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5 Sneaky Terms and Conditions 0% Introductory Interest Cards Include in the Fine Print

How many envelopes in the mail, ads on TV and pop-ups online do you see with the teaser “0% Interest for 6 Months”? My mom always told me that if it sounds too good to be true, it probably is. And, unfortunately, when it comes to America’s favorite type of plastic, there really are some catches to the zero-percent APR credit card scheme.

1. Tiny Interest Rates Might Mean Hefty Annual Fees
The APR of a credit card is only one of the many ways credit card companies generate huge revenues. In 2014 AmericanExpress brought in $36 billion, while Visa and MasterCard generated $22 billion. If these companies are directly, or indirectly providing consumers with zero-percent interest teaser rates, where are they making their money?

Zero-percent interest doesn’t make a credit card totally free to use. The average credit card fee in America is $58. That means that paying your bill on time and in full each month will definitely cut down on interest costs, but you’re still paying close to $60 every year just to use your own money.

2. The Penalty APR is INSANE!

Signing on the dotted line and taking advantage of zero percent interest, even if it’s just for a little while, sounds like a smart financial move, right? If you’re a perfect human being (I have yet to come across one) then you’re right, there’s very little chance that you’ll make a mistake and trigger a fee or high-interest charges.

But, if you’re like the rest of us humans just trying to soldier on and do the best we can, there’s a very high-risk that you’ll trigger some colossal fees. The fine print in your cardholder agreement will outline the late fees, penalties and APR that applies to purchases after the teaser rate expires.

To be honest, I’m not a big fan of credit card balance transfers, a couple of my friends have been ravaged by unexpected fees. It’s easy to lose track of time, and before you know it, interest starts to pile up. Take the time necessary to understand the terms and conditions associated with your teaser rate. Missing a payment or pay-off deadline can be extremely expensive.

Instead of playing the balance transfer game, gain total freedom from crushing debt by consulting a debt professional. You’ll gain a competent strategy for quickly resolving your financial challenges.

3. Promotional Financing from Retailers can Be Expensive

Oh, and those of you that use store-branded credit cards (Best Buy, Macy’s, etc.) to take advantage of promotional financing need to pay extra close attention to when the promotional period expires. In the event that you fail to pay off the entire balance of your purchase during the interest-free financing period, your statement balance will balloon up overnight.

When the promotion on your credit card expires, the card issuer will backdate the interest owed to the date of purchase. Most consumers sign up for a store charge card because they want to take advantage of the promotion, often failing to ever read the terms of the cardholder agreement. Interest rates in excess of 22% are not uncommon.

4. Credit Card Payment Terms

The way that a credit card company applies payments to your credit card account is important. Everyone knows that you’re required to pay a minimum balance payment each month. But, some customers prefer to make multiple payments throughout the month. I’ve done this before in order to ensure my balance remained at zero (I hate paying interest!).

But, there’s a trick that some credit card companies use to generate additional late-fees, even though you might be paying off your bill each month. Take a look at the cut-off date for payments. Depending on the date you make your payment, it might be credited to a previous statement, instead of the current one. You could assume incorrectly that you’ve made your required minimum payment, but you need to make sure it’s applied to the correct monthly statement.

This can get confusing to understand, so it’s always best to refer to your cardholder agreement. If you run into difficulty, you can always call your card issuer and request a breakdown on how your payments are applied.

5. “Up To” is very different from “Through”

When listening to a credit card company advertise an introductory rate in their ad, you’ll likely here the term “up to X number of months”. Some credit card companies tailor their interest-free period to each individual cardholder. Even though you’re signing up for a card based on an introductory interest-free period, it’s important to check the actual introductory term in your agreement when you receive your credit card.

It’s possible that your introductory period could be shorter than was was advertised. In the war of advertisements versus cardholder agreements, the black and white print always wins. And this is doubly true for the promises that the representatives make when they convince you to sign up for a card. Always, always check the fine print.

Cleaning Up the Mess from Unexpected Fees and Sky-High Interest

Zero-interest introductory rate credit cards can be great tools, allowing you to focus your entire monthly payment on the principal balance, but things can go from bad to worse very quickly. Getting slammed with unexpected credit card fees, penalties and backdated interest can lead to financial difficulty. We all want to live without debt, but it’s just too easy for the payment lifestyle to become a habit. High credit card balances, sometimes caused by these fees, puts stress on a marriage and digs consumers a hole that can take years to get out of.

Debt relief agencies have become almost as popular as credit cards in America. These agencies are experts in providing a pathway out of crushing debt. Their services assist clients in avoiding bankruptcy and establishing responsible financial habits. It’s important to face the challenges of crushing debt head-on and early. Sticking your head in the sand and hoping your debt snowball will magically melt away is dangerous. Instead, find a qualified debt professional to discuss your options for paying off, consolidating or eliminating your debt.

By fully understanding the terms of your credit cards, you’ll be in a stronger position to avoid the stress of unmanageable debt. Read carefully, and create an alert in your calendar for when the introductory period expires.

February 7, 2017
5 Tips that Put You in Charge of your Finances

Debt is one of those topics we try our best to avoid or to explain away, but when the average household is carrying $132,086 in debt with over $15,000 of that amount being credit card debt, it is a conversation that needs to happen, as uncomfortable as it sounds.

Most of us want to control and reduce our debt load, but because of low-income growth rates and rising costs of living, debt can sometimes feel like an unattainable goal. However, by taking a few simple steps, you can start to get yourself set up for financial success.

1. Spend Less and Become Addicted to Saving

We often aren’t acutely aware of what we spend. Taking some time to go through your purchase history can help you identify areas where you may be able to cut back. Make a list of the things that you must have, and a list of what you could spend less on. Then make it a focus to save rather than spend.

You don’t have to give up every optional item. By scaling back on a few luxury items, you can still buy things you enjoy but at the same time, still see your savings grow, and your debt shrink.

Also, consider a small regular transfer from your checking to savings. Create your budget without including the amount you move. It will help you save and as you see the amount in your savings increase you, will be less tempted to spend it.

2. Increase the Amount You Pay

Even if it is only by a few dollars, paying more than the minimum can help you to pay your debt off more quickly. Review the amount of interest you pay for each debt you have. Then, evaluate the interest your savings account is earning. It may be a better idea to pay more on debts that have high-interest rates with the money in your savings account. It may feel painful at first but when you see your debt decrease, it will be worth it.

3. Reduce Your Credit Card Debt

It can become easy to rely on your credit cards to help you out if you need to pay other bills. But at the same time, it can also make it harder to save especially when you are paying high-interest rates. So how can you manage your finances while reducing your credit card debt and increasing the amount you can save?

Start by reviewing your statements. Know how much interest you currently have. While paying more on your cards as suggested previously can help lower the overall amount of your debt, go the extra mile by stopping the use of your credit card completely. This way, you stop your credit card debts from increasing.

When you rely on your credit cards to help pay other debts, it is often a hard habit to break. However, when you see your payments become lower, you’ll have more money in your bank account and you’ll be able to see the value of using your cards less often.

If you have more debt than you can currently manage on your own, you may want to consider participating in a debt consolidation program. Debt settlement is one example of these programs where the balances are negotiated on instead of focusing of adjusting interest rates and late fees. It can help you pay off your debt at a reduced amount and in a shorter amount of time.

4. Manage Your Credit Score

When you are behind on payments, your credit score is the last thing you want to see. However, it’s really the starting point of you taking control of your finances. Knowing what you need to do to improve your score is critical as you work to get your debt under control.

Start paying your bills on time. This contributes to more than a third of your overall credit score. Next, reduce your debt load by using credit cards less often and resist the temptation to open additional cards.

5. Prepare for the Future

When you are young, retirement isn’t really something you think about right away. Keep in mind that retirement is becoming more and more expensive. Unless you want to work until you are in your sixties, you should start planning for today.

The first and easiest way to take charge of your future is to participate in your employer sponsored saving plans. Plans that include a match up to a certain percentage of your contribution means you are getting free money for your retirement. Even if you can only contribute enough to meet the matching percentage, it’s still worth it.

In addition to preparing for retirement, you should also prepare for the unknown. Emergencies happen, and they often happen when we aren’t emotionally or financially prepared for them. Creating a savings account for emergencies can protect you and your family from the unexpected.

It can be hard to admit that you aren’t in control of your financial situation. Take comfort in the fact that you aren’t alone. Debt and credit management is a struggle for a lot of people. While you cannot erase your debt overnight, you can take steps that put you in charge of your money.

Final Thoughts

Taking time at least a few times a week to review your financial situation can help you plan for your future and while it may take some time before you see results, your dedication and patience will be rewarded. Reducing debt and increasing the amount you are saving won’t be easy at first. But when you can pay off your debts for good or put a down payment on your first house, it will be well worth the sacrifices made.

January 30, 2017
Explore the Key Benefits of Hiring a Virtual Office!

If you own a startup or a small business, you would always be finding out ways to cut down your costs. Isn’t it? After all saving every penny is essential in order to make a better future.

Businesses with a small budget have to think twice before investing their money. And the biggest thing for them to worry is the rent of the office, which is not always financially feasible for them to pay. This is where business virtual office comes into play!

Wondering, how the virtual office can handle the business process the same way the professional offices handle? Or what are the reasons that have made small businesses opt for virtual offices? For answers to your queries, you need to stay tuned with me and continue with the reading of this post.

Virtual offices provide small businesses a professional address without having being paid for the rent. This address can be used by the businesses for their contact us. Good news, isn’t it? Indeed, it is! After all, keeping expenses to minimum is the prime objective of small businesses.

Besides the benefits of cutting down the cost, there are few more benefits of this office, which are discussed below –

Professional Address

The prime benefit of these offices is procuring of professional address, which can be used by businesses on their contact us page and emails. All in all, it helps them build a bridge between them and their customers.

Cut Down the Cost of Commute

Another benefit of these offices is that you need not require visiting the office daily; instead, you can carry out your business work from your comfort zone. This helps reduce the cost of fuel that is required for reaching the office location.

Reduced Hassle

Reducing the need to reach the office location not only helps in cutting down the cost of fuel, but it also reduces the hassle of the entrepreneur.

Get Meeting Rooms on Demand

Want a conference room to hold a meeting with your team? Want to arrange a client meeting? Or holding a presentation? No matter for what purpose you need the conference room, you can avail it at any point of time and pay for the time you have occupied the space for the meeting.

Dedicated Receptionist Services

Maintaining relationship with clients is crucial for the businesses whether small or big. As the business starts to expand, a host of customers is queued up in the line which often results in missing their calls, meeting their demands and more. This is where virtual office receptionist comes into the picture. They are at the beck and call for their customers, which help employers in running their business successfully.

Increased Productivity

Another benefit of these offices is increased productivity, which is the prime objective of all the businesses. Giving your employees a comfort zone to work helps put in their best efforts for the company, which likely impacts the productivity of the business in a good way.

Improved Interaction with Customers

With the help of virtual office that includes a dedicated virtual receptionist and many more employees, interaction with customers have smoothed. Consequently, helping the businesses to reach their targeted audience and increase their business visibility.

Save Money

Yes, you read it right! Virtual offices also help in saving money of the businesses as it reduces the cost of rent, bills, insurance, and maintenance.

From the above provided information, you must have got an idea about the benefits of business virtual office. So, if you are running a small business or startup, you need to make smart decisions in order to benefit your business.

December 22, 2016
How to Run a Successful Organization with CFO Services?

A CFO is an essential one for the betterment of an organization to ensure high success rates while planning important activities. Whether it is a start up, small, medium or large company, a chief financial officer will help to run the operations successfully for generating more income.

The importance of having a CFO

There are many companies facing challenges in executing important decisions that affect their growth levels considerably. Moreover, they find it difficult to manage problems from their competitors which result in loss of revenues. Having a part time and full time CFO in a company will ultimately help to get solutions for various types of issues to run a organization without any difficulties.

What are the responsibilities of a CFO?

A chief financial officer has several responsibilities in a company and plays a key role in handling complex issues effectively. Some of the key jobs involve cash flow management, understanding company’s liabilities, reviewing performance levels, supervising departments, accounting management, budget preparation, submitting auditing reports, organizing stakeholders meeting, capital raising, controlling expenses, analyzing legal issues, arranging board meetings and so on.

How to hire a CFO?

The process of hiring an officer is not a simpler process because it involves a lot of steps. There are several companies that are willing to outsource their services for accomplishing goals. At the same time, it is necessary to identify a best company that has a good record.

Advantages of outsourcing CFO services

The financial officer services will benefit a company more for reaching next levels. Some of them include cost reduction, increasing overall efficiency, developing budgets, complying with tax regulations, upgrading accounting software and implementing financial plans. Companies can maintain accuracy levels in book keeping and other works with Outsourced CFO Services to witness progress levels quickly. Moreover, they show ways for enhancing performance levels of employees by addressing essential needs.

Establishing the reputation of a company

Companies interested in focusing more on their objectives, policies, programs and other procedures can seek support from a leading firm for meeting exact requirements. This in turn gives methods for choosing a CFO who possesses strong skills. Furthermore, it is possible to establishing the reputation of a company in the markets with outsourcing services for generating more income. On the other hand, it is necessary to make a complete a study on them from the internet for gaining ideas as soon as possible for assuring progress levels.

December 14, 2016
Roads towards More Sensible Residential Water Consumption

There seems to be a general consensus that water will be the most valuable natural resource in the future. In some parts of the world, people are quite aware of this fact and are doing everything they can to preserve this resource. In others, on the other hand, the awareness is still at a very low level and water is mistreated, wasted and polluted without any penalty for such behavior.

It may seem too obvious to talk about how we need to save water, not only because we would be paying less, but more importantly because we need to save this resource without which there’s no life. Fortunately, technology and science have made huge progress recently and we can use the benefit of that development to our advantage. Here are just some tips all of us can use to save more water at home.

Double Flush for Double Savings

If you don’t have one of those double flush (a.k.a. “dual flush”) toilets, you’re wasting much more water than you should. These modern and efficient toilets allow you to choose whether you need a big or small flushing function. In terms of quantities, you might spend around 7 litres or perhaps only a half of that amount. It’s your call. Bearing in mind that, in most cases, you don’t need anything more than a small flush, you can see how much water will be saved and how much lower your water bill will be. You can even calculate how much time you’d need to completely pay off the investment in purchasing and installing such a fixture.

Use More Air

Simple-to-install devices called aerators can be attached to the faucet to manage the water flow. What they do is provide the same pressure and performance with reduction in the amount of water used. They are quite inexpensive and require no special skills for installation, which is the reason more and more people are using them wherever they can.

Save while Showering

As more and more people are choosing to have a shower instead of taking a long bath because it’s much quicker, they are also saving water. What most of them still don’t know, however, is that they can go a step further. Modern shower heads can save as much as several gallons of water in a single shower,claim at a trusted Monmouth County plumbing service.What you can do is multiply this amount with the number of people living in your house and you’ll see how amazing this potential saving is.

Cheap Solutions

One of the things you can use if you’re cash-strapped is to install tank bags, which can save up to 3 litres per flush, and you don’t need to replace your toilet. Of course, you may decide not to fill the bag up, but only as much as you need. Some people even put a brick or two in the tank, but that might be considered an extreme measure.

Other Means

Depending on your budget, you might also be interested in shower timers and regulators, which limit and control the amount of time, i.e. water, you use while taking a shower. Some people also uses valves for the same purpose, since they allow them to stop the water flow while they are applying soap and shampoo.

Naturally, before you start thinking about the possible ways of saving both your water and money, you need to inspect your installations carefully and check for any possible leakage. Even a slightest problem and dripping leads to unnecessary waste and expenditure. Also, if not fixed immediately, it can damage some parts of your home, so that you need to invest heavily in repair works.

If you find any work related to purchase and installation simply overwhelming, you should consult a professional, who’ll be able to give you the best advice about your concerns. Remember, this is a win-win situation, since you’re helping both the most important natural resource and your budget and you need to make sure you’re making right choices.

December 8, 2016
The personal finance for new generation – Taking care of your money

If you are like majority of the Americans, you must not have been saving enough for your retirement as retirees in the US are infamous for not saving enough for their post-retired age. The average age for retirement in the US is 63 and though you may have been nurturing plans of working for a longer period of time, yet your 60s should be the best time for making some of the most vital financial moves. Not saving enough for retirement and not managing your personal finances can lead to debt which in turn can mar your retirement goals. Hence, check out some key personal finance steps that you should take in order to spend a debt-free golden years.

#1: Develop a well-proved strategy for your Social Security

Although Social Security is designed in such a way that it replaces 40% of your pre-retirement income, it pays you to get as much dollars out of the program as is possible. Currently, there is no such rule about when you should claim your Social Security first but the only thing you should know is that the benefits will be based on the total amount which you earned while you were employed. You can count all those benefits entirely unless you reach your complete retirement age. Hence you need to devise a profitable Social Security strategy in order to secure your retired life.

#2: Repay your mortgage liabilities

The less is the amount of debt that you have when you go into retirement, the easier it will be for you to get on with fixed income. Mortgages are big loans and they tend to be a huge source of debt for most people who have them. Therefore once you start aging and you walk one step after another towards retirement, you have to focus on paying off your mortgage loan debt. If you see that working an extra year can give you the option of entering retirement without any mortgage debt, it is definitely a wise step to take.

#3: Devise a budge for retirement

Majority of the retirees require 70-80% of their pre-retirement income in order to cover all their living expenses as soon as they stop working. But you shouldn’t target that much only as there may suddenly arise other health factors like falling ill or getting admitted in the nursing home. Your budget should reflect the kind of expenses that you may have in retirement. You may still eliminate a few of your present costs in retirement like traveling expenses and some other like entertainment as these are some requirements which change after aging.

Apart from retirement planning, another area that people need to focus on is taxes. You either have to seek help of a tax specialist or a tax manager when it comes to taking the right tax decisions. In case you feel you’ve fallen back on your taxes, make sure you seek tax help as tax specialists are all eager to help you with the same.

December 1, 2016