The term credit can mean many things. For most people, it is the ability to borrow today and pay later. The idea of “credit-worthiness” defines our personal finances, and reaches out to all parts of our financial lives. Credit can be an accounting term. You can talk about credit cards, your credit history, your credit score, or the three credits you got in college for taking Bowling. This page is the credit nerve center of ThinkGlink.com. From this page you can learn more about what credit means and how having good, bad, or mediocre credit affects your personal finances.
Pay Off Your Loans First
Here's what financial planners have known for years: Every dollar you spend to prepay a debt (any kind of debt) actually earns you the interest rate the debt carries. To rebuild your savings, simply take the money that you would have spent each month on your debt, and keep tucking it away into your savings account.
Avoiding Identity Theft
Last year, about 10 million Americans were victims of identity theft. That works out to about 1 in every 30 people. Identity theft cost $5 billion in out of pocket expenses and it cost companies $50 billion to fix. Here are some gadgets that can help protect you from identity theft.
Debt Management Program Helps Pay Down Credit Card Debt
Many Americans owe a large amount of credit card debt. To pay off that credit card debt, some of them enroll in a debt management program through a credit counseling agency. According to CCCS of Greater Atlanta, women usually seek help repaying debt before men. When a debtor owes too much to pay back, the credit counselor may suggest filing bankruptcy. Learn about what services a credit counseling agency offers as part of a debt management program here.
Transferring Credit Card Debt
Take advantage of balance transfers to pay off credit card debt with lower interest rates. But, you should keep your old cards open, even if you're not using them. One of the things that helps raise your credit score is having credit cards accounts open for a long period of time. So, if you have a card for 10 years, it's better than having a card for one year and closing the account.
Risks Of Using Non-Profit Credit Counseling Agencies
All credit counseling agencies are not looking out for you - even the ones that claim to be non-profit. Many consumers are surprised to learn that there are good credit counseling companies and bad ones. Just because the one you're using carries the "non-profit" label doesn't mean it isn't making money for its owners. "Non-profit" also doesn't mean the counselors are really working on your behalf. Once you find a good credit counseling agency, there are different ways it can help, some of which will affect your credit history.
Credit Card Traps To Avoid
In the continuing search for higher profits, credit card companies are raising fees, shortening grace periods and trying to find ways to get you to pay more in interest. Consumers need to know more and more to avoid credit card traps. Learn about the terms of your credit card and stay aware of any changes in order to avoid extra fees and traps.
Home In Foreclosure – File For Bankruptcy?
Homeowners were served with foreclosure papers - is filing for bankruptcy their best option? Ilyce and Sam tell the homeowners not to file for bankruptcy, but to talk with their mortgage lender about paying their mortgage, even though they have been served with foreclosure papers. Ilyce and Sam say bankruptcy should be the homeowners' last option, despite being served with foreclosure papers.
Student Loans Not Forgiven In Bankruptcy
Student loans are not usually forgiven through bankruptcy. Even after filing for bankruptcy, you are obligated to pay off educational loans. By not paying off student loans, you are risking ruining your credit history. Check your credit score to see what kind of affect student loans and bankruptcy have had on the credit report.
How To Get Credit
Here are some simple steps anyone can take to help establish their credit history.
Credit Card Debt, IRS News, Financial Roundup 2003
A reduction in the average amount of credit card debt, an update from the IRS, and new loan purchase limits are just a few news items in the 2003 financial news round-up. In 2003, the average credit card debt for the typical American family dropped form $3,200 to $2,300. Also in the 2003 Financial Roundup, the IRS is testing a system that will allow them provide resolutions to a variety of problems electronically. The IRS also plans to get more Americans to file their taxes electronically.