get out of credit card debt advice….”pay it off”. give me a freakin break.

We have all seen them or heard them.

The financial “experts” out there who either post a podcast or blog entry who give a few bullet points of how to get out of debt.

I am not saying that these people are not bright or trustworthy….in fact, I guarantee most of them know more about money than I do.   But what annoys me is the bullet point that says something along the lines of “try to pay down your credit card debt.  This will allow you to avoid the interest payments & you can put that money into savings”

no duh.

Dont you think that if the person COULD pay it off, they would???   YES, I know some would not, & the “pay off your debt” idea may actually be a new concept to them.  I am not talking about those bozos. 

I am talking about the person who has debt (whether they made some poor choices or just some bad luck, or a combination of the 2) , knows they have debt, knows they need to get out, & would PAY IT OFF IF THEY COULD, but are falling further behind every day & need some real advice.

If the person only makes a certain amount, they can only pay off a certain amount of the debt.  They KNOW they need to pay down the debt….telling them to do it is like telling the second place guy in the marathon that he needs to run faster if he wants to win…..no duh.

If you are one of those people who are sick of the “to get out of credit card debt, you need to pay it off”, here is some real advice.

The main issue is likely the interest rates.  If you pay $300/month, but you have $200 charged to you every month….it is going to be tough to pay off that credit card.  You need a low interest or 0% interest intro rate. 

Many credit cards offer this.  Even in today’s tough times, there are a few credit card company’s that still have some great 0% balance transfer offers for up to a year.

By transferring the balance to 0%, you can get 6-12 months to use that cash that usually goes to interest, for the principal. 

@ a month before the expiration, transfer that balance to another one.

Will this hurt your credit?  Not always, but it could……HOWEVER, NOT paying your bill because you cannot afford it or paying it late will hurt your credit much worse.

You are not in a good situation, so you gotta take the lesser of the 2 evils. 

This website reviews the terms for balance transfer credit cards in much detail.  go ahead & find one you like (& are qualified for) & apply directly from the site.   They make a commission from the application approval, but they make a donation to a charity with that $$, so if you are going to do this, please use them.

until next time

cb

www.all-credit-cards-online.com

making friends with the IRS, get a business credit card

While everyone is focused on Christmas right now, I see this time of the year as one last opportunity to carbo-load on tax write offs.  Not that I don’t enjoy giving 40% of my income to the government, but, well, I don’t. 

If you do, good for you for drinking the Kool-aid.

Obviously, the way to get the tax write off (please keep in mind, I am NOT a tax consultant, nor accountant…..just small business owner trying to keep as much of my income as legally possible, so this advice should not be taken as professional advice), is to start investing in your business.

That can take shape in many forms.  Need a new website?  It it likely not be done by the end of 2008, but you can write the check now…..this is a great company that has over 10 years experience in building & optimizing business websites (ask for Chris, so I can get credit for sending you there)  Buy a vehicle, all the major brands are trying to empty their lots….or a new laptop, etc etc.

For just about all of these purchases, you can use a credit card, however I would encourage you to use a seperate business credit card for the simple reason of keeping track & separating your expenses. 

Every business card I know of gives nice, detailed reports that are categorized nicely.   This helps me when I need to give my accountant a list of expenses…..it cuts my time down dramatically.  HOWEVER, there is a better reason.  

The IRS will love you.  

Not that any one of us are looking for love by the IRS (no offense IRS), but they CAN make your life hell if you are audited.

More specifically, having a separate report can help you with the IRS by;

• The IRS has looked very closely at people who mix business and personal expenses & they do not like it.   Once they see that you do that, you will be under much more scrutiny.
• To build a credit history for your business, you must have separate cards. This is only an issue if you have a corporation or an LLC.
• If your business is not just a hobby, having separate bank accounts and credit card accounts helps prove you are operating in a business-like manner.
• You’ll pay more for legal and accounting services if someone has to sort through your personal and business expenses….or you have ot do it yourself……get ready to spend 4 days locked in your home office.
• Many people get used to using their businesses to pay their personal expenses. Once you do it once, then it becomes easier & easier……soon you are going to the theater in the name of a business expense……Trust me, it can be addicting.  The problem, however, is that you not paying Social Security and income tax on that money and eventually you get in trouble with the IRS.

A business credit card gets rid of this problem.  My current favorite are the offers from Advanta.  You can review them here & apply directly.

Until next time.

cb

www.all-credit-cards-online.com

the most fraud proof credit card ever?

I know that most credit cards have a good system of checks & balances to look for possible fraudulent activity on your credit card; however I experienced the superior fraud protection of the Advanta Platinum credit card this past weekend.

I took a bunch of kids from my church youth group on a retreat up to bar harbor, maine…..roughly a 6 hour drive for us.  We had 4 vehicles (35 people), including a 15 passenger van with a V-10 engine……SO, I need not mention that a major expense for us was fuel.  

At one point, we pulled into a fuel station,  & I had the other 3 vehicles pull up to pumps.  To keep expense reports simple, my plan was to run my card on all 4 pumps & let everyone fuel up, then all expenses would be on one sheet.

On the 3rd pump, the card wouldn’t go through. 

Most people would see this as an inconvenience……not me, I was smiling because I knew why the card wasnt going through. In those few seconds, Advanta picked up a pattern that could possibly be fraudulent. 

 In the end,  I was able to get the attendant to manually start the pump for me & he ran my credit card inside, an inconvenience that I had no problem dealing with. 

If that wasn’t enough….today, the phone rang & it was Advanta verifying the purchases with me.  ALL 4….& then some.

If you have a small business…..or even if you don’t (just put your name in the “business name” spot when applying & use your social security # as a Tax ID) I highly recommend this card.   I am by no means a spokesperson, nor a celebrity;  just a regular guy who appreciates that in a world/government that seems to be against, honest, hard working, regular Americans, there are still companies that really do look out for you.

Oh ya, what drove me to the card in the first place?????  the 7.99% APR  How good is that?

Obviously, we study credit card terms over here….so we see alot of them.  While they always had attrative terms, that experience shows that this company really has it together (I doubt they’ll be looking for a bail out!!)

Seriously, I do not why the Advanta Credit Card isn’t in everyone’s wallet.

Until next time,

cb

www.all-credit-cards-online.com

follow up to “instant approval credit card scam? or just symantics

It occurred to me as I re-read a previous entry on a ping-back, that I should have included more detailed info in the instant approval credit card issue.

Yes, you WILL get an ANSWER within 60 seconds…..it may not be an approval, but even if it is, you usually wont know your credit limit for a few days.

Also, if you get an approval, you will not get the card in the mail for 3-14 business days.  SO if you need a card for Christmas shopping, get one now.

One more thing.  They WILL be checking your credit report when you apply.  So if there is something they might question, it will force the credit card company to have to call you before issuing credit.

The big take away from this…

An instant credit card is great way to go, but it is not guaranteed.

until next time

cb

www.all-credit-cards-online.com

black friday / cyber monday are coming…..get your credit cards now

YES,

Those dates are upon us…..the fun Christmas season is starting.  It was a hard year for alot of people economically.  Even the credit card companies had some struggles.  This is forcing them to be a bit more particular in who they hand out credit to. 

What does this mean to you?  

 It is harder to get credit. 

Gone are the days (mostly) when you could just sign up for a credit card & get it in the mail a few days later.   It is taking longer for approvals & the rejection letters are much more common than before.  So if you need a little extra credit….no pun intended, NOW is the time to apply for a few credit cards.  Many give a 6 or 12 month promotion period of 0%.  Take advantage of this.  But you have to act NOW.  Here is a list of some of my favorite consumer credit cards that have some good offers.  The reviews are right there & you can apply for the card from that site as well.  I would recommend applying to 2-3.  This hurts your credit only if you apply for over 6…..& get denied by all of them.

Merry Christmas…..and Happy Holidays!!!

Until next time.

cb

www.all-credit-cards-online.com

instant approval credit cards scam? or just symantics

You see them often…..on PPC ads, banner ads, organic listings, etc “Instant Approval!” 

I am referring to the Instant Approval Offer you see for credit cards everywhere.  

Well here is the truth. 

The percentage of people that can get this “instant approval” is less than 20%……& I am being generous.

Let me tell you what I am not saying. 

These credit cards that offer this are bad.   That is NOT the case.  They are telling the truth for those that qualify, but most people do not.

What you WILL get is an ANSWER in 60 seconds. 

That is not necessarily a bad thing.  Even if you have some blemishes on your credit score, the credit card company has a right to check you out a bit more.

SO, who qualifies?  Well, I know someone with a score in the high 600’s & they still got a “we will call you in 24-48 hours” message…….within 60 seconds of course

The point of this article is that the instant approval credit card is not guaranteed, so please be aware.  Even if you do get the credit, you will have to wait up to 14 days, although most  credit cards let you know within 24 hours.

Here are couple of my favorites that normally advertise 60 second approval.  I will tell you.,….& others should tell you, here are my favorite 60 second ANSWER cards:

http://www.all-credit-cards-online.com/clear_from_american_express_quickreview

http://www.all-credit-cards-online.com/capital_one__no_hassle_milessm_rewards_quickreview

for other good low fee  balance transfer credit cards click here.

Until next time

cb