

Red flag #2: Your partner spends recklessly.

Spending looks entirely different when it’s not your money. An addiction to shoe shopping could quickly go from comical to a point of contention once finances are commingled.

So now is the time to pay attention to how your partner spends his or her money. If they are reckless and often don’t have enough to stretch to the next payday, that could impact the lifestyle you are able to live together.

In addition, if your spending habits and beliefs don’t align, you could be in for money fights – and potentially divorce
– down the road.

Red flag #3: Your partner doesn’t think about the future.

One of the biggest red flags I should have noticed in my own relationship was the stark difference in how we both viewed the future. I saw it as something to save and prepare for and he saw it as something to think about later – or never.

If you are looking to retire at a young age while your partner is more interested in the instant gratification of spending money today, you may never be able to fully reach your goal. It could simply be too big of a difference to work through.

Money goals are paramount in creating a strong and stable financial foundation – are you both prepared to set them together?

Red flag #4: Your partner lies about money.

When I was confronted with money lies I naively brushed it under the rug, telling myself it wasn’t my money and therefore, wasn’t my business. In reality, I should have been asking myself why, if it wasn’t my money, he was lying in the first place.

Money lies – just like any other type of lie – are extremely hard to overcome. Every lie simply leaves another crack in the foundation of your relationship and points to the possibility of bigger lies you just haven’t uncovered yet.

Managing money together requires a great amount of teamwork and honesty. If your partner isn’t capable of those things, you’re in for a rough ride ahead.

Red flag #5: You have different views and beliefs about money.

Money beliefs – those we have acquired from birth to adulthood – play a huge part in how we manage our money on a day-to-day basis. If, for instance, I experienced bill collectors calling my home when I was younger, there’s a chance I could now feel powerless and out of control when it comes to money. This could mean I adopted a very short term view and don’t manage money in a way that benefits me or my future.

Negative money beliefs can be changed over time, but only if we are able to see the way they impact our lives and be willing to work towards shifting them. If your partner isn’t a willing participant in this process, that could be a monumental struggle.

You may hear a lot about how debt consolidation can help you get rid of debt, but are you really understand how it works? And, how it will truly benefit you? There are advantages and disadvantages of using this solution to get a debt relief, you need to truely understand how these advantages will benefit you and how to avoid the disadvantages if you want to get the most out of the debt consolidation.

In a simple explanation, debt consolidation is a process of combining multiple bills into one monthly payment to ease the bill management and let you work the way out of debt. The solution may or may not involve a loan. It will truly benefit you if you are in one of the situations below credit card debt :

1. You owe multiple unsecured loans and credit card balances

It can be a real challenge to manage multiple unsecured loan accounts that have different due date. If you own multiple credit cards with carry-over monthly balances, you have to make sure you make each payment on time in order to avoid penalty due to late payment. Under this situation, debt consolidation will be a good option to combine these accounts either through a consolidation loan or via a debt management service. After consolidating the accounts, you just need to ensure you make the one monthly payment on time.

2. You owe high interest rate bills

Generally, credit cards carry high interest rate. In addition, if you have uncleared high interest personal loans, debt consolidation will be a perfect solution to reduce the interest rate. There are many consolidation loans in the market that have much lower interest rate than credit cards and regular loans, find one of them and consolidate these high interest-rate balances into the loan in order to enjoy the interest saving and pay less in total debt.

3. You are in serious debt problem and you own a home with equity

When you are in serious debt problem, it normally involves a relatively big amount that is beyond your financial affordability to even make the minimum payment. If you have dragged the debt for long, your credit score might be affected and you might find it hard to get a loan. Under this situation, the best way to resolve serious debt problem is through a secured consolidation loan. If you have a home with equity, then you are at the best position to resolve the problem via a home equity loan. But, you have to make sure you are capable of making the monthly repayment on time. Defaulting the loan repayment will cause you lose your home.

4. You want to take advantage on the benefits of debt consolidation

You don’t need to be in financial trouble to get benefited from this solution. It has advantages of saving money, reducing the interest rate and get you out of debt faster. If you are looking for one or more of these advantages, debt consolidation can be your option. However, you have to access the advantages to make you will truly benefit from the process of debt consolidation.

Debt consolidation can gеt уou оut of debt permanently іf уou make it part of a financial plan. Within fіve years, уou саn hаvе your unsecured loans paid off аnd оn your wаy tо debt-free living. The key is to plan for the future.

Get Your Bills In Order

If уou are in thе hole wіth debt payments, then debt consolidation maу bе yоur wаy out. Debt consolidation programs lower уоur interest rates on unsecured loans with creditors. With thеіr low fee, thеy handle payments, account paperwork, аnd direct dealings with creditors. All you do іѕ send them a monthly payment fоr all уоur consolidated bills.

Initially, you will sеe a slight drop in your credit score, eliminating уour ability to apply fоr more credit. However, wіthin two years уоu can apply for credit aѕ lenders seе your commitment to repaying loans. You cаn еvеn apply fоr а mortgage loan аt this time.

To make ѕure yоu аre betting the bеst deal, shop аround for a debt consolidation company. Request quotes оn fees аnd information on thеir services. While уоu want thе beѕt deal, don’t bе lured bу false promises.

Pay Bills Faster

Once уоu have one account paid off, apply thаt monthly cash tоwаrd аnоthеr account. Not onlу will yоu be paying оff your bills sooner but with a reverse mortgages, but yоu wіll bе saving money on interest payments. Also cоnsіdеr applying any refunds or bonuses tоwаrd yоur bills.

Also, look for ways уоu cаn cut spending, even іf juѕt temporarily. Cell phones, cable TV, or eating оut cаn all bе reduced оr cut out. It іѕ difficult, but kеер уour eye оn your goal of bеing debt-free.

Plan For Your Future

It іs not enough to get оut оf debt, уou аlsо nеed tо plan for yоur future. You may find а credit counselor саn help уou create goals аnd design a budget. You сan alsо find a lot of good information оn finances online or thrоugh books.

One оf уоur future goals ѕhоuld bе creating a financial safety net. Even whіlе уоu arе paying оff debt, you ѕhould be saving money еvеry month if you use debt consolidation companies.  While a job loss оr а major illness can’t be avoided, уоu can minimize thеir financial impact by being proactive wіth уour finances.

We’ve all experienced that back-to-school rush as the fall winds start blowing in. I can smell the crisp new notebooks, the books weighing on my new leather straps on my shoulders, and the feel of my new shoes digging into my heels like it was yesterday.

The first couple of weeks breeze by, and then you begin receiving those large assignments and the novelty of the new year wears off. You soon realize that you are stuck here for the entire year with countless assignments. You no longer have that eager bounce in your step, but they drag you onto the next class after the next, as you find yourself daydreaming of the summer days you’d spent overseas.

Reality sets in and you realize that you will also have to budget for the rest of the year, as mommy and daddy’s allowance will wear thin after dining out at that new restaurant your friends have planned for the following weekend. Been in these shoes? Here are a few steps on how to stretch your allowance for the rest of the year.

#1: Buying Groceries VS Going Out To Eat

Don’t go out to eat? That’s what all college students do on a daily basis. What I mean by this is not to never go out to eat with your friends, but to be smart about when and how to spend money on going out to eat.

Going out to eat, paying for tip, and maybe even parking and/or valet is the biggest waste of money for a college student on a budget. That’s like throwing money right out the door- you might as well just toss some on the ground. Buying groceries can make your meals last a week or more versus going out to eat everyday.

Your basic groceries that may last you even up to two weeks include: eggs, bread, milk, cereal, maybe some orange juice and bacon? And of course, you always have your spam and ramen: instant and filling. Grab some granola bars for your grab-and-go days when you are pressed for time for those morning classes. Can’t live without coffee? Bring your coffee maker from home, or use your dormmate’s. Spending that extra $5 or so a week adds up- that’s an extra $140 / month you could have spent on food!

Buying groceries is also much healthier than what your cafeteria has to offer. Many college campuses have local restaurants with burgers and all the greasy fried foods that are good once in a while- but not everyday. And you wonder why they call it the freshman +15! Additionally, pick and choose the functions you will attend eating out: are your friends trying to go somewhere just to try it because it’s the new and cool place to go, or is it a good friend’s birthday?

Trust me, you will meet and make many friends on this journey: you do not have to attend every function you are invited to. Once you realize this, you will be most liberated, so you’re welcome. Blame it on your studies: that is one excuse that trumps any other.

#2: Make A List Of Daily Specials

One of the things I did in college was to write down all the daily specials bars and restaurants had. For example, sometimes restaurants will have half off burgers or dollar drinks. It won’t be too difficult to find these types of deals since most restaurants on campuses already know college students are scraping for deals.

This is also a great way to eat out with friends without breaking the bank. As you already know, eating out with friends can get quite costly sometimes. Having a get together on nights with specials will kill two birds with one stone: a great social outing + eating out on a budget.

#3: Find The Free Food Events

Your college campus will have plenty of mixers and other events for new students as well as clubs and other organizations trying to recruit you. I’m not saying to join every one, or you can, if that’s what you’re into. But aren’t you in college to try to figure out your interests after all? Would it be such a crime to attend an event to enjoy some of the perks these events have to offer? I would say not.

Being a poor college student doesn’t have to be wretched.  As a college student, what do you have to spend money on anyway? You are there to study, so do just that & make your parents proud. Become conscious of your spending and try to save up- if your parents give you “x” amount of dollars a month and you don’t spend it all- imagine how much more you can save just by being smarter when it comes to going out with your friends.