Knowing your credit rights as a credit card holder will be your guide and protection against unlawful practices that may be committed by creditors and debt collectors. The Fair Credit Reporting Act (FCRA) has made distinct stipulations with regards to promoting the accuracy and confidentiality of consumer credit reports. Let’s discuss some of these credit card rights based on the FCRA:

Who may ask a copy of your Credit Report?
Credit bureaus may only issue a credit report for legitimate business transactions. Those who may review your credit report are your employers, insurance companies, creditors, and government agencies. The consumer himself may also request to obtain a report on a behalf of a third party.

Disclosure
You have the right to know who obtains a copy of your credit report. Credit Bureaus should provide you with this information. Of course, you have the right to obtain a copy of your personal credit report as well.

Generally, there is a fee in obtaining a report. However, you are entitled to obtain a free copy of your report each year, if you are currently unemployed, on welfare or if you suspect fraud committed against you. If you are in any of these situations, you may write one of the major Credit Bureaus and request for your free copy. At the end of this article, you’ll find the contact information of the three major Credit Bureaus.

Errors on Your Credit Report
You have the right to dispute erroneous details or inaccurate information on your credit report. Notify a Consumer Reporting Agency or one of the major Credit Bureaus immediately. They should investigate on the matters in dispute and take the necessary actions to ensure that these errors are corrected.

What if you’ve been denied Credit?
If a creditor turns down your application, you may request a free copy of your credit report from a credit bureau. This will give you the opportunity to check your personal credit report and verify if there are any errors or inaccuracy in the report which resulted in the disapproval of your application. If this is the case, you may request the credit bureau to send a corrected copy of your credit report to the lenders whom you submitted your applications to.

Limit Access to Your Information
You may request consumer reporting agencies not to give out your name to lending companies and other creditors who make unsolicited inquiries to offer loan, insurance or credit cards.

You may call (888) 5 OPT OUT for your name to be excluded from Experian, Equifax, and Trans Union. However, this exclusion will only last for 2 years. If you want to be permanently be excluded from the list, you have to fill out a written form from the credit reporting agency’s office.

Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act protects consumers from unlawful practices or deceptive strategies that creditors may use against them. For instance, a debt collector may not contact other people such as the borrower’s friends, relatives or employers to get personal details or to disclose any information about the borrower’s debts.

Debt collectors may not use abusive tactics or harassment against the borrower. If you think your creditor is committing such acts, you can sue him for the grounds of violation of the Fair Debt Collection Practices Act.

If you have been a victim of fraud or unfair business practices, you may file a complaint at Federal Trade Commission office or call their toll free number at 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. For more information about your rights as a consumer, visit FTC’s official website at www.ftc.gov.

The Major Credit Bureaus:
Equifax – 1-800-685-1111 – www.equifax.com
Experian – 1-888-EXPERIAN (397-3742) – www.experian.com
Trans Union – 1-800-916-8800 – www.transunion.com

This article is free for republishing
Source: http://www.articlealley.com/article_732245_19.html

know your current personal financial situation

estimate how your financial situation will develop in a short term perspective

set long term financial goals, make a plan to achieve them and then execute your plan.

Get a view of your current financial situation

Collect accurate information about your personal financial situation. Calculate your your net worth, This information includes:

real estate

saving and retirement accounts

stocks and bonds

all other assets.

What is the total? Are you surprised?

Make a budget

A personal budget is information made up of your income and expenses and the more accurate this information is, the more likely you are to be able to meet your goals and realize your dreams. An income/expenses budget should be made for at most one year at a time and include a list of your monthly expenses. All expenses must be included. To be sure of that go through all your paid bills, check register and credit card receipts to find expenditures that recur every month and expenditures that happen less frequently. Divide that total by twelve and you have your monthly average expenses. To be able to make good personal financial decisions and set priorities, you must know where your money is actually going.

Get electronic bill pay

This is a very convenient way to pay your bills. You pay them electronically, by direct withdrawal from your bank account. The transaction is processed immediately. You can even link your bill pay service to your budget, so that your expenditures are automatically entered in the appropriate category. Personal financial management can be really easy, don’t you think? Check out programs for enabling this on the internet

Make an investment and finance plan

Now that the fundamental state of your personal financial security has been established, the time has come for the more prosperous part of your personal financial life. What I mean is:

investments

retirement planning

loan shopping

other ways to build a fortune.

You need to make a plan of what you really want in life that money can buy. Then you must find out how to get the money it takes to finance it and finally start to implement this plan. This is the long term part of your financial life – the process of personal financial development from the state you are in right now – to the state you want to be in. This journey toward financial freedom is in my opinion the most interesting and exciting part of personal financing you can have.

About the Author: Terje Brooks Ellingsen is a writer and Sociologist who runs http://www.1st-self-improvement.net/. He writes about self improvement issues like career development, see http://www.1st-self-improvement.net/take_command_of_your_career.htm and financial development, see http://www.1st-self-improvement.net/financial_freedom.htm

Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=13250&ca=Finances

The news these days are filled with stories about the bad economy and what the governments of the world are doing to help the economies recover. The worst thing that you can do is cling to your job and hope that recovery comes in time for you to feel secure again in your position and know that you will be able to pay your bills every month. There are steps you can take to help insure your own financial recovery and the longer you wait the more likely you will be sorry that you did not take action sooner.

When times were good most people ran up large credit bills. It is hard for the average consumer to see a bad economy coming and just a few years ago it looked like everything was going to be stable for many years to come. Now that the bad economy is here you need to take action to ensure that your financial world does not crumble around you as the economy continues to fail. The proactive person is the one that will find themselves better off when the economy starts its recovery while the person that was clinging to the life raft hoping that everything will be alright may find themselves in deep financial trouble.

The first thing you need to do is cut back on unnecessary spending. Do you really need all of those cable channels? Do you really need that $40 a month membership to the online DVD rental club? Do you really need all of those features on your phone? Do you really need a cellular phone and a home phone? You need to ask yourself the tough questions and think in a logical fashion to make the correct decisions. If you cut back on your spending then you can apply that extra money towards paying off that debt you ran up all those years ago and get yourself in a better financial position. Being honest with yourself on what you really need to live and what you could do without is important in starting your own financial recovery.

Instead of spending that last $20 of the week on going out to dinner why not put it in a Holiday Club or a Vacation Club so you have extra money when you need it? People often look at extra money as funds they need to spend before those funds burn a hole in their pocket. What you need to do with that money is save it because you never know when that $20 may come in handy later and a year’s worth of $20 here and $20 there can really add up.

You need to diversify your income sources. Look on the Internet for a part time job you can do from home. There are many options available for people to make a few dollars a week from home even in a bad economy. If you would rather get a part time job at a place of business then by all means do that. Whatever you can do to make sure that all of your income is not coming from just one source can improve your financial situation in the future.

For more information on financial recovery, visit http://www.financialrecoveryplan.com

Article Source: http://EzineArticles.com/?expert=John_Parks
http://EzineArticles.com/?What-You-Can-Do-in-These-Tough-Times?&id=1831988

The damage caused by impulse buying could put a burden on more than just your finances. Your personal relationships could suffer as well. Being able to overcome impulse purchases you’ll need to be able to separate your wants from what you really need…all in the heat of the moment. This is easier said than done.

As consumers we are constantly being bombarded by marketers. You don’t have to look long to find some version of advertising around every corner. Advertisers love impulse buyers. In fact, they highly encourage it.

Here are some tips to avoid falling into the impulse spending trap:

• Try a cooling-off period. If you didn’t specifically plan and budget for the purchase, give yourself a time frame to decide if it’s really necessary.
• Tell high pressured sales people that you have a waiting period on all purchases. They will always have a “must act quickly” proposition, but stand your ground.
• Make a shopping list before heading to the store and stick to the list.
• Bring only enough money to buy what you have on the list. Leave everything else at home.

Impulse buying can really put a dent in your budgeting plan and prevent you from reaching your longer term goals. Don’t let unimportant purchases derail your dreams.

There are a number of ways to reduce your day to day expenses painlessly. This allows you to to improve your overall financial picture. Cutting household expenses in your daily budget equals more money in your savings account.

Ways to Save

Only shop with a list. Never go the store without your list or you will buy more than you should. It is easy to get distracted by all the choices in the store if you are not shopping from a list.

Avoid shopping when you are hungry. Going to the grocery store when you are hungry can raise your grocery bill by ten percent or more. When you shop hungry, everything looks good and you are more tempted to buy more than what is on your grocery list.

Shop in the off season. Buy your winter coats when they are on the clearance racks. You can save 50% or more. Buy your swimsuits and shorts at the end of summer and save a bundle. Buy your Christmas ornaments in January and you will get them up to 75% off. Never pay retail for anything.

Set your thermostat for maximum energy savings. Gradually adjust the temperature of your homes thermostat to reduce or raise the temperature to the best energy saving temperatures. The recommended setting are 78 degrees for the air conditioner and 68 degrees Fahrenheit in the winter.

Eat out less. Eating meals out is a big expense in many households. If you usually eat out twice a week, you can save $100-200 a month by cutting back to just once a week. Eat out for lunch instead of dinner and you will save even more.

Avoid using credit cards. You can avoid accumulating high-interest debt on any purchases by using cash instead of credit.

Avoid paying costly ATM fees. When you need to withdraw cash make sure you only use your own bank’s ATMs to avoid transaction fees. These fees add up quickly.

Small savings over time equals more money in your pocket.

Learn more about   Money Management J. Wilson owns and manages the website http://www.livingonmoney.com

Article Source: http://EzineArticles.com/?expert=J._Wilson http://EzineArticles.com/?Cutting-Household-Expenses-Painlessly&id=1826154

When you are facing a mountain of debt, everything can look hopeless and bleak. However you do have options. Some of these options are better than others, while some will work for you and some will not. The important thing to remember is there is a light at the end of the tunnel. You just don’t see it now. So let’s look at some of those options.

First there is debt settlement. Debt settlement requires negotiating with your creditors and credit card companies to settle on a dollar amount for you to pay the account in full as they forget the remainder of the balance. This will reduce the total amount you owe. Most creditors are willing to settle because they know if you file bankruptcy they will get nothing. As the debtor you can become debt free within 12 to 36 months rather than 20 years. You will notice a significant reduction in the amount of your monthly payments to the credit card companies. Debt settlement is a good solution for a debtor who is in serious credit card debit, usually about $10,000 or more, and is unable to make payments or is only able to make the minimum payments. Your accounts must be in arrears more than 3 months before a creditor will consider settlement.

The second is credit counseling. Credit counseling requires working with the credit card companies to have your interest being charged lowered. Using the credit counseling method of debit relief, a debtor can become debt free in about 4 or 5 years and they are able to save money on the high interest rates charged by the credit card companies. You must be aware of one fact. Credit counseling companies are set up by credit card companies to collect as much of their money as they can. Do not be lulled by their non-profit status because any profit they make goes directly to the credit card companies. Another thing to consider when working with a credit counseling company is any debt they help you with, on your credit report will show as TPA or third party assistance, which in some cases can be as bad as a bankruptcy on your credit rating.

The fourth option you have is debt consolidation. Debt consolidation requires taking out a loan to pay off several debts. Many times this will give you a smaller interest rate to work with and will also offer the convenience of making one payment rather than several payments to your creditors. However you will be paying on this consolidation loan for a much longer time, than say increasing your payments to your creditors. Consolidation will make it difficult to discharge your debts in bankruptcy. You will want to make this decision after some serious thinking and weighing of your options. Because of the advantage a debt consolidation can offer a debtor who has high interest balances, companies can abuse the situation by charging extremely high fees in the consolidation loan. Also there are some unprincipled companies will purposefully wait until a client has backed themselves into a corner and has no option but to refinance in order to consolidate to pay off the bills which are behind.

Chapter 7 is option number five. Chapter 7 is considered to be the last resort by most because of the damage it causes to the person’s credit rating. For those who owe a lot of money on their credit cards and have little or no income to speak of, this can seem like the only debt relief option open to them. Chapter 7 bankruptcy will require the debtor to liquidate all non-exempt assets of value in order to pay the creditors something. Most debtors who file for Chapter 7 bankruptcy will tell you that the long term damage isn’t worth it.

The last option is to Do Nothing. It is an option to do absolutely nothing to pay your creditors. However, just because you choose to do nothing does not mean your creditors will be doing the same. Doing nothing can result in lawsuits, repossession and plenty of stress. You are probably aware that ignoring your debts and creditors will not make them go away, but it will make your life interesting, stressful and in some cases miserable.

About the Author: Ray Subs works with Debt Relief Place as a public relations consultant, more information about Debt Relief Place can be found at Debt Relief Place

Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=334859&ca=Finances

For most households the monthly budget works something like this; every month money comes in and every month all the money goes out. Is this how it works around your house? Do you know where all your money goes? Unless you have control of where your money goes and how it works for you your future financial well being is on shaky ground.

If this is you then you seriously need to think about creating a household budget because your money needs a plan to follow. Just about everything you do in life revolves around a plan of some sort. Most jobs require some sort of plan it you want to be efficient and profitable. Successful businesses follow not only a business plan but they also have a budget which allows them to be productive and profitable. Look at it this way, if you ran the finances of a business the same way you run your household finances how long would your business last?

If you don’t like the word budget because it sounds too restrictive then consider creating a cash-flow plan. Whatever you wish to call it your money needs a plan to follow, unless of course you like living paycheck to paycheck.

Do you have financial goals? Are you doing anything to reach them? Are there things you would like to do but don’t really have any idea how you can do them because you don’t have the money? Here’s an idea. Write down what your goals are, where you would like to be financially in 5 years, 10 years, when you retire. Now off the top of your head think about what is standing in the way of your goals. Chances are you’re not completely clear as to what monetary obstacles stand in your way. You might have an idea but the picture is not clear.

A monthly household budget will paint a clear picture as to where you currently stand as far as your finances are concerned. You will see exactly where your money is going and this allows you to come up with a plan to take back control of your money.

Once you see where your money is going you can take the necessary steps to start working towards your financial goals. Do you have too much credit card debt? How about eating out 5 nights a week? Does that $400 plus car payment on a depreciating asset really help you meet your goals? These are just some of the question you’ll start to ask when all your monthly expenses are laid out in front of you.

The first time you write out your monthly household budget, or cash-flow plan, it probably won’t be real pretty. The important thing is you have taken the first step to taking back control of how your money works for you. Once you do that you can start building a strong financial future.

If you seriously want to take back control of your money you need to build a Monthly Household Budget. To Learn more about creating a budget please visit the website Household Budgets by clicking here.

Article Source: A Monthly Household Budget is The Cornerstone of Your Financial Future