Bankruptcy Study....

To Tithe, Or Not: Do Debts Come First?
... Said Henry J. Sommer, president of the National Association of Consumer Bankruptcy Attorneys, which criticized the judge's decision and the bankruptcy reform: ...

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Which Credit Card Is The Best Deal For You? - American Chronicle

Which Credit Card Is The Best Deal For You? - American Chronicle

Which Credit Card Is The Best Deal For You? American Chronicle, CA - 17 hours ago The marketing departments of credit card companies are paid to make their deal look like it is the best for you, but is it really? ...

 

Eliminate Credit Card Debt (Benton Evening News)

Eliminate Credit Card Debt (Benton Evening News)

(ARA) - You've heard the old adage, pay down your credit card debt each month to avoid the nasty interest rate charges and fees that result from revolving balances.

 

Using credit card for overdraft protection (Bankrate.com)

Using credit card for overdraft protection (Bankrate.com)

It's a little known industry perk: If you have a checking account and credit card with the same institution, you may be able to link the two and use your credit card as overdraft protection.

 

Get master's at Stanford, without going to the Farm - San Jose Mercury News

Get master's at Stanford, without going to the Farm - San Jose Mercury News

Get master's at Stanford, without going to the Farm San Jose Mercury News,  USA - 3 hours ago ... The new online degree offered by Stanford and a handful of other respected universities ... But a masters-level degree from the School of Engineering is a good fit ...

 

Grocery Store Clerk Accused Of Stealing Credit Card Information (WISN TheMilwaukeeChannel.com via Yahoo! News)

Grocery Store Clerk Accused Of Stealing Credit Card Information (WISN TheMilwaukeeChannel.com via Yahoo! News)

A Milwaukee grocery store clerk who, police said, was caught on camera stealing customer credit card information.

Here we grow again....

Yep, it happened again... we hit a new high in the stock market yesterday. As I write this post, the Dow is down about 24 points due to GDP numbers coming below expectiations and the fact that traders usually don't like to hold positions over the weekend. A slight pullback was going to be seen today anyway unless there was a REALLY GOOD reason to stay in over the weekend.

Still, for the year the "blue chips" are up 13.5% for the year and have set records for 13 of the past 18 trading sessions. How can you stay out of the market?!?!?!?!?!

Get in, learn, profit from your experiences and build a better future for yourself.

Not in the market?

Why not? With so many ways to painlessly get into the stock market without having to be a financial expert, I don't understand why so many people still shy away. Here are three ways to help you stay informed and get in the market for the long haul.

Subscribe to a business newspaper. The Wall Street Journal is an invaluable assett to have when trying to keep yourself informed. Yes it has one section that is filled with numbers but don't let that scare you. It also has alot of in-depth stories concerning politics, international news, personal investing and other worthwhile stories that all (in some way) affect the rate of return on your investments. Just glancing at the headlines each day and reading the stories that interest you will help you stay ahead of the curve act accordingly with respect to your investments before many other people do. Usually, when you are ahead of the crowd with your investments, the crowd will carry you to higher rates of return. Think of being in the ocean and catching a wave early and riding it to shore.

Get in your company's 401(k) today. If you're not already in the 401(k) plan, get in today. Contribute the maximum allowed by your company. In most cases, your company will match a certain percentage of your contribution. THAT IS FREE MONEY. WHY AREN'T YOU TAKING ADVANTAGE OF THAT???? Your participation shouldn't cost you anything and experts manage your money for you. In most cases today, there are investment experts who will counsel you on how to invest your monthly contribution.

Start your own monthly investment in a simple savings account at the bank. With interest rates on the rise and internet banks competing with their brick-and-mortar counterparts, the return on simple savings accounts are difficult to ignore. A great place to invest your cash is in a savings account with Citibank® e-Savings. Earn 5.00% APY and you can set up a monthly automatic transfer out of your regular checking account into your e-savings account. Before you know it, you'll have a nice chunk of money to start a mutual fund with or invest in an IRA.

What are you waiting for? Take advantage of the opportunities that are out there and put some money back for when you retire. You'll be glad you did.

Banks are getting a clue

An article in this morning’s Wall Street Journal (10/21/06) by Jane J Kim discussed how more banks are “chasing credit-hungry consumers” online. Why is this important? Who knows why banks are just now using the internet on a wider scale. My opinion is that banks are sometimes slow to come around. The internet has been cutting into their business for years, they’re now feeling the pinch and recognizing that the “internet thing” is not a passing fad. It’s here to stay.

Use of the latest technology can help speed up business, which in most cases, keeps costs low. The less human interaction during a banking transaction, the better. At least that’s my opinion. I don’t see why I need to go sit in front of a banker and ask for a loan when I can get on the internet, apply, be approved in seconds, and have the funds in my account in 24 hours or less. Internet banks and traditional brick-and-mortar banks who have figured this out are ahead of the curve. There are still a few people who value the human touch – I’m not one of them when it comes to things that can be better served with technology.

Competition keeps prices reasonable. For several years now, there have been many online financial institutions offering their products through the internet only. That business model allows them to keep operating costs down (no brick-and-mortar location) and pass those savings on to customers in the form of higher yields on savings products and lower interest rates on loans. In some cases, the difference in rates between online banks and traditional banks may not be much. In today’s world where consumers are able to send their money to any financial institution almost effortlessly, that money tends to follow the best rates offered – anywhere.

30 year mortgage hits a 7 month low!

Falling 6.31% to 6.30% (woo hoo!!) the 30 year mortgage rates hit a 7 month low. That was a sharp enough drop to spark a rise in refinance applications of 18% last week alone. Housing bubble burst? It seems to me that people are trying to breathe new life into that bubble.

Gas Prices Falling -- So What?

Gasoline prices have dropped more than 20% in the past few (2?) months. What does that do for you and I? Plenty! The less we have to spend putting gas in the tank -- a commodity which we very much need -- the more we have to spend elsewhere -- like on food, clothing, maybe even eating out or going to a movie.

Gas prices have an enormous affect on the economy. It is one of those "must have" commodities of today. So when gas prices rise, we spend less elsewhere and that hurts local businesses everywhere -- suddenly there's a national "belt tightening." We need gas for our cars so we can get to work, get the kids to and from school, get to the grocery store, etc. Delivery drivers, truckers feel the pinch because they certainly need gas to fuel their vehicles to get goods to the store shelves. They pass along the incresed cost of fuel to the locations they serve, who in turn pass it along to us in the form of higher prices on food, clothing, and other necessities! So we end up paying for high gas prices at the pump and EVERYWHERE else.

Thankfully, the price of crude oil (the underlying commodity that drives the price at the pump) has been gradually falling. Iran has settled down, there have been no major hurricanes like last year, the summer driving season is over, and crude oil inventories are at high levels. Translation: supply is higher than demand so the price continues to fall. That is the best way to get the price of most anything to fall -- quit using it! When supplies start building up, prices fall to get the product moving again. Merchants adjust their prices to entice buyers to spend. Market forces are much better at adjusting prices than any govermnent could ever do.

Want to keep the price of gas falling? Plan your daily driving -- if you know you're going to have to take the kids to school and then pick them up later, try to do errands while you're out. It saves just a little bit if you do more while you're already out and about rather than coming home between to-do's.

Don't fill up completely every time you go to the gas station. That one takes some discipline. My car holds about 16 gallons of gas. I put $25 worth of gas in the tank once a week. I know that gas has to last me all week long so I am careful what I use it for.

Buy gas when you see the price fall a few pennies. I watch the price of gas at the stations around where I live. I know that when I see the price of crude oil fall, there is sure to be a fall in price at the pump soon. So if I'm near my refueling day, I might wait to see if the price falls or if the price is too good to pass up, go ahead and get some fuel in the tank. Just know that it still have to last until next refueling time.

Just a few simple things to do your part on a daily basis to increase the overall supply of fuel and watch the cost continue to fall. Are you making that much of a difference? Not really, but if you get others to follow your example, the intended effect on fuel prices will be evident at the pump.

Stock Market Hits Record High

When headlines like this were posted across the world back in 2000 the mood of traders and investors was a lot more euphoric. It took 6 years but this record demonstrates the reselient American economy and the strength of Democracy. In 2000 the Dow Jones Indurstial Average closed at a record high of 11722.98 but yesterday, the DJIA closed at a new record high of 11727.34.

It's a much different world today than the day when we hit the record in 2000 -- Of course, with 911 changing everything. Yesterday when the Dow reached the new record, traders barely even noticed. There was no applause; when the market closed, barely anyone reacted. People were more concerned with other news of layoffs and speculation of how the drop in oil prices will help out consumers going into the holiday season.

I like the fact that there wasn't much celebration of the record. I think it shows discipline on the part of investors. What is exciting is the days to come. Ok, the Dow hit a record. Will it back off today and have a record fall? Or will it keep pushing higher? Stay tuned!

More high yield accounts to put your money!

One of the advertisers on ABCMoneySource.com is E-LOAN -- a popular online lender. If you need to purchase a home, refinance, or obtain a home equity line of credit, they are a great source for low rates. They are announcing today an online savings account that will pay an interest rate of 5.5% along with certificates of deposit (CD's) paying between 5.6% and 5.75% yeild. What a deal!

The competition among financial institutions and banks only means more attractive savings rates and lending rates for you and me as consumers.

These financial instutions are able to pay higher yields on interest rates because they just don't have the overhead of traditional brick-and-mortar banks. How long can it last? Only time will tell, but my suggestion would be to lock in good rates while you can.

Home mortgage rates dropping again

Home mortgage rates fell again this past week because housing data is weaker and consumer confidence seems to be dipping a little. The average for a 30 year fixed mortgage was just over 6.4% -- one year ago, it was hovering around 5.7%. The average for 15 year fixed rate mortgages was just over 6% -- one year earlier it was around 5.3%.

Rates are continuing to drift lower continuing a trend that began this past summer beginning in July. So... have you still NOT refinanced your house yet? Act now while the rates are still relatively low -- anything could happen to make mortgage rates drift higher.

Buy, Buy, Buy

Went on vacation this past week and had no access to a computer to update my blog -- that's why I've been away for awhile. I do have a story that's related the different subjects on this blog -- it's about real estate investment.

The place I vacationed was Durango, CO and boy has it changed since I was there as a little kid 20+ years ago. The houses in town don't look much different, but boy has their value changed! We took a rafting trip down the Animas River and had a great guide named "Kirk." We were talking about whatever came to mind and the subject of real estate came up. He said that he bought his house over 20 years ago for $52,000 and now the average home price is $465,000. Care to calculate how much of an increase that is? Well, I'll save you the trouble, it's a 794% increase in value since he bought his home. Checking into real estate prices there through a few local publications proved Kirk true.

Just reminds me what Will Rogers said many many years ago -- "buy land, they're not makin' any more of it." I guess the 'ol laws of supply and demand are still true. There is less and less land for sale so the supply will only get tighter and tighter ... making the price go up, up, up!

Of course Durango is an extreme example of what can happen but normally your real estate investment should increase in value each year -- that's even with minimal maintenance. If you have the chance, BUY A HOME because it's one of the key ways to build wealth.

4 Common Sense Ways to Protect Your Identity

It’s hard to get through a week without reading about someone’s identity being stolen and their financial life literally ruined in a short period of time. Identity theft is relatively easy and sometimes the crime isn’t discovered until victims are several thousand dollars in the hole. We make it very easy for identities to be stolen; and sometimes freely give our personal information to would-be identity thieves.

Recently I was in line at the post office and there was a girl on her cell phone just a few spaces in front of me. She was talking rather loud, as most people on cell phones think they have to do. If I wanted to steal her identity, I could have because she made it very easy for me or anyone else within earshot of her conversation. In less than 5 minutes she blurted out her first and last name, home address, cell phone number, talked in detail about a few relatives, school friends, church, and I eventually got her place of employment from a casual glance at her id badge she was proudly displaying. With any two pieces of information, an enterprising identity thief (or debt collector, private investigator) can get the rest of what they need to know to become you and spend your hard earned money.

Keep your voice down
Not only is it beyond rude to impose your cell phone conversation on people nearby, you can go a long way towards protecting your identity by keeping the conversation to yourself. The only people around you who want to listen are those who are out to get some juicy piece of information. Always assume someone else is listening and will use your information to their advantage. Keep your voice down or excuse yourself to a more private location if you must give out some personal information on the phone.

Avoid displaying picture id’s, security badges, name tags
I guess that some people are proud of where they work or maybe feel important if they wear their picture id’s and security badges outside of work. Make it as hard as possible for someone to find out who you are. If someone takes a look at you, with the intent of obtaining information you wouldn’t normally give out to strangers, and sees nothing, they’ll move on to a more vulnerable target.

Shred it all
Shred old receipts, bank statements, and any other personal information to keep from dumpster divers and your friendly neighborhood trash collector. Dumpsters are a gold mine for identity thieves. Old receipts, financial statements, and similar documents contain a lot of personal information which can be used. Shred these documents before you throw them away. I’ve watched my own trash collectors take a few seconds to see what they’ve put in their truck and rummage through it. I’ve never seen them take anything out of the trash and put if up in the cab for safe keeping but you are better off not giving them a reason to be nosy.

Use technology to your advantage
Spyware, adware, computer viruses, and a host of other things are out to get any piece of information about you. Just a simple software program (Norton AntiVirus or McAfee Security Center) can make you a difficult enough target that the majority of identity thieves will leave you alone and search for an easier target.

It really just comes down to common sense. Do what you can to protect yourself and be aware of your surroundings. A little prevention goes a long way to making our busy lives less complicated. Two days ago I was standing in line at the same post office and there was another girl on her cell phone directly in front of me. No matter how hard I tried I couldn’t hear what she was saying. She protected herself very well by just keeping her voice down and not drawing anyone’s attention.

5 Best ways to improve your FICO score

Having a good credit score saves money in so many different areas of life – not just when you go to borrow money. Utilities, insurance companies and employers are just a few entities that may use your credit record to make a judgment about you. To be a trusted risk by the utility companies, get the lowest interest rates, lower insurance rates, and qualify for your dream job as a Wall Street money manager; be vigilant about doing everything you can to maintain the highest score possible in the 5 most important areas.

#1 – Be on time
35% of your score is based on your payment history. Paying off your accounts in full each month is best but if it’s not possible in a given month, then pay a little bit over the minimum payment….and pay it on time. This shows current and future lenders that you are committed to paying back what you owe.

#2 – Keep a low profile
Using all the credit that is available to you (max out all your credit cards) that spells trouble to current and future lenders. Maxed out credit lines make you look like someone on the verge of missing payments and eventually defaulting on loans. When that happens on any one of your accounts, all your creditors have option to close your line of credit without notice. Avoid this by using only 35% to 40% of your available credit. Doing this will keep your payments low and show current and future lenders that you have some self discipline in using credit.

#3 – Keep that old account open
If you have an old credit account that is still active and doesn’t cost you any monthly or annual fees, keep it open. You can achieve a higher credit score if you can show you have been using credit for long periods of time. Are you tempted to move amounts owed to other cards and close the account with a zero balance? Pay it off instead of constantly moving it around and closing accounts. Not only are you continuing to rack up interest charges and fees on that block of money you keep moving, you are hurting your credit score by piling up closed accounts and shortening your average account history.

#4 – Keep your search for new money short and sweet
Inquiries, inquiries, inquiries and more inquiries. Each one chips away at your score. Make a lot of them at once – car loan, refinance – and your score will take a dive that is hard to recover. Searching for money one loan at a time will demonstrate a restraint on your part and not make you look desperate to open new lines of credit.

#5 – Keep only a few cards open
Stop applying for those department store cards just to get the discount! Instead focus your purchases on a few of the big ones (Amex, Visa, Mastercard, Discover, etc.) that give you rewards or cash-back bonuses for your purchases. Most cards have a rewards program where you can earn miles for every dollar spent which you can then use for airline tickets, hotel points, magazine and newspaper subscriptions and more. The more you focus your efforts on cards that reward you soon you’ll be off on a vacation you don’t have to pay much (or anything) for so you can buy more stuff!

FICO: The 5 categories that make up your FICO score

The Fair Isaac Corporation is the company that originated the FICO® score which is widely accepted as the standard measure of credit risk. It is a scoring model that over 2,600 businesses worldwide use to determine your credit worthiness. These businesses include banks, lenders, insurance companies, retail stores, telecommunications companies, and government agencies. Throughout our lives, we’re going to be involved in one way or another with one or all of these institutions, so it will be easier in the long run if you pay attention to your credit record and maximize your FICO® score.

The higher your FICO® score, the easier your financial life will be. Knowing these 5 categories will enable you to maximize your score, be viewed as a good credit risk, achieve the lowest interest rates (saves you money) and maximum lines of credit when you need to borrow money.
#1 – Payment History
Payment history makes up 35% of your total score. Any open line of credit you have will appear on your credit report and if all lines of credit (credit cards, installment loans, retail cards, etc.) are paid and current then you have nothing to worry about here. If a payment on any of your open lines of credit falls outside the 30 day grace period, your credit score could fall as much as 100 points. Yes, you can bring it current again but it takes longer for your score to regain the points loss than it does to lose the points in the first place.

#2 – Amounts Owed
How much you owe to any creditor will have an affect on your score. The question is, what will affect your score positively? On revolving credit accounts, a good rule of thumb is to never use more than 35% of the available credit. If your credit card has a limit of $5,000 then only use $1,750 of it at any given time. This shows potential lenders that you are a disciplined user of credit.

#3 – Length of Credit History
Are you a recent college graduate and just got your first credit card? Maybe you’re a longtime user of credit with established accounts. Throughout your financial life, establish credit lines with the knowledge that the longer good lines of credit are open, the better your score will be. Think twice about canceling old accounts because it may hurt your score. Also, use them periodically to keep them active. Potential lenders like to see that you have a high degree of stability when considering you for a loan.

#4 – New Credit
Tempted to apply for the retail card to get the discount at the counter? The cost of multiple inquiries for different types of credit has the potential to hurt your score. Keep the credit lines to a minimum by passing up the temptation to “save money” at the counter by opening a new credit line. In the long run, it may end up costing you money by giving you a lower credit score and lenders will charge you a higher interest rate on future loans.

#5 – Types of Credit Used
Not all credit is good credit. You can get department store cards, gas cards, consumer finance accounts, mortgages, home equity lines of credit, and the list goes on and on. The best types of credit to have are “major” credit cards like Visa, MasterCard, American Express, or Discover and a mortgage. Stay away from department store cards and gas cards because they usually lead to having too many lines of credit open and lower scores.

The #1 Way to Turn Bad Debt Into Good

A good definition of bad debt is financing something you consume. If you finance something you consume, you have to feed it, or it loses value over time (cars?) you can put it into the bad debt category. There is an excellent way to turn these bad debts to good debt.

Think of all the purchases you make in a week. Groceries, eating out, gas for the car(s), movie tickets, toys for the kids, fountain drinks at the convenience store, coffee drinks at your favorite coffee bar, and the list goes on and on. Some of these purchases are paid for with cash, but most are put on the plastic. Not such a bad idea until the bill is due. That’s when you get to pay a finance charge for all those espresso drinks you bought over the last few weeks.

In today’s society, more and more of our purchases are put on plastic of some kind – debit card, credit card, gift card, etc. We are becoming a cashless society and you can position yourself to benefit from this ongoing trend.

Stop carrying cash
Once your cash is gone, it’s gone forever. Once you spend it, it can’t earn interest for you. Instead, it earns interest for the person you gave it to. If it’s stolen you can’t replace it. Hopefully you earn some kind of interest on your checking account. If not, it’s time to find a bank that will pay you for keeping your money on deposit with them. Keep your cash in the bank so it can continue to earn interest. Credit cards can be cancelled in a few moments and you are not responsible for unauthorized purchases.

Put all your purchases on a credit card
Putting all your purchases on a credit card gives you some notable benefits. First of all is that you are using the banks money today to pay for the things you need. That leaves your own cash in your own account where it can work for you earning interest. Carrying less cash makes you less of a target for theft. Since credit cards offer various rewards programs, the more you spend on your card, the more rewards you earn.

Pay off your card
That is easy to say but difficult to do. The number one way to turn bad debt into good is to pay off your card each and every month. That requires some discipline on your part but will pay off in the long run in two ways. Your cash stays in the bank to earn interest, and you build your credit score by paying you bill in full each month.

4 Kinds of Good Debt

Debt is a lot like cholesterol. Some debt is good and too much bad debt will make your life miserable. Through our financial lives, it’s only the good debt that we want to allow on our balance sheet. Good debt improves our lives over the course of time. Here are 4 types of good debt.

Real Estate
Real estate is the cornerstone of much wealth in the US. For most of us, our homes will be the largest and most valuable asset we’ll own. Unless you’ve “come into money” chances are good that you are going to have to take out a mortgage to pay for your home. This is considered good debt because you’re buying an asset that should increase in value over time.

Investment Real Estate
Right along with your home, owning rental property can be very lucrative. If you have the chance to purchase a rental property and then rent it to someone for a monthly payment larger than your mortgage payment, jump at the chance. That’s a great way to build wealth and generate income.

Education
It is impossible to put a value on a college degree. With a college degree, the money you earn over your career will eventually make the cost of school pail in comparison. There are always going to be stories about people without college educations “making it big” somehow. Those people are the exception rather than the rule. Get as much education as you can. You’ll earn more as a result.

Cars
The thought of borrowing money to pay for something that begins to lose value as soon as you have the keys in your hand seems to go against the “good debt” principal. However, we need a car to get to our jobs, and get other things done in our daily lives. If you buy your car the right way, it can be an asset to you and not a big financial drain. When you buy a car, go for the largest payment you can over a two year period and look for a car that will fit that schedule.

At ABCMoneySource our mission is to empower YOU with understanding on money matters and quickly find MoneySources to finance your dreams..... All from the comfort and privacy of your computer.

Do-It-Yourself Debt Management

Do-It-Yourself Debt Management is now made easier than ever in big part because of competition between financial institutions. Many checking accounts offer no minimum balance and free online bill pay, free transfer of funds between accounts, among other features in order to gain new customers and retain current ones.

Do-It-Yourself Debt Management is simple to achieve in the following 10 steps. All you have to do is follow a simple plan and monitor it from time to time. Before you know it, you’ll be out of debt completely. You’ll pay no credit counseling fees, no debt management or debt consolidation fees. s the process of combining all your monthly debt payments into one manageable monthly payment. This option is a little less stressful because there is only one day per month you have to remember to make a payment; and depending on your consolidation method, it could bring you lower interest rates so you can pay off debts quicker.

1. Make a list of all your bad debts – include “creditor” “amount owed” “minimum monthly payment” and “number of months to pay off” (divide the total owed by the minimum payment).

2. Rank each debt based on the number of months to payoff. Debt #1 will be that with the least amount of months to payoff. Debt #2 will be the next lowest number of months to payoff and so on.

3. Evaluate your income and spending habits and come up with an extra $150 to $200 per month.

• Take your lunch -- $5/weekday to eat out adds up to $100/month.
• Coffee – drink it for free at the office.
• Specialty coffee drinks – $4/day for a coffee drink for a month adds up to $80/month.
• Tobacco – Cigarettes cost approximately $23/carton. If you smoke 2 packs a day, that carton will last you 5 days. Your monthly cost of this habit is $138. Quitting would be best but if that’s not an option, cutting back will save you money on cost of cigarettes which can be put toward your debt plan.
• Check your other fixed monthly expenses to see if you can reduce them further and put the extra money toward paying off debts.
• Use these things for rewards for reaching milestones in your debt management plan instead of crutches to get you through the day. Pay off your debts with the extra money.

4. Open a separate checking account from your personal account(s) – needs to have free online bill pay, no minimum balance, and be able to accept funds transfers from your personal checking account. If you can get an interest bearing account with the above-mentioned features, that would be outstanding.

5. Determine the minimum amount you need to pay on each debt.

6. Set up an account transfer from your personal checking account to your bill pay account for the amount you came up with in step #5.

7. Set up your automatic bill pay for each creditor so that the funds leave your bank and arrive at your creditor a few days before the due date. Pay the minimum amount on all the debts numbered 2 through the end of the list.

8. On debt #1, pay the minimum plus all the extra cash you came up with in step #3.

9. Focus on debt #2 once debt #1 is paid off, using all the income you were using to pay on #1.

10. Repeat this process until all the debts on your list has been paid in full. Also, once all the debts are paid, leave the monthly transfer in place and make the money you’ve saved to this point work for you instead of the other way around.

The key to this plan is to not take on any additional bad debt, remain laser focused on paying off debts and using extra income you can come up with for the cause. At least once a month you should monitor your plan to make sure the payments are being made on time, and everything else is going according to schedule.

At ABCMoneySource our mission is to empower YOU with understanding on money matters and quickly find MoneySources to finance your dreams..... All from the comfort and privacy of your computer.

Car Insurance - 4 Reasons To Update it TODAY!

In days past we used to get insurance from our parents insurance agent and just go with that. Now, it certainly pays to spend a few minutes doing an online insurance quote to see if you're getting the best coverage for the lowest cost. Here are 4 reasons to check your insurance coverage at least annually.

#1 -- Competition keeps rates reasonably low
There are many sites online now that can give you multiple quotes from multiple companies in just a few minutes. For most of these quote services, all you need is your name, address, and vehicle information to get a quote. The good part for consumers is that the more companies that offer quotes online, the lower the rates should stay. You know that companies check each other out online and make necessary adjustments. Yes, service when you file a claim has something to do with it, but most people are shopping purely on price.

#2 -- Depreciation: Why pay the insurance cost based on last years value?
Okay, you might not get much of a price break here but it doesn't cost you anything to check it out. The logic is clear though. If your car is worth less this year than it was last year (and most all of us can claim that), then you might be able to save yourself a few extra bucks this year on insurance.

#3 -- Job change
It's true, some companies will give a break to a biochemist but not your friendly neighborhood dogcatcher even if they drove the same type of car, lived next door to each other, and had identical driving records. Some auto insurance companies studied millions of policies over the past 3-4 years and concluded that certain occupations are less risky than others. It makes sense. Have you had a job change recently? You could be due a break on your car insurance.

#4 -- Education
The same insurance companies that will give discounts for certain occupations will also give even more discounts for higher education. Someone with no high school diploma will pay more for car insurance than will someone with their GED or even a more advanced degree. In most cases, you'll earn more if you have an advanced education. The insurance companies think (and probably have proof) that the more education you have, the less likely you are to be in a car accident.

You can get direct access to nationally recognized quote services through ABCMoneySource.com at the Car Insurance page. Check it out and see how much you can save.

Life Insurance - Are You Ready?

Do you know if you need life insurance? To be sure your loved ones are taken care of, there are a few questions you need to answer to determine your level of need.

What expenses will you leave behind?
If something happened to you today, how much debt would you leave behind? How much do you owe today for utilities, credit cards, medical bills, car loan, mortgage? At the very least, you should have a policy that will cover these basic needs.

Does anyone depend on you?
Aside from any pets you have living with you, do you have anyone who depends on you for their day-to-day living needs? Spouse? Children? Anyone else? If so, protect their financial future by giving them a block of money that will replace your annual income.

What future needs will your dependents have?
In addition to replacing your lost income, you have the chance to provide for your dependents future financial needs. You can plan for and provide a college fund or provide for possible future wedding expenses.

Have you saved enough money to take care of the above-mentioned needs? If you answered “yes” to any of the above questions, there is one more to answer. Here is a good model you can use to determine your life insurance need.

Current debt + Anticipated future needs + Income principal

Current debt would be one month’s worth of your average monthly utilities, total credit card debts, medical bills, loans, mortgage, or anything else you want to be paid off in the event of your death.

Anticipated future needs include expenses for college, wedding expenses, etc.

Income principal should be arrived at by taking your current annual income and divide that number by .01 (1%). The theory here is that a large enough block of money should be provided so that 1% can be withdrawn as a replacement of your income. Most investments return a higher interest rate than 1% so if that income block returns, say 5%, and your dependents are able to live off 1%, that equals a 4% raise which will help defray the effects of inflation.

The best rates for life insurance are when you are young and healthy. You might be able to improve your health, but so far there is no way to turn back the clock and make ourselves younger. Get your quote for life insurance and protect your loved ones today.

Debt Consolidation - 4 Benefits

Debt consolidation is the process of combining all your monthly debt payments into one manageable monthly payment. There are at least four benefits well worth consideration when trying to decide the best way to get out of debt.

For any debt plan to work, you first have to fully commit to avoid taking on any extra debt while you are trying to dig your way out of the current situation. If you’re ready to make that commitment and stick to it, then you’re ready to be free of your bad debts. Read on…

In debt consolidation, you pick a specific day of each month that you would like to make your payment. Part of the stress of carrying debt is remembering to pay everyone on time. When that doesn’t happen, you incur late charges, over the limit charges, and your once low interest rate may skyrocket because you are now perceived as a higher risk. With a debt consolidation plan, you make only one debt payment per month, which is usually set up as an automatic draft from your bank account.

Debt consolidation also brings welcome stress relief because you condense multiple debt payments into one manageable monthly payment. Now you don’t have to remember multiple payments. As long as you make your one debt payment per month for the life of the plan, all is well.

Debt consolidation also lowers your overall debt payment. People who enter into debt consolidation plans usually have several high interest debts they are trying to overcome. Depending on the method of consolidation (professional help, consolidation loan, refinance, etc.) the repayment terms of your loan are set for a fixed period and the interest rate is considerably lower.

Perhaps the best benefit of debt consolidation is lowered interest. Whether you secure a debt consolidation loan, complete a cash-out refinance, or work with a not-for-profit agency that has established relationships with your creditors, paying less interest on your debt means more money stays in your pocket. Also, more of your hard earned income goes directly to the principal balance. This allows you to pay your debts quicker and with less interest charged over the life of the plan.

Debt Settlement - 3 Important Considerations

Are you still afraid to answer phone calls from numbers you don’t recognize? Take a look at debt settlement after considering 3 important points of which you need to be aware. Debt settlement is a viable option when you’re still trying to make monthly payments only to see your balances continually rise and the ol’ pick-up and hang-up routine hasn’t scared away the debt collectors.

Debt settlement is a program where you hire a company to act on your behalf in settling your debts with your creditors and may be a strong consideration for you if you owe a high dollar amount (10k+) in unsecured debt.. Typically these debts have already landed in a debt collection agency. The program works like this: you stop making monthly payments to your creditors and pay instead to a savings or escrow account set up by your debt settlement company. They negotiate with your creditors and use the accumulated funds to settle your debts. Sounds good doesn’t it? There are negative impacts to debt settlement programs you need to be aware of before you begin.

#1-Your credit record will take a negative hit
When you stop making payments to your creditors, that is going to show as a negative mark on your credit record. If you are to the point of using a debt settlement company, your credit record has probably already absorbed several negative hits and you may be thinking that it can’t get any worse. Well, it certainly can. Read on to the next section.

#2-Watch out for the summons
Any of your creditors may elect to turn the debt over to an attorney in your area who will secure the debt as a judgement. No, you don’t have to own assets to get a judgement filed against you. To avoid this happening to you, make sure your debt settlement company is actively working your file and not making ridiculous offers for settlement that are damaging to your efforts. If they keep making offers that are too low and decide instead to sit back and let your escrow account get a little bigger, that is a good way to wear out the patience of the creditor. Next thing you know, someone you have never seen before walks up to you at your kids baseball game and hands you an invitation to defend yourself in in court. If it gets to this point, settlement is no longer an option. It’s balance in full and you may even get awarded the attorney fees and court fees it your creditors had to pay to sue you.

#3-The forgiven amount of the debt remains on your credit
Debt collection agencies used to have a great tool to entice debtors to settle. After the money changed hands, creditors would show the debt on as “settled in full” on your credit record and show a zero balance. Not anymore. The forgiven amount remains on your credit record. One other little known fact: you get a 1099 at the end of the calendar year if the forgiven amount is $600 or over. You may have been forgiven a large part of your debt, but now you have an obligation to the IRS to pay income tax on the forgiven amount.

Still a good option
Debt settlement is still a good option for those facing insurmountable principle balances and interest charges that just keep piling up. Just make sure your debt settlement company is making fair offers based on your ability to pay and not based on how much they want to try to stick it to your creditors. Also be sure to get letters from your creditors showing your account as being settled and hang on to those letters forever. Despite the best efforts, sometimes things fall through the cracks and you get a call from someone demanding payment on a debt you already settled. If that happens, dig out the original settlement letter and fax it to them. Case closed.

Health Savings Account (HSA)

Health Savings Account (HSA) – Should I Get One?
For people who are tired of the high cost of health insurance, starting a Health Savings Account (HSA) is a great option for consideration. Some don’t even carry insurance because they have the ability to self-insure. It only takes one catastrophic event to put you in the hospital and drain you financially. A health savings account (HSA) is an excellent tool that gives you portable health coverage at a low monthly cost, tax reduction, and tax-free savings.

Lower you health insurance premium
One requirement of an HSA is that you carry a high deductible health plan (HDHP). So, the higher the deductible, the lower your monthly premium. In most cases, your monthly premium can be lowered by at least 25% up to 50% and higher depending on the cost of the health plan you have currently.

Make your insurance plan portable
Most people have health coverage through their employer. This has been a great benefit for many years and has enabled employers to attract and retain talented employees. Some, however, find themselves staying with a job they are not satisfied with simply because of the health plan. By taking control of your own health plan, you gain a certain amount of freedom in knowing that you don’t have to stay in a job for fear of losing your health coverage.

Reduce your taxes
Contributions to your health savings account are 100% tax deductible. For every dollar you put into your account, you reduce your taxable income. Since your taxable income is reduced because it is being sheltered in an HSA, that eases your tax burden every April 15th. In addition, all health savings account distributions are tax-free as long as the funds are spent for covered expenses.

Build savings
Possibly the best benefit of a health savings account are the savings you can build over time. HSA contributions can be invested in an FDIC insured account or in a wide variety of investments including mutual funds, stocks, or bonds that will earn even higher interest rates. Interest earnings in an HSA are also completely tax free. Once you retire, you can use the account for ANYTHING tax free.

Consider the possibilities
If a family of 4 started an HSA and contributed the maximum allowable each year (currently $5450) invested at 4%, they would have a net gain of approximately $681 at the end of year #2. So what? That gain is what you would have left over after you subtract the annual premium and $1,000 in medical expenses from interest earned. What happened? In essence, your insurance coverage cost you nothing.

Life Settlement? What's That?

Life settlements are a financial planning tool available to policyholders who have impaired health but are not terminally ill. Since the life settlement industry emerged it has become a tool that many use to cash in on life insurance policies that are usually surrendered back to the life insurance company or just allowed to lapse.

The life settlement industry emerged back in the 1980’s when AIDS was prevalent in our society. Typically, AIDS paitents would sell their life insurance policies to life settlement firms so they could pay for expensive medical treatments. The normal settlement price fell somewhere between the surrender value and face falue of the policy. Now, since AIDS patients have a longer life span, other sources of life settlements are being targeted and large institutions are bringing in new sources of capital. This inflow of new capital is making the life settlement industry grow considerably.

The typical life settlement firm seeks policyholders that are at least 65 to 70 years old with life insurance policies carrying a face value of $250,000 or higher. In most cases, any type of life insurance policy qualifies as long as the policy is convertible. All that means is that your term policy allows you the right to change (convert) the policy to universal life or whole life policies without providing proof in insurability.

Here's an example. Let’s say that someone in their mid 60’s decides they no longer want their $1 million life insurance policy. They’re tired of paying the premiums or simply can no longer afford to pay, their beneficiaries are all dead, and their health is detiorating. A life settlement firm will buy this person’s policy for up to 2 to 3 times its surrender value. The life settlement company will then continue to pay the premiums and receive the $1 million death benefit after the insured dies.

There are scores of assumptions and statistics used to price life insurance policies. One of these statistics is the expected lapse rate. Life insurance companies price policies (in part) based on the expectancy that the policy will lapse. Life settlement companies make this part of the policy pricing a little more difficult because the life insurance company doesn’t know who or how many policyholders are going to sell their death benefit to a life settlement company. Necessary adjustments will need to be made to compensate for the increased number of policies still in effect upon the death of the insured. What eventually will happen is that life insurance companies will set more money aside in reserve to cover expected losses. As a result, life insurance rates could increase. Time will tell.

It seems that this secondary life insurance market is beneficial to consumers who’s financial protection needs have changed. With the life settlement market emergence, there are more options for policyholders to consider. This usually increases competition – ultimately good for the consumer.

I'm certainly looking forward to writing for ABCMoneySource.com on all the issues coming in the future. Let me know if they are a help to you and let me know if there is something you'd like to know about concerning money matters.