Posts Tagged ‘credit card’

The Number #1 Thing Hurting You From Getting Out Of Debt

Recently I’ve been talking to clients, friends and family members that are in debt and the number one reason why they don’t believe they can get out of debt is not having enough money to do it.  They simply don’t believe they can do it.

Even though they are struggling financially they believe that they lack the discipline to follow a plan.  I completely understand this feeling.  I think that we are use to getting instant gratification when we buy something new, but when it comes to working hard at something most of us will start to quit or fall apart.

To fix this problem of wanting instant results for something that will take time to work you must be willing to accept small victories as the result.  If you have 5 credit cards that you’re trying to pay off I would instruct you to start paying off the smallest amount first.  So your first reward would be setting up the plan to pay off the credit cards.

The second reward would be sending the payment to the smallest card and the third reward would be paying off the smallest card.  You can see that there is a step by step process.  This technique can work for anything you want to accomplish in life.

Get Out Of Debt Faster

Actor Morris Chestnut owes IRS over $200,000

Uh oh, sexy actor Morris Chestnut has joined the ranks of the many celebrities who are behind on their taxes.

According to the DETNews, he owes more than $215,800 in delinquent federal taxes. Public records show, IRS filed a tax lien in the amount of $217,817 against Chestnut and his wife on January 7, 2010 with the Los Angeles County Recorded of Deeds.

Apparently, Chestnut does not agree with the amount listed in the lien and is disputing it.

Morris Chestnut co-stars in an ABC television series, “V” which is set to return Tuesday(Mar 30) 2010.

This is another example why you must save cash and stay out of debt.  With all of the movies he has been in there shouldn’t be any reason why he should be facing these types of problems.  I understand that a mistake could have been made on the figuring of his taxes, but he should have the money to at least make an offer in compromise to the IRS.  He could settle that for about $75,000 to $100,000 cash.

Learn How You Can Avoid This Type Of Situation

Don’t Believe The HYPE? New Credit Card Rules Take Effect

Everyone’s cheering today because the new credit card

rules will go into effect.  Here are the quick bullet point changes:

New Credit Card Laws In Effect

• They can’t increase your interest rate for 1 year.
• They can’t increase your interest rate on old purchases.
• They must inform you how long it will take to pay off your current balance if you continue to pay the minimum monthly payment.
• They must give 45 days notice for any major changes that they intend to make to card holder accounts.
• They must get your payment request mailed out with 15+ days before due date.

Other provisions of the bill include:

• Fines of up to $5,000 for card issuers that violate the act.
• Banning universal default and double-cycle billing.
• Prohibiting over-limit fees unless consumers agree to allow transactions that exceed their credit limits to go through rather than be denied.
• Fees for late payments, over-limit charges or other penalty fees must be reasonable and related to the violation.
• Extending the life of gift cards and gift certificates so that they cannot expire within five years of activation. Banning dormancy or inactivity fees on gift cards unless there has been no activity in a 12-month period.
• Banning credit cards for people under the age of 21 unless they have adult co-signers or show proof that they have the means to repay the debts. College students must get permission from parents or guardians to increase credit limits on joint accounts they hold with those adults. The new law will ban those free pizza and T-shirt giveaways — popular on many college campuses — if students sign up for credit cards. Colleges, universities and alumni associations would have to disclose the nature of contracts they sign with credit card marketers allowing access to student and alumni contact information.
• Requiring that card issuers disclose how long it would take to pay off credit card balances if cardholders make only minimum payments each month and how much users would have to pay each month if they want to pay off their balances in 36 months.