Have you ever wondered how you get so much junk mail each day? Would you like to get rid of most of it? There are ways to get your name removed from these mailing lists. It will take some persistence but in time you can greatly reduce the amount of junk mail you receive.
Have you wondered how you got on these lists in the first place? Junk mail or direct mail is an attempt to match buyers with things they usually purchase. Often times when you purchase something the company takes your name and address, this information is added to a marketing list. If you use a shopping card, a credit card, subscribe to a magazine, purchase from a catalog, or do a registration form you are giving the company your information.
From these types of transactions the companies collect and enter your info into their database so that they can send you more advertisements for other products they sale. This database can also be sold to other companies to solicit your business through their advertisements. These advertisement lists are a widely used and are a very big business.
So how do you get off the mailing lists? The first step is to get off of the major national mailing lists. Contact Direct Marketing Associates and let them know you want to be removed from their list. You can do this by registering with the Mail Preference Services: Direct Marketing Association PO Box 643 Carmel, NY 10512 or E-mail to www.dmachoice.org
Much of the junk mail you receive is post card or flyer type advertisements. To get these removed look for the mailing label on the mail piece, the company address or number will be printed on it or on the flyer. Contact the company by phone or mail. Let them know you want to be removed for their list. If you get them on the phone you might get passed around, be persistent. It can take four to eight weeks to have your name removed.
Some of the major advertisers are Valassis or Red Plumb, contact them at www.advo.com look for the name removal portion of the website. Val-Pak Savings Coupons can be contacted at www.coxtarget.com and PennySavers can be called toll free at 800-422-4116. You may need to request your name removal more than once. Keep working at it until you know your name has been removed.
Mail catalogs and magazines record your information when you apply for a subscription. They also can sell your information other catalogs. Abacus is a company where catalog and publishing companies get information about consumers. If you order from catalogs there is a good chance you are in that system. You can e-mail Abacus to have your name removed from their list by e-mailing abacusoptout@epsilon.com some companies do not work with DMA or Abacus opt out program so you will have to contact these companies separately. Remember to be persistent and that it can take a few weeks before you are out of the mailing lists.
There are several other types of mailing you may get. Pre-approved Credit Card applications come from lenders who gathered information about you through the credit bureaus. The bureaus do not disclose specific information about your financial history, but they do disclose general information for example: those who pay their bills on time and have good credit ratings. You can contact each of the credit bureaus and ask to be removed from their mailing lists.
By contacting the sender of the junk mail pieces and telling them to remove your name from their list you will eventually be off the lists. Remember that each time you apply for something new you need to let them know not to put you on their list. If you do not you will start receiving junk mail again and your name will be back on the advertisement lists.
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How to remove your name from mailing lists.
August 5th, 2009
How to have a debt free holiday.
August 5th, 2009Over the years it seems like the holidays have become more and more commercialized. Every Holiday has huge marketing campaigns. There is always something you have to do or buy to make that Holiday just right. Falling into that way of thinking is very easy to do. Often times these holidays get put on credit cards and it takes months to pay off.
Sometimes it is necessary to spend money for the holidays, food, gifts and travel expenses often come up. There is nothing wrong with spending money for the holidays. The problem is that many people spend money they do not already have and go into debt. I think we all know people that take all year to pay off credit cards just to charge them back up for the next holiday. Some of these people get deeper and deeper in debt each year and never get out.
The key to having a great holiday is to plan a budget well in advance. If you know that a certain holiday is going to be expensive you need to save up before it comes. Holidays are great because they come the same time each year; they are easy to plan for. Plan for the holiday based on your budget. If you have not saved enough to travel make arrangements to celebrate locally. Nothing can ruin a great holiday more than over spending and paying for it for months and months.
Many people get caught up in the holidays and really have great intentions; they go all out and think they are creating a great thing. If they have to finance the holiday party they may not be so happy after the celebration is over. Often this good intention turns into a bad experience. It amazes people how quickly they can bury themselves in debt. Making a minimum payment on a credit card can take years to pay off. If you cannot afford to pay for the holiday do not do it.
To really enjoy the holiday you have to plan for it, make a budget and stay with it. People always appreciate something they have worked for more than instant gratification. When you plan for your holiday celebration, think it through. Do you really need to spend this much money? Do you really think it is worth it? Maybe it is and it will be great. The thing is to be prepared. If you have a plan going into it you will be able to do all the things you want and not get into financial trouble.
Holidays are great, you should enjoy them. Don’t let the media influence you to make bad decisions. You know what is important to you and if you stick to that and plan and budget you will have a great holiday. Don’t finance holidays. It will cost more than you know.
Establishing an emergency savings fund.
August 5th, 2009Most financial experts suggest that an emergency fund should cover all your monthly expenses for 3 to 6 months. This emergency fund is a back up to your regular living needs. It is designed to give you and your family a safety net from job loss or any other emergency. It is critical to have this fund; Money magazine had an article that says 78% of Americans will have a major unexpected expense within the next ten years.
We all have heard stories of how a tragedy has brought a person to financial ruin. We all know that tragedies happen; At least we can be prepared financially to help lessen the blow. How do we save for the emergency fund if we do not have one? The first step is to make a budget and actually live by it. One way to save for the emergency fund is to put 10% of your monthly income into a savings account. It may be difficult at first, but it will surprise you how quickly it builds. If 10% is more then you can budget for find the percentage you can afford then make sure you save that amount each month. It does not matter how small the amount is, everything will help. The key is to be consistent each month.
Only use the emergency fund for real emergencies. You may have some wants come up that you think are needs. These are not the things the fund is for. Remember it is for real emergencies. It can be difficult to save for the emergency fund, but once you have it saved you may find it harder to keep it saved. Before you spend the emergency fund on something, think it through then sleep on it before you make your decision.
Your emergency fund should cover your regular monthly expenses for 3 to 6 months. If you are the sole provider, 6 months of emergency funds may be better than 3 months. If you are a joint income family maybe you only need a 3 month fund because your income is more stable. Depending on the nature of your work and your situation you should decide if you need 3 or more months of emergency funds.
This emergency fund needs to be liquid. You may be tempted to invest it into a bond or some type of investment plan. The emergency fund is not a retirement plan. It needs to be readily available. You do not want to have to wait to get it or have to pay a penalty to get it. The emergency fund is for a rainy day and needs to be available at any give notice.
Once you have the emergency fund finished you will be amazed at the peace of mind it will bring you. If you have ever been in a situation where you were in a bad spot financially you will really appreciate this emergency fund. Remember most of us will have some financial emergency in the future, being prepared to deal with it can make the difference between financial ruin and just a bump in the road.
The Simplest Way to Organize Your Finances.
July 22nd, 2009The secret to organizing your finances is not to make more money. While more money is nice, for most of us the key is not to make more money, but what you do with the money we have. Have you ever seen a news report about a yesteryear rock star, professional athlete, or other wealthy person who files for bankruptcy? In a more practical application, you may know someone in your family or circle of friends who has made a lot of money in times of boom, only to be broke in times of bust. More money is not the only way to keep a positive balance in your bank account, in fact, without the correct skills it will usually lead to bankruptcy. Proper managing of your money is a much more practical and common solution to financial difficulty than simply making more money. The best part is you can begin to manage your money right now, whereas earning more money may require life changes such as school, business loans, etc. More importantly, learning how to manage your finances now will allow you to better retain future earnings and avoid potential busts.
We have all heard a hundred times that if we want to organize our finances, we need to be on a budget. A budget is writing down how much money you need to spend on necessities each month, writing down how much money you want to spend on wants each month, writing down how much money you need to save each month, and not spending any more than what you write down in each category. The easiest way to begin is to write down all the things you spend money on in a given month, while considering yearly or semi-yearly expenses as well. Most of us can list our expenses in 15 or 20 different categories. Such as groceries, utilities, mortgage, credit card payments, car payments, gas, clothing, school expenses, insurance, entertainment, savings/retirement, emergency fund, auto maintenance, Cell phone, home maintenance, etc. Once all of these are written down, estimate how much money you need monthly for each item. It is OK to estimate at this point. It may take a few months before you really learn how much you spend in each category.
Now that you have determined what categories you spend in, you must decide which categories are purchasable by cash and which are purchasable by check only. Those are your two options; cash and check. Credit cards are not a part of this system. If something must be reserved with a credit card or purchased online, use a debit card. You want to use cash as much as possible. Designate a check payment only for items that must be paid online or through the mail.
Once your categories and amounts are decided upon, get some envelopes and write down each cash category on the front of an envelope. You want to have one envelope per cash category. At the beginning of the next month, withdraw enough cash in the appropriate denominations to fill up all of your envelopes. Make sure your checking account balance is only enough to cover all of your monthly purchases that require a check.
When your envelopes and checking account are ready, and the first of the month arrives, you can rest easy knowing that you have all the money you need for the next 30 days. If your bank account gets low, or your cash envelopes empty, you may need to make adjustments. After a few months you will learn to live on only what you put in your envelopes and checking account. Developing a determined, focused attitude toward this system will make this type of responsible living fun, almost like a game. Soon you will be well on your way to saving more and more each month, while easily living on less than what you earn.
How to establish and live on a budget
July 20th, 2009Have you ever asked yourself “how should I establish a budget?” Establishing a budget can be one of the best tools to help a person stay on track to meet long and short term goals. There are several steps that must be taken when setting up a budget. Sticking to a budget is not an easy task in fact most people look at budgets as restrictions they have placed on themselves, rather than a tool that if used properly will help them accomplish goals they have set.
The first step is to realize that you will falter and more than likely you will spend more than you have budgeted. The key however, is to not get frustrated and lose sight of why you have established the budget and the goals you hope to obtain by sticking to it. As soon as you recognize that you are off course make the necessary changes so you can get back on course.
Secondly, now that you have accepted the fact more than likely you will falter it is time to get serious. Make a list of all the monthly expenses that you have and get statements of those expenses. This list needs to be all inclusive of all expenses that you have on a monthly basis. Expenses that would be included would be things such as utility payments, cell phone, rent/mortgage, insurance, investments, car payment, credit card payments, groceries, auto maintenance, etc. all living expenses need to be included. Next to the list of expenses write the corresponding dollar amount that is required to be paid out on each bill on a monthly basis put only the minimum required amount even if you pay extra regularly. By putting only the required amount you will be able to get an accurate amount of how much is required for you to live and meet all financial obligations each month.
Once you have determined what it costs for you to live and pay all your bills each month now determine the system that works best for you which is the third step. There are many different budgeting strategies/ techniques that have already been proven to work there is no need to re-invent the wheel. Here are a couple of the more popular systems:
The Envelope Method- In this system you categorize all your expenses into envelopes and when pay day comes you put the corresponding dollar amount in each envelope that will cover that month’s expenses. When the bill is due you take the money out of the corresponding envelope and make the payment. This system works especially well for expenses such as groceries, entertainment, dining out, and hobbies, etc. costs that not fixed and can be hard to track.
The “Wish List” Method – The idea behind this system is to itemize all monthly expenses and determine spending limits you want to budget for each item. You carry this list with you or put it in a place where you will see it on a regular basis (i.e. the refrigerator) this serves as a reminder of what your budget is. After you pay a bill or purchase something next to applicable budget item list how much you spent and keep a running total much like a check register. The downfall of this system is keeping a running total of all expenses without going over budget and there is no easy way to enforce the budget.
Charting Method – This method requires you to keep track of every expense. The idea behind this method is to carry a tracking journal and write down all expenses, writing down all expenses is a good exercise this helps you to see where all the money is going. Writing down all expenses will more than likely encourage a person to spend less and work on changing spending habits. However, this method is not really budgeting; budgeting is planning for the future not just keeping track of the present.
There are other budgeting methods available the key is to pick the method that works best for your individual goals and needs. Once you have established which method works best for you discretion and discipline is required to stay the course. The first couple of months will be a little challenging and will require a change in the way you view your finances.
How to use a credit card
July 20th, 2009Are you one of the many consumers confused about how to use a credit card? Credit cards can be a great tool to establish and build a strong credit report and credit score but only if they are used responsibly. Most everyone has some type of charge card but few know the ins and outs of how credit cards can affect their credit for good and bad. Here are a couple of guidelines to live by when using credit cards, by following these guidelines a person’s credit will become stronger and as result credit scores will increase.
Payment history – Approximately 35 percent of a credit score is based on timeliness of payments. When looking to obtain new credit with a financial institution one of the biggest concerns they will have is whether or not you have you have paid back other lenders on time.
Tip #1: Pay your bills on time. It is the most obvious and the most important thing a person can do to ensure good credit.
Balances on credit – Approximately 30 percent of a credit score is based on the amount of money you have outstanding on credit. Owing money on credit in and of itself is not the problem the problem lies in if you have exceeded your credit line amount or if you are close to having credit lines maxed out.
Tip #2: Try to keep credit balances low on all credit cards a general rule of thumb is keep balances well below 50 percent of the high credit limit.
Credit history – Length of active, good standing accounts contributes about 15 percent to the FICO score.
Tip #3: One of the first things consumers want to do if they have paid off a credit card or if they have a card they are no longer actively using is to cancel it. If the card has been open for a long period of time and has been in good standing closing the account could actually negatively impact the credit scores. A better option would be to keep the card open and use it once or twice a year this will increase the length of the credit history.
New credit – This accounts for 10 percent of the credit score. Opening several accounts in a short period of time will lower a person’s credit score because it represents a greater risk to other lenders.
Tip #4: Consumers should be aware of their credit scores at all times a consumer can check his or her credit without affecting their FICO scores. Consumers should be cautious letting lenders check their credit.
Types of credit- When we talk about credit we have to be mindful that there are several different types of credit that are available such as revolving credit (credit cards), Installment loans, mortgage loans and auto loans. There are other types of credit but these are the most common. One type of credit is not necessarily better than another it is recommended to have a mix of credit types to improve credit and show responsibility. Types of credit in use makes up the remaining 10% of the FICO credit score.
Tip #5: Only open credit lines that are necessary do not fall for the gimmicks that are offered by most clothing retailers of getting 10 percent of your purchase by signing for a credit card this will hurt your score if it becomes a habit and a person accrues several credit cards.
How credit affects all aspects of your life
July 20th, 2009In this day and age credit affects every aspect of an individual’s finances from getting auto insurance to getting an auto loan. It’s true now more than ever it is crucial to maintain good credit if you want to guarantee the most competitive interest rates on home, auto and signature loans, credit cards, and insurance. Having poor credit due to late payments, bankruptcy, foreclosure, collections, charge offs and any other type of negative information reporting on your credit report will literally cost you time and money.
Obtaining financing for any type of loan has become increasingly more difficult especially over the past few years. Banks are tightening their underwriting guidelines and credit requirements due to the overwhelming number of defaulted loans that have occurred over the past five years. Credit card companies have also changed qualifying requirements and are not as generous in offering high credit limits. The “credit crunch” is real and affects everyone.
As part of the “credit crunch” many banks have started to decrease credit limits and increase interest rates on credit cards for existing customers if there are any late payments or drop in credit scores. This can prove to be very frustrating for individuals that count on a high credit limit as a “safety net” for those unexpected emergencies. Several mortgage lenders have also started to decrease loan limits on Home Equity Lines of Credit due to the soft and decreasing housing market. There is no doubt that these are tough times which makes it even more important to maintain good credit.
How credit determines your mortgage.
Do you find yourself asking “how credit determines your mortgage?” Let us offer some guidance. Buying a home is the biggest decision and financial commitment a person will ever make, there is no doubt that every individual wants a piece of the American Dream. The reality of the situation is not everyone will have a chance obtaining a piece of the American dream of home ownership because they cannot qualify. It is extremely unfortunate that an individual’s credit score could be the road block on the road of buying a home.
In obtaining financing for a large purchase such a home mortgage there are several obstacles that have to be overcome. The goal of a lender when trying to qualify an individual for a mortgage loan is to determine the level of risk an individual is to that lender. This is where credit scores and credit reports come into play.
Once a mortgage loan application has been filled out one of the first steps in qualifying for a mortgage loan is having a credit analysis completed. In order to perform this analysis a credit report is requested from all three of the major credit reporting agencies and then analyzed. Part of the analysis includes reviewing all trade lines (creditors) that report on the credit report and checking to see if there are any late payments, collections, charge-offs, foreclosures, bankruptcies, or any other derogatory information. Each of the aforementioned increases the level of risk to an individual’s application and therefore decreases the chances in obtaining financing. The credit analysis also determines how much of a down payment will be required as well as the interest rate and the loan term.
How to handle collection companies
July 20th, 2009Once your debt has turned over to collection agencies you still have options. Many consumers ask themselves “how to handle collection companies?”. Collection companies are governed by the FAIR DEBT COLLECTIONS PRACTICES ACT, here in referred to as the FDCPA. It is imperative that you know your rights.
Collection agencies are companies that have bought your bad debt, or are assuming your debt. The FDCPA applies only to bill collectors who work for collection agencies, not the original creditors. You will not be able to get the collection department in your credit card company to stop calling you with a letter.
Collection Companies CAN NOT:
- Call you at your place of employment
- If represented by an attorney, creditors may not contact you in regards to collection
- Call before 8AM or after 9PM
- Address you in any abusive manner or make threats
- Call Family or friends to COLLECT DEBT (They can however verify contact information)
Cease Communications with Creditors:
If you notify the collection agencies in writing that you refuse to pay debt, or that you wish to cease further communication, the collection agencies are no longer allowed to contact you. The exception to contact is to notify you that collection attempts are being terminated, or if they plan on taking the case to court.
Verify your debt:
You have the right to know what is going on with collection efforts. You should verify the validity of the debt, the amounts owed, the payment history on said debt. The failure to do so, does not imply liability, but it is always best to know what you working against.
Within 5 days of being initially contacted, the debt collector is required to send you written notice of:
- The amount owed
- Name of the creditor of whom the debt is owed
- A statement that if the consumer notifies the collector in writing within the 30 day period after receipt of notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed valid by the creditor
- If dispute within the 30 day period, the creditor will obtain verification of the debt or a copy of a judgment against you. A copy of verification will be mailed to you.
A statement that upon your request, information on the original creditor will be provided, if different from current creditor.