FINANCIAL FREEDOM

What to Do When Your Credit Card Interest Rate Increases

"I was just informed the interest rate on my credit card is jumping from 10% to 29%. I've never made a late payment. I called my bank and they told me it's because some of my other credit accounts were highly utilized."

That's exactly what happened to my friend Kyle recently.

Because he was close to his credit limits on unrelated accounts his bank legally jacked up his interest rate nearly 200%.

The practice is generally referred to as a "universal review." And more and more lenders are using this trick to fill their pockets at the expense of an unknowing public.

Kyle didn't have late payments with the credit card that raised his rates. In fact, he didn't have any late payments on any credit cards. However, his lender simply decided that because Kyle was using his other credit, he somehow became a greater credit risk to them—so they nearly tripled his interest rate.

This situation hasn't only happened to Kyle. You see, I have several friends that hold high positions within the banking industry. Here's a recent comment from one subscriber who works as a credit analyst for a major national bank. This information is so hush-hush he's asked us to keep his identity secret:

"...Everyday in my job as a credit analyst I see so many mistakes people make with their credit. You are right, most all lenders do a universal review, especially credit card companies. When we review a card member's credit bureau report (CBR) we are assessing risk to the bank and our goal is to reduce risk and exposure. When we find risk we either lower the credit line, increase the APR, or close the account. That is why account performance and utilization of revolving trades is so important..."

As you can see, Kyle's situation could have been worse. The lender could have closed the account or lowered his credit limit.

And the credit analyst went on to say...

"...A lot of times we are using old income information when making a decision. Usually, when we see something that doesn't fit the card member's profile, we will call to try and get updated information such as current income and reasons for recent delinquency on their credit reports or their account with us. If we can't get them on the phone the moment we call we have to make a decision with the information we have. And that information can be several years old. If the income we have on file is older than six months I can't use it and need to call. If I don't get the card member I have to make my decision right then—I can't wait as we review thousands of accounts a month. So it is in the card member's best interest to call the credit card company and give them updated income information and any explanation for delinquency or increased utilization."

So what do you do?

First of all, if this has not happened to you, I wouldn't get overly concerned just yet. Just be aware that nearly half of the credit card lenders do some sort of universal review and it's a growing trend. To be on the safe side, whenever your income increases you should call your credit card lenders and let them know—make sure they note it in your file.

If your credit card lender does conduct a universal review on you and you're negatively affected by their decision—here's what to do:

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Financial Freedom for Every Employee

By Stefanus Wahyudi

You may think you have to be an entrepreneur to achieve your goal of financial freedom, but that is not necessarily true. While it is true that owning your own business is an excellent way to generate passive income, financial freedom is not entirely dependent on business ownership.

As an employee, you probably already have some excellent savings and investment vehicles available to you. By using these opportunities wisely, just about any employee can achieve the goal of long-term financial freedom. Even if your employer does not offer a traditional pension plan, and very few firms do these days, chances are they offer a 401(k) or similar program to help their employees achieve financial freedom.

Taking advantage of the retirement options available to you will help you generate what is known as passive income. Unlike the income gained from your job, passive income is money gained with little or no effort on your part. Think of it as your money working for you. You may be surprised at how quickly your passive income stream can grow through these investment vehicles.

Individual retirement accounts are another excellent way to both save for retirement and generate excellent passive income once you have retired. Most employees are eligible for these types of programs, and even a little bit saved each year can grow to a significant sum over a number of years. The younger you are the more your investment can grow. Don’t overlook individual retirement accounts when you striking out on the road to financial freedom.

Even if you are working for someone else, there is no reason you cannot be a business owner as well. Many part time home-based businesses require little effort on your part once they are up and running. Once your part time home based business is off the ground, it can generate excellent passive income with little intervention on your part. Checking out these types of opportunities is an important part of planning for your long-term financial freedom.

Whether you use savings, investment, business ownership or a combination of all three to generate passive income, the most important step on the road to financial freedom is the first one. Planning for your financial future is the responsibility of every employee, from the lowest entry-level position to the big corner office. Financial freedom is within your grasp; you just need desire, perseverance and hard work.

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Financial Freedom Services Or A Millstone Around Your Neck?

By Kevinor Moore

Financial freedom services is a concept often peddled by many in the internet marketing industry as a lure to get folks into their downline. The suggestion or promise of financial freedom is sure to be attractive to most people who are struggling to make a decent standard of living for themselves and their families. Like most things in life the reality is far separated from the facts. There is no free lunch and no easy money. If you want to succeed in internet marketing or MLM you can but you will need to work hard.

I apologize if that's not what you wanted to hear, but as far as I can see it is the truth of online business. So many people will offer the unsuspecting home business novice promises of financial freedom services and more free time. All supposedly without them having to put in little or no effort at all. This is in fact absolute and utter cack! To succeed on line or in any business venture takes hard work and a lot of it. Once you get your head around this concept and stop chasing the pot of gold at the end of the MLM rainbow things will start to take shape for you.

Why else would I be sitting here on a Saturday morning typing this article amongst several others I will type today? Plus the 20 web pages I will build before I turn in tonight (or more likely tomorrow morning). Did I forget to mention the mailing list I will need to reply to as well? I tell you all this to impress upon you that if you truly wish to succeed then you will have to work and work hard. If you are afraid of hard work then MLM or internet marketing is not for you. Don't bother with the get rich schemes because you won't get rich quick or find financial freedom services either. The only people who will make any money out of that stuff are the guys peddling it.

The best piece of advice I ever received was from a friend who was not even in business for himself or ever has been. He said "if it sounds too good to be true it most probably is". I have taken this on board since I started my own online business career and so far to date that advice as always proved correct. So stop chasing rainbows in your search for financial freedom services and knuckle down to some hard work. All the real help and advice you could ever need is out there on the internet. The amazing fact is that nearly all of it is free! You need only to sift through it sorting out the real advice from the cack and you will see what I say is correct. The bottom line is that success is easy but getting there is real hard work.

The only other thing worth pointing out is that we all need a place to get started. The secret to this one is research. Do your homework first before you dive into anything. Research, research and then... Yep you guessed it, research some more. Remember most everything you will need to know about starting out on the road to your own financial freedom service can be found online for free.

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Tap Into The Value Of Your Home And Take Your Dream To Fruition

By Grant Cliv

Would you like to tap into the hidden value of your biggest asset and pay for the realization of a dream that you have been cherishing for a long time?

If your answer to the above question is positive then you can unleash the equity lying unused in your home and see your dream coming into fruition. This can be made possible by secured loans for which you have to offer your home as collateral. You may be scared of using your home as collateral. In the event of failure to pay off the borrowed amount, you may have to hand over the possession of your home to the lender. But the flexibility with which these loans are offered and the benefits they bring along with them are really worth the risk you undertake.

By offering security for the loan you eliminate the risk of the lender. He has the assurance, in the form of your home, to get back his money, even if you fail in your repayment. So he does not hesitate to offer the loan with terms and conditions that favour you. For an easy loan, it is necessary that it comes with low interest rate, long repayment period, and small repayment installments. Needless to say, secured loans are enriched with all these features. Being awarded with all these benefits you can easily pay off the loan and take your home out of risk.

Secured loans are an ideal mean by which you can borrow a considerably big amount. If your need demands a large sum of money, it is a secured loan that can provide you with it. Generally, the loan amount is decided by the size of equity available in one's home. But if your credit score is high and you approach the right lender then you can borrow a loan amount that is bigger than the value of your home equity.

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It's Time To Score Your Year

By Doreen Carter

It's the season for giving thanks and a time of reflecting. The year is almost over. Take time now to look back? I know that there are accomplishments that you may not have given thanks for yet. So, I want to encourage you to do so now.

Give thanks for the fact that you are reading this message. Give thanks for the fact that you still have a chance to fulfill your dreams.

You may have been dreaming about what it would look like to own your own business. Or, you may be dreaming about what it would look like to be debt free and have financial abundance. Maybe you are dreaming about being healthy. Whatever you have been dreaming, I want to encourage you to put some action to your dream. Think about this, “You don’t have to get it right, just get it started.”

The secret to realizing your dream is to first see it, feel it, and then say it. Once you can do that, it’s clear. Now you must right it down. So, as you are preparing for the remainder of the year and you are getting in gear for the next year, stop and take some time to reflect and get CLEAR about what it is you really want and desire. This is how you get a three dimensional holographic vision. It is the push that moves you into action.

After you can do that, put the plan in motion. Start your financial plan with a credit review. Go to www.annualcreditreport.com to obtain a copy of your report. You will then have to review your credit report. Then assess your income and your earning potential. Determine your desired income and think about how you can make that type of money. Get a mentor. Find someone who is doing what it is you want to do and study their lives. You can be, do, and have what ever you desire. Just believe. Take the time to dream. Then develop the plan. And, take action.

I am passionately in love with you living the life you dream about. We have a boot camp that we started this year at the Wealth ... Wisdom Resource Group to empower people to financial freedom. Consider joining us or join some group that will help you keep moving until you reach your destiny.

As always, share this message with your friends. Check us out if you are local. We are empowering people with the knowledge to free themselves. Visit www.whomoovedmymoney.com and sign up for our free newsletter.

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Mortgage Refinancing Tips to Help You Shop for the Best Home Mortgage Refinance Loan

By Louie Latour

To make sure you get the best deal on your new home mortgage refinance loan it is important to comparison shop from a variety of mortgage companies. The Internet makes it quick and easy to comparison shop; however, there are a number of potential pitfalls to avoid. Here are several tips to help you comparison shop for the best loan when mortgage refinancing.

Check Your Credit Before Mortgage Refinancing

The first thing you should do before applying for mortgage refinancing is to review your credit records for errors. These credit reports are maintained by three separate companies and are extremely prone to mistakes. Having mistakes in your credit reports will significantly damage your FICO score and the interest rate you receive when mortgage refinancing. Don’t pay for a credit report unless you absolutely have to, the law requires each of these companies to provide you a free credit history once per year.

Is Mortgage Refinancing Right For You?

Mortgage refinancing has the potential to save you a lot of money if done correctly. Generally speaking, the longer you plan on keeping your home, the more sense it makes to refinance the loan. Because there are expenses involved with mortgage refinancing, a simple mortgage calculator can help you determine how long it will take to recoup your expenses.

Comparison Shop for the Best Mortgage Company

When comparison shopping for the best home mortgage refinance loan, request a copy of the Good Faith Estimate from each mortgage company you consider. The Good Faith Estimate allows you to do a line-by-line comparison of each home mortgage refinance loan. Most mortgage companies will give you a copy of the Good Faith Estimate simply by asking for it. Make sure you compare the origination fees, processing fee, and closing costs for each loan offer you consider.

You can find more “Win Smart/Win Ugly” strategies for mortgage refinancing by registering for a free mortgage tutorial.

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How You Can Find Financial Freedom and Become Debt Free

By Steve Faber

Being debt free is a dream for some, reality for others. What separates those that live life without debt from those that just can’t seem to ever quite escape from debt hanging over their heads? To make matters even more perplexing for those that seem to be forever indebted, some of those that are able to leave debt behind actually seem to be able to make debt work for them. Those folks actually make debt profitable! What’s the secret? How can you not only overcome debt, but actually triumph to the extent that you’re using your debt to your advantage? What do those people who can turn debt on their heads know that you don’t?

It’s pretty simple, really. There are only three ways that you can eliminate debt. Well, actually there are five, but two of them, bankruptcy and debt or credit counseling will have a negative impact on your credit rating, and you surely don’t want that. A little clarification is in order here. Bankruptcy can stay on your credit report for 10 years. Credit counseling can be a great choice for some people, however, you need to be extremely careful, because in recent years, there have been many disreputable credit counseling agencies attracted to the industry. Do your due diligence here, or you may find yourself out substantial money and still over a credit barrel.

With most credit counseling programs all your credit accounts are closed and the payments are renegotiated by the agency. During the period you are actually participating in the debt repayment program, your credit rating will be a bit, shall we say, depressed. The good news is that, because you’ll have repaid all your debts at the end of the program, your credit should end up being really good in 3 to 4 years.

What are the other three ways to eliminate your debt? Well, before we take a look there, you’ve got to take a big step. You absolutely, positively must correct your spending habits. If you’re deeply in debt due to circumstances beyond your control, such as divorce or medical problems, that’s different, but many people wind up deep in debt due to excessive spending, this brings us back to the three ways to eliminate debt. All debt elimination is a combination of these three things.

1- Increase your income. It really doesn’t matter how you go about this, as long as it’s legal and ethical. You can get another job if you’ve got the time. You can start your own business. If you are an expert in a specific area, you might make a decent income doing part time consulting. You could jump into an online business. The possibilities here are really endless. It’s up to you.

2- Reduce your expenses. If you’re unable to increase you income, you need to free up additional cash to repay your debts. In the absence of additional income, another option is to minimize your outgoing cash. There are countless ways you can accomplish this, many of which will minimally impact your lifestyle. You may have to cut back however, even if it turns out only to be a temporary situation.

3- Increase your leverage. You need to make your money work harder. Leverage is using a small amount of an asset to control a larger one. Leverage is one of the two key principles in generating wealth (the other is compounding). For most people the best example of leverage is their residence. Using only a 3% - 20% down payment, they are able to take advantage of all the appreciation and tax benefits of their residential real estate. So, for example, when their humble abode they purchased for $150,000 appreciates to $300,000, they made a 100% profit, correct?

Not so fast. Remember, they only invested maybe $15,000. So, to gain $150,000 in pretax profits (which are actually tax exempt if you’ve lived in the property as your primary residence for 2 of the last 5 years), you only invested $15,000. You actually received a 1,000% profit, to say nothing of the federal income tax deduction for mortgage interest. Any asset can be leveraged, weather it’s a business leveraging its’ employees time, or you leveraging your residence.

The people that use their debt understand how to apply these three principles better than you do, for one thing. You need to understand them, and then do what ever you can in order to maximize them. There are thousands of strategies you can apply that will bring these principles to bear on your debt, and eventually you’ll be debt free too.

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Don't Trap Into A Credit Card Debt, It Too Costly!

By: Cornie Herring

While swiping the credit card is a very effective way to pay without using any type of paper money, it has led many people into a debt trap.

Majority of people simply look at whether or not they can afford their monthly repayment when using at their credit cards. Many of them don't even try to figure out how long it will take to pay them off and how much they are costing them over the long run.

For instance, $2,000 doesn't seem like a huge balance on a credit card. In that case at an 18% interest rate, your payment is only around $40 a month. Sounds pretty affordable at the moment, doesn't it?

Well, if you take a closer look at the number, approximately $30 of your payment goes towards interest. As a matter of fact only $10 is paid towards the $2,000 balance each month.

In case if you are only paying the minimum balance each month, it will take you over 30 years to pay off that $2000. Thirty years, that is too long. In addition you will have paid back $5,000 in interest in that time. Therefore your $2,000 credit card bill will really cost you $7,000 including interest in the long run.

The above payment does not include the extra payment incur in the case when you miss or delay your monthly repayment. In fact, many credit card companies are hoping you will miss your repayment so that they can charge you with extra interest and late payment fee and this would normally extend your payback period for the rest of your life.

There are many credit card debt calculators available on internet and you can use these calculators to calculate how long it will take you to pay off your current credit cards by using the minimum payment method. You will normally be shocked. And it is worth for you to put effort in finding ways to reduce and pay off your credit card debt.

If your credit card debts are reached to an unbearable stage; then, you may need to get service from a debt consolidation company to consolidate all your credit card debts. They are widely expert in dealing with creditors and help you to negotiate with your creditors for a better repayment plan. Follow the plan to pay off your credit card debts.

Credit cards have successfully minimized the use of paper money and become one of the most convenient ways to make payments for a shopping spree or while traveling. Though, if not used with restraint they may soon lead to a huge mountain of debt which leads you to a tizzy of financial woes. In simple terms credit cards are a really costly form of credit. If you must have one, paying off the balance in full each month so that you will not trap into a credit card debt.

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Find out with our Credit Card Debt Calculator on how long your payment will take to pay off your credit card balance. www.studykiosk.com/creditbasics is an informational website on credit basics and debt consolidation.

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If I file for Bankruptcy will my student loans get discharged?

Original content from bankruptcyhome.com

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Rules that Guarantee Financial Independence

By Bill Lee

If you want to win the lottery, you first must buy a ticket.

This simple rule is no more simple than the rules for guaranteeing that you achieve financial independence; that is, if financial independence is important to you. My dad instilled in me that I should rely on no one -- certainly not the government -- if I wanted to live in my old age as well as I had lived when I was working.

There was a time when many workers in my age group thought that we could depend on Social Security to fund our retirement, but today we all should realize that possibility is unrealistic.

There is one simple rule for guaranteeing your FINANCIAL INDEPENDENCE: Start Early. While it is relatively easy to secure your financial future when you start building your next egg while you’re in your twenties, it’s next to impossible if you wait until you’re in your fifties to start, but regardless of your age, begin immediately.

You don’t have to be a financial genius to be financially independent; I am living proof of this fact. But you do have to develop the discipline to follow a few simple rules. I learned these rules from the very best and the very brightest. These rules are FREE. Follow them and your financial future is virtually guaranteed.

1. The secret to financial independence is the understanding of the basic principle of COMPOUNDING OF WEALTH. If you don’t grasp this principle, you will most likely have to win the Powerball Lottery to be independently wealthy.

The main key to financial success is forcing yourself to live on 80% to 90% (10% reserved for giving and 10% for investing) of your take-home income and invest each month the 10% that you didn’t spend.

As an example, the stock market has increased at a compounded rate of approximately 11% per year over the last 100 years. So $1,000 invested in, say, 1963 (my first year in the work force) would have been worth $88,897 by 2006.

Even if I had invested just $500 (10% of my take-home pay in 1963), that investment would have been worth $44,449 in 2006.

Now, think about what you'd be worth if you invested $1,000 every year between your present age and 65 years of age. Wow! Becoming financially independent is really easy when you start early.

Go to http://www.moneychimp.com/articles/finworks/fmfutval.htm for a compounded calculator and do the math yourself.

Could this principle be any clearer?

Is this enough said about the power of compounding of wealth?

Here are some more rules:

2. Minimize your investments in assets that depreciate.

Automobiles, as an example, are essential for most of us, but they are lousy investments. A new car or truck that costs you $25,000 will depreciate approximately $2,500 to $5,000 in the first year of ownership. Those of us who feel the need to drive prestige cars, i.e., a Mercedes, BMW, Lexus, etc., will suffer $5,000 to $10,000 a year ($400 to $800 per month) in depreciation.

If you can live with driving a pre-owned car, you’ll reduce both the investment itself and the portion of your investment that disappears via depreciation each month.

Other examples of depreciable assets are furniture and clothes. No matter how much you pay for these two assets, they will be worth next to nothing after just a few days of use.

3. Maximize your investment in assets that appreciate.

Over the long haul, most investments in real estate, i.e., your home, stocks, bonds, etc., will grow in value. So if you can discipline yourself to maximize your investments in these kinds of investments and minimize your investments in “fluffy” kinds of assets, you’re much more likely to realize financial independence before it’s too late.

4. Do your very best to pay cash and except for a first mortgage on your home, AVOID DEBT. This means paying off your credit cards each month, paying cash for furniture and automobiles, etc., to avoid unnecessary interest expense.

5. Establish a personal spending budget and live within it. There is no better tool for controlling spending and living within your income than developing the discipline to live by a spending budget.

When many people begin their business careers, and begin for the first time to generate some discretionary income, they go a little bit nuts. They spend everything they earn and then some. Perhaps the first sign of trouble is when they begin to generate credit card debt that they don’t have the income to pay off each month. So they begin making the minimum payment, paying exorbitant rates of interest and digging a deeper hole for themselves each month.

The first step is to recognize what is happening, but the second step is to force yourself to plan your spending so that it doesn’t exceed your after-tax income. I believe strongly that a budget should include an expense category for both saving and giving. It has been my personal experience that individuals who can discipline themselves to save and tithe (give 10% of your income to the church or other charities) can manage other aspects of their financial lives equally well.

Make sure you have an emergency fund equal to six months of salary as a contingency in the event you were to lose your job or have an equally major emergency.

Hire a fee-based financial planner to assist you with your investments. I use Ron Blue & Company. www.ronblue.com. Edward Jones is another investment firm that has an office in just about every community, large and small: www.edwardjones.com

THE key to successful investing is a broad-based portfolio. Don’t speculate. Don’t try to time the market. Stay invested even when things look bleak. If you miss those rare days when the market rises 300-to-500 points, your portfolio won’t grow at historical compounded rates. NO ONE can time the stock market.

Make sure that you and your spouse are in agreement on an investment plan and the goals for your plan.

Once you and your fee-based financial advisor agree on a plan, stay the course.

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