Money With Google

New. Corrupt Mortgages

Let me share a personal story with you. My husband and I just heard about some of our family friend’s making a huge financial mistake.

The husband of this family has been “sick” for years now. He is too “sick” to work, so the wife got a part-time position at a near-by Wal-Mart. The couple can’t have too many expenses because they live with their parents. However, the couple does has several children. The father/husband is too “sick” to work and never feels up to watching the children by himself.

This poor couple’s situation just seemed to be going from bad to worse. He was in and out of the hospital undergoing several major surgeries. All of these surgeries were performed without health insurance. Although they don’t have to pay rent or utilities, they do have medical bills piling up. Several years ago, they got involved in a mutual fund. They also have a car payment and have to put food on the table.

You can already see why this couple is in a bad situation. Well, it just gets worse. They just bought a home out of state. How could they have possibly been approved for a home when they aren’t employed and have so many other bills that aren’t getting taken care of.

Credit cards. They purchases this home with their credit card. They now have a home and a .25 acre lot on their credit card. Credit cards can be extremely beneficial if used correctly. Buying a home, especially when you don’t have a job, with your credit card is horrible financial planning.

The fact of the matter is that this couple is not the only one to buy a home with a credit card. Actual mortgage loans are getting harder to come by. So, people have begun buying homes with their credit cards. This nationwide trend of these new, corrupt mortgages has to stop. Americans need to learn how to go without instead of getting in way over their heads in debt.

These credit card mortgages have to stop if the economy actually wants to recover.

The New American Financial Fad

More Americans are raiding their nest eggs now than ever before. Many factors are forcing Americans to dip into retirement funds early. Layoffs. Job searches. The need to get some help to pay the mortgage. The reasons are countless.

Those who have already dipped into their retirement funds are counting their blessings. They feel as if they are the fortunate few who actually have a retirement fund to dip into. A recent Hewitt Associate study gives us a glimpse at how bad things really are. This survey showed that 6.2 percent of people who had retirement accounts at large corporations had already taken out a withdrawal as of September 30, 2008. In 2006, only 5.1 percent of these people took out early withdrawals.

So what is happening to the other thousands of people who have recently been laid off or face financial challenges from the financial crisis? Many of these people are foreclosing on their homes and are living off of their credit cards.

Watching the credit card bill pile up is certainly not a great way to live. Credit cards can be a real lifesaver, if used correctly. If not used correctly, credit cards can become a huge detriment.

Whether you are considering living off of your credit card or dipping into your retirement fund, both methods can create a huge financial burden. Living off of a credit card without any incoming cash can lead to bankruptcy in a hurry, and is not the best financial advice. Making a withdrawal from your retirement fund early will minimize the amount in your savings account and often is coupled with a large fee. Both of these methods should be used as an absolute last resort.

The economy is starting to improve. But, Americans around the country are still having to make crucial financial decisions. Live off the credit card? Take out an early withdrawal from the retirement account? Hopefully, these decisions won’t have to be made in such abundance in the near future.

The Secret to Black Friday

Black Friday is always the biggest shopping day of the year. On this particular day, millions of people wake up at unbelievable hours to sit in the cold and try to pay low, low prices for Christmas gifts.

The key to Black Friday shopping is to put all of your purchases on your credit card. Don’t just put these purchases on any credit card. Put these purchases on your cash back credit card or your reward credit card. Using your reward credit card or your cash back credit card is the only way to make it through Black Friday. Here are the top three reasons to use your reward credit card on Black Friday this year.

1. Using your reward credit card allows you to really take advantage of Black Friday deals. Some stores and other retailers offer exclusive discounts when you use a certain credit card or credit account. Plus, using your credit card allows you to buy your Christmas gifts now and pay for them later. Not everyone has enough money in their checking account to pay for Black Friday in cash. Using your reward credit card or your cash back credit card lets you complete your holiday shopping in one pain-free day and take advantage of exclusive deals.

2. Why not go shopping and earn rewards while you do it. You can earn more rewards on Black Friday than you have all year long. It just makes sense to use your reward credit card for all of your purchases on Black Friday. Pay for your gifts and earn extra rewards for yourself by using your reward credit card.

3. Pay off the balance of your credit card after Black Friday by using your rewards or cash back points. Using these cards lets you pay for the majority of Black Friday purchases with the rewards that you already earned.

Pay a lot less this Black Friday by using your reward credit card or your cash back credit card. You can take advantage of great deals. You can also earn points and even pay off the balance of your card by using the points you earned from your Black Friday experience. It just makes sense…Don’t leave home without your reward credit card on Black Friday.

A Desperate Attempt to Cut Credit Card Fees

Small business owners absolutely depend on credit cards. Is this dependence on credit cards a good thing or a crippling thing? Small businesses have had to pay high fees every time a customer swipes a credit or debit card at its terminal.

Small business merchants say enough. These merchants have started lobbying for new legislation to help them out. They are hoping for legislation that would force banks to negotiate lower fee rates with them. The legislation’s sponsors are calling for a “credit card bill of rights for merchants.”

The relationship between merchants and credit card companies has become fiercely bitter. Several merchants are joining together in a class action suit against Visa, MasterCard, and several banks. They claim that these credit card giants have violated sensitive antitrust laws.

The problem is that small businesses no longer have the option of whether or not to accept different cards. Economists are saying that when it comes to credit cards, Americans have been socialized. What they mean is that the ‘norm’ is only pay with plastic these days. The days of paying with cash or a check are long since gone.

Merchants are forced to pay high fees to keep up with credit-’socialist’ times. There are two main parts to the fees they have to pay. The interchange fee includes the average 1.7 percent of the sales price and a per-transaction flat fee. In addition to the interchange fee, merchants have to pay a fee that goes directly to their bank.

Let’s look at a common example. Say a consumer paid $1,000 for a T.V. at a local electronics shop. To buy the T.V., the consumer used a credit card. The credit card company that issued the consumer’s credit card gets paid the interchange fee. This fee is $17.10 (this includes a $0.10 flat fee). The electronics store’s bank gets four-tenths of one percent of the total sale. In this example, the bank gets $4. The electronics shop keeps only $978.90 from the sale of a $1,000 television.

Small business merchants paid over $61.50 billion in electronic payment fees in 2007. It has been estimated that credit card lenders received 82.5 percent of those fees. Merchants don’t plan on giving up easily. They are determined to fight for a more reasonable fee plan. The House Judiciary Committee has already ruled that merchants and banks are supposed to negotiate fees. However, merchants will keep lobbying for a more concrete law.

Travel Payment Options

Have you ever heard of a travel payment option? Well, this option has now been made available by the Universal Air Travel Plan, Inc. UATP’s plan has been made to be used in conjunction with American Express’s new travel incentives. The plan helps reduce the cost of corporate credit cards in the economy today. The plan also offers revenue streams for credit card companies and a low merchant service fee for all merchants.

The UATP unveiled the new plan not long after American Express announced its plan to allow “pricing initiatives designed to generate significant additional revenue next year on some business cards.” Ralph Kaiser, the UATP President and CEO also said, “The airline industry is already facing a challenging market and, with the global economic forecast, now is not the time to be raising prices and generating revenue at the customer’s expense.”

Is that nice to know that someone is looking out for your economic well-being and the well-being of your business? Here are the main benefits from UATP’s plan.

Merchant Benefits
-Low Service fees for Merchants
-New Revenue Streams via additional flown revenue

Corporation Benefits
-Level 3 Data
-Centralized Billing
-Improved cost control
-No International conversion fees
-No currency conversion fees
-No membership fees
-No annual fees

As you can see, there are multiple benefits for both the merchant and the corporation. UATP continues to pride itself on providing the best payment option at the lowest cost. UATP projects to generate over $12 billion in charges alone in 2009. UATP has also recently added new forms of payments. These payment methods include: PayPal, BillMeLater, HomeATM, and others.

There is no reason why your company has to continue wasting money on travel anymore. Take advantage of the incentives that American Express recently initiated, as well as the payment plan available from UATP.

Rates as Low as Your Birth Year

Imagine a Hotel and Resort company that celebrates you! Imagine staying at a 4 or 5 star hotel and only paying a small, small rate. You can now with the Starwood Hotel and Resort Birth Year Promotion.

Here’s how it works.

-The rates vary by participating properties the first night. Rates start at just $95.
-Get the second and/third night rate equal to your birth year!
-Say your were born in 1938. You’ll pay just $38 per night.
-Be sure to bring a valid ID so that your birth year can be confirmed.
-Hurry and plan your next getaway today because this offer is only good until December 30, 2008.

Here are some hotels to choose from.

-The Boston Park Plaza Hotel and Towers
Go stay in the heart of Boston. You’ll be in the center of Boston’s finest shopping district, which will allow you to get all of that holiday shopping done. Pay $199 the first night and your birth year the second nigh.

-Sheraton Hotels and Resorts
Stay at the historic Sheraton Commander hotel in Cambridge. You’ll pay $249 your first night and rates equal to your birth year the second and third night.

-Le Meridien
Stay in the heart of Cambridge’s Central Square at Le Meridien Cambridge. You’ll be sure to have a wonderful, luxurious and historic stay here. Pay $259 your first night and rates equal to your birth year the second and third night.

These are just a few wonderful hotels to choose from. You can also choose to stay in different cities. These cities include:

-Providence
-Manchester
-Lexington
-Hartford
-Stamford
-Burlington
-Toronto
-Montreal
-Ottawa
-Quebec City
-Halifax
-Collingwood
-Hamilton
-And More!

This offer isn’t going to be around very long. Make sure you book your get away today.

This guest post is brought to us by Plastic Rewards, leader in offering cash back rewards for credit card issuers.

Good VS. Bad Debt Consolidation Companies

Millions of Americans are finding themselves under massive amounts of debt. Often times, this debt seems to trap these people. Although they are making their payments on time, they can’t seem to get out from under crippling effects of debt.

If you are being burdened by the amount of debt that you have, debt consolidation may be just what you are looking for. Debt consolidation takes all of your outstanding debts and rolls them into one easy and affordable loan. This program makes it possible for you to actually pay off your debt, not remain enslaved to it.

Here are some helpful tips to make sure you choose a good debt consolidation company verses a bad one.

-Choose a debt consolidation company that is right for you. Choose the company that offers the services you need at the prices you can afford.
-Use the Internet to make your search easier.
-Read comments on blogs and forums from customers who have used the company you are considering.
-Look for companies that have many positive reviews from previous customers.
-Choose a company that doesn’t make you sign an agreement quickly.
-Make sure you have an in-person consultation before signing up with a company.
-Look for a company that takes the time to meet with you and discuss your current finances in depth.
-A good company will make sure that they can lower your overall payment.
-Don’t choose a company that encourages ‘voluntary contributions.’ This is a bad way to get more money from you.
-Use a company that has a strong reputation.
-Always check the Better Business Bureau.

Good debt consolidation companies help you get out of debt quickly. These companies have your best interest at heart. Make sure you read everything before signing into a debt consolidation program. Financial professionals can play a big part in helping you get out of debt. But, remember that this is your money and your credit at stake.