Americans have a love affair with credit cards. Between the rewards that can easily be wracked up to the convenience of simply carrying around a piece of plastic to purchase everything, using a credit card is often a great consumer experience. However, this convenience can quickly turn sour if you become addicted to using credit cards. When is too much credit card use too much? And at what is the line between loving the use of your credit card and full-blown addiction? Here are seven signs that you are addicted to your credit card.
You Hide Your Spending Habits From Your Loved One
If you are at the point that you are charging so much on your credit cards that you fear your loved one knowing the extent of your spending habits, and attempt to hide the credit card bills from him or her each month, then this is a sure sign that your credit card habit has gotten out of control. If you feel the need to constantly cover up the extent of your credit card charges, or even worse, if you are hiding the fact that your credit card debt is piling up then it is important that you acknowledge that your money habits are probably out of control and that you need to seek help.
You Have Maxed Out Credit Cards
There are times when a maxed out credit card is necessary, for example, an emergency that you simply have no other way to cover but with your credit card. However, if your credit card is being maxed out because of your daily spending habits, and you are spending more money than you are making then you may have a credit card addiction.
You Get Anxiety at the Thought of Not Using Your Card
People that rely heavily on their credit cards often can’t imagine being in a situation where they couldn’t use it. However, if you are a true addict then you might experience actual anxiety at the thought of being credit card-less. This is often due to the fact that credit card addicts don’t actually have any cash that they can use if they can’t use their plastic, and so credit cards are the only way for them to buy things. If you can relate to this then you may have true credit card addiction.
You Keep Obtaining New Lines of Credit, Even Though In Debt
Most consumers know when to stop when it comes to taking out new credit cards, and realize that having maxed out credit cards is a telltale sign that they need to slow down their spending habits. However, credit card addicts do not know how to stop and will constantly seek out new lines of credit to continue their credit card habit.
You’ve Thought About Drastic Ways to Pay Credit Card Bills
In the end credit card addiction always catches up to you. Those that truly have problems often think about expensive and sometimes dangerous ways to get out of credit card debt by getting more money. If you find yourself so maxed out on credit cards that you’re thinking about drastic measures to get yourself out of debt such as take out a payday advance loan or even stealing money from a loved one then it is time to get the help you need
You Take Online Shopping to the Extreme
Online shopping addiction and credit card addiction can often be one and the same, and so if you find yourself spending a substantial amount of time on the Internet, scouring for online deals then this may be an entry point to credit card addiction.
You Find Excuses to Use Your Credit Card
If you find yourself using your credit card for things you can’t afford simply to obtain the rewards or points from them or because you feel the need to use your credit card then this can be a sign it’s time to put away the plastic.
Although emergency cash loans have a bad reputation, there are some situations where these types of loans come in handy. In fact, if used responsibly, an emergency cash loan can aid you when you are in a sticky situation or just find yourself in need of money quickly. Here are five good uses for emergency cash loans.
Medical Emergencies
If you or a loved one goes through a medical emergency, not only can that be a tough emotional situation, but also a financial one. Health insurance doesn’t always cover the medical procedures we need, and so an emergency cash loan can ease that financial burden when you find yourself faced with a hefty medical bill. Emergency cash loans cannot only be used for medical bills, but prescriptions as well. Whether you need money in order to pay for those out of pocket prescriptions or because you only receive partial health insurance, an emergency cash loan can be a convenient way to get the needed cash for any medical emergency.
Car Repairs
Without a car, many people have no way of going about their daily lives. If your car breaks down and you have no money on hand to pay for it then an emergency cash loan can come to the rescue. Emergency cash loans can be well worth it, especially if you risk losing money because you can’t get to work. In order to ensure you are able to repay your emergency cash loan, create a repayment plan in order to make sure you are borrowing responsibly.
Getting You Through Until The Next Paycheck
Life can throw all kinds of curve balls at you, and if you simply do not have the money to pay for them then emergency cash loans are a great way to tide you over until your next paycheck. For example, if your child needs money for a soccer uniform or you owe money to a friend, an emergency cash loan will ensure that you can go about your daily life. In order to take out an emergency cash loan responsibly however, make sure that you do not take out more money than you can afford to repay come your next paycheck.
Putting Groceries on the Table
If you are unable to put groceries on the table there is nothing to be ashamed of, as this happens to millions of Americans across the country. If you have run out of money, and need to feed you and your family then an emergency cash loan is a good way to get the money you need in between paychecks. The good thing about these loans is that you can take out a small amount of money at a time, and so you do not have to worry about over-extending yourself, as a few hundred dollars can most likely feed you and your family until your next paycheck.
Other Emergencies
Besides medical and auto emergencies, there are plenty of other types of situations that an emergency cash loan can come in handy. Due to its convenience and how easy it is to obtain one, many people choose to use them in situations where they need to get their hands on cash as soon as possible. Another great thing about emergency cash loans is that almost anyone can obtain one. As long as you have a steady income and a few documents then you can get the cash you need almost instantly. In fact, credit checks are not required for cash loans, and so even if you have bad credit, or no credit at all, an emergency cash loan can help you out in almost any situation.
Recent data indicates that people have been upping the amount they tip in recent years. This means that service industry workers are receiving more money for their work then they have since the economic meltdown in 2008. Although service industry jobs tend to not pay as well as other types of occupations, when you take into consideration the amount of tips that are received, they don’t sound so bad after all. If you are interested in getting a job in the service industry then right now is a great time to enter into a job that receives tips. Here is a list of the top five service industry jobs that make the most tips.
Waiter or Waitress
In many states servers actually receive less than the minimum wage since employers account for the tips that they’ll receive in order to raise the hourly rates of their employees. On average, 63% of a server’s total income comes from their tips, which is one of the highest of any jobs. If you are interested in being a server then you should consider which restaurant you work for carefully, as the location and the quality of food makes a huge difference in the amount of tips you’ll receive.
Casino Manager
If you are interested in joining the gambling world then you could do so while making great tips as a casino manager. This job requires that you walk around the casino to keep an eye on patrons and workers as well as help customers with any complaints they may have. As a casino manager, you may also be in charge of managing special occasion events as well as make sure valued customers are well taken care of. Although you may not receive a tip from every customer, casino managers tend to receive big ones when they do get tips from their customers. This makes the median hourly salary for a casino manager $17.40 an hour, which isn’t too bad.
Banquet Captain
Have you ever attended a large function in which food was present? If you did then chances are that was all thanks to the banquet captain. Banquet captains plan events and evaluate and manage their staff. They also must figure out how to solve any sort of problem that arises. Banquet captains receive a substantial amount of tips since they are given a portion of the gratuity that is included in the bill.
Sommelier
You must be quite knowledgeable in the field of wine in order to be a sommelier, however working as one is quite a great job. Sommeliers usually work in very high-end restaurants and recommend wine pairings for the restaurant’s dishes. Sommeliers tend to also be very experienced at serving wine. Along with the duty that a sommelier has to his or her customers, they also are usually given the duty of choosing the best wines to stock a restaurant’s wine cellar with. Although being a sommelier comes with a lot of responsibility, it also comes with a nice paycheck, as the average income is $23.50 an hour, a lot of which comes from the hefty tips that are often received by these wine experts.
Butler
You probably have seen a butler or two in the movies or on TV, however in real life butlers are more often called house managers. Their duty is to oversee a house staff as well as make sure everything in the house runs smoothly. A butler is often given a substantial amount of money in tips, making their average hourly salary $29.30. However, butlers seem to be a dying breed as there are only 10,000 citizens employed as butlers in the United States.
If you have good to excellent credit you are likely in a stable financial spot. However, you can easily ruin your credit score, as well as take a substantial hit to your bank account if you decide to co-sign a payday loan for a family member or close friend. In fact, a study done by the Federal Trade Commission indicated that 75% of co-signers ended up paying for the entire loan, this statistic is even worse for payday loans. On top of this, it is worthy to note that lenders will go after the person with the strongest credit first if a payday loan goes into default, which will directly affect your good credit score. For this reason following the general rule of “never cosign” is a good idea. However, it is understandable that it is difficult to say no to a family member or friend who is asking you to cosign a payday loan, and so here are five things to consider before you do so.
Knowledge is Key
It is crucial that you fully understand the weight of cosigning a payday loan. You are just as responsible for the loan repayment, and all activity on the loan will be directly reflected on your credit score. Due to this, it is key that you treat cosigning as a business deal, and sit down with your loved one to discuss all of the repercussions of not repaying the loan on time.
You Determine All of the Rules
Due to the fact you are the one with the strong credit score, you are also the one with the most to lose from cosigning a payday loan. This means that you have to dictate the rules to suit your needs.
Discuss it Fully
Before you agree to cosign a payday loan it is critical that you sit down with the co-signee and have an open and honest conversation. The bottom line is that you don’t want to regret signing on the dotted line at the end of the day, and so it is important to ensure that the co-signee understands that they are the ones who are gaining from having you as a cosigner, and that you are taking on a huge responsibility by agreeing to it. Even if you feel you can fully trust the individual you are cosigning a payday loan for, if they are in a bad financial situation then they might not be able to pay back the loan no matter how much they want to be able to. This would result in you having to deal with the full responsibility of repaying it.
Be Wary of the Negative Aspects
Once you have cosigned a payday loan there is rarely an opportunity to go back. Due to this, it is important to understand all of the negative affects of cosigning. For example, what will you do if you lose your job and are still held responsible for the payday loan? Also keep in mind that if your co-signee even makes a late payment you may be held responsible for paying the late penalties and fees that accumulate.
Create a Good Exit Strategy
If you decide to go through with cosigning a payday loan then it is crucial that you understand what the process is for removing yourself from the loan, and if it is even a possibility. There are some payday lenders that will allow you to remove yourself as a cosigner after the fact, however it is usually a very lengthy and complicated process, and will only be allowable if the co-signee has kept up with his or her payments.
The reason why people take out a personal loan depends greatly on their personal circumstances. Some people take one out because of necessity and some out of choice. Whatever the reason for why you’re looking to obtain a personal loan, there are a few things that you should always avoid. If you make these mistakes while applying for a personal loan it can result in your struggle to make repayments on times, creating too much debt for you to handle and paying much more than you really need to. Here are the top four mistakes that you should avoid when looking into obtaining a personal loan.
Running to the First Personal Loan That is Offered
Just like any purchase of an expensive or large item, it is crucial that you spend time browsing the personal loan market and doing research on the loan that is most suited to your financial needs. If you find that you are rushing into an application process without looking into what other personal loans are being offered, then it is very likely that you won’t receive the most competitive rates or best terms that are available to you. Even if you are given an offer that looks too good to pass up, it is important that you do not immediately sign any contracts. Walk away with the needed information and look through it with an expert. You could find that there are hidden clauses or terms that will make the loan not as great as you thought it was originally.
Not Asking Questions
If you find yourself with questions once you have gone through the process of researching and finding the best personal loan for your situation, whether that be a payday loan or bank loan, it is vital that you are not afraid to ask a representative of the bank, lender or company you are looking in to. It’s crucial that you feel you have a grasp on all aspects of what is being agreed upon before you apply for the personal loan. The representative at any establishment will be more than happy to answer any questions that you have.
Agreeing to Repayment Terms That are Irresponsible
Agreeing on exact terms with a lender can be quite tricky. It is important that you negotiate for terms that are not only achievable, but also do not leave you in a financial position where you are constantly struggling. The goal of most personal loans are to give you a better quality of life and aid in easing the strain of difficult financial times or strife. Keep this in mind when applying for a loan, as you should never find yourself in a position where you obtained a personal loan to help a financial situation, but then found yourself locked into a personal loan that you are not able to afford. In the majority of cases you will be able to offer that is given to you.
Taking Out too Big of a Personal Loan
There should be no circumstance where you get too greedy and take out too big of loan. Keep in mind that the bigger the loan, the more interest you will end up having to repay. Never think of a personal loan as free money as it is just the opposite. To avoid this mistake it is a good idea to figure out exactly the amount of money you need in order to achieve what you wanted from taking out the personal loan in the first place. Before taking out any loan you should always consider the long term affects of taking out the loan. The first question to ask yourself should always be if you could afford to repay the loan as agreed.
When it comes to saving money on your credit card spending, one of the best ways to do so is to reduce or even eliminate credit card fees all together. The fact is that many Americans are subject to extensive credit card bills because they are paying fees that they could easily avoid. In fact, you could avoid credit card fees entirely if you choose the right types of credit cards and practice smart credit card use.
Avoid Annual Credit Card Fees
Unfortunately for consumers, there are more credit card companies then ever before that charges their customers an annual fee. Despite this, there are still an abundance of annual free credit card issuers that are available to consumers. Before you choose a credit card that comes with an annual fee, it’s a good idea to look into your free options first to see if one fits your financial situation. You should only accept credit card offers with annual fees if you have no other options.
Avoid Foreign Transaction Fees
This type of credit card fee tends to be very controversial. Credit card companies exchange currencies using interbank exchange rates. However, these charges are placed on any sort of transaction that is made outside of the United States, even if U.S. dollars are used. The problem is that the majority of credit card issuers tack on a foreign transaction fee that can range from 3 to 5% to this charge. Luckily you can easily avoid these foreign transaction fees by choosing a credit card that does not charge this type of fee. There are a growing number of companies that do not charge this fee including Discover and Capital One.
Avoid Late Fees
In the majority of cases when you own a credit card you must be responsible for making your payments in a timely fashion in order to avoid any sort of late fee. To avoid ever making a late payment by accident, it is a good idea to set up an automatic payment plan. This will ensure that your credit card bill doesn’t go unpaid simply because you forgot to make a payment. On top of this, by paying your credit card bill electronically the risk of a check getting lost in the mail no longer exists. It is true that there are some credit cards that do not have any late payment fees, however be aware that just because there are no late payment fees on a card does not mean that it is an excuse to pay your credit card bill late.
Avoid Cash Advance Fees
The majority of credit cards come with a cash advance fee. This fee is usually 3% of a minimum of $10. On top of cash advance fees, many credit cards will also come with a higher APR on any type of cash withdrawal. In order to avoid paying cash advance fees, it is quite simple—don’t use credit cards for cash advances. In order to avoid the temptation of withdrawing cash from your credit card it’s a smart move to avoid setting up a PIN code on your card so that it is impossible to do so.
Avoid Balance Transfer Fees
Most cards that come with a 0% APR financing on cash advances do come with a balance transfer fee that can be as high as 5%. To avoid this fee when you have to finance a purchase using a credit card then it is a good idea to utilize a 0% offer on any items that you purchase before you purchase them and avoid using a balance transfer after the fact.
As the year comes to a close it is not too late to start getting your finances in order so that you can start off 2014 in a good place. In order to do this here are five financial moves to give you a kick-start into the New Year.
Purchase a Smaller Home
During the housing bubble of 2004 and 2005 it was not uncommon to hear people who purchased a house way beyond their means because their real estate agent convinced them that their income allowed them to purchase a more expensive home. At that time many people went ahead and purchased a home at the highest bracket that they were able to afford, while only a small percentage held back and decided to purchase a home that was more within their means. If you are looking to purchase a home in the new year then a very savvy financial move would be to purchase a smaller less expensive home even if you think you can afford a more expensive one.
Save the Right Way for Retirement
It is a good financial move to not tie up too much of your savings in a tax-free retirement account such as a 401(k). This is because when a financial emergency hits, you will be able to deal with it if you are more liquid then a 401(k) allows. Tying up too much money in a savings account that is restrictive such as a college or retirement savings accounts means that you will not have as much flexibility to invest in current important things such as paying bills.
Do Not Make Stocks Your Main Financial Strategy
The most financially successful people do not use the market as a way to gain their income and success; instead they use it as a tool. This means that while investing in a stock or two may be a sound part of a much larger financial strategy, you should not depend on it.
Focus on Perpetual Income Streams
You should be focused on how to create and build up your perpetual income stream or streams. This type of income should provide you with a steady and consistent pay out of cash over time. For example a doctor may decide to purchase a medical office that will generate him or her rent or an author may make an income off of a book. You should think of perpetual income streams as the holy grail of your finances. It is highly recommended that you avoid the very traditional investments in order to generate more income. One example of a traditional investment is annuities, which are extremely expensive and once they are purchased you are not able to change your mind.
Figure Out Your Cash Flow
When you are attempting to get on top of your finances, you may be tempted to begin tracking and analyzing all of your expenses from your soy latte at Starbucks to the gas you put in your car. However, many financial analysts believe that doing these calculations are extremely meaningless. Instead of wasting your time you should instead focus on the costs that cannot be changed by cutting back. These include debt payments and mortgages. As long as you are generating enough income to cover these types of long term expenses that you can’t easily cut back on, then you will feel more secure in your finances. On top of this, it is recommended that if you are spending any amount of money that isn’t a necessity and isn’t making you happy, you should work to eliminate it.
Daily deals are a way for companies to compete with one another by offering their products and services at a great discount. However, sometimes these deals are unusable. If you purchased a daily deal that you don’t have time to use and you don’t want it to go to waste, you can unload it unto someone else for a profit and make a pretty penny by doing so.
Selling Daily Deals
According to one study done at Rice University, every two out of ten daily deals go unredeemed once the promotion period is up. On top this, it is estimated that about 30% of annual deals that were sold last year end up unused. As over $5 billion of annual deals were sold last year, this is a huge amount.
Unloading Daily Deals
There are many sites such as DealsGoRound and MyCabbage, which are great marketplaces that allow you to unload your unwanted daily deals by selling them to other people who have a use for them. Many sites even offer a mobile app that will allow you to share, organize and redeem all of your daily deals. This makes it much easier to sell all of the deals that you do not want. There are other sites such as CoupFlip that actually purchase unwanted deals from you that you obtained from sites such as Living Social and Groupon in order to resell them.
Using a Website to Unload Daily Deals
Using a website in order to sell your daily deals allows you to immediately unload them instead of listing your deals and hoping for the best. You are able to go on and take less than a minute to upload and sell all of the daily deals that you want to get rid of. These sites use varying algorithms to determine the purchase price of the daily deals they buy from you. This is usually based on the amount sold, the expiration date of the deal, and the review of the company that initially gave away the deal. These websites will usually give you a fair price. This is especially true if your daily deal has a while until its expiration date and it is a pretty popular deal to start off with. You may even get up to 70% on your deal.
Shop For Deals As Well
Of course these types of websites don’t make any profit unless they are able to resell the daily deals that are sold to them. Due to this, they often offer great prices on deals for entertainment, spas, clothing, and even vacations. It is also a good place to look for any last-minute discounts on restaurants. Most daily deals that are sold on these sites will be 10% less than what they sold for at the original location, and so you could potentially save a huge amount of money by browsing around for deals on these sites.
Unloading Unwanted Gift Cards
If you were given a gift card that you have no use for then you may want to consider turning that plastic into some cold hard cash. There are many sites on the Internet that will buy cards from you and resell them. You could potentially gain up to 60% of the cards value simply by selling it on one of these sites, which is a much better deal then letting the card go to waste in your wallet. There are many websites out there that will buy your unwanted gift cards such as CardCash, Plastic Jungle and Gift Card Granny. All of these sites make it extremely easy to unload your unwanted gift cards.
Sometimes life throws us a financial curve ball that we are required to deal with. Although it is never fun to have to come up with the money to pay for a financial emergency, remember that what doesn’t kill you will make you stronger, and you will get through any sort of financial mishap. Here are five easy ways to deal with financial emergencies.
Don’t Panic
Although this may seem pretty obvious, most people do end up panicking and stressing out over a financial emergency. Whether your spouse was laid off, you have to cash out your 401k, take out another credit card, or borrow money; the key to getting through a financial emergency is to remain calm and level headed. If you find yourself panicking the second you are hit with a financial emergency, you will more easily do something that will cost you even more money at the end of the day or will cause you stress for much longer than needed.
Consider a Quick Cash Loan
Although a quick cash loan comes with a higher interest rate than other types of loans they are designed to deal with short-term emergencies and so you will not have to spend a long period of time slaving over the repayments. On top of this, quick cash loans are often much easier to obtain then other forms of loans such as credit cards or a secured loans. Just remember that you have to keep on top of your payments for quick cash loans, as otherwise you may find yourself in bigger financial trouble then you started off with. However, if you are a responsible person then this may be the best option for your financial emergency.
Trim Your Spending
In order to find the money for a financial emergency it is usually beneficial to get all of your finances in order. Look through your bank account and all of your other accounts in order to find out exactly where all of your money is going. Once you figure out where exactly your money is being wasted, such as on take out or at bars, you will be able to cut down on unnecessary spending in order to allocate more money to your financial emergency. Remember, that this is not an easy process as you will have to determine what is most important in your life as well as what you can cut out.
Explain Your Circumstances
No matter what the reason is behind your financial emergency, it is a very good idea to call every company that you pay a monthly fee to so that you can explain your financial situation. It is worth asking about any sort of payment plan that you can go on or even obtaining a discounted rate. The money that you save doing this can go straight into helping to pay for your financial emergency. For example, calling your cable company to ask about switching to a cheaper plan can save you as much as $50 a month.
Borrow From Friends or Family
It is important that you proceed with caution when exercising this option, as you do not want to lose your loved ones over a financial situation, however turning to a friend or family member may be your best option when it comes to paying for a financial emergency. Remember that in order to maintain a good relationship with someone who you borrow money from, it is very important that you pay them back as soon as possible, and only borrow the minimum amount of money that you need.
Anything that promises you quick and easy money for an up-front investment should be carefully scoured to make sure it is not just another in the long line of quick cash schemes. Instead of expecting instant income, people need to learn more about what scams to watch out for, so here are some of the most common schemes and what red flags they should be watching for.
Ponzi Schemes
Ponzi schemes are a financial scam where potential investors are contacted and lured in with the promise of huge return on their investments, as much as 50 percent. After a few investors have given their money, the first investors are paid back with the new money, making the scheme seem legitimate. What you would be required to do in one of these schemes would be to swindle new investors to invest their money so the old ones can get paid, and in return you would get your portion of money off what you were able to swindle away from people. These types of quick cash schemes are dangerous, illegal, and they will leave you with many upset people in the end.
Internet Schemes
There are numerous businesses online that claim they will help people get rich quickly. You just have to put in a few hours’ worth of work and all of a sudden, you’ll have an astonishing income. The question to ask yourself is why would they be sharing this information if this were the case? The truth is, there is no perfect way to make an income online without the time and effort of a full time job. There are many legitimate online business opportunities, but don’t fall for one that promises huge rewards without the proper work being put into it.
House Flipping
While you can make money flipping houses if you are able to buy them for a low price and somehow turn around and sell them for a higher price, this is not the type of quick cash project you should be looking to invest in. The risk on this type of business is huge, even if you have simply just invested a small amount of cash, because if the house does not sell, you have a lot of financial responsibilities that could cause financial hardship. Steer clear of this scheme if someone comes to you asking for your hard-earned cash.
Stuffing Envelopes
There are many places that advertise the ability for people to sit at home, in front of the television, and stuff envelopes for money. They promise as much as a dollar per envelope, and since most people can do hundreds per hour, this can be a quick way to make money – but it’s not. The truth is, this is a quick cash scheme that tells you to send some money for your first set of supplies, and what you get in return is a piece of paper that tells you how to repeat this same process and get the same money from other people. Some of these scammers will also ask for personal information like bank account numbers or social security numbers that will make your more susceptible to identity theft. This type of “work at home” scam has been around for a while now and should avoided all together.
Mystery Shopping
Most of the people who hear about mystery shopping are instantly curious. They figure why not try and get money for doing something they enjoy and are already doing? The problem is you usually have to spend a lot more money than you would ever make doing this job, leaving you more in the hole after you did the job than you made in the process. The only time this is not a quick cash scheme is when you would have had to make that specific purchase anyway, allowing you to come out of the end of it slightly ahead.
Quick cash schemes are all over the place, and they are scamming people more in recent years as unemployment has climbed. Just make sure you stay aware before doing anything like this, because as the adage goes, if it sounds too good to be true, it often is.
