Networks To Help Women In Debt

There are many reasons women fall into debt. Student loans, credit cards and mortgage payments all contribute to the debt load many women carry.

While paying off debt can be challenging, the Internet has made it easy for women to access networks and resources that can help them become debt-free. Some networks aimed particularly at women in debt include the Women in Red Racers, the Women's Financial Network, and Debt Help for Women.






Women in Red Racers

The Women in Red Racers is an online network of more than 1,000 women from throughout the world who exchange advice on getting out of debt. Its name comes from the idea that each individual in the group is racing to pay off her debt as soon as possible. The group primarily interacts through message boards hosted by MSN Money. To join, members must disclose their general financial information and post updates on how well they are doing at paying off their debt. According to Good Housekeeping magazine, the community provides tips, feedback and encouragement for women and has helped its members pay off millions of dollars in debt since 2006.
   
Women's Financial Network

The Women's Financial Network is an online organization affiliated with Siebert Financial. It provides women with free tools needed to make educated financial decisions. The network offers an online course that helps women identify their debt problems, take action to reduce their debt and stay out of debt. In addition, the Women's Financial Network provides women with links to further reading, debt calculators and free debt-management worksheets.
   
Debt Help for Women

Debt Help for Women is a network that works with women to help them reduce their substantial credit card debt. It offers a free telephone consultation in which women can receive advice on reducing their debt quickly. By utilizing attorneys in this process, Debt Help for Women is able to come up with effective solutions and start women on a debt-free path. According to the network's website, women must live in an eligible state and have more than $10,000 in credit card debt to utilize its services.


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How Long Does it Take an Average Person to Pay Off Their Credit Card Debt?

Unfortunately, paying off credit card debt is not always a simple and straightforward process -- especially when all you can make is the minimum payment each month. Continuous use of the card while trying to pay it off further complicates the matter. Examine how long it can take the average person to pay off credit card debt to understand the importance of a debt payoff strategy.

The average American carries about $4,200 in credit card debt. Consumers use credit card funds for everything from emergencies to buying gas and food. The best practice to avoid piling up credit card debt is to pay off the balance in full each month. Otherwise you must meet the minimum payment requirements of the creditor, which starts at about 2 percent of the balance.


   
Downsides of Credit Card Debt

Choosing to carry a credit card debt balance for a long term could negatively affect your ability to get other forms of credit. For example, mortgage lenders look at your debt-to-income ratio when evaluating you for a mortgage loan. The more credit card debt you have, the higher that ratio, which lowers your chance of approval. Credit card debt is also very costly in terms of the average rates and fees. Some creditors charge as much as 79.9 percent annually.
   
Average Time to Payoff

The average amount of time it takes to pay off debt varies according to the account holder's rate, balance and spending habits. The average credit card rate is about 14.72 percent (estimate as of 2011) and as discussed, the average person has about $4,200 of credit card debt (estimate as of 2011). Based on those figures (and assuming a minimum payment of 2 percent of the balance) making the minimum payment each month would take more than 24 years to pay off. Technically the debt can persist forever if the account holder continues to use the card.
   
Suggestions

 Determine how long it will take for you to pay off your own credit card debt using the Bankrate minimum payment calculator. Then take every step possible to reduce the amount of time it will take you to pay off your credit card debt. One way is to enact a debt payoff strategy that requires you to pay more than your required payment each month. The more extra principal you pay each month over the minimum, the less time it will take to achieve a zero balance. Another strategy to pay off the credit card early is to consolidate the debt into a lower interest account, such as a refinanced mortgage loan. Consult a financial counselor for advice before taking that step.

To Apply for Lower Interest Credit Cards with Balance Transfer Offers, Visit:  www.CherokeeFinancialInc.com

How to Use Personal Loans to Pay off Massive Credit Card Debt

If you have massive credit card debt, you should know that you're not alone. Millions of individuals around the world are suffering with overwhelming credit card debt that is threatening to pull them under. If you're looking for a solution, here is some information on how to use personal loans to pay off massive credit card debt.
  
Instructions:

1.  Gather All Credit Card Bills. The first thing you need to do is gather all of your credit card bills so you can determine exactly how much money you will need to pay off your credit card debt. Make a list of each credit card, the balance owed on the card and how much the interest is. Once you have gathered every single bill, add up the balances so you will know exactly how much credit card debt you have.
      
2.  Speak with Your Bank or Credit Union about a Personal Loan. Depending upon your credit history, loan history or debt to income ratio - you may need collateral for a loan. Speaking with a representative of your local bank or credit union will help you determine whether this is needed or not. Explain to them how much you need and what you can offer as collateral if needed. When you are told how much you are approved for, you can further determine how to use the money to pay off your credit card debt.
      
3.  Create Priorities. You may or may not be able to receive a loan that is high enough to cover all of your credit card debt. If not, you will need to create priorities. Look again at your list of debts and pay special attention to the cards with high interest rates. They should be paid off first. Pay off the credit cards that you can - paying the highest interest cards first. This will help you save money in the long run. You will have only one payment (the loan) rather than several and most likely it will be a fixed rate rather than a variable one.

4.  Pay Off Your Credit Cards. Now that you've determined which credit cards to pay off, or if you will be paying them all off, you need to do a few extra things. Send the money in a money order or check so you will have proof of the transaction. If possible, send the money certified mail so you will receive a receipt when the mail has been signed for and delivered. Also, send proof of the payoffs to all three major credit bureaus. These are TransUnion, Equifax and Experian. This will help insure that the information makes it onto your credit report and that the credit bureaus are aware that you've paid the debts off.
      
5.  Cut Your Credit Cards in Half. Okay, so this is an optional step, but it's important to learn how to manage credit cards. It's all to easy to end up overwhelmed by credit card debt again and be back in the same situation you were in to begin with. Consider credit counseling or something similar to empower you and give you knowledge about credit concerns.

For Lower Interest Credit Cards and Prepaid Debit Cards to Help with your Credit Management Budgeting, Visit:  www.CherokeeFinancialInc.com

How to Pay Extra Toward the Principal of a Loan

Loans are a blessing and a curse. They can bail you out when you are in need of money but then you have to pay them back and you need to plan how to do this. It is possible to get a loan without interest but not too likely; therefore you need to plan to pay the interest on the loan as well as the principal.




Instructions:

1.  Contact your loan company or read your contract and be sure there isn't a prepayment cause. A prepayment cause can prevent you from paying less interest, since it states the amount of interest that you pay regardless of when you pay the loan. This means that if you borrow $500 and have interest of $50, then you have to pay $550 no matter if you pay the loan off in advance or not.

 2.  Add extra money to your monthly payments. As long as you don't have a prepayment cause you can apply the extra payment to the principal of your loan and therefore reduce the amount of interest you need to pay, which means you can pay less. In the example above, if you pay the loan in 6 months instead of a year you may save $25 in interest.

3.  Select a loan that will give you time without interest. Many credit card companies offer zero percent interest for a certain amount of time. Figure the amount you need to pay each month on the loan before the interest payments start, thereby eliminating the interest fees.

 4.  Send in a check for the minimal payment for the monthly payment of your loan plus a second check, which is clearly marked for additional principal. Alternatively, you can make payments weekly instead of monthly, which will cut the loan down drastically.
      
5.  Pay the full amount of the loan when it is due rather than just a monthly payment to avoid the interest. Paying the loan in full means you only pay what you borrowed.

 Paying a little extra every month will make your loan balance decrease faster and allow you to get out of debt sooner.

 Be careful, some of the interest free loans accumulate interest from day one. Therefore, if you don't pay the loan in full before the interest starts, you have to pay interest on the money from day one.

To Apply for Lower Interest Credit Cards with Balance Transfer Offers & Personal Loans, Visit:  www.CherokeeFinancialInc.com

Should I Pay Off My Second Mortgage Or My Credit Cards First?

When choosing between bad options, choose the one that harms you least. 

 You could lose your home
   
Your second mortgage, if you get into financial trouble, could cost you your house. Your credit cards, no matter how bad your finances get, can't put you out on the street, though they can wreck your credit rating if you go too long without paying them.

When Your Credit Card Bills Are Higher Than Your Mortgage

If you're paying more on credit cards than you are on the second mortgage each month, it's worth it to trim the fat off of your expenses and run that credit card bill down to nothing--then retire the card. Debt consolidations may be worth exploring in this instance.
   
Bottom Line

Unless your mortgage is "upside down," where the total debt owed exceeds the value of your home, you are almost always better off paying off the second mortgage ahead of paying off the credit cards if you have to make a choice between the two. If you are capable of paying both debts off, put extra money toward paying off the one with the highest interest rate.



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Consumer Debt Relief Tips

Relieving yourself from consumer debt will allow your money to grow.

It doesn't take long to get into debt, but trying to pay off consumer debt can be overwhelming. Being in debt creates stress and frustration and prevents the consumer from living life to the fullest. There are strategies to help those in debt begin to pay off credit card balances and to avoid consumer debt in the long run.

Pay Down Debt

It is important to stop using credit cards when you are trying to decrease your debt. Pay as much as you can on the card that holds the highest interest rate and pay the minimum balance on all other cards. When that card is paid off, use the same method on the card holding the next highest interest rate. This strategy protects your credit score and allows you to feel success as each card is paid off. If you do not have extra funds to begin paying down your debt, consider taking a part-time job and use your paychecks exclusively for paying off debt.
   
Debt Negotiation

Another strategy is debt negotiation. Contact creditors in person or by phone to try to get interest rates lowered on the high-interest balances.  You may qualify for this if you can prove you are currently facing a financial hardship. Creditors do not have to lower their rates, but it may be in their best interests if it allows the consumer to pay off the balance.
   
Debt Consolidation

Consolidation combines smaller debts into one larger loan with only one payment per month. Debt consolidation turns unsecured debt into secured debt. The debt becomes secured by the consumer's property, which may be seized if the consumer fails to pay.
   
Credit Counseling

Credit counselors assist those in debt to develop budgets. They advise on managing money and may provide follow-up workshops or other sessions.  It is important to research credit counselors carefully and not to do business with anyone who charges high fees. You do not want to get further into debt.
   
Adjust Attitude Toward Spending

Think about the underlying causes of getting into debt. Are you spending as a form of recreation or to make yourself feel better? Once your debt is paid off, you do not want to adopt the same spending pattern as before. Living within your means is healthful for your bank account and for your emotions.

For Lower Interest Credit Cards & Balance Transfer Credit Cards, 
Visit: www.CherokeeFinancialInc.com

Prepaid Debit Cards

Prepaid Debit Cards

Last Updated: December 22, 2011

Check Out Our Recommended Debit Cards

If you're frustrated because it seems as though a credit card is necessary to get by in today's world, and you've been unsuccessful getting one due to a poor credit history, you might consider a prepaid credit card. You'll have most of the advantages of a credit card, and you won't haveto worry about interest charges. One significant benefit of the prepaid credit card is that you can charge to your heart's
(I mean your deposit limit's) content, and you won't be in debt; the money is yours and once it's gone, you can't spend any more until you add more funds.

What is a Prepaid Debit Card?
A prepaid credit or debit card account is opened by depositing money into an account you establish with the card issuer, much in the same way you would make a deposit to open a checking or savings account. Once you fund the account with a designated amount, you are issued a prepaid credit
or debit card that can be used anywhere one would use a regular credit card. A prepaid credit card is not really a credit card, as no credit isoffered by the card issuer; the card-holder simply spends money which has been "stored" via a prior deposit by the card-holder or someone else, such as a parent. It's very similar to using a debit card linked to a savings or checking account; there are no monthly bills associated with the card, or interest charges; but there are still fees involved, so consumers should always do their research and understand the cost of their"credit".

Why Are These Called Credit Cards?
The reason why the word "credit" is associated with these prepaid cards is because most cards carry a credit-card brand (such as Visa orMasterCard) and can be used in similar ways. It's really no more than a stored value card that can be used in multiple locations due to the Visa(or other credit card) insignia. As more consumers require a suitable solution torebuilding credit, recent changes have allowed some credit cardcompanies to offer pre-paid credit cards to help rebuild credit. However, they are harder to find, and many have higher fees associated with them; so make sure you do your research. Many pre-paid products falsely claim they will improve your credit rating.

Benefits of a Prepaid Credit Card
1. There is no such thing as overdrafting your account; you cannot exceed your limit.
2. Prepaid credit cards can be a big advantage to low-income consumers who might otherwise be stuck dealing in cash, unable to make such basic transactions as paying for gas at the pump, paying bills online, or making car rental or hotel reservations.
3. Contingent on the card you select, your money may be protected if your card is ever lost or stolen.
4. Prepaid credit cards are a convenient way to pay for goods when traveling, even outside the U.S.
5. Prepaid credit or debit cards are often marketed to teenagers for shopping online without having their parents complete the transaction, or as a convenience for parents wishing to provide funds to children away from home.
6. Obtaining a prepaid credit card is easy, fast, and requires no credit check.
7. Some prepaid credit cards today report card history to major credit bureaus, so cardholders may be able to build or rebuild their credit using a prepaid credit card without the risk of damaging it along the way.
In summary, prepaid credit cards are a good solution for anyone who does not want to be tied down to a banking institution, anyone wanting a more secure way to carry their money than simply cash, or anyone having troubles being approved for a credit card. In today's society that is more and more cashless, somebody who doesn't have access to cashless transaction vehicles is at a major disadvantage.

Disadvantages to Prepaid Credit Cards
There are a number downsides to the prepaid card.
1. Most cards require a start-up fee, and while for many companies this fee is minimal, some of them are substantial. In addition, you'll most likely have to pay additional fees each time you deposit more cash into your prepaid credit card account; perhaps not as much as the initial fee, but a fee, no less.
2. Some cards will allow you to add more funds for free, but may charge a monthly "maintenance" fee instead.
3. Another downside is that many businesses that accept automatic payments from bank or credit card accounts may not accept them from prepaid cards. For most consumers this is a minimal annoyance, but for some it can be a significant setback.

As with any credit product, when selecting a prepaid card you should always do your research and make an informed decision on the best card to meet your individual needs. As stated previously, there may be a number of different fees associated with using a prepaid credit card, some of which might be high enough to offset any benefits. A prepaid credit card will generally carry more fees than a secured or unsecured credit card (presuming you pay them off monthly) therefore a prepaid card may only be a good option for those who cannot obtain any other form of credit, but require the convenience of a credit card. 

Now let's define some of the fees you might encounter in researching the available prepaid credit cards:
-Sign-up or Start-up Fee: Self-explanatory. May range from "free" to $50.
-Transaction, POS, or Usage fee: A fee assessed each time you use the card at a store, online, by phone, etc. Typically it is "no charge", but there might be a small fee (under $1.00).
-ATM Withdrawal fee: Can range from "free" to $5.00 or more. May be higher for International withdrawals.
-Monthly Maintenance Fee: A fee charged to your account each month. Sometimes there is no fee for the first few months, and then one kicks in after 6 months; can range from "free" to $10 or less.
-Reloading or Recharging Fee: A fee charged to you for adding more money to the account where your money is being held. Depending on the method used to add or transfer the money (at a retail location, using another credit card, cash, etc) the fee may differ. Typically "free" to less than $5.
-Balance Inquiry Fee: A fee to provide you information about your available balance. Can vary contingent on the method you use to request the information: online, telephone, ATM. May range from "free" to $3.00 or less.
-Monthly Statement Fee: A fee for obtaining monthly transaction history. May be up to $10 if sent by mail, however is typically free of charge if you go to the card issuer's website.
-Cancellation/Refund Fees: A potential fee for cancelling your card altogether or requesting a partial refund of monies loaded onto the card.
-Insufficient Funds/Overdraft Fees: A fee charged if you attempt to make a transaction and it is refused to to inadequate funds in your account;or, it goes through anyway but you exceed your limit. Usually under $3.00.
-Foreign Currency Conversion Fee: A fee, usually a percentage of the total amount spent, charged to convert from another currency during international transactions/travel.
In Summary: Check out the various types of pre-paid debit and credit cards on the market. Read the terms and conditions carefully, and define your objectives for needing this product.
Depending on your individual needs, you may find that a traditional credit card, a secured credit card
or a debit card will work better for you and save you money in the long run.

Here are a few Prepaid Debit Cards We Highly Recommend:

Prepaid Debit Cards: A Money Option

Traditionally, people think of banks as a place to put your money, and credit cards as a way to spend it, with debit cards being an interesting hybrid. They spend like a credit card, but draft out of your bank account. For many consumers, though, none of these options are good. Many people have difficulty tracking their spending with a debit card, and many don’t even qualify for a checking account. If this is you, don’t panic! You have other options.
Announcing a Prepaid Debit Card ready to save the day! Prepaid Debit Cards come in many varieties, depending on what your needs are. If your employer wants you to set up direct deposit, but you can’t get a bank account, there is a prepaid debit card that would be perfect for you. If you want a way to do some online spending, but don’t like to deal with banks or credit card companies, you can use a prepaid debit card. Load up once, spend when you need to, and then reload if you need to spend more. If you are tired of bank fees, credit card fees, interest charges, and so forth, you can get a prepaid debit card with a one-time fee and then never pay fees again. No matter what your needs, if the banks don’t like you, or you don’t like them, there is probably a prepaid debit card that would be perfect for you.
Prepaid debit cards are a great way to control your budget, too. Ever try sticking to cash spending, only to find that all your cash disappears? Consider getting separate prepaid debit cards for each budget category, and use them to control your spending. Prepaid debit cards can be a great way to better control your finances. In short, prepaid debit cards can definitely come to your rescue!  There are several ads and links here for you to click on and sign up for a prepaid debit card that can be reloaded time and time again and most can be funded from your bank account.

Some people want to keep some of their spending private from say the eyes of a spouse or significant other who might open and read their credit card statement. We’re not going to list what this spending might entail, but suffice to say, even if some merchants provide generic sounding names for purchases, a curious or suspicious spouse might want to know what the spending is all about.
A prepaid card offers a measure of privacy in that no bank statement is mailed to your house. You check your account by logging in to your account online. So you don’t generate a “paper trail.” Only you have access to your transaction history.
You can also set up direct deposit to have a chunk of change put on the card at regular intervals. This might be your “mad money” or “hobby fund.” It’s apart from your finances, taken out before the rest of your pay is recorded into your bank account as a deposit. Thus, somebody looking at your bank statement won’t know that you have already set aside your own private spending funds.

Sign up for one or for several.  Many require an initial load of only $40 and then after that load what you want up to a total of up to $10,000.  Remember to read the Terms & Conditions and only sign up for the ones that will meet your own personal needs.

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