How Non Profit Credit Consolidation Company Can Aid You

Are you so far in debt you can’t see any way out? Are you in danger of loosing your automobile or even your home? If so you need to take action now before your house goes into foreclosure or you have to take the choice of a bankruptcy..

Credit card counseling debt consolidation non profit companies may be the way for you to pull yourself up out of the crushing weight of your bills and be able to breathe freely again knowing you are taking steps to pay off your debts.

In case you were wondering what these companies can do to help you I have provided a list of all the benefits of using one. 1. You can expect as much as a 70% reduction in your credit card debt.2. Phone calls from bill collectors will stop. 3. Get all of your bills into one easy monthly payment. 4. Your debts will instantly be reduced and interest charges will be erased 5. You will have credit counselors working with your creditors to get you a lower payment. 6. You won’t have to worry about making multiple payments anymore as the nonprofit debt consolidation company will make them for you. 7. You only have to send one payment to the credit agency and they will make sure that everything is paid on time. 8. You won’t be left in the dark has each month you will receive a statement that includes Bill payment times and amounts. 9. Your statements from the creditors will still be received by you.

The annual interest rate on credit cards is normally between 18 and 24% If you decide to only make the payments on credit card in 30 years you will still be paying for them. When you take advantage of the services of a credit card counseling debt consolidation non profit company you will be able to reduce your interest rate and eliminate late fees in some cases. Another good thing about it is that your creditors will end up getting their money and you have the possibility of saving your credit rating. It is a win-win situation for everybody and the span of time that you are in debt gets dramatically reduced.

You need to remember that, as with all things of such importance, you need to research the company that you want to do business with thoroughly before you sign any type of agreement with them. There have been some of these companies who have taken the money from clients and used it for their own designs, stating that the monthly amount was a fee for their involvement. Others have been late on payments and their clients have paid the price by having their credit destroyed.

Make sure you are clear about how much they will charge for a fee. Don’t leave it up to the company to make the decisions on what they do with the money, you need to make sure to let them know that the money is to be paid out to the creditors as soon as they receive it. Consolidating your debts can be a real blessing but you need to make sure that what she wanted stated clearly and you need to be sure what the company’s methods of business are.

In the long run, as long as you are aware of the problems with some of these companies you have the advantage. If you find a reputable credit card counseling debt reduction company, they can truly benefit you by helping you to restore your credit and helping you to get a hold of any other financial troubles you are experiencing.

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Relationships With Credit – Are You And Your Partner Ready For It?

As you found the love of your life at last, one of the most acute problems that your couple faces is how to manage the both partners' finances. It is usually no easy for the partners to determine how they will spend together and how they will own the property in possession.

There are some guidelines to help couples organize their spending according to their choice and lifestyle and the way they make their relationship. You and your partner are free to share or not share your property and earnings.

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There are a number of models to organize the financial aspect of your relationship:

You spend as a married couple: that is you have joint accounts and are both reliable for payments, plus both of you are involved in the ownership. You also make credit card applications in both names, building a joint credit history.

Partnership for spending: you can get joint accounts for certain expenditures, such as rent or household payments, on other needs each of you spend on your own.

Keeping independence-model: each partner pays for himself and you manage to pay for mutual needs (household, food, holidays) in turn or making equal contributions.

When living together, young people can't usually do without big purchases. A TV, a sofa or a washing machine – sooner or later the couple gets in need of such sort of things.

No wonder, a loan or a credit card plays the main part in this case. It goes without saying you should be careful and wise to play it fair and safe. Remember, you should be 100% sure of your partner before putting your name on an application or agreement. These are some possible threats that each of you should be aware of when some of you decides to apply to the bank. - Be careful becoming a co-signer. If your partner fails to pay off the debt or you fall apart, you will have to pay off the balance, as a second responsible person. Besides, it is fraught with damage to your credit score.

Joint accounts for credit cards or loans seem to be a good option, but not in cases when the relationship is unstable and seems to be not to last long. Though in this way you can build your credit rating together and both of you are responsible for payments, there are pitfalls to beware. If some of you fail to pay or exceed the limit, the other's credit history can be damaged and he or she will have to pay the balance and all the penalty fees. If one of the partners has bad credit, it is required that it should be under repair, in order to prevent future problems with approvals.

Before taking the decision to apply for mortgage or a car loan, which are long term and money consuming types of lending, you should know for sure you can trust your partner. Mistakes in this matter can cause serious troubles like bankruptcy. Love has nothing to do with money. So if you want to be protected, it doesn't mean you do not love your partner. Create your relationship and do not forget about future and financial security.

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Credit Cards – How Much Do We Really Owe?

Credit card debt seems to be growing and people are getting more and more concerned. Americans are once again polarized.

Some like David Ramsey encourage consumers to shred all credit card applications and buy only things they can pay for in cash. Some say that a mature person can use loans and credit cards for his or her benefit. Of course, there are some things most people need but can not buy with cash like cars and houses.

Student loans are also looked upon as a necessity. That is why credit cards are mostly under attack. It is a widely known fact that an average American carries about $8,000 in credit card debt.

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However, this number is often misinterpreted. It actually shows how much an average American household that has a credit card owes to the card-issuing financial institution. Moreover, this number is greatly influenced by credit card users with enormous credit card debts thus making the average number so shocking.

According to the recent Federal Reserve report, if you add together the number of households that do not use credit cards or own nothing on them you will see that more than half Americans have no credit card debt. The median credit card debt for those that do carry a balance is a little bit less than $2,000. Almost half of them owe less than $1,000. This figure seems to be far less alarming. Especially if you take into account the fact that the situation with paying off credit card balances is slightly but constantly improving.

The data provided by the Federal Reserve System does not differ much from the one disclosed by another acclaimed credit resource – Fair Isaac. Only a little bit over 50% of Americans with credit history owe more than $1,000 on their credit cards. More than 50% credit card owners use less than 30% of their credit line. That means that Americans are not as irresponsible when it comes to money as they are portrayed.

So does this mean that the problem of credit card debt does not exist? It surely does. Although most consumers try to avoid high balances on their plastic but there is still a significant part that is balancing on the razor’s edge.

One third of those who have more than $10, 000 in credit card debt have a household income of less then $50,000. The number of bankruptcies filing is still extremely high with about 1.5 million personal filings a year. Another problem is unfavorable policies credit card companies use to make more money especially on those clients that fail to pay off their full balances on time.

Definitely, the government needs to step in and force the banks to make credit card terms and conditions less confusing for average consumers. But the biggest issue is financial literacy. People need to be more educated about credit and its costs. Americans need to learn to compare credit card offers before mailing another credit card application and calculate the amount of money they will need to pay back. The situation with credit card debt is not as terrible as it is usually described by the media but there are still many problems to be solved.

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• What To Do If Credit Card Debt 80k Plus
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Credit Cards Account after Divorce

Divorce might be a very painful process and money issue often makes it even more unpleasant. You need to divide both assets and liabilities. The situation can be especially complicated if you have joint credit card accounts or your spouse is an authorized user on your account.

You need to know the law to make sure your interests are defended. First of all, you need to understand what a joint account is. A joint credit card account means that both you and your spouse are equally responsible for all the transactions and payments. It is a good option for a married couple in a situation when one of you does not have too much of a credit history or a strong income and can not qualify for a good credit card deal.

When considering applicants for joint accounts creditors check credit reports of both family members. If you will be late with your payments the information will be reported to credit bureaus in both names. If your marriage has fallen apart and you are getting divorced do not forget that both of you are responsible of making the payments.

According to the law, your bank cannot close your joint account just because you are divorced. Your ex-partner or you need to request the bank to do it. However, the creditor has the right to ask you to reapply for a credit card deal on an individual basis. Thus the credit-issuing company checks your individual creditworthiness. If the credit card is opened in your name and your spouse is an authorized user. Although credit information might be reported to credit bureaus in the user's name you alone are responsible for payments.

So if you are getting separated make sure you have enough income to make at least minimum payments. If you and spouse have separate credit card accounts usually you won't have problems dividing responsibilities. However if you are lucky to live in a community property state you might be held responsible for any debts incurred during marriage. Moreover, your spouse's debt may affect your credit score. The best way to clinch the matter is to get the divorce decree that will state who is responsible for what credit cards. Make sure you discuss the issue with the bank because your creditors are not parties to the decree. If you have joint accounts you might still be held liable. If you act according to the law you should not have a problem separating your financial responsibilities.

However, you need to pay special attention to your credit report and make sure everything is correct. If the bank charges you for late payments your spouse is responsible for you should immediately contact its representative. If the creditor does not want do anything and keeps billing you the best way would be to get a lawyer and file a complaint.

Of course, it is hard to be clearheaded when you are in love but if you have decided to get married do not forget about the possibility of a divorce. So, if you and your spouse have found a credit card deal that you want to apply for carefully consider all the possible types of credit card accounts.

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How to Get a Grip on your Credit Score

Financially and economically, they say times are pretty good right now. I guess everything is relative, but for the most part, that statement is correct. Mortgage rates are not the lowest they have ever been, but they are manageable without being ridiculous. Personal loans are available, car loans are available, all at competitive interest rates.

Most people know they have a credit score but very few know that they can raise their credit score by just a few simple steps, and they don't need to take on more debt to do it. Start enjoying the rewards that having excellent credit can provide for you.

That is, times are pretty good for people with good credit or excellent credit. But what about people who account for the vast majority who do not have good credit, and may even have bad credit. Are times as good for them?

The answer is not no, depending on who you ask. If you ask the average consumer with bad credit, you will probably be told that times are not good. But if you ask the savvy consumer with bad credit who understands how loans are determined and rated, you might be surprised to find out they would agree with you that times are pretty good.

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What is the difference? The big difference is knowledge. Knowing how the credit score game is played and how to score points in it are a huge advantage over the consumer who simply accepts their bad credit score and goes glumly on their way.

If you have a bad credit score, there are things you can do. Or more correctly phrased, there are things you need to be doing, starting today, because you do not want to keep the label of a person with "bad credit". Determine what it is that puts you in that category, and then get it changed. Despite what some companies will tell you, it does not happen overnight, but if you start showing a track record of on time payments for all your financial obligations, as well as taking other steps to improve your credit score, it will make a huge difference.

The place to start is with your credit reports. Yes, that is plural because you have three totally separate and distinct credit reports, one from each of the big three credit reporting agencies. These companies do not share information, so they each have a different view of you from a credit perspective. The thing you will very likely discover when you are going over your credit reports is that they contain errors. One of your creditors is reporting late payments, another is still reporting a loan you paid off years ago, and much more. These errors will be reported for years to come if you do not dispute the errors with the credit bureaus. Once you dispute an item, it is their legal responsibility to investigate the error with the creditor, and if it cannot be proven, it needs to be removed from your credit report. Many consumers find that their credit score can jump to the next level by just getting errors corrected in their credit reports.

Next, negotiate with your credit card issuers. If you have been a long time customer of theirs and they are still charging you 22% interest or more, then ask for a reduction in interest. If they decline, show them how much you appreciate them by closing that account. It's a competitive industry and there is no sense in allowing them to make money off you by the truckload with their high interest rates.

If you have several accounts with the same issuer, ask if you can consolidate your accounts into just one or two cards, perhaps combining the credit limits to give you a decent credit limit on one or two cards. If they won't do that, then close some of those accounts.

For the accounts you have open, try to keep your outstanding balance under approximately 30-35% of your credit limit. More than that raises red flags with credit issuers, and less than that indicates you don't use the account enough for it to be a real indication of your credit.

Above all, make each and every payment on time, paying more than the minimum amount when you can.

Just these simple steps can raise your credit score by an appreciable amount, and you haven't taken on any more debt to do this! Keep your credit clean and treat it with the respect that it deserves so that you can reap the benefits of having excellent credit.

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Do you need a Business Credit Card

Ready for a business credit card? Credit plays an important part in the growth of your business. If you have yet to establish corporate credit, read on...

Are you ready for a business credit card? You might not know this, but there are certain telltale signs to look for. If you think you might be ready to take the next step in business finance, these 4 tips will tell you whether or not your instinct is right.

• Your Business Needs Are Occupying Your Personal Credit
  So you need to put a large personal purchase on your credit card but you can't because this month's business expenses have already mixed out your credit? You probably need your own business credit card. If your personal credit card can't handle the volume of your credit needs, it's time to expand your credit horizons.
• Your Business Isn't Being Rewarded
  Now I'm not talking about rewards as in "high-interest rewards programs" here. I'm talking about rewards such as business travel insurance, group buying power and the other perks associated with carrying a business credit card.
  Let's face it, a growing business can use all the help it can get. Why not take advantage of everything out there -- including the benefits of a business credit card?
• Your Business Needs Its Own Credit History
  Have you been in business for two years or more and you still don't have any business credit cards? Now may be the time to change that.
  If your business is growing successfully it's going to need its own credit history. Think of it as a child who is going to grow up one day and needs credit of their own. Using mom and dad's credit cards is okay to a point, but it can't go on forever. Because of this, a business credit card (even if it's a secured card) is essential to the development of your business.
• You're Pulling Your Personal Credit Card Out When Trying to Woo Clients
  You take a potentially big client out to dinner and when the bill comes, you whip out that credit card like the success story you are. Only problem is, it's your name emblazoned on that card -- not your company's. That might be a problem in the eyes of some.

If your business isn't stable enough to warrant its own credit card, is it stable enough to handle the needs of that particular client? Do yourself a favor and get a business credit card. It will speak volumes about the establishment of your company.

If there's one thing you can't neglect, it's the financial growth of your business. Contrary to what some might believe, financial growth isn't just about profit statements. It's about credit growth as well. If you're serious about the future of your company, it may be time to apply for a business credit card today.

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The Best Ways To Rebuild Your Credit

A good credit score or credit rating is very important when come the time of applying credit. The better your credit score is, the better deals that have attractive low interest rate will be offered to you by many lenders, enabled you to have choices to select the best offer among the good deals. Hence, you have the responsible to maintain it and ensure it always have a high value. Actions such as default a loan, delay of credit card payment or miss payment and filing a bankruptcy can jeopardize your credit rating. If you already go through this bad phase, then, it is important for you to build your credit and get it back to order. Here are a few ways that you use to rebuild your credit and achieve a good credit score.

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The Credit Repair Kit: Everything You Need to Know to Maintain, Rebuild, and Protect Your Credit by John Ventura A bad credit record can make it tough to get a loan or adequate insurance, find a good job, or rent an apartment. Yet, nearly half of all credit records contain serious errors. The new edition of The Credit Repair Kit provides consumers with all the information they need to order a copy of their credit record, understand what their records say about them, and deal with any problems they may find in those records.

Build Your Credit With A Secured Credit Cards
When you are in debt, many experts will advise you to put away you credit card and not to charge your credit card again, so that you won't add new debt into your current debt. They are right, because the uncontrolled use of credit card can make your debt situation worse. But, if you want to rebuild your credit, the best way is "Use Your Credit Card".

Instead of using unsecured credit card that you still own, it's better for you to apply for a secured credit card.

You probably had given up your credit cards if you had gone through a debt management program during the process of getting you debt issue resolved. And if you credit score is not good, you probably won't be able to be approved for an unsecured credit card if you apply for one now; hence, applying for a secured credit card is the only way you can get a credit card that you can use to rebuild your credit.

What is secured credit card? Why it difference from my existing credit card? If you have not owned a secured credit card before, these questions may rise in your mind. Well, a secured credit card is the same physically with any other credit cards; the only different is a secured credit card is like a pre-paid card where you need to pay first before you use. It requires you to deposit a certain amount of cash as the collateral for a credit line. And the credit limit is the same with the amount of deposit. For example, if you put $500 into the account, you will be able to charge up to $500.

You use the secured credit card to purchase items and make the monthly payment in full on time. The issuing bank will report your good payment behavior to the credit bureau, and you will be on your way to establish a good credit history over time.

Build Your Credit With A Secured Personal Loan
Besides applying for secured credit card, you can also rebuild your credit by getting a secured personal loan. Like in secured credit card, a secured personal loan required you deposit cash or other valuable asset such as automobile, boat and jewelry as the collateral for the loan. The maximum loan can up to the collateral's value, but most of time, you can only get about 80%-90% of collateral's value.

Build a good credit history by making monthly loan repayment on time so that your good payment behavior will be consistently reported to the bureau and get it recorded into your credit report.

Summary
Rebuilding your credit after it has been jeopardized need time, patient and commitment. Secured credit card and secured personal loan are among the easier ways to regain your good credit score. Make your full monthly payment consistently and you will see your credit back to order when the time comes.

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Credit Dispute Dangers, Avoid Red-Flagged

The first thing you should know is that the credit reporting system is rigged to serve corporate interests first. The key to repairing your credit score quickly is knowing how to safely (and legally) maneuver within the consumer protection laws. Your goal is to beat creditors and collection agencies at their own game, and force the credit bureaus to help you do it.

The law is on your side. Nobody wins if you spiral down to bankruptcy.

Dirty Little Secrets: What the Credit Bureaus Won't Tell You by Jason R. Rich For anyone who is about to buy a home, refinance their mortgage, buy or lease a car, apply for credit cards, or make any type of large purchase Includes in-depth interviews with credit experts from well-known companies Includes sample letters that can be personalized and sent to credit bureaus and creditors to speed up the process of updating and/or correcting credit reports Compact, concise guide with low price point

There's no shortage of information on the internet about credit repair strategies. Filing credit disputes is a favorite. But tread carefully. Much of the information floating around out there is self-serving... Made-For-Adsense content that exists only to get you to click advertiser's ads... or a masquerade secretly (or not so secretly) shilling for some pricey "credit repair specialist." If you visit enough credit repair sites, you'll begin to notice that the same drivel is recycled again and again.

Here are a few drivel-free insider credit dispute secrets to get you started...

1. Boilerplate credit dispute letters almost always do more harm than good.
   As with medical diagnoses, blanket prescriptions for credit repair can be dangerous. Make the wrong moves and you'll actually drop your credit score! Plus, credit bureau investigators don't take boilerplate letters seriously -- especially boilerplate threats. They feel that the consumer who takes the time to write a concise, legally binding letter is more likely to hold the bureau's feet to the fire until they get what they want. They know this type of consumer is more likely to report them for FCRA violations, and more likely to sue.
2. Don't dispute negative credit items online.
   Send all dispute letters by U.S. Postal Service Priority Mail, Confirmation of Delivery -- no signature required. The credit bureaus typically refuse letters which require signatures. If a credit bureau doesn't properly verify your disputed item, you'll need the paper trail to gain the sort of leverage which will force the bureau to delete the item.
3. Don't file frivolous disputes.
   For example, don't pretend to the credit bureaus that you don't owe a particular debt when you do. That's a good way to get red-flagged and lose your right to dispute. Plus, such a ploy is highly unlikely to accomplish your goal of getting the negative item removed.
4. Dispute factual inaccuracies, and file foolproof disputes.
   The good news is that you can almost always find a factual dispute, if you know what to look for. You must learn how to identify which disputes will actually lower your credit score, or worse -- get your credit file red-flagged, which will cost you the right to dispute for up to 12 months!

Credit Secrets: How To Erase Bad Credit by Bob Hammond This expanded Credit Secrets will save you thousands of dollars in fees, finance charges and interest payments as you learn the very latest techniques to get rid of debt once and for all and establish good credit. Discover proven tricks used by lawyers, credit counselors and other pros who charge handsomely for their services.

Now, many credit courses and so-called credit repair specialists will tell you to dispute every single negative item in your credit file in the hopes that all those items will simply vanish because your creditors are too lazy or too busy to respond to the credit bureau's request for verification, or because the credit bureaus are too lazy to verify the item. Rarely happens that way, and it's a good way to get your credit file red-flagged. This "bazooka gun approach" is dangerous. The credit bureaus may very well be too lazy to investigate some items (and you can indeed use that for leverage), but not all of them.

Your success will lie in properly executing the Triage phase -- collecting and organizing every tidbit of ammunition that could be used as leverage to erase negative credit items -- and in sending (and documenting) the right series of letters. Credit histories can turn on a dime -- both positively and negatively.

Above all, your goal should be fast, safe credit repair. Often, the smallest changes can have an enormous impact on your credit file. With a little work, you can become the person every choice lender wants to loan money to, and in a relatively short period of time.

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Credit Repair Clinics: Secrets You Should Know Before Hiring One

If your credit score could use a boost, a credit repair specialist may seem like the best solution. But don't even think about hiring one until you read this.

You've probably heard myths that suggest that credit repair specialists have some divine dispensation with the credit bureaus. They don't. Far from it. In fact, in a minute, we'll show you why they have less leverage over your credit file than you do.

How to Repair Your Credit Score Now: Simple No Cost Methods You Can Put to Use Today by Jamaine Burrell Your credit score affects every aspect of your financial life including qualifying for loans and mortgages, low interest rates, housing, employment opportunities, and even insurance premiums. Millions of Americans have negative, inaccurate, and unverifiable information on their credit report. Repairing your credit profile is one of the most important financial decisions you can make. You re about to take the important step of taking control of your credit! If you re like the average American, having improved credit will save you thousands of dollars on your loans and credit cards...

The sad truth about the credit repair clinic industry -- and it is an industry -- is that many of these so-called credit repair specialists are scam artists, and the ones that aren't will be using the exact same techniques to repair your credit score that you can wield more effectively -- and safer -- yourself. And they'll charge you at least $750 to $1000 for their "expertise."

Now for those dirty little secrets...

Dirty Little Secret #1: If a credit bureau suspects that your dispute is being filed by a credit repair clinic, they'll trash it.

Dirty Little Secret #2: Credit repair specialists may be in cahoots with your creditors. Many of them are secretly paid as much as 15% by the creditor to reach a so-called "debt settlement!" Who do you think comes out ahead in that scenario? Not you! Such credit repair clinics are the worst kind of predator, exploiting their client's financial woes.

Dirty Little Secret #3: Credit repair specialists usually won't give you access to their correspondence with the credit bureaus on your behalf. Why? Here are a few reasons:

(1) They don't want you to know how easy it actually is to do your own credit repair, and wonder why you're paying them.

(2) If they resort to boilerplate dispute letters (which will just likely end up in credit bureaus' trash cans), they don't want you to see their boilerplate letters.

(3) The ones who are scamming you -- only pretending to correspond with the credit bureau on your behalf -- surely don't want you to know they're not doing much in exchange for the hard-earned fee you forked over.

If you do hire a credit repair clinic to represent your interests, make sure that they are, in fact, representing your interests. Force them to detail their plan of action. Don't sign until they agree to provide you with copies of all correspondence with the credit bureaus.

Remember: your goal is to take control of your finances again, instead of letting your creditors, a credit repair specialist, or the credit bureaus control your financial health. Don't rely on anyone who isn't personally vested in your financial health -- and doesn't even necessarily have your best interests at heart -- to fix your credit score.

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Your Credit Repair: Date of Last Activity

When repairing your credit, one of the most important items on your credit report is the date of your last activity. To verify the dates of your accounts last activities, you need a copy of your credit report. Your credit report will give you all the information on past and present accounts. To get a copy of your credit report you can contact your credit bureaus and they will send you a copy of your most current credit report. There are three credit bureaus that you can contact: Equifax (800) 685-1111 www.equifax.com; Experian (888) 397-3742 www.experian.com and Trans Union (800) 916-8800 www.tuc.com

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The last date of activity is when the credit bureau lists on your credit report the actual last date of any transaction that was done to your account. That date can be the actual last time you charged an item on your credit card, the last payment you made on an installment loan or when you paid off an account. The date of last activity can also be negative. It can state when an account went into collection, the date it was charged-off, the maximum delinquency date and the date when someone inquired about your credit. Your last activity date will tell you and anyone else how you handle your credit. Creditors review your last date of activity to see when you made your last payment on an account or when you paid off an account. This can help you get new credit if everything is paid on time and as agreed. If your last date of activity shows something negative like a charged-off, collection or a delinquent account, you could become a credit risk. The last activity date is guidance for good or bad credit.

To repair your credit your first step is to find out exactly what dates are on your credit report. This will tell you how bad or good your credit is. Also it will let you know if you should apply for any new credit. If your last dates of activities are all coming up negative, you will not be able to get any new credit. The date of last activity will also tell you if any of your accounts have expired. If you don’t check your credit report you won’t know what accounts have expired to be removed from your report. Keeping up with that will help repair your credit report by watching your dates to inform the credit bureau which accounts needed to be dropped off. Bankruptcies stay on your report for ten years, whereas a tax lien can stay on your report indefinitely. Collections, judgments and delinquent credit will stay on your credit report for seven years. You need to know the date these items were placed on credit report and how long it will be before they are dropped off.

The date of your last activity is very important. Those dates should be taken very seriously along with any other transactions on your credit report. You are responsible for keeping up with your activities dates and your credit information placed on your credit report.

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When You Should Not Use Credit?

Decades ago, it used to be that credit purchasing privileges were reserved for the rich and famous. While farmers, miners, and other small blue-collar communities could buy "on credit," large-scale purchases were made primarily by cash.

Not anymore. Today, it is rare to meet someone who does not use a credit card. Many people have several. The down side of this development is that with the easy access to credit card use, consumer debt has mounted significantly, with some hapless victims running tens of thousands of dollars into debt that may be difficult to escape without incurring bankruptcy.

If you have a credit card or are thinking of getting one, here are a few guidelines to consider in making purchases.

• Don't charge if you can't afford to pay it off in one statement cycle. For many middle-class consumers, the limit might be an amount in the range of a hundred dollars. Charging a more expensive item could impact your monthly budget if you strain to pay it off, jostling existing obligations. Or you may be tempted to make several monthly payments instead of paying the balance in full with the first statement. Check your credit terms to see if interest accrues from the date of purchase or when the first billing cycle (usually 30 days) ends.
• Don't charge if you don't need it. "Make do or do without" is the motto of some thrifty people. A "needed" charge expense might be an unexpected car repair or a veterinarian bill, though a healthy budget includes savings for items like these. A new dress or shirt along with a visit to a classy restaurant are not true "needs" for most people. Pause before pulling out the plastic to determine if this purchase is worth the eventual wear and tear on your wallet.
• Don't let someone else use your charge card. Even well-meaning friends or family members can get careless about paying back a charge on someone else's account. The old saying "business and family don't mix" particularly applies to a credit situation. Keep your card to yourself.
• Don't buy something just because it's on sale. Those 50 percent off signs are like magnets, pulling us in against our will. A lower price doesn't necessarily mean you need to rush out and buy something on discount. Consider it only if you have been planning the purchase for some time.
• Don't charge presumptuously. "I'll pay it off with the income tax refund." Sometimes expected windfalls blow the other way. You don't want to get stuck with a large debt and no way to pay it off. If you plan to buy something using a special or one-time income, wait until you have the money in hand. It's safer that way and you'll have peace of mind.
• Don't be pressured into charging a purchase. Guilt, joy, forgetfulness, or empathy can cause us to want to run out and buy something for another person that they may not need and we cannot afford. The resulting charge will only make you feel worse when the statement comes in the mail.

Credit cards can convey a sense of financial power and well-being. But the mature consumer will control his spending and credit card use before it takes control of him. If you are having trouble limiting your credit purchases, meet with a financial adviser who can help you set limits.

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How to Establishing & Protecting Good Credit

Rich Dad's Advisors: Turn Bad Debt into Good Debt and Bad Credit into Good Credit by Garrett Sutton Know yourself, get your attitudes and behavior under control, and then use the author's formulas and action steps to wrestle your credit report, account by account, back into something respectable.

Many people claim they will never need to use credit in order to obtain the goods and services they need, but credit is necessary unless a person is financially well off and can pay cash for everything. The average person cannot obtain a home or a new vehicle without making monthly payments. It would be ideal to never have to pay interest in order to obtain the luxuries and necessities of life, but few are able to do so. You may think you’ll never need credit, but you may find yourself unable to buy what you want if you haven’t established and maintained a good credit history.

If you want to establish credit, one of the ways of doing so is with a credit card account. Some credit card companies are willing to take a chance on a new customer, and offer a small credit line to those who have yet to establish credit. The easiest credit cards to obtain are department store cards and service station cards. They are however not as valuable in the eyes of credit reporting agencies. Even if you always remit the required payment on time, your credit score won’t improve as much as if the major credit card companies such as Visa or MasterCard issued the cards. Try to obtain a small line of credit with one of the major credit card companies, but keep in mind that every time you apply for credit and are turned down, this information ends up on your credit report, even if you haven’t established credit. This can become a vicious circle that is sometimes difficult to break into.

Some credit cards are considered secured, which means you must maintain a savings account to secure the balance of the card in case you default on the payment. These types of cards are useful if the issuing company doesn’t inform credit-reporting agencies that the account is secure. If the card is reported as being secure, your credit score will actually become damaged instead of improved. Avoid secure credit card accounts if at all possible, or at the very least, find out what the company policy is regarding sharing information about the account.

If you are in need of new furniture, appliances, or electronics, you can begin establishing credit by shopping at a rent-to-own store. Items sold in rent-to-own stores are often more expensive than other retailers, but this is sometimes the only way people without credit can obtain items such as these. Not only will you get the items you desire; you’ll be establishing good credit when you pay the monthly amount due on time, every time.

Some stores, such as carpeting and flooring stores, offer credit accounts to their customers. Carpeting and flooring is rather expensive, so credit customers are important to the success of a business such as this. It is for this reason that this type of credit is relatively easy to obtain. Improving your home by purchasing new flooring is a great way to begin establishing credit.

Once your credit has been established, it’s of the utmost importance to maintain good credit by paying your bills on time. Everyone makes mistakes and forgets to pay a bill now and then, but if you pay a bill more than 30 days late, chances are it will be reported to the major credit bureaus. Make a habit of paying your bills late, and your credit score will take a major nosedive.

Don’t let your credit get out of control. People often make the mistake of overextending themselves, and they become buried by credit card debt. Use your credit wisely, and it will be there for you when you need it.

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