Credit cards have been around for years and have become a way of life.  Originally designed for convenience, most credit users paid their bills in full every month and used their cards for the ease of not having to carry cash or a check book.  Somehow over the decades though that convenience has turned to habit—a bad spending habit as more and more consumers used their credit cards to buy things that they didn’t need or have the money for.

These spending habits lead to paying high interest on items which adds significantly to the cost of the item.  And the ease of use made it all too easy to find oneself in debt.  Thus the statistics and issues we face today as more and more Americans struggle to pay off debt each month that is more than they can afford.

Hence the return of the charge card.  Originally offered by American Express, the charge card allows you to use your card for purchases same as the credit card but that bill must be paid in full each month or you will pay steep fees.  It’s mainly a convenience card.

This enables you to make sure that you are not over-spending or buying things that you can’t afford.  A good option for people working hard to stay on a budget and stay out of debt.

The Charge Card lost popularity for a while as consumers switched to Credit Cards wanting the ability to carry a balance or finance something that they could not pay off in one month, but with the struggling economy that’s no longer the priority. More and more people are shying away from large unnecessary purchases and re-evaluating their spending habits.

A Charge Card may help you stay focused on that goal.

The New Year is a time of new beginnings.  A fresh start and a renewed outlook.  Most Americans participate in the age-old tradition of making New Year’s Resolutions and not too surprisingly, we all share similar goals when it comes to improving ourselves and our lives.

Below are ten of the most common resolutions. See how many are on your list too.

1.  Lose weight and/or eat healthier
2. Quit smoking
3. Exercise more/join a gym
4. Spend more time with friends and family
5. Get out of debt
6. Enjoy life more
7. Quit drinking
8. Get organized
9. Learn something new
10. Help others/donate/volunteer

While all of these resolutions are admirable, it’s not likely that the average person could accomplish all of them in one year if it that was their goal.  It’s actually best to choose one resolution—the one most important to you and make that your top priority.  Or maybe choose your top three but work on only one at a time in order to be successful.  The key to achieving your goal is to make it realistic.  Saying something like I’m going to lose 50 lbs by Valentine’s Day is only setting yourself up for failure (and frustration).

Statistically most Americans have given up on their resolutions by early spring and don’t revisit them again until the next year but by breaking it down to just fixing one thing in your life; you have a much better chance of being successful.

If getting out of debt is high on your list, First Rate Debt Solutions is here to help.  With millions of dollars in debt settled in 2009 and a wide range of programs we can tailor to fit your needs, 2010 can finally be your year to become DEBT FREE!

Happy New Year!

On behalf of all of us at First Rate, I would like to take a moment to wish everyone a happy holiday season.  This past year has been challenging for many Americans including many of the staff at First Rate as we navigate our way through these challenging economic times.  But we remain committed to providing real solutions for those with severe financial difficulties and top notch customer service to all those who have enrolled in our programs.

Many are predicting that 2010 will be a better year economically.  This is not to say that we should expect a huge improvement but that hopefully the worst is over and the economy can start to rebound.  No one is expecting huge increases in housing prices or for the credit crunch to go away but in some ways that's okay.  Interest rates should remain low and that will help some people who do have large amounts of debt.

For all those Americans that are still struggling financially, our wish for you is that 2010 brings relief to those problems.  As always, we are available for a free personalized consultation to evaluate your situation and see if one of our debt relief programs would be of value to you.

Above all, have a safe and happy holiday and best wishes for a healthy and prosperous 2010!

Economists are predicting that the worst of the recession is over but this holiday season may be the make or break for many retailers depending on how much they sell.  It could also be the make or break for many Americans if they over-spend and find themselves in too much debt.

Hype for "Black Friday", the biggest shopping day of the year is already in full swing as retailers try to lure you in with door-busting bargains all while hoping you will buy much more once you are in the store.

Recent surveys show that most Americans plan to spend the same or less this year due to the economy.  So if you're like most Americans and you are looking to keep spending under control this year, here are a few websites and ideas that might help you achieve your goal.

Make a list of everyone you want/need to buy for and try to set a reasonable budget.  If you total it up and it's more than you can afford, start paring back on either names or dollar amounts.  Once you know who you are going to buy for, check out these bargain hunting websites for great deals, valuable coupons, and gift ideas.  It may take a little extra time but worth the effort to save you money.  Give yourself the best gift of all by not over-spending.  You'll thank yourself in January!

www.RetailMeNot.com

www.CouponCabin.com

www.CouponCode.com

www.froogle.com

www.shopzilla.com

www.best-buy-deal.com

www.pricegrabber.com

The economy is in the tank and Americans are suffering.  It’s a natural response for the government to step in to “help”.  Last year we saw bail-outs, takeovers, and new laws all in an attempt to help stop a big problem from getting worse.   Some were probably necessary but others maybe not. 

Look at the new credit card laws.  There is no argument that Credit Card companies have been taking advantage of consumers for years.  But in the days when credit was plentiful and interest rates were low, no one really seemed to care.  It only got ugly when the economy tanked and large banking institutions started to look for ways to minimize their losses (at the expense of their credit card customers).  Banks that were losing millions in foreclosures could make up some of the loss by raising interest rates, increasing late fees, and doubling the minimum payments due.   But at what cost?   Most card issuers didn’t have to give the consumer much notice before changing these terms and therefore it took a lot of Americans off-guard and placed them in a bad financial situation.

The President, in an effort to stop consumers from being taken advantage of, signed a new law that will force the card issuers to give consumers more notice before changing terms.  In response, most credit card companies have already raised rates, increased fees and changed terms BEFORE the new law goes into effect.  And these banks have not just penalized borrowers with bad payment history--almost everyone was hit and many have even had their cards cancelled without warning further hurting their financial situation.

But this is probably just the beginning.  In the future we will most likely see all credit cards come with stiffer terms and gone are the days when you could hop from one 2.9% offer to another.  It’s likely as well that most banks will go back to cards with annual fees and offer fewer perks to customers who use their cards frequently.  In fact, a study by Synovate, a market research firm, found that U.S. households are already receiving dramatically fewer card offers in the mail.

Hopefully in the end, it will all even out but I would rather see the consumer have the option to have a card with high fees, low fees, or whatever perks are offered rather than to see the credit market so tight that you have to “take what you can get”.   Sometimes regulations end up hurting the very people they are designed to help.

In this crazy credit crunch, even having good credit can hurt you.  How, you ask?  Because the credit card companies aren't just penalizing those who are making late payments or maxed out.  It's just one more example of why consumers must always be looking out for themselves and making sure that they aren't getting into trouble.  Read this article in Time magazine about how consumers with good credit are experiencing problems too.

http://www.time.com/time/magazine/article/0,9171,1904129,00.html

And if you have questions about credit cards or your credit card debt, the experts at First Rate Debt Solutions are here to help.

Debt settlement has been around for years but a lot of people really don’t know about it.  After hearing how the program works, the first question is usually, "can the debt settlement process/program really be legal?"  The answer is absolutely YES!  Debt settlement is a legal and effective solution used by thousands of Americans to help avoid bankruptcy.  The basic idea behind debt settlement is very simple: negotiate deals with credit card companies that are mutually beneficial for both parties.

If a consumer cannot pay their debts in full and is considering bankruptcy protection, there is a good chance that the creditor will not get any or very little payment.  With debt settlement, we negotiate with the credit card company for the consumer to pay a lump sum to satisfy the outstanding balance but usually only a small percentage of what the original balance was thereby benefiting the consumer as well.

The greatest advantage for the credit card company is that they avoid any future problems with collecting the debt, and any concession made on the creditor's part is most obviously tax deductible.  If the consumer files for bankruptcy, the creditor is most likely out of luck so this is the perfect example of “something is better than nothing.”

So then why are so many skeptical of the program and its results?  The problem with debt settlement is not the legality of the practice, but the ethics of some who practice it.  Unfortunately, a number of unethical debt companies have been found to take advantage of consumers' financial strife to boost business.

Some companies with no experience in the finance industry are just popping up over-night, taking money, making promises, but rarely delivering.  Those few “bad apples” make it harder for those of us that are operating ethically to gain the trust of the public.  The debt settlement industry is no different than any other and you need to do your research before you sign up.  We have been in the financial industry for years and we are committed to helping consumers find real solutions to the debt problems.

Debt Settlement has worked for thousands of Americans to help them get out of debt legally, honestly, ethically and most of all quickly.  If you think you might need help, one of our Debt Settlement consultants is here to answer any questions you have and provide a free, no obligation quote on what we can do for you.

Most Americans have a general idea of what their credit or FICO score is.  At the very least they know if it’s good, bad, or just so-so because at some point they’ve had to use that score to obtain some type of financing.  But there are some misconceptions about a credit score that can cause confusion.

The Fair Isaac Corporation (FICO) is who determines your credit score based on a formula that takes many different factors into account.   FICO scores are calculated from the credit data on your credit report.

Your credit score is not just simply, you have a credit, you pay on time and that automatically equals a good or high score.  It’s not that simple.  The actual formula that is used by the Fair Isaac Corporation is a secret but these are the five (5) main factors that affect your score.

1. Payment history (late, on time, etc.) – 35%
2. Amounts owed (especially in relation to the credit line) – 30%
3. Length of credit history (how long have you had credit) – 15%
4. New credit (how many new cards do you have) – 10%
5. Types of credit used (bank cards, department stores, etc.) – 10%

All of these can either negatively or positively impact credit score which can come to a surprise to someone who makes all their payments on time but didn’t realize that because they are maxed out on most of their cards and have opened several new accounts, their score is not as high as they thought.  Even things like other credit companies inquiring into your credit can lower your score.

Having a decent credit score (at least 620) is very important when you are going to apply for any type of major financing like a home loan or car loan.  The higher score translates directly into a more favorable interest rate.  Typically 720 and above will get you the best or most favorable rates available.  However, tough economic times can wreak havoc on your scores and your financial situation.  If this is the case, you may need to speak with a financial expert to re-evaluate your situation and make some changes that will help increase your credit in the long run.  The consultants at First Rate are credit experts and can help you determine what you need to do to maximize your credit score.

According to recent statistics, there were 984 million bank-issued Visa and MasterCard credit card and debit card accounts in the United States in 2006.  If you add in American Express and Discover, that number jumps to 1.5 Billion cards in use which represents about 73.0 percent of U.S. families.

With these types of numbers, it’s no wonder that America is a nation in debt.  Credit cards have become a habit and millions of Americans are addicted. The total U.S. consumer revolving debt was $963.5 billion in December 2008 and about 98 percent of that debt was credit card debt.

These numbers can be staggering and so are the implications.  The average consumer has a total of 13 debt obligations. These include credit cards/unsecured debt (such as department store charge cards, gas cards, and bank cards) and installment loans (auto loans, mortgage loans, student loans, etc.).  Of these 13 credit obligations, nine are likely to be credit cards.

Nearly one in every three consumer purchases in the United States is made with a payment card, including credit, debit and prepaid products.  Credit and debit cards provide a great convenience but when finances are tight, 59 percent of people surveyed said they would pay their credit card bills last.

About one in six families with credit card debt pays only the minimum amount due every month and 28 percent of those surveyed say their ability to pay off their credit card balance has become more difficult in the past year.

Where all of this gets really scary is in the interest rates and fees and how quickly they add up.  Most credit cards have an interest rate of at least 12.5%, many have annual fees, and almost all have late and over the limit fees.  If you can’t pay your bill in full and on-time, these fees can substantially alter the cost of whatever you purchased on the card.  Since 55% of all consumers keep a balance on their card, that’s a lot of dough.

If you are one of the many Americans that is finding it harder and hard to keep up with your credit card debt, there are solutions.  Don't let mounting debt destroy your financial future.   First Rate Debt Solutions has answers and we can help.

(data source: creditcards.com)

The Federal Reserve and Treasury Department announced on Tuesday a plan to pump $800 billion dollars into the sagging economy.  The intent is to jump start lending by the nation's banks for mortgages and consumer debt.  By putting that money into the hands of the holders of securities backed by consumer and mortgage loans, the government hopes that more money will flow to consumers than has in previous bailout plans.   The Federal Reserve, the nations central bank, announced it will purchase up to $500 billion in mortgage backed securities.  This is being done to reduce their costs and increase the availability of credit for home purchases which in turn should foster improvements in all aspects of the financial market.

The first signs of relief were seen immediately as home loan interest rates dropped dramatically.  This could be the turning point that we've all been waiting for.  Now is the time to get all of your debt under control and be ready with an improved financial position.

Here at First Rate, we can help you settle your debt, provide a loan modification for your home or a loan.  Give one of our financial experts a call today and see what what we can do for you.  1-877-332-8730.