My Personal Finance Journey

All posts by Jacob A Irwin

What Different Types of Credit Cards Are Available?

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The following is a guest post by Chris Philp. Enjoy!

What Different Types of Credit Cards Are Available?

There’s a vast array of credit cards available in the marketplace today. Searching for a ‘credit card’ online brings up a huge list of offers, each with a number of benefits and rewards. If you are searching online though, you should be sure to check the differences between each card to ensure you find the right card and type of benefits for you.

Standard Credit Cards

When applying for a standard credit card, the applicant and provider both determine the appropriate fixed credit card limit. The balance for the card can be paid as soon as you’ve used your card. In order to avoid any charges, balance repayments should be made within your interest free period (usually 30 days or so). You can however, if willing to incur the agreed interest fee charges, spread the payment over a period of time. The minimum repayments for the card must be paid in order to avoid penalties and further charges.

Travel Reward Cards

Rewards cards, such as travel rewards cards, include benefits specially designed to suit the spending needs of frequent flyers or travellers. Credit card providers often have relationships with other companies in order to provide the card holders with special benefits from membership reward programs. These benefits can allow you to earn rewards points as you spend. Points can be redeemed for cash, or go towards paying for flights with a number of different global airlines. Some cards are also linked to specific airlines and partnered companies, often giving the card holder other rewards to benefit from.

Charge Cards

As charge cards do not have pre-set spending limits, they are regarded as more flexible, allowing card holders to determine their limits based on their spending habits. Anything spent is expected to be repaid each month as agreed by the provider’s terms and the cardholder. If card holders have a remaining outstanding balance on their card, a fee is charged. This fee is typically a percentage of the overall remaining outstanding balance.

So, remember, if you’re searching online for credit cards, make sure you take the time for find the best and most appropriate type of card for you. Applying for credit cards online also affords applicants the flexibility of applying outside of the normal bricks and mortar bank opening and closing times.

Different credit cards offer a number of benefits and rewards, so why not see what’s available to you!

How about you all? What type of credit card do you use? What type of credit card is best suited for you? Have you ever used charge cards? 


Share your experiences by commenting below!

Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

  • Thanks for sharing this article, Chris! I enjoyed it, and credit cards are a very important component of the majority of consumers’ spending lives.
  • When you’re just starting to look for a credit card, it can be very intimidating due to the copious number of options available. Every credit card provider seems to be desperately pushing for your business/debt these days!
  • The most useful credit card comparison site I have found/use is Creditcards.com.
    • I like the layout of the site because it allows you to screen credit cards based on certain criteria, such as cash back cards, cards with balance transfer offers, travel rewards cards, and no annual fee cards.
    • This screening feature is important to me because I have a very specific type of credit card that I like.
  • For me personally, the two most important features of a credit card are 1) no annual fee and 2) cash-back rewards. The two cards that I’ve found best suited to my needs are two Chase cards.
    • For general, everyday purchases, I use the Chase Freedom credit card. It has no annual fee, and provides 3-5% cash back in rotating categories throughout the year. Nice!
    • For gas purchases, I use the BP Rewards Visa card. It provides 5% cash back for all purchases at BP gas stations, all for the price of FREE (no annual fee).
  • In deciding which type of credit card to apply for, it’s important to consider your spending habits and financial tendencies. For example, if you have the tendency to accumulate a credit card balance, the most important factor in your credit card search is finding a low-interest rate (APR). If you like to participate in balance transfers, you will need to search for cards with low balance transfer interest rates and fees.
    • However, the one universal trait that I would encourage all consumers to look for in their credit cards is that the card does not have an annual fee. I’m not convinced that cards with annual fees provide any added benefit in today’s competitive bank environment.
  • @ Airline credit cards- Airline credit cards generally carry annual fees, so you’d need to examine if the rewards you accumulate through the use of an airline credit card will warrant the annual fee. Typically, if you are traveling all of the time (particularly on business where you’re being reimbursed for the plane tickets by your company), an airline card will be an effective purchase. However, if you only fly sporadically, I’d recommend a cash-back card.
  • @ Charge cards – Charge cards, in my opinion, are a fairly dangerous thing for most consumers. This stems from the fact that you are obligated to pay back the entire balance each month, and if you don’t come through on this, you can be charged a large amount of fees and interest.

***Photo courtesy of flickr.com

To Donate or Not to Donate? Financial, Ethical, and Physical Concerns of Egg Donations

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Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

This post was selected as the No. 7 top article of the week in the June 20th Edition of the Best of Money Carnival at MoneyCrashers. Quite an honor!

The following is a guest post by Becca with The Academic Wino, a blog dedicated to examining current research related to wine with a little fun thrown in to the mix. Be sure to stop by her site and say “hi”!

“Egg Donors Needed! Compensation Provided! Earn ~$5000!”
More and more, these types of advertisements for egg donors have been spotted on Craigslist, magazines, throughout college campuses, etc.  In times of financial stress and particularly in a poor economy, egg donation becomes more desirable for women, and donor applications are on the rise.  According to the Center for Disease Control, in 1996, women in federally monitored programs donated around 3,800 times.  In 2004, that number had risen to more than 10,000.

What Motivates Women to Donate Their Eggs?

What makes someone consider donating eggs in the first place?  Speaking from experience, the financial rewards are a high motivator for donating eggs.  However, due to the physical and psychological stress donating eggs can cause, financial compensation shouldn’t be the one and only reason for donating eggs.  The altruistic act of donating ones eggs to a couple who would have otherwise never been able to bear children is an equally important factor for most women who end up donating.
Most women looking to donate their eggs are unqualified and will not be selected.  Most programs describe the ideal candidate as being within the ages of 21-29, non-smoker, in good general health, of average height and weight, and with no family history of disease.  Potential donors must answer pages upon pages of questions regarding personal and family medical history, as well as undergo a battery of physical and psychological evaluations prior to being approved for donation.  According to a CNN Health article written in 2008, this automatically results in about 90% of candidates being rejected from any egg donation program.  

Ethical Concerns and Criticisms of Egg Donation

Some people are against paying financial compensation to egg donors, arguing that it is unethical.  One criticism is that if a woman is in extreme need of the large amount of cash offered for egg donation, she could lie about her medical history, and withhold information about her health that would otherwise cause her to be rejected from the program.  Another criticism is that the potential donor would disregard possible health risks to herself in order to receive the large sum of money at the end of the donation process.
Another criticism that has been made against financially compensating egg donors is that paying them implies that their eggs are property or commodities, thus devaluing human life.  According to an article by The Ethics Committee of the American Society for Reproductive Medicine (ECASRM) in the journal Fertility and Sterility written in 2007, compensation should be based on the amount of time, inconvenience, and discomfort associated with egg retrieval, rather than for the actual eggs themselves.  The committee also suggests capping the compensation level at a point where women are fairly compensated for their time and discomfort, but not so high as to allow discounting of possible physical risks by the potential donor.
A study performed in 1993 in the New England Journal of Medicine estimated the total number of hours spent by an egg donor in the medical setting was approximately 56.  This study argued that if men received $25 for sperm donation which takes approximately one hour of time, then that would result in a female egg donation-equivalent of $1,400.  In 2000, a sperm donation payment was $60-$75, which would mean the equivalent of $3,360-$4,200 for egg donation compensation.  ECASRM argued that this does not take into consideration of the fact that egg donation entails significantly more discomfort, risk, and physical intrusion than sperm donation, thus financial compensation should be even higher.  The committee ultimately recommends financial compensation no greater than $5,000, with special justification for anything between $5,000-$10,000.

Physical Risks

Ethical issues with financial compensation for egg donation aside, there are physical risks involved with egg donation that cannot be ignored.  Once approved, egg donors go through 7-14 days of daily hormone injections, in addition to daily blood work and invasive ultrasounds, and finally an anesthetic-requiring surgical procedure for retrieval of the eggs.

A gonadotropin-releasing hormone is injected in order to halt ovulation.  Follicle-stimulating hormones are simultaneously injected in order to grow and mature several egg follicles at once, instead of the usual one per month.  After 7-14 days of these injections, a “trigger shot” containing human chorionic gonadotropin, or hCG, triggers the release of the mature follicles and they are retrieved during an invasive surgical procedure.

Possible risks of egg donation include experiencing PMS-like symptoms, dehydration, pain at the injection site, increase risk of multiple-birth pregnancy, ovarian hyper-stimulation syndrome, and all the other risks involved in routine anesthetic-requiring surgical procedures.  It is not clear what the long term risks are for egg donors, so most egg donation programs limit the number of times a woman may donate to 5-6 times.

To Donate or Not To Donate?

Egg donation not only harbors physical risks, but also disrupts the life of the donor for at least one months’ time.  If they are approved, they must stop taking any and all medications, refrain from hazardous activities such as drinking excessive alcohol, and refrain from engaging in sexual activities that could result in unintentional pregnancies with multiple embryos.

Egg donation also harbors psychological risks, as the donor must accept the idea that they are helping to create a human being that they will likely never be allowed to know or interact with.  Egg donation isn’t for everyone, and even financial compensation can’t completely cover up the risks involved.

Why I Donate

Knowing that I would be receiving a large sum of money was extremely helpful in deciding whether or not to donate for the first time.  I also thought about the risks (both physical and psychological/emotional) and decided whether or not it was worth it to me.  With support from both friends and family, which are critical in a decision such as this, I decided to donate and was ultimately approved by the organization I chose to work with.

Over time, I’ve received anonymous ‘Thank You’ cards from two of my recipient parents, which helped in my decision to donate multiple times.  “We write to let you know that you have helped us to realize a singular dream that we started to pursue over nine years ago.  While we don’t yet know that we’ll be successful, your commitment to us, two people whom you’ve never met, nor will ever meet, is so greatly appreciated.”

To date, my financial compensation has gone toward many things including starting a Roth IRA and paying down credit card debt.  I encourage anyone who is interested in egg donation to be certain their motivations are more than strictly financial and that they fully understand and accept the risks are involved.

How about you all? Have you ever donated eggs or known anyone that donates eggs? What are your financial thoughts on the subject? Is $5000 too little, too much, or just the right amount of compensation for going through this process? 


Share your experiences by commenting below!

Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

  • It’s truly amazing to me how much more effort it takes for women to donate their eggs than it takes for men to donate their sexual cells. Weird right?!
  • I really admire women who donate their eggs, as I’ve learned in the past few months that couples that are unable to have a child on their own are REALLY grateful for the help from the donors. However, I don’t think I would personally ever donate my sperm/egg cells unless I had to.
  • If you’ve stopped by my site before, you know that I am a big fan (or maybe sucker would be a better word) for Time Value of Money analyses.
    • As such, an interesting thought exercise is this scenario – a 21 year old girl decides to donate eggs once per year for five years until she is 25 years old.
    • Each time she donates, she receives $5000.
    • If we assume that she places this money in a Roth IRA invested in index mutual funds earning 10% per year, the magic of compound interest will present her with the sum of $2,022,744 by the time she retires at age 70. Quite amazing uh?!
    • You can view the gory details of this calculation at the shared Google Spreadsheet I created at the following link – Egg Donation Time Value of Money Calculator.
    • As you can see from this analysis, the monetary compensation provided by donating your eggs is quite enticing. However, Becca makes a very important point that you should have a reason aside from the money (at the end of the day) for why you want to donate eggs. Thanks for reading!

***Photo courtesy of http://www.flickr.com/photos/biologyflashcards/3438788255/sizes/m/in/photostream/

FREE Business Cards Giveaway from All Business Cards! Enter Today!

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

Good day readers! One of my higher priority blogging goals for the 2011 year is to offer several free giveaways on my site. As such, I’m always on the look out for cool offers that I can share with you all. I have a nice one today!

The giveaway is for 3 sets of 500 high-quality business cards from All Business Cards.com. I recently won a set of 500 business cards from an All Business Cards.com giveaway on MaximizingMoney.com, and they were gracious enough to agree to extend the same giveaway deal to My Personal Finance Journey!

How To Enter – Deadline to Enter is July 4th, 2011!

Follow the instructions below to accumulate points to qualify to win one of the three sets of 500 business cards! Due to shipping costs, this contest is only open to US and Canadian residents.

1) Leave a comment below (be sure to include your email) to let me know you are participating and what you are doing to accumulate points – Worth 1 point

AND, if you leave a comment regarding how you plan on using the business cards – Worth 2 

points

2) Refer a subscriber (send the email of the person you referred via my “Contact” tab above) – Worth 5 

points

3) Follow me on Twitter – Worth 1 

point

and if you follow All Business Cards on Twitter – Worth another 1 point
4) Subscribe to my website via email (Place your email in the Feedburner subscriber box on the right or click here) – Worth 2 points
5) Link to this page from your website (send the link of the page you are linking to me from via my “Contact” tab above) – Worth 3 points

6) Review my website on Alexa.com – Worth 1 point

 

7) “Like” me on Facebook – Worth 1 point
8) Leave a [value adding] comment on any other post on this site (comments already left do not count – be sure to leave your email address) – Worth 2 points
9) Complete the My Personal Finance Journey site reader feedback questionnaire (only takes one minute) – Worth 3 points

There is no limit to the amount of points you can earn. If you refer 10 subscribers – your name will have accumulated 50 points!

 

In the event of a tie, I will be using Random.org to select the winner

About The Cards

The cards can be single or double sided, printed on thick 16pt card stock, and have a Glossy UV finish, a Matte Finish, or can come uncoated.
The winners will pay absolutely nothing for the business cards, as the cards will be 100% free. The cost of the cards, printing, and UPS ground shipping is included in the prize.
Shortly after July 4th, 2011, the winners will be contacted via the email address provided in your comment for verification purposes, and then All Business Cards will contact you directly to help you claim your prize.

Remember, the deadline for entries will end on July 4th, 2011 at 11:59pm (3 weeks from today). Good luck to you all! Please contact me if you have any questions.

sy of http://desizntech.info/wp-content/uploads/2011/04/allbusinesscards_screenshot.jpg

Proud To Be A Yakezie Blackbelt!

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

Back in January of this year, I laid out several blogging goals I wanted to achieve in 2011.

One of these goals was to continue actively participating in the Yakezie Personal Finance Blog Network. The Yakezie Network, a group of the best personal finance websites, has played an integral part in my development as a blogger this year. I’ve met many amazing people, learned a lot about the mechanics of blog-building, and also learned numerous advertising negotiation tactics/strategies.

After 5 months of progress in to the year, I am excited to share with you a very proud milestone – achieving the Yakezie Blackbelt Belt of Honor. 

To date, only 4 other Yakezie sites have made it to the Blackbelt level – Budgeting in the Fun Stuff, Financial Samurai, KNS Financial, and Buy Like Buffett.

Side note: Back when I was 6-8 years old, I tried taking karate lessons, but I only made it to the yellow belt level! haha If only those sensei’s could see me now! 🙂

Achieving the Blackbelt level takes a pretty significant level of involvement, but it has also been a really rewarding experience. Several key accomplishments My Personal Finance Journey has realized over the past 5-6 months include the following:

  • 1214 comments on the Yakezie Forums.
  • Participated in 7 of the 8 total Yakezie Blog Swaps, including hosting the 4th edition.
  • Coordinated 7 advertising campaigns, bringing in over $5000 for Yakezie Network sites.
  • Weekly participation in the Yakezie Blog Carnival.

Overall, it’s been a truly amazing ride over the past half year. I look forward with excitement to our continued participation in the Yakezie community during the remainder of 2011 and beyond!

For the site owners out there – how about you all? What has enabled you to grow most as a blogger or site developer? 


Share your experiences by commenting below!

    ***Photo courtesy of http://cdn2.yakezie.com/badges/300-yakezie-03.png

    If We Could Have One Financial Do-Over…

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    Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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    Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

    The following guest post was written as a part of the Yakezie blog swap. In this monthly event, Yakezie participants pair up and exchange articles on a common topic.  For June, we are trading posts on the common topic of “if we could have one financial do-over, what would it be and why?”
    This article was written by Mr. S over at Broke Professionals. Mr. S and Suba are a husband/Wife team who are young and broke professionals. They write about personal finance related to young professionals, getting out of debt, increasing income, cutting expenses, and their own personal entrepreneurial journey.


    You can view my swapped post over at Broke Professionals today at the following link – eBay Financial Scam Do-Over Wish.

    If you had one financial do-over, what would it be and why? When I saw this topic, the first thought that went through my head was, “Wow, that’s going to be difficult!”, not because I couldn’t think of any, but because there are so many financial mistakes that I would like to do over. On further reflection, one mistake stands out above the others. It’s not something I want to do over because of the magnitude of the error but because it hurt me at a time when I was financially very shaky. So here goes –

    Buying My First Car – A New Honda Civic Hybrid

    I had just completed grad school, and by working while studying and living off Ramen noodles, I graduated with about $5000 in the bank. I got a job that I liked, moved to a beautiful place, and was generally feeling on top of the world.

    At that point, I decided I needed a car. I shopped around a little (mistake 1) and decided that I would go for a new Honda because they depreciated very slowly. In addition, I planned to travel quite a bit, so I decided to go for a Hybrid to get the better gas mileage.

    So, I went down to the Honda dealership and started the haggling over a new Honda Civic Hybrid. After many trips and conversations with the dealer, I managed to whittle him down from $25000 to $22000 and congratulated myself on my excellent (in my own eyes, of course) negotiation skills.

    In order to reduce the amount of money I had to borrow, I decided to put down most of my $5K savings. I brought the car home and a couple of days later while looking through the glove compartment, came across a sheet of paper that shipped with the car from the manufacturer. Across the top of the page in big, bold, black text were the words – “Recommended MSRP = $21000”. There I came crashing down from the cloud 9 I was floating on thinking I had made this great steal. Things just got worse from there. I didn’t understand the terms of my loan agreement properly (big big mistake). I assumed that any money I paid over the monthly requirement would be used toward reducing the principal. Nope. The loan said that I had to pay a certain amount of interest, period. So paying more than necessary each month just brought in the end date but didn’t reduce the amount I had to fork over.

    In addition, I was stupid enough not to regularly check my statement to see if the principal was being reduced over time. I just kept paying as much as I could toward the loan every month. At the end of 3 years, I had paid off the 7 year loan, but I had next to nothing in savings. Would I have been better off paying the monthly amount and investing the remaining money elsewhere. You betcha!

    Honda Civic Hybrid Break-Even Analysis

    Now let’s look at the car itself. The difference in price between the Civic Hybrid I bought and a regular Civic, at the time, was $4500. I was betting that I would drive so much that the extra mileage from the Hybrid would save me money.

    Now let’s look at the facts. I get on average 43 mpg. Friends of mine who own a regular Civic, bought at approximately the same time, get about 35 mpg. So that’s an average of 8 more mpg that I get. Over a tank of gas therefore, I get 80 miles more than a regular Civic. Over the 6 and a half years I have owned the car I have driven 100,000 miles. At 43 mpg, that works out to 2326 gallons approximately. At 35 mpg, I would have filled in 2857 gallons instead. A difference of 531 gallons over 6 and a half years.

    How much did that save me? Given that I live in Southern California, I pay more for gas than the rest of the country. To keep the math simple, lets assume that over this period gas has on average been selling at $4 per gallon, which is higher than reality. Applying that number, owning a Hybrid has so far saved me $2124. But wait a minute, I put down $4500 extra to start with. So I’m still in a hole for $2376.

    In addition, we have to add the money I would have earned if I had invested that $4500. But, I look bad enough as it is. I don’t have to make things worse. You might say that well, I haven’t got rid of the car, so as gas prices rise, I will continue to save. That’s true, but keep in mind that the Hybrid has a battery pack that doesn’t last forever. Let’s say I replace it in 10 years. At my current rate of driving, over 10 years I would have saved $3271 (still assuming an average of $4 a gallon). So, without having broken even, I now have to shell out money for the battery pack. Oops!

    When I went through these numbers a year or so ago, I felt really depressed. By my own stupidity, I had wiped out money I had struggled to save, then gone on to pay a loan off early thinking I was saving interest when I wasn’t, and gambled on a car that wasn’t going to save me money at all. Pretty depressing. I guess the only silver lining in the cloud is that when gas prices go up, I actually feel a little better :)!

    If I could go back in time, I would have bought a used car and saved myself a lot of money. 


    If you had one financial do-over, what would it be and why?

    Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

    • Sorry to hear that you paid $1000 over the MSRP price! Did you check around on any online resources to see what these cars were retailing for before buying? 
    • Thanks so much for sharing your experiences with this. I really like how you performed/included the break-even analysis. 
      • I performed a similar analysis on this site last year, comparing “green” hybrid cars to regular cars to determine which is more economically sensible. Turns out that I concluded pretty much the same as you did here – that owning a “green” car isn’t the most economically justified course of action.
      • This really is unfortunate because it’d be nice if the economics of “saving-thy-planet” worked out in the consumers favor.
    • Personally, I wouldn’t beat myself up too much for making a mistake like you did, provided that you learn how to improve for the next time you buy a car. You bought a reliable, fairly inexpensive car that will most likely save you money compared to a lot of vehicles on the market (for example, if you bought a $40,000 Suburban right out of college). 

    Carnival of Passive Investing # 6 – May 2011 Edition With Author Rick Ferri Now Live!

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    Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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    Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

    “Better late than never” is my favorite phrase this afternoon! I apologize for being a week late reporting this, but the latest (May 2011) edition of the Carnival of Passive Investing is now live over at The College Investor at the link below.

    Carnival of Passive Investing # 6 – Passive Investing Do’s and Don’ts May 2011 Edition with Passive Investing Author Rick Ferri

    Congrats to Wealth Informatics, Boomer and Echo, and Little House in the Valley for being selected as the top 3 articles this month by Rick and Robert @ The College Investor.

    We were honored this past month to have Rick Ferri, author of numerous passive investing books helping to judge/rank the top 5 passive investing articles. Great job Rick!

    This month (June), another one of my favorite passive investing authors, Larry Swedroe, will be helping to rank the final selection, with the help of our host, Jon Elder @ Free Money Wisdom.

    Be sure to get your best passive investing articles submitted this month for Larry to review. You can submit your articles by clicking here.

    How about you all? Have you written any good passive investing posts lately?


    Who is your favorite financial author? 


    Share your experiences by commenting below!

      ***Photo courtesy of http://www.flickr.com/photos/vegaseddie/3309218023/sizes/z/in/photostream/

      Why Do Balance Transfers Make Sense?

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      Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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      Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

      The following is a guest post. Enjoy!

      Why Do Balance Transfers Make Sense?

      Managing credit card debt can be challenging, difficult and depressing at times. However, there are options for almost any situation. Although balance transfers are not the answer for every issue, in certain instances, credit card balance transfers of existing debt makes very good financial sense (and cents as well!). They can be tricky to navigate, and there are some hard truths you need to be aware of before you tackle the challenges of balance transfers. Read on to find out more.

      It’s Not As Good As It May Appear

      Credit card companies are not making these offers because they like you or from some altruistic motivation. They are out to make money, and they are banking on the fact if you transfer your balance at a 0% rate, you will be unable to pay that balance by the time the interest rate takes a jump to something much more expensive for you. In the meantime, they may charge fees for a transfer, on new purchases and other hidden charges of which you may be unaware if you haven’t read the agreement thoroughly.
      Do yourself a favor. Before you commit to transferring a large balance to take advantage of a 0% rate and think you’re making a wise choice, read over the accompanying agreement with a fine-toothed comb. Make sure you’re getting what you think you’re getting and avoid any nasty surprises.

      Other Considerations On Balance Transfers

      Keep in mind that balance transfers have time limits. Mark your calendar when the special offer ends, and then back up two months. Mark your calendar again so you can start shopping around or make adjustments if you aren’t going to be able to pay off your balance. The credit card company sure isn’t going to remind you. Remember, they want your money, and if you aren’t vigilant, they’re going to get it.

      Don’t Miss This Date

      One other important factor is if you do decide to transfer your balance; make even one late payment and you’re in trouble. You will lose that lovely 0% and will be charged a much higher and more painful interest rate. You definitely need to make those payments and make them on time. Additionally, any payment will be applied to the newest purchases, so it’s an excellent idea to keep new purchases on another credit card in order to pay down the principal on the transfer account.
      Balance transfers can be a life saving strategy if you are attempting to get a handle on your credit card debt, but only if you know the pitfalls to avoid. Many people have used 0 % balance transfers successfully and there’s no reason you can’t too. Just be aware that too much “card hopping” can hurt your credit score. Hopefully, one transfer is all it will take to get you back on track.

      How about you all? Have you ever used a balance transfer to help pay off credit card debt? Was it effective? Did you pay down the balance before the 0% balance transfer period ended? How did you use the card after the 0% balance transfer period ended?


      Share your experiences by commenting below!

      Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

      • I have been very fortunate so far in life to avoid student or credit card debt (let’s keep our fingers crossed that it stays this way), so I have never personally had to use one of these 0% balance transfer offers/deals.
      • However, I do think that they can be a very useful strategy for reducing your debt, as long as you are disciplined and follow the advice given in this article.
      • One other utility of these 0% balance transfer offers is that they can be used as bargaining chips when talking with your credit card company to negotiate a lower interest rate over the phone. This can be done by telling your current credit card company that you will transfer your balance to a 0% balance transfer offer if they don’t give you a lower rate. Nice right?!
      • This article is definitely correct regarding the advice that before using a 0% balance transfer offer, you need to read through the details very closely to determine what fees will be charged.
        • The normal type of fee that is charged with balance transfers is an up-front fee of 3-5% of the balance being transferred.
        • Even though this may seem like quite a bit at first, it will most likely be less than paying 10-20% APR on a balance that compounds daily! Yikes!
        • Jonathan @ My Money Blog provides a good list of 0% balance transfer offers with fairly low fees at the following link – Best Pre-Screened 0% Balance Transfer Credit Cards. This list would be a good place to start if you are thinking about embarking on the 0% balance transfer journey.

      ***Photo courtesy of http://farm4.static.flickr.com/3276/3027534098_f568868b9e.jpg

      Are You Worried About Online Security?

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      The following is a guest post. Enjoy!



      Are You Worried About Online Security?
      These days, we rely on the Internet more and more for shopping. It is available 24 hours a day, and we can shop for anything on the web, from the weekly groceries, to home ware and clothing. It is also the place we use to research and shop around for insurance, credit cards deals, savings accounts, investments, and bonds.

      So, with all that we are using the Internet, the question of how can we be sure that our details are secure is of great importance to all of us.

      Types of Scams

      Some of the scams and fraudulent sites are getting more sophisticated and convincing, so it is important to know what you are looking for and stay observant whilst you are browsing. Installing your computer with anti-virus software and firewalls will help to protect against viruses and sites that access your personal information. You do need to be aware that some of these can slow down your computer, so be careful not to install more software than you need.

      How To Protect Yourself Online

      If you are browsing for financial services, credit cards, or bonds, the site you are reading is likely to be a comparison site, and you should not be asked to provide any card or bank details before you are actually signing up for a product.

      Try not to be tempted by unbelievably cheap prices that seem too good to be true – they probably are. Stick to reputable retailers, as these will have reviews and customers comments and the more reviews the site has, the better. Any website that claims to be part of an accreditation scheme or professional body will display the logos for these organizations. Always click through the links to ensure it is a current and valid accreditation and not a less than ethical website pasting a picture of the logo that does not have a link.
      One of the hazards of Internet shopping is that the web page address does not give you any indication of where the retailer is based. A genuine retailer will have their physical address listed within the website, as well as contact information and telephone numbers. If you are at all suspicious about a site, you always have the option to telephone or email to make contact with them before you make a purchase. Their response to a simple query in this way may allay your concerns, or indeed confirm your suspicions.
      Once you are satisfied that you are dealing with a genuine retailer, you are likely to make a purchase. Always check your summary to ensure that unexpected charges have not been added to your total. Often, prices are quoted without tax or delivery charges to tempt shoppers, but a shock is in store when the total amount payable is displayed.
      As you continue with your purchase to the payment page, a genuine and secure connection is indicated by the closed padlock symbol in the browser bar at the top of your page. Before you enter any bank or card details, it is important that you check this. If you do a lot of Internet shopping, you may also want to use a middleman service such as Pay Pal that will ensure the retailer does not have access to any of your personal information.
      Using the Internet is so convenient and saves us time and money. By following these simple checks, we can also make sure it is completely secure.

      How about you all? How do you protect your identity and personal information online? How cautious are you about sharing personal information? How much do you worry about it being stolen? 


      Share your experiences by commenting below!

      Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

      • This article is on a topic that is becoming increasingly important to all of us these days, as it really is a brave new world out there! 
      • It seems like I get about 2-3 fraudulent emails per day from people pretending to be Amazon or eBay (eBay posers are especially prevalent!). Typically, these emails are wanting you to think they are from the real company so that you go to their fake website and enter your login information, which can then be stolen. It can be very tempting to fall for these scams because the fake recreations of the real websites are generally very good.
        • However, there are several methods that I use to avoid falling in to these traps, as discussed below:
        • 1) I never use links given in emails to log in to the company being referenced. Instead, I simply type in the normal (reliable) address in to the URL field of my browser (example – www.ebay.com). This ensures that you are going to the authentic website.
        • 2) You can generally also spot a fake website by the hyper link format in the email. If the email was from the actual company, it would be in the format www.ebay.com/payments (or something along those lines). On the other hand, scammers are forced to adopt a slightly different hyperlink format. An example of this would be something along the lines of www.v23r.ebay.info/wrer/payments. The scammers typically try to hide this slightly different address by using anchor text (the text that shows up as a link in the email) that is seemingly normal, such as “Login to your eBay Account.”
      • I wrote a good reference post back in June of 2010 on this site (How To Protect Yourself Against Identity Theft) detailing several easy steps one can take to protect his/her personal information online and in general life. Two of the most important steps (in my mind) that you can do are 1) use Opt Out Pre-Screen to reduce the amount of junk mail you receive and 2) place a fraud alert on your credit report. Both of these steps are simple, effective, and FREE!

      ***Photo courtesy of http://farm3.static.flickr.com/2381/2580085025_7f1cc8d205.jpg

      Totally Money Blog Carnival – Most Expensive Weddings Edition – June 6th, 2011

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      Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

      Welcome personal finance fans to the 22nd (can you believe we’re on the 22nd edition already?! I remember when Crystal started this thing!) edition of the Totally Money Blog Carnival, a weekly carnival that includes the top personal finance and money posts.

      Before getting started, I wanted to congratulate FruGal and Miss Moneypenniless at TotallyMoney.com on becoming the new owners of the Carnival. It will be exciting to continue to see the Totally Money Blog Carnival grow.

      In honor of June being a big wedding month (after brides and grooms graduated from college and high school in May), I figured it might be interesting to share some stats about the most wild, expensive, out-of-this-world weddings that I could find! You can read these random tidbits in red text interspersed throughout the articles.

      Listed below are the top 3 articles of this week’s submissions!

      Top 3 Editor’s Picks

      1. Mike Piper presents It’s All One Portfolio posted at The Oblivious Investor, saying, “One of the most common investing mistakes is holding the same asset allocation in each account (IRA, 401(k), etc.), even if doing so results in higher costs, complexity, and taxes.”


      These days, many of us operate our investing strategy through the use of multiple account types (401k’s, IRAs, annuities, taxable accounts, etc). This article by Mike Piper gives us a good reminder that it is most efficient and also least expensive to use the accounts to maintain one overall asset allocation. Just remember to place the different asset classes in their most tax-efficient location.

      Also, an interesting side note is that Mike’s site was recently mentioned as a very high quality investing blog to read by Money Magazine. This is truly quite an honor! Congrats Mike!

      2. The Saved Quarter presents Cut Your Budget: Erin posted at The Saved Quarter, saying, “See how Penny from The Saved Quarter helped Erin fit her real life into her budget, giving her ideas to be debt free and with a full emergency fund in two short years!”

      Penny from The Saved Quarter has started doing a great thing by reaching out to her readers and seeing if she can help them optimize their monthly budget. In this post, one of her readers, Erin, lays out her current budget, and then Penny uses her expertise to recommend ways for Erin to cut her entertainment and food expenses so that she can pay herself first and pay off her debts quicker. Rock n’ roll Erin and Penny!

      3. Investor Junkie presents Why I Never Trust Economists or Weathermen posted at Investor Junkie, saying, “If I had the chance to start my career path all over again, I would choose to be either an economist or a weatherman. What other field could you be in where you are wrong most of the time, and still get to keep your job?”
      In this post, Investor Junkie broaches the question of how it is that society allows weather and economic forecasters (and I’ll add one of my own – individual stock advisors/managers) to continue to be paid for doing a job where they are wrong a significant amount of the time. I’ve definitely wondered this same question throughout the years, especially when I was reading in a finance book that economists only officially admit when a recession started after that start date has passed. What a great help that is!!! The occurrence of events like these only reaffirms my faith in index investing.

      ______________________________________________________________________

      5th Most Expensive Wedding – Chelsea Clinton and Marc Mezvinsky

      This 2010 wedding cost a measly $5 million.  Key spending items were $600,000 for A/C’d tents for the guests (you can’t be sweating after all!) and an $11,000 cake. What’s funny is that one of my friends from high school had a $5,000 wedding cake and wasn’t nearly this rich.
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      Listed below are the best of the rest of the submissions. Enjoy!

      Budgeting

      Andrew Boyd presents 10 Best Personal Financial Planning Tools posted at The Credit Letter, saying, “With a range of financial planning tools available online, it’s now easier than ever manage your money.”

      Jason Price presents How to Budget with the Envelope System posted at One Money Design, saying, “How to make the most of budgeting with the envelope system!”

      Careers

      Miss Moneypenniless presents Surviving Unpaid Internships posted at FruGal, saying, “New Totally Money author Alex Varley Winter imparts her secret tips on coping financially and emotionally while trying to get a foot through the door.”

      Gerry Sandis presents Youth May Find It Hard To Find A Job This Summer posted at RESUMEMag, saying, “There may not be enough funding for summer-jobs programs, but that doesn’t mean you shouldn’t still hit the pavement looking for your own summer job. Here are some tips to help you find some gainful employment this summer”

      Lahesha Williams presents Using Social Media to Market your Small Business Effectively posted at Career Help For Christians, saying, “Marketing is an essential element of every business and can be the key to the success or failure of the business.”

      Credit

      Bob presents The Debit Card vs. The Credit Card posted at Christian Personal Finance.

      Tim Chen presents The Walmart MoneyCard: Just Another Prepaid Debit Card to Avoid posted at NerdWallet Blog – Credit Card Watch, saying, “The Walmart MoneyCard is just one aspect of the superstore’s expansion into the financial arena: it also offers check cashing, bill payments, money orders and tax prep, among others.”

      Juan Haffer presents The Best Travel Credit Card posted at Blue Sauger.com, saying, “This post shows how to find a good credit card for overseas use.”

      ______________________________________________________________________
      4th Most Expensive Wedding – Wayne Rooney and Coleen McLoughlin
      The bill for this one was only $8 million. It didn’t take much money to fly 65 guests to Genoa for a party on a $125 million yacht. Just your average wedding….
      ______________________________________________________________________

       

      Debt

      Briana Ford presents Starting a Debt Snowball posted at 20 and Engaged.

      Justin presents Why You Should Stop Paying Down Your Debt posted at Money is the Root.

      Finance

      Maxim Kazawy presents 5 Best Dividend Paying Mutual Funds with High Income posted at Best Dividend Mutual Funds, saying, “Dividends provide an instant cash flow return on your investment and also act as a downside protector in bear markets. Also, the US stock markets have lost 2% annualized over the last 10 years. If you were invested in dividend paying mutual funds during this time, you would probably have made 5% compounded annual gains. In this article, we will go over 10 best mutual funds that pay dividends.”

      Joe Morgan presents Notice of Mortgage Protection Insurance, a Scam. posted at Simple Debt-Free Finance, saying, “Is Mortgage Protection Insurance a good idea? I don’t think so, and here’s why.”

      Matt Mason presents What Is The Best Investment? posted at FYMO Personal Finance Blog.

      Financial Uproar presents My Updated Investment Strategy posted at Financial Uproar, saying, “My updated investment strategy, and how it combines active and passive investing.”

      Alexander presents The Dividend Growth Model posted at Dividend Stocks, saying, “This stock valuation model takes a look at divided growth and uses it to help you decide whether or not the investment is a good buy.”

      Sun presents What Makes A Good Checking Account posted at The Sun’s Financial Diary.

      Crystal presents Craigslist – Garage Sale Leftovers posted at Budgeting In the Fun Stuff.

      Frugality

      Philip presents Find the Cheapest Gas In Your Zip Code posted at PT Money: Personal Finance.

      Glen presents Take Advantage of Free 2011 Reading Programs During the Summer posted at Parenting Family Money.

      Aaron Elder presents Frugal Fail: Renting your cable modem is harmful to your wallet posted at Below Your Means: Living well by living within and growing your means.

      retirebyforty presents Groupon VS Google Offers posted at retireby40.org, saying, “Groupon is about to face it’s biggest challenge yet – the 800-lb gorilla named Google Offers.”

      Courtney Sperlazza presents When expensive is frugal: a stroller story posted at Well Wise Happy.

      Tim Fraticelli presents Negotiating Anything posted at Faith and Finance, saying, “Negotiating doesn’t have to be scary. These tips will help you in almost any negotiation – from salary, to car purchases and garage sales. Negotiation is a skill that can be improved IF you practice.”

      Anna presents What are Grocery Ecoupons? posted at Think ‘n Save, saying, “Paperless grocery coupons, or ecoupons, are becoming more common. We show you how to find and load this type of coupon.”

      The Amateur Financier presents Frugal Friday – Medicine posted at The Amateur Financier, saying, “A guide to saving on medicine, something we all need (and all too many of us spend too much money on)”

      ______________________________________________________________________
      3rd Most Expensive Wedding – Prince William and Kate Middleton
      This wedding is estimated to have cost around $34 million. Most of the money was spent on security for all of the VIPs. However, they saved a little bit to pay for $800,000 in flowers and an $80,000 cake. Take that Chelsea Clinton with your cheapskate $11,000 cake! Go back to America and try again another day.
      ______________________________________________________________________

       

      Money Management

      Tom Drake presents Focus on the Big Things posted at Canadian Finance Blog.

      Outlaw presents Online Stock Broker Comparison for Do-It-Yourself Investing posted at Outlaw Finance: Investing Blog.

      Boomer presents When To Fire Your Investment Manager posted at Boomer & Echo, saying, “You should hire a manager only after careful research and thoughtful deliberation. The decision to fire a manager should be made in exactly the same way.”

      My Journey presents June 2011 Net Worth Update posted at My Journey to Millions, saying, “From May 2, 2011 to June 1, 2011 my net worth has increased 8.69%. From January 18, 2011 to June 1,2011 my net worth has increased 33.36%”

      FMF presents Seven Keys to Get Up, Get Speaking, and Get Paid posted at Free Money Finance.

      MoneyCone presents 10 Questions To Ask Your Bank Before You Open An Account posted at Money Cone, saying, “Fine prints, who reads them right? At least until you are hit with fees for violating some rule buried in fine prints!”

      Hunter presents Financial Secrets Are Cheating posted at Financially Consumed, saying, “Poor communication between couples is often cited as a leading cause of stress and break-up. Keeping financial secrets in a relationship, for any reason, is deceptive behavior and can only lead to a loss of trust.”

      Dr. Dean presents A New Credit Temptation! posted at Dr. Dean’s TheMillionaireNurse.com Blog.

      ______________________________________________________________________
      2nd Most Expensive Wedding – Vanisha Mittal and Amit Bhatia
      There’s an old adage that states that when steel tycon billionaires and investment bankers get together, good things happen! Well, that’s exactly what happened here. This 2005 wedding cost $60 million.  Key spending items included paying to rent out Versailles (that’s that little palace outside of Paris) and send out invitations in silver boxes. Why not right?!
      ______________________________________________________________________

       

      Other

      Andy presents Health Insurance and Health Care Costs Are Crazy posted at Tight Fisted Miser, saying, “I have written before about the crazy cost of health care but a recent experience has inspired me to write about it again.”

      liverealnow presents Money Problems: Insurance posted at Live Real, Now, saying, “Do you know what kind of insurance you need and how much to get?”

      Ken presents Home Business Start-Up: Obtaining Business License and Permits posted at Spruce Up Your Finances, saying, “Starting a business is not as easy as just thinking of a business concept and opening your doors to the customers immediately. Before you can start conducting your business, there are a few things that you have to do such as obtaining the required business license and permits”

      Neal Frankle presents How I Got My Free Credit Score Online With No Credit Card posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, “If you want to get your credit score for free online, you can do so without using your credit card.”
      Teacher Man presents Investing Series ? Stocks (Part 1) posted at My University Money, saying, “Part One of the stocks portion of our investing series. We talk about what stocks are, and why they will never fail.”
      Pinyo presents How to Review and Update Your Homeowners Insurance posted at Moolanomy, saying, “Many people neglect to update their homeowners insurance policies as time goes on. Here are two insurance factors you must review periodically to avoid being underinsured when disaster strikes.”

       

      Real Estate

      Barb Friedberg presents HOW TO CAPITALIZE ON THIS ECONOMY posted at Barbara Friedberg Personal Finance, saying, “With interest rates at all time lows, maybe now is the time to take out a mortgage, or finance a rental property or business endeavor.”

      Jennifer Martin presents 5 Tips to Negotiating to Buy a House posted at The Negotiation Board, saying, “Take advantage of this extreme home buyer’s market and learn how to expertly negotiate the purchase of your next home with these five strategic tips.”

      Saving

      Melissa Batai presents My Unusual Savings Plans – Save $5 Bills and Change posted at Mom’s Plans, saying, “Now that my husband has a full-time job and I am bringing in more money, I expect that we will be able to meet our monthly obligations, but there isn’t much room for extra savings. So, I have decided on this unusual savings plan: All change will go in a jar and be saved for a new car. All $5 bills will be saved for a down payment on a house.”

      Buck Inspire presents Auto Insurance Shopping posted at Buck Inspire.

      Jim Yih presents Saving for retirement is simple, not easy posted at Retire Happy Blog, saying, “Saving for retirement is simple, but not easy. Although saving rates are low, Canadians can utilize some key strategies to save for retirement.”

      Control Your Cash presents Index Funds Don’t Work in Bear Markets posted at Control Your Cash: Making Money Make Sense, saying, “We tell ourselves that index funds always work even though there is a voice of common sense within each of us that tells us that it cannot possibly be so. How could there ever be an asset class that is worth buying at any price?”

      Spending

      Glen Craig presents Google Wallet and the New Wave of Paying for Things posted at Free From Broke.

      Money Beagle presents Missed Opportunities At The Gas Pump posted at Money Beagle, saying, “What gas price situation bugs you the most?”

      Kevin presents Don’t Get Fooled: High Pressure Marketing Tactics posted at Invest It Wisely, saying, “Remember to take your time and look at the fundamentals before committing to any big decisions. If the deal really is that great, then why would the salesperson have to try so hard to sell it? In the end, examine the fundamentals, look at the numbers, and, just like with women in the bedroom, make sure the salesperson understands that ‘no’ means no.”

      South County Girl presents A trip to Michaels… =) posted at South County Girl, saying, “How my bridesmaid and I saved a ton of money making our own hair accessories for me and my bridal party for my wedding instead of paying $49-$100 per flower clip from David’s Bridal.”

      Fred Lee presents Unique Father’s Day Gifts That Don’t Break The Bank posted at Parenting Squad, saying, “Don’t cave to simplicity. If you’re looking for unique, inexpensive, or even free ways to show dad he’s the prince of papas, consider these ideas.”

      Tom presents Having a Baby on a Budget posted at StupidCents, saying, “Having a baby on a budget will change your finances forever. Budgeting for a baby is something I want to be prepared for when the time comes.”

      ______________________________________________________________________
      No. 1 Most Expensive Wedding – Prince Charles and Lady Diana
      When adjusted for inflation, this 1981 wedding cost $110 million. Not bad right?! My favorite part about this one was the cake. It took 14 weeks to prepare, and there was a backup cake, just in case an accident occurred with the first! Nice!
      ______________________________________________________________________

       

      Taxes

      Odysseas presents Not Even the Unemployed are Exempt Come Tax Time posted at Wallet Blog, saying, “If you’ve recently lost your job, you’ll be frustrated to find out that you still have to pay taxes on your unemployment benefits — but I have a few tips on how you can lessen this burden on your financial situation.”

      Well – that concludes this week’s edition of the Totally Money Blog Carnival. Submit your blog articles to next week’s edition (scheduled for June 13th) using the handy carnival submission form. SpruceUpYourFinances.com will be the host. Get excited!

      Also, if you are interested in hosting an upcoming edition of the Carnival, take a quick look at the hosting requirements, and then contact Budgeting in the Fun Stuff about arranging a hosting date.

      ***Photo courtesy of http://www.lehmannmansion.com/uploads/dd/04/dd047d68df946ca2ef6b16fccf947902/from-Mary-Hill-BethMarkCar-in-Front.JPG
      ***Wedding stats sourced from http://www.businessinsider.com/most-expensive-weddings-2010-7#1-prince-charles-and-lady-diana-12

      Debt Consolidation – The Pros and Cons

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      Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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      Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

      The following is a guest post. Enjoy! 

      Debt Consolidation – The Pros and Cons

      Getting on top of debt can be a full time challenge, especially if personal circumstances have changed since a loan or credit card was applied for.

      No matter how the debt has come about, ignoring it can lead to serious consequences that are best avoided. Arguments in the family about money are one of the main reasons relationships fail, so making sure that there is a good debt management strategy is vital to a happy family life.

      Understanding the Debt Consolidation Solution

      Debt consolidation loans can be a good way of restructuring financial affairs so that they are more manageable in the medium term.

      For those with a good credit history, applying for a new fixed term, fixed rate loan should be a straightforward way to raise new funds with which to pay off existing high rate borrowings. Those with less than perfect credit histories could benefit from a new loan even if the terms are no so advantageous as the good credit customers.
      Debt consolidation loans work when there are large amounts of high rate debt outstanding. Typically, this means high balances on credit or store cards, where the monthly interest charged can be close to 20% annual percentage rate. These loans can also help where there are existing loans where the monthly payment is high due to its short term nature (for example, a two year car loan). To reduce the monthly net cash outflow, the new loan has to be over a long term and at the best possible interest rate. The total amount of interest paid over the life of the loan may be higher that the existing debt, but it has the advantage of reducing the monthly payment to an amount that can be afforded. This can then help free up cash for other important bills.

      The Limitations of Debt Consolidation Loans

      This approach can only work once or twice. What is also needed is a change of lifestyle so as not to increase the amount of debt once the debt consolidation loan is in place. Credit card usage needs to drop and additional borrowing put on hold, so attitudes to borrowing and how to live within a set budget are as important as clearing existing debt balances.

      It may even be that a change of lifestyle can help get your finances back under control more quickly and easily than applying for a debt consolidation loan. If this is the case, then look for a zero interest credit card transfer deal and use the free period to pay down the balance. This will be far cheaper than any new loan can ever be.

      It may be possible to combine these two approaches to make the best of both options available, where interest free borrowing can be achieved combined with a smaller debt consolidation loan.

      If all of this sounds complex and frightening, then free advice and help is available from a number of debt counselling sources. Whilst inactivity is not a good idea, neither is indecent haste, so checking all options available and making sure that you have the best solution to match your personal circumstances is the best approach.

      How about you all? Have you ever used debt consolidation loans? If your debt was spiraling out of control, what method would you use to combat the problem? Did you ever consider 0% interest credit card balance transfers? 


      Share your experiences by commenting below!

      Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

      • Great article here! One thing I’ve always wondered is if there are any qualifications (such as income level) in order to obtain a debt consolidation loan? Does any one have any experience with this?
      • I think that it’s also important to point out that debt consolidation loans are not an “easy way out.” They should only be used if someone is having real trouble making the minimum payments on their credit cards each month, whilst still having enough money to live on. 
      • For most people, who merely have more debt than they’d like and want to get rid of it, debt consolidation most likely is not the solution. However, what is the solution is to 1) collect your debts, 2) finalize your Debt Free Action Plan, and 3) call your credit card company to get your interest rate reduced.

      ***Photo courtesy of http://www.flickr.com/photos/exurban/4857586543/sizes/m/in/photostream/

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