Welcome back to “Repair Your Credit.” CLICK HERE if you missed part one of this article. You’re here because

…enough is enough!

Believe me, I’ve been there. I have receipts from quick payday loans and debt relief to show for it. One day you will awaken to find that all you are able to pay to your creditors is the minimum payments. You simply can’t do anything more, which is unfortunate, because as I’ve already mentioned in this E-book, paying the minimum is the longest, most expensive possible path to take and still be able to pay off an account. If you’re OK with it taking years longer (and costing you much more than the credit you originally used), then paying the minimum is your speed. You shouldn’t go there, however.

Minimum payments are subtle, enticing and ultimately dangerous. They are financial time bombs that will leave your money in disarray if you lean upon them. They may seem convenient and affordable, but they are neither one of those things in the long run.

But they’re convenient for someone!

That’s right – for your creditors. It’s convenient for them because your paying the minimum only amounts to a cash machine in their employ. If you have a $1,000 debt, an interest rate of 18 percent and a two-and-one-half percent minimum monthly charge on your balance, paying it all off by only making minimum payments would take you 13 years. Again, I’ve mentioned this before. You need to know how much damage you can do to your finances with simple decisions, too.

If you’re dealing with multiple debts in this fashion, you’re in trouble. You’ll be spending so much on interest that could have gone to something useful. Like a retirement account, a college fund for the kids, a future vacation… anything truly worthwhile. Don’t follow this path to bankruptcy. Wake up!

Are you bailing water from your sinking ship?

If you are up to date with all of your credit accounts but have slumped into the habit of only making the minimum payments, this E-book is for you. It’s time to take corrective action.

First of all, consider each of the debts you own. Write them down, because the visual reminder should help spur you into action. You want to write down how much you currently owe, as well as the minimum monthly payment and the interest rate they require of you.

The true cost of paying the minimum

After that, go to this calculator. With it, you’ll input the necessary figures for each of your debts. The calculator will tell you how long it will take to pay each of them off. The truth can be sobering, but you must not lose heart. What may appear to be a prison sentence is actually a road map you can and must follow to dig your way out of debt, repair your credit and build wealth. It alone is enough motivation for change.

Next, let’s talk about how to chop these ominous debts down to size. By doing so, you’ll be able to pay them off quicker, while potentially saving money – thousands! CLICK HERE to continue reading…

(image from flickr)

Thank you for visiting the payday loans blog at personalmoneystore.com. With the new year just around the corner, it’s time to start thinking of  your 2009 resolutions. There are no better resolutions to be made this coming year than those regarding personal finances.

Consumers across the nation are in a constant struggle to stay on top of their finances. Layoffs and pay cuts are reaching record highs and the credit is crunch causing creditors to increase minimum payments and interest rates. Learning methods that can save you money and exercising those options faithfully may just save your skin in 2009, and getting payday loans if you need to can help make it happen.

Here are a few things to consider for the new year.

Take Inventory of Your Debts

Take the time to sit and put all your outstanding debts on paper so  you can see where you stand financially. Most people who fall into uncontrollable debt have a hard time figuring out how they got there. This is because we never see the big picture when it comes to what we owe. We are used to seeing bite-sized portions of what we owe each time until a bill comes . One day we wake up to find that there is not enough money in the bank to cover our minimum payments.

Record and Visualize Your Debt

Write down each creditor, how much you owe and the minimum payment and interest rate for each creditor you owe.

Next, make yourself a visual chart or bar graph of what you owe total. This is never a pretty thing to look at, but putting it on your fridge or bathroom mirror where it is consistently before your eyes will do some wonderful things for you.

First, it will remind you of your debt on a day-to-day basis so you can be consistent in your endeavor to pay it off.

Secondly, as you pay off your debt you can incrementally mark your chart accordingly. Seeing your progress over time will encourage you to stay in the fight to become debt free.

With this new awareness, you will be amazed at how much extra money you will be able to find each month to apply toward your debt. It’s like payday loans that you don’t have to pay back.

Practice Responsible Spending

(image from flickr)

This coming year you will also want to increase your awareness of the amount of money you spend and the things you spend your money on. A lot of the purchases we make each month are unnecessary or could be planned better to save you money.

When you go to the store it’s better to have an organized list of the things you need. All to often we go to the store hungry and without a list, which encourages us to spend money on “eye candy” or whatever looks good at the moment. What you end up bringing home is usually a lot of expensive junk or snack food.

An organized grocery list will help hold you only buy the things you need and therefore saving you money that you can put toward your debt each month.

Cutting Costs And Making It Count

Besides cutting down your grocery bill, you can also save money in other areas. We all pay more than we have to each month on luxuries we choose.

These luxuries include things like your current television programming package, cell phone package or internet package. If you are serious about paying down and paying off your debt, you may want to consider down-grading your entertainment and communications options by choosing cheaper alternatives.

Making A Better Tomorrow Starting Today

Eliminating debt requires a personal decision and commitment to change that only you can make. Get started today — you won’t regret it!

Stay tuned to the payday loans money blog tomorrow for more helpful tips on paying off your debt in 2009.

Debt, what was once frowned upon as an irresponsible act or circumstance of the less fortunate in society, is now embraced by the masses. Between consumer credit cards, bank loans, and payday loans, the average American now possesses an average of $9,200 in credit card debt with an average interest rate somewhere between 15 and 19 percent.

Debt is a lot more difficult to understand since we have gone from a predominantly cash-only society to an increasingly cashless society.

Since our evolution away from cash towards credit, we have developed habits that have put our society as a whole at risk.

Too much use of the plastic!

Financial Decisions Today Will Affect Our Family And Country Tomorrow

America’s credit addiction has left millions of families living with nothing left in reserve going from one paycheck to the next just trying to make there minimum payments. Many families use third party services such as payday loans to help make ends meet.

The growing fear of many experts  is the future of today’s debt-saturated generation. The wide availability of credit and irresponsible borrowing has left consumers putting more money into interest rates on financed merchandise than their 401k’s.

With promotions shouting the availability of finance options like “No money down”, “No payments” and “No interest for up to 36 months,” consumers have a hard time passing up things they want but can’t afford.

Knowing The Difference

Debt used to be more clear-cut than it is today, which requires us to know and understand the difference between good and bad debt so we can make smarter decisions for our financial futures.

The following will help you determine the difference.

Good Debt

Good debt is usually defined by the simple fact that it’s going to provide some kind of return. By return I don’t mean better entertainment value such as that which is returned tenfold from the purchase of a brand new large screen plasma display or LCD television. I also don’t mean cosmetic value such as that returned by putting a fancy new pair of rims on your vehicle. By return we are solely talking about the financial return that is returned to you as a result of your financed transaction.

Types of good debt would include things such as borrowing money for a home or for a college education. These things make good financial sense. A home, although much goes to interest over the life of the loan, provides an equitable return with age and usually becomes the single greatest asset that a person owns.

College, on the other hand, can create years of student loan payments, but the increase in wages due to the college degree more than endorse this as good debt because of the profitable gain that will compensates for the original investment.

Bad Debt

Bad debt is just the opposite. You can usually identify bad debt by the lack of equitable return, such as a rent payment. Financial gain is never reaped as a result of renting a home or apartment. Consumer credit card debt is also a bad form of debt if it is not paid off in full each month, because credit payments continue to take from you without any comparable return.

The Gray Matter When It Comes To Debt

Sometimes it is hard to determine whether a financed transaction will be good debt or bad debt. A couple of examples of these gray areas would be car loans or payday loans.

Car Loans

Car loans and the like would typically be considered bad debt because they are in a constant state of depreciation. However, vehicles are an asset that most can’t afford to live without and may be required simply to get to work and get paid, therefore cars are a worthwhile investment. But purchasing one should be carefully considered.

When buying a car, it is strongly advised that you don’t buy one new off the lot as a newer vehicle depreciates much quicker than one that is a few years old. Plus an older vehicle’s taxes and payments are considerably cheaper, thus saving you more each month.

Payday Loans

Payday loans are another area which would fall into the “gray area” when considering good vs. bad debt depending on what they are used for.

Applying for a payday loan just to get some extra cash for a weekend in Las Vegas is a prime example of bad debt, but if you were to use a payday loan to avoid the fees on a late mortgage payment, a payday loan could save you money, which would make it a perfect example of good debt.

Make The Right Choice For Your Future

Remember the key is simply to determine the equity of the transaction. Will it save you money or not? Before you charge or finance your next transaction, try to determine whether your purchase would be considered good debt or bad debt.

Good debt will leave you in a better financial position for a safer, more stable and more profitable future.

Payday loans have come under a lot of scrutiny from anti industry opponents. These opponents have deceptively convinced consumers that the payday loans Industry is predatory in nature. Many of these opponents are the banks themselves who want to monopolize the loan business to their own advantage.

Ironically, some of the latest fallout from the downward spiraling of the economy is forcing the banks to increase the rates and fees they impose on consumers. Due to the severe losses the banks have incurred, they are now trying to offset the losses over the past year and a half from default mortgage loans, by imposing stricter and higher fees on their customers.

Some of the fee increases are related to the following:

Overdraft Fees

Fees, Fees, And More Fees!

Overdraft fees are probably the most famous of bank fees as their deployment on consumers has caused more than a few uproars.

These fees, which are charged when a customer overdrafts their account or exceeds their account balance, can range from a set fee per overdraft to an escalating scale of charges for each subsequent overdraft. A typical overdraft charge can be anywhere from $25 to $60, which are higher than the fees for most payday loans.

Cash Advance Fees

Cash Advance Fees are charged based upon a set percentage of the amount withdrawn from an available credit line.

Minimum Balance Fees

Minimum balance fees are charged when a customer fails to maintain a set minimum balance predetermined by the bank. These fees are in place most likely to help secure a percentage of the bank’s assets.

ATM Fees

ATM Fees are typically charged when a consumer withdraws funds from an ATM machine that doesn’t belong to their own personal bank. These fees can cost upwards of $4 per transaction depending on the bank.

Consumers Should Beware

For consumers with bank issued credit cards, it is highly advised that attention is paid to these rising fees. These banking institutions have the right under law to change their rates but are also required by the law to notify their customer base of any and all changes they make to the terms and conditions of the customers’ account.

Unfortunately however, most consumers fail to get these updates which are usually included with a mailed notice such as a newsletter or bank statement. Failure to get these mailed notices may result in fees which offset a customers’ perceived balance and eventually incur the more costlier overdraft charges.

JPMorgan Chase Raises Fees

JP Morgan Chase has publicly announced that it will be raising rates on overdraft protection, cash advances, as well as its default rate. The default rate is usually the imposed Annual Percentage Rate that is applied to accounts when a customer surpasses their credit limit or is late on their payments. Also if a larger balance has been carried for longer than two years, expect a new $10 monthly service fee to start showing up on your banking statement. Your minimum payment each month will also be rising from 2% of the total balance owed to 5%. This is obviously the bank’s attempt to motivate consumers to pay back what is owed, thus Increasing the percentage of liquid assets available to the bank.

Expect to see your minimum payments increase!

Do You Have Perfect Credit? So What!

It is nothing out of the ordinary to see someone with poor or mediocre credit to come under increased scrutiny or be penalized by banks or other creditors when applying for an account. Now however, even those who have been diligent about maintaining a high credit score will likely see their available credit dropped and the current rate on their existing balance raised.

Alternatives to consider

Unfortunately for many consumers, the banks changing of the rules at half time may prove to be devastating. The economy is picking on more than just the banking sector as consumers everywhere are struggling to make ends meet from one month to the next. For those who are currently strapped financially with economic troubles of their own, changing rates and minimum payment requirements may be the straw that breaks the camel’s back.

Are You Facing Financial Trouble?

If you happen to be one of these struggling consumers, it is important to note that the speed in which you choose to take control of your situation will prove to be the most valuable. The higher your credit score the more opportunity you may have to take control of your debt. You can read more about your available options in the following article entitled,

“Debt Consolidation | What Are Your Options.”

In the meantime, customers may find it profitable to pull payday loans to avoid pending overdraft charges from being charged to your bank account. It is more important now than ever before to both pay attention and be aware of your options.

You’re not blowing it all on clothes and payday loans are you?  With the trouble in the economy and the financial pressure that many are feeling today, American consumers are beginning to wise up.

USA Today quoted some interesting statistics based upon a survey asking consumers how they would spend an extra thousand dollars if given to them. The results were as follows,

• 31% would save it
• 24% would pay off debt
• 20% Would splurge!
• 16% Would spend it on necessary essentials

What would you have done with an extra thousand dollars this month?

It seems that most of the population is now making financially smart decisions. Paying debt, saving money, and spending it on essentials is what we should be doing. Especially now, and especially since the amount of average debt has grown exponentially, and more and more people are getting payday loans.

If you are among the 20% group who have, or would have chosen to splurge with that money, you should truthfully answer the following questions:

Are your debts paid?

Do you have a savings buffer?

Are your immediate needs provided for?

If the answer to any of the above questions is “NO”, then you have made the wrong decision. There is nothing wrong with splurging, but unless you can really afford to do so, all you are doing is enslaving yourself. The average American owes over $8000 in consumer credit card debt and that sum is rising, and so are the amount of people going to payday loans for financial help.

There are many bad habits that lead us into debt. I have outlined a few below. If you can personally identify with any of these, it would be wise for you to begin exercising a change in your financial habits in order to avoid any monetary pitfalls in the future.

What does “budget” mean to you?

Do you currently have a budget or plan of action for your monthly expenses and financial goals. If not, you need one! Some tend to think that a budget is just for those who are poor and need help making their expenses each month, but in reality we all should have a budget. Whether you make 20k, 100k or even more each year, a budget can help you to identify how much, and where your money is going. Without a budget, your ship may be afloat but you won’t be the captain.

Charging Purchases

It wasn’t that long ago that we all dealt in cash. The beautiful thing about cash was that if you didn’t have enough for what you wanted, you simply could not buy it, and that was the end of it. Today, we have too many options like Visa, Mastercard, and Discover. If we don’t have any plastic we can go draw some quick cash from a local brick and mortar, or online payday loans store.

All these luxuries that we have come to enjoy have their place and can be used responsibly to our own financial benefit. However, this is where discipline and responsibility are lacking with many consumers today.

If you use your card for all your monthly purchases, be sure that you do not go over the limit at which you can afford to payback at the end of the month. This may prove to be difficult and if so, get back into the habit of using and balancing a checkbook. With a checkbook your remaining balance is always before your eyes, and spending more than we can afford each month is more easily avoided.

Another alternative that I personally have found very useful from an accountability standpoint is putting a email notification on my credit card account. If your credit card provider provides this service to you via your online account control panel, you can get an automatic email notification when your balance reaches a set predetermined balance. Doing this will help you to avoid slipping further in the hole each month.

Paying off credit accounts

When paying off credit card debt, many try to pay off there lower balances first. This is usually a psychological game we play to make our progression to financial freedom feel faster.

If the interest rates on these lower balances are the highest of your credit accounts, you are following the right path as you always want to pursue your highest interest rates first as these will cost you the most over time.

Late Payments

One of the worst habits that will lead you into debt quickly is procrastination, being habitually late on your payments will not only add hefty late fees and charges to your already existing balance, but it will also raise the interest rates on your account. If the existing balance in the account is quite large, this could cost you hundreds of dollars in interest fees over the time it takes you to pay off the balance.

Minimum Payments

If you only pay the minimum payments on your account, then it would be safe to assume that you may never get out of debt. Minimum payments may make you feel like you are saving money because you have more in your pocket after paying your bills, but the amount you will pay in the long run for minimum payments will have you paying the maximum amount possible.

This can be demonstrated by the following scenario,

Let’s say you have a credit card with a $1000 balance on it. The APR is 18% and your monthly minimum payment is calculated at 2.5% of your current account balance.

If you chose to only pay the minimum payment of $25 each month until your account was paid in full, it would take you 153 months or just under thirteen years.

On the other hand, if you set your sights on paying off the debt by paying $100 each month or $75 dollars above the beginning minimum payment, it would only take you eleven months to pay your balance off .

Paying as much towards the principal of your balance each month as possible is key to getting your revolving credit balances payed off. If you would like to see how long it will take you to pay off your debts at set set monthly or minimum payment, you can use the calculator at Bankrate.com.

By taking steps to identify and correct these habits now you will save tens of thousands of dollars over the course of your lifetime, and less chances where you find yourself in need of payday loans. Take the step and you will be glad that you did.

With this in mind, I thought it would be prudent to present you, our readers with a small list of do’s and don’ts that are relative to managing your finances for future growth and stability.

Here we go,

Minimum Payments

What are you doing to secure your financial future?

When it comes to consumer debt, paying just the minimum payments on your credit cards is foolish and can take you years to pay them off. Always pay more then the minimum payment amount and focus on the cards with the highest interest rates first, and payday loans can help keep you from late fees if you come up short.

You can expect your minimum payments to increase here shortly if they have not done so yet. With the current economic crisis and credit crunch, banks and lenders are increasing there fees as well as the minimum required payments to recoup revenue in case conditions worsen in the near future.

Paying Late

Procrastination is a killer. With the busy lives of most people today, it is easy to loose track of due dates. This is an inexcusable expense as late fees and penalties for late payments are easily avoidable. You must remember that apart from the late charge which is on average $32 dollars today, more than the fee on most payday loans, you also will likely get your interest rate raised until you can show yourself responsible. This may take many months, so the total cost to you personally can be enormous over time.

Live Within Your Means

Yes we have all heard this before but are we actually applying it in our day to day affairs? If you find yourself putting more on the credit card each month without the means to pay it off come the months end, you are on a slippery slope that once gone down can be very difficult to climb back up. Don’t spend more than you have coming in. If the card is getting you into trouble, get rid of it. You must learn to be accountable to yourself for each purchase that you make, it may save you from taking out payday loans.

If you have to have something now that you cannot pay back at months end, be sure to devise a plan of action to pay that debt off within the next 60 to 90 days and hold yourself to that accountable to that plan.

Borrowing Against Your Future

I know it’s tempting but what goes into your 401k needs to stay in your 401k. With life’s ambitions come the temptation and desire to dip into your retirement savings. This could be for a new business opportunity or a home remodel etc. Keep in mind that most business don’t make it more than three years and robbing your 401k is robbing yourself no matter what the your excuse is. You must have a place that where you are regularly contributing to your financial future barring any excuse or justification that you may come up with. Your 401k retirement account it usually this place.

Thinking About Co-Signing, Think Again.

You cannot trust anybody more than you can trust yourself. Whenever you co-sign for someone whether it be family or friends you are opening your credit up to problems. Any mistakes the person makes that you are co-signing makes, you will be held accountable to. These problems will also be documented on your credit report and will take a minimum of thirty six months to fall off after the account is back in good standing.

I hope this kick starts you into being more proactive in preparing for your financial future.

To your financial health,

Personal Money Store