There are many reasons why one would want to transfer their card balance. One good reason for a balance transfer is to get a lower rate, another reason is to offset a debt. No matter what the reason — here’s how to transfer a credit card balance.

There are two ways to transfer your current credit card balance.

You receive an offer from a credit card company to transfer your balance to their card. You accept the offer by completing the form and sending it in.

Research online for a better offer than your current credit card is providing you. Many credit card companies have an online form, where you can request a balance transfer to their card.

Transfer A Card Balance

Transfer Credit Card Balances Tips

Credit cards have various interest rates associated to them. Some credit cards have higher interest rates than others. Some offer introductory rates and some do not. So, choose wisely. Read all of the fine print carefully.

Tips For Credit Card Balance Transfers

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Credit cards are a handy way to pay for things, but not everyone can get a credit cards. Therefore, a prepaid credit card is the alternative. Get the facts about prepaid credit cards.

Prepaid Credit Card Facts

A prepaid credit card is not a debit card. A debit card is usually attached to a savings or checking account. When you make a purchase with a debit card the money comes out of the savings or checking account.

A prepaid credit card allows you to put money on the card. Once the money is used, you can fund the card with more money. prepaid credit cards come with their own set of fees.

Consumer reports published the following about prepaid credit cards:

• Most prepaid credit cards charge an activation fee (ranging from $3 – $99)
• Some prepaid credit cards charge a monthly fee (ranging from $3 – $10)
• Most prepaid credit cards charge ATM fees (ranging from $1.50 – $2.50 per/transaction)
• Some prepaid credit cards charge an inquiry fee (ranging from $.50 – $1 per/inquiry)

Prepaid Credit Cards Information

If you are trying to rebuild your credit by using a prepaid credit card may sure your prepaid credit card is reporting you credit history to the 3 major credit bureaus. Some prepaid credit card companies do not report to credit bureau agency. Therefore, your credit history will not change. The major 3 credit bureaus are Equifax, Experian, and Transunion.

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How to Clean Up Your Credit by Paying off Your Credit Card Debt

Credit Card companies usually set your minimum payment with this easy credit formula — 2% (times) your balance. If you want to clean up your credit and pay off your credit card debt 2% payments will never do it. A better solution to cleaning up your credit and paying off your credit card debt is paying the lowest balance card off first.

Sounds strange that you would go for the lowest balance credit card first and not the highest. But, this is the formula that the experts suggest works best to paying off your credit card debt.

Credit Card 101 Presenting Julie Alexander

Credit Card Debt 101

1. Clean My Credit – Write down all your outstanding debts
2. Clean My Credit – Number the debt according to account balances
3. Clean My Credit – The account that you labeled number 1 will get the focus until it is paid off. You will be paying the minimum balance (plus) + $25.00 (more if you can)
4. Clean My Credit – The remain debts listed will only received payment equal to the minimum payment due
5. Clean My Credit – Once debt number 1 is paid off move onto debt number 2
6. Clean My Credit – When paying debt number 2 you will be paying the minimum balance (plus) the money that was used to pay off debt number 1 (plus) + $25.00

The 9 Steps to Financial Freedom With Suze Orman

Clean My Credit by Paying Off Your Debt Illustration

• Debt 1 – Credit Card X, Total Balance $2,000 – minimum payment is $40.00
• Debt 2 – Credit Card Y, Total Balance $6,000 – minimum payment is $120.00
• Debt 3 – Credit Card Z, Total Balance $10,000 – minimum payment is $200.00
• Debt 4 – Car Note, Total Balance $15,000 – minimum payment is $340.00
• Debt 5 – Mortgage, Total Balance $160,000 – minimum payment is $1200.00 (including taxes and insurance)

Remember, our focus is on debt #1 because it has the lowest balance. Following the “Clean My Credit” steps you will be paying Credit Card X — $40.00 + $25.00 = 65.00 until the debt is repaid.

Once debt #1 is repaid move onto “Clean My Credit” step 5. You will be paying Credit Card Y — $40.00 + $25.00 + $120.00 = $185.00 until the debt is repaid.

Debt #2 is now paid off, move onto “Clean My Credit” next step. You will be paying debt #3 $185.00 +$200.00 = $385.00 until the debt is repaid.

Once debt #3 is paid, move onto debt #4. You will be paying debt #4 $385.00 + $340.00 = $725.00 until the debt is repaid.

Paying off your mortgage. Now that all your debts have been repaid you can focus on paying off your mortgage. You will be making a payment of $725.00 + $1200.00 = $1925.00 until the debt is repaid.

If you incur more debt while completing the “Clean My Credit” steps it will only delay your debt freedom. Your credit score will improve alone the process.

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I just paid off my car note. I can’t tell you how that feels, other than great. I purchased a Z4 BMW back in 2006. My monthly payments was $550 per month. Aug 15, 2009 I made my last payment, although I was scheduled to pay until Oct 2010. How did I managed to pay it off early without work for more money?

Debt management can help you pay off debt. Managing the way you spend your money is a form of debt management. Auto loans is the 2nd highest debt item people normally have. The 1st is a mortgage. Before you purchase your next car, go over the auto finance deals first. Find out the loan payment amounts, and the term (length of the vehicle loan). Once you have this information, you can set up a debt management solution and pay off you debt (vehicle loan) early too.

How to Pay Off Debt Early – Paying Off Your Auto Loans

Although investing seems complicated some investments are very easy to understand once you have the knowledge. And there are many investments that are safe and FDIC insured.

1. Paying Off Debt – I purchased a 36 month CD (certificate of deposit) for $35,000 @ 6% back in 2006
2. Paying Off Debt – Where did I get the money? The $35,000 was part of my retirement fund
3. Paying Off Debt – I earned a total of $10,500 in interest. I could have elected to receive $175 per month in interest transferred to another account, but this was earmarked to pay off the car early
4. Paying Off Debt – I cashed out the CD at the maturity date (the maturity date is the end of the CD term, which was 36 months)
5. Paying Off Debt – I paid off the car which was just under $8,000
6. Paying Off Debt – I returned $35,000 to my retirement fund along with $2,500 which was remaining from paying off the car.
7. Debt Management – Now, my expenses have dropped $550 per/month
8. Debt Management – I will invest the reduction in expenses amount towards my retirement.

CDs (certificates of deposits) interest rates are not high these days, but they’re rates are better than regular savings accounts or money market accounts. Therefore, planning your next big purchase, along with a current CD can get you what you want without it hurting.

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I was a customer of Countrywide and I’m now a new customer of Bank of America thanks to the take over. If you fall into a similar mortgage switch situation it’s best to see if you have the best mortgage for your current needs. We all should be doing a quick home loan checkup from time to time.

I have been receiving a letter from Bank of America since the switch saying “You may be able to lower your interest rate and monthly payment”. Turns out, I have the best rate at the moment. However, you may not. It’s only a phone call away to check and see.

During this call they will also help you determine if you have available home equity that you can access. If it turns out that you have the best the call is worth it for the knowledge.

If they do have a better rate to lower your mortgage payment it is done by refinancing. So, educate yourself on refinancing before you agree to any.

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I know you have heard “Spend less than you earn” but how many of us actually do that. Sounds easy, but stats should that we are not spending less than we earn that’s why we are all in debt. There is good debt just like there is good fat. And on the opposite side of the coin, there is bad debt. I consider a mortgage a good debt, maybe even a car note. However, you should have a plan to pay off these types of debt in order for it to be considered as a good debt.

The number one problem I see is our relationship to money. You can’t love it and you can’t hate it either. Some like to ride the high. Meaning they spend until someone else cuts them off. Most likely that would be the creditor. If you like to ride the high you are probably in a world of debt. Some of us fall in the category of “recognizing and accepting”. We recognize our spending problems and just accept them. People in this category have just given up. The first step is recognizing. So, if you recognize the problem don’t just accept it, do something about it. On the flip side, there are people “finding”. Meaning trying to find help with their debt problems. These people will probably find a solution because they are looking for one. The best recommendation for those people in this category is knowledge. Don’t fall prey to the wrong solution. The final category is “freedom”. These people probably have gone through all the steps above be have arrived at “freedom from debt”.

Your relationship with money will define how your financial situation plays out.

Good Debt vs Bad Debt Wrap-Up

Ride The High – creates massive bad debt
Recognizing and Accepting – creates bad debt (person is unwilling to take good debt actions)
Finding – creates less bad debt
Freedom – The idea situation to be in a good debt situation

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Many people think, if you take the number of hours you work (times) the number of days your work (times) your hourly rate — you’ll come up with your total amount on your paycheck. If you are one of the people who thinks this, then you are wrong. Your hourly wage or rate takes in many other factors you may be forgetting. From the above formula, subtract miles to work (gas), lunch, and any other job related expenses you can think of. Now, do the math. The result is your real hourly wage.

I moved from Philadelphia to Delaware a few years back. I was shocked, when I realized how many of my neighbor moved here without taking the above factors into their financial situation. Delaware, Dover especially is not a job hub. So, gas and mileage is a large expense for many people here.

It’s important that you take all expenses into account when you create a budget, emergency fund, and other financial decisions. Take the time to figure out what your real hourly wage is.

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Experts suggest we all have an emergency fund. So, how much should be in an emergency fund? Experts use to suggest 3-6 months worth of expenses. However, they have changed the rule to 8 months worth of expenses. My guess is that the recession has cause the additional 2 months. Therefore your emergency fund should be 8 months worth of expenses — if your expenses are $1500 per month, you should have $12,000 in an emergency fund (your expenses times 8).

Your emergency fund should be place in an account that you have access to. Certificates of Deposits are not a good place to put your emergency fund — Why? CDs usually have restrictions on when you can access your principle balance. Emergency fund cash should be place in a less restricted account like a money market or savings account.

Now, that I have say that — if you are creating an emergency fund a CD may help you get there. Just remember, after you have accumulated your emergency fund put it in an interest accruing account with little to no restrictions. To learn more about CDs go “Why I Purchased Bank Certificates of Deposits”

Here are a few Ways to Create an Emergency Fund:

• Increase your passive income — Read more about Passive Income
• Take a part time job
• Raise your deductible on your insurance policies — Read more about Understanding Insurance
• Cancel your long distance on your home phone
• Pay with cash
• Become an educated shoppers – shop for the discounts
• Make your own coffee
• Take your own lunch to work – back to the brown bag
• Allot a portion of your paycheck to be automatically transferred to your savings account
• Wash your own car
• Workout at home

Do you have more suggest on how to save money or cut cost? If so, share with our readers in the comment section.

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Most of us think we understand insurance, but do we really understand the fine print? Insurance policies can be complicated, so it’s in your best interest to understand all there is to know about your insurance policies.

As you may already know, there are several different types of insurance. You can just about insurance anything these days. But, what insurance policies are important for you at your age, level in life, number of children, spouse or no spouse — is the question of today.

With the current recession, still going into over-drive; how can you manage to cut cost and still insurance everything. That’s simple, UNDERSTANDING INSURANCE Below is a brief overview all about insurance.

Understanding Insurance 101:

Understanding Life Insurance — Did you know that life insurance can double as financial planning too. If you know the different between Whole life insurance and Term life insurance then you know life insurance can double as financial planning. To learn the ins and outs about Whole and Term life insurance go to Whole Life Vs. Term Life Insurance. It is an article that breaks down the differences and which one is right for you and your circumstances.

Understanding Auto Insurance — Auto insurance should be a no brainer, however it’s not. Did you know by increase your deductibles you can lower your premium. And what about the “rent-a-car” charge? If you are in a two person car family, can you eliminate this charge? Let’s not leave out the tow truck. Is the tow truck charge more than you would if you called a locate service. Double check your entire policy, and look for ways to save on your auto insurance. Also, have you ever heard of GAP insurance? If not, read “What is Gap Insurance?”. This is another article I wrote explain who needs gap insurance and what gap insurance is.

We will leave Health Insurance for the next article. You have enough to research as it is (LOL). If you manage to save some money, please come back and share with our reader. Just post your comment in the provide box below.

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You know the government has all kinds of stats to say — how much we spend, how much we save, to how many kids we have. Today, I ran across some stats telling us how much more we are spending on groceries. And guess, what? I’m a statistic.

The USDA released a report called “Food Spending by American Households“. In that report, the average person spends $112.25 per/month. Now, that’s for a single person. I myself, a recent “empty nester” has learn that my groceries bill dropped from $300 per/month to $35 per/week, which is $140 per/month.

Are you paying too much for groceries? If the answer is yes, take a look at the best groceries markets to shop at.

What are the best groceries markets to shop at?

Top Grocery Stores:

• Whole Foods – Whole Foods are located in 38 states with over 279 stores
• Safeway – Safeway has over 1,700 grocery stores nationwide
• Harris Teeter – Harris Teeter is a smaller chain with 176 stores located in the Southeast
• Trader Joe’s – Trader Joe’s have over 300 stores in 23 states
• Hannaford – Hannaford is also a smaller chain with 165 stores mainly in the Northeast
• Albertsons – Albertson has 529 stores in the West and its parent company is SuperValu
• Food Lion – Food Lion has 1,300 stores across the Southeast and Mid-Atlantic states

Are you spending too much at the grocery store? If not, tell us where you shop.

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