Top 5 Common, Correctable Middle-Class Financial Mistakes

What are the Top 5 Common Middle-Class Financial Mistakes?

1. Lack of Basic Financial Education.
2. Miss-Calculation of Fees, Charges and Conditions.
3. Failing to Correct Mistakes in a Timely Manner.
4. Failure to Obtain Proper Disclosure from Creditors.
5. Trusting but not Verifying.

Why are they important to know? Because everyday, scores of intelligent and responsible Middle-Class Americans are seduced by the sweet kiss of Credit and subsequently, smacked by Credit’s ugly twin Debt.

If you’re in Debt, beware of The Top 5 Common Middle-Class Financial Mistakes that lead to Financial Failure. These mistakes lurk in Blind-spots of Credit Accounts. Financial Mistakes are (often) purposely hidden or overlooked by Creditors and Debtors. But they are sure to make financial failure a reality – if not corrected. Please let me be clear and not cute, these 5 common Financial Mistakes can easily lead Middle-Class Americans into financial failure.

What Can Middle-Class Americans do to Correct these 5 Common Financial Mistakes Once Made?

First, get financially educated.

To win the initial stages of War every Middle-Class American must arm themselves with Credit and Debt Intelligence. I’m happy to announce that DEBT WARRIORS have most of the bases covered on this one.

Debt Warriors  explain the often treacherous:

• “Battlefield of Debt”,
• “The 30 Day “Rule of Debt Collections”.
• How to get your Government Sponsored Credit Report free every 12 months.

Watch DEBT WARRIORS!™ Credit Boot-Camp Video’s here.

Second, re-calculate miscellaneous fees, charges, and taxes into your budget.

Miss-Calculation of fees, and charges are second in the most common mistakes that Middle-Class Americans make with their finances all the time. For example, Bank Account fee’s can float around until the end of the month when they silently sneak up and sting. Taxes and surcharges are often overlooked as well. Like the cell phone plan’s with service fees, taxes and charges.

To re-calculate miscellaneous expenses for Service Bills (cell phones, Internet service, utility bills etc.) , take your last 3 billing statements from each, and calculate the average payment per month (with taxes and fees).

To re-calculate monthly Bank Fee’s, find out what, how much, and when you can expect to be charged. For example, some Banks require you to have at least $250 dollars in your checking and or saving accounts each month or be subject to fee’s. Cal your bank and ask a human what fee’s are charged, and when you can expect to be billed.

Third, Correct Mistakes in a Timely Manner.

Abraham Lincoln was found of sleeping on the stunning choices he had to make. But Honest Abe didn’t live in a Global Economy like today’s.

For example, did you know that the “Fair Credit Billing Act“makes it vital for a Consumer to seek to correct a Credit Card or billing error within 30 days of the error?

Are you wondering what to expect if you miss a payment? We explain the “30 Day Rule of Collections” in one of our Credit Boot-Camp Videos. This information can be a timely and valuable debt related stress reliever.

Fourth, be diligent in obtaining disclosures.

Failing to obtain honest and understandable disclosures of Terms and Conditions for Credit are what triggers Debt. This is undoubtedly one of the biggest mistakes that Middle-Class American Consumers make regularly.

The Economic Meltdown has shown how lack of total Disclosure can lead to financial failure. For example “Teaser Rates” on Lines of Credit for Mortgages and Credit Cards). Teaser (Promotional) Rates have been sold to millions of American Consumers over at least the last 4 years.

Many Americans made the mistake of not fully calculating and estimating the results of hidden terms and fees for Mortgages. To avoid or correct this mistake, review the Terms and Conditions of every contract that requires you to pay any money.

If reading Legal Disclosures makes your brain swirl like the Beast dancing with Belle at the Ball, consider getting an experienced Attorney with Services. I personally have any contracts or agreements (regarding money) that I intend to sign, reviewed by my PPL Provider Law-Firm.
Fifth, don’t trust – Verify!

President Ronald Reagan was fond of saying “trust but verify”. What a crock! The Financial Markets are unregulated so buyer beware.

 

Banks (which are barely regulated) are suspected of floating and bouncing Account Holder’s checks all the time. Don’t take just anybodies word for anything co-finance related. Instead Verify all loan promises in writing.

The good news is that these 5 Common Middle Class Financial mistakes are avoidable and correctable.
——————————————————–
DEBT WARRIORS™ are not Attorneys. WE ARE experienced Debt Management Coaches. The information on this blog, should not be considered legal advice, but helpful information.
Don’t let debt defeat you! Win Your War ON DEBT!

——————————————————

Credit Card Combat: 4 Ways Consumers Can Fight Deceptive Rate Hikes

Today, the Pew Charitable Trust (a non-political and non-partisan Think-tank) released results from a study conducted with  American Credit Card Holders (“Safe Card Project”).  After Banks  and Credit Card Issuers advertised low “Teaser Rates”,  nearly 100 percent of these companies  raised, or allowed Card Issuers to raise the rates in a deceptive manner!

Pew Poll 10/28/ 09 Finds Deceptive Credit Card Rate Hikes

Try not to be shocked when you read some of the Safe Card Project  findings below:

99.7 percent of bank cards allowed issuers to increase interest rates on outstanding balances – a jump from 93 percent in December;

95 percent of bank cards permitted issuers to apply payments in a way the Federal Reserve found likely to cause substantial financial injury to consumers; and

90 percent of bank cards had penalty rate hikes with the vast majority imposed by “hair triggers” of one or two late payments in a year.

~ Source: Pew Charitable Trust, October 28, 2009.

Safe Cards Project Calls On The Fed To Force Credit Card Issuers To End Deceptive Practices

The Pew Safe Cards Project found disturbingly “disproportionate” penalties on American Credit Card Holders.  Nick Bourke, Manager of the Safe Cards Project called on the Federal Reserve to take action to halt such deceptive practices. All due respect to Mr. Bourke, but the Federal Reserve, in our opinion has no reason to halt the deceptive practices of the Banks and Credit Card Issuers.

Can you believe that even after the ‘Credit CARD Act’ of 2009, was signed into Law, nearly 100 percent of Credit Card Companies are jacking up rates by 20 percent? How can American Credit Card Holders  combat such attacks on their financial security?  Keep reading to find out.  Thanks for stopping by 🙂 .

4 Ways Consumers Can Combat Deceptive Credit Card Rate Hikes

What is a hard-working American to do to end these deceptive Credit Card practices? No the answer is not file Bankruptcy. There are better options that Debt Warriors will share below.

You Can Eliminate Your Credit Card Debt Up 5 Times Faster Yourself!

1. Let go of  Loyalty.
While negotiating Credit Card Rates for clients, we’ve encountered many Credit Card Holders who are “Loyalist”.  Loyalist tend to think that they have to take what they get from the Credit Card Issuer.  It’s like being in an abusive relationship.  The Loyalist doesn’t want to leave for fear of not finding anything better – or worse, finding something worse.

Rhonda, was a client of mine who got really angry while I was negotiating on her behalf.  She was fearful that I would make her Bank angry and that she’d have to live with the consequences long after I was done helping her.  Rhonda kept telling me that she didn’t want to start any trouble.  I told her, “all due respect, you’re already in trouble”.  She had an interest rate of over 24% (up from 9.99%).  But she feared that if  I got too tough with her Bank, that she’d end up owing them more money.

The fact is, Credit Card Issuers have a lot of competition.  There are so many Banks, Credit Unions and Card Companies fighting for new Customers everyday.  Consumers benefit by being loyal to themselves and their financial future and not some Credit Card Issuer who could care less.

2. Shop around for better rates.
Another thing that many Credit Card Holders fear is damaging their Credit Score by shopping around for a better rate.  This fear is based on lack of knowledge.  The fact is, the Card Holder can not hurt their Credit Score by asking “what rates do you currently offer”?  The Consumer does not have to provide any personal information until they actually apply for the card.

In the Credit Card Medic Video Course, Debt Warriors take Consumers step-by-step through the safe way to apply for a new Credit Card without hurting their Credit Score.

3. Consider a Balance Transfer to a Credit Union.
We make no secret that Debt Warriors are big fans of  local Credit Unions.  Like Banks, Credit Unions are backed by the U.S. Federal Government.  Unlike Banks, Credit Unions are local and offer better rates and terms for loans and transactions.  To find a local Credit Union, click here to go to the National Credit Union Administration website.

4. Take Action.
Finally,  once a Card Holder has been deceived into a high rate Credit Card or, suspect as much, take action.  Consumers should contact the Bank or Credit Card Company and don’t be afraid to engage in combat with them.  Ask them to honor the offer that was agreed to, if  Credit Card Issuer refuses, contact the Better Business Bureau and report them. Or contact Federal Trade Commission to file a complaint by calling 877-FTC-HELP.

Has Your Credit Card Company Short-Changed You?

Save More with the CREDIT CARD MEDIC Video Course: 866-576-7996

So I’m reading the News this Morning, and I encountered an article struck me right in the brain.

This is the meat of what this news article said:

• Credit Card Companies (Creditors), are cutting Consumers Credit Limits.
• Creditors are Closing Credit Card Accounts.
• Delinquency Rates have been rising steadily for the past four years.
• Bankruptcy is being filed at double-digit rates.

These fact’s are tragic, but not new.  For nearly 3 years,  Debt Warriors have been sounding the alarm about the financial attacks known as Credit Card Tricks and Traps.   We’ve also been helping American  Credit Card Holders take Cover, regroup and fight back 🙂  We been giving people the confidence and hope of winning their war on debt!

So, What do you do when your Credit Card Company Short-Changes you?

How can you survive an attack on your Credit Limits?  You have three choices:

1. Pay the Full Balance.
2. Eliminate the Debt.
3. File Bankruptcy.

First, if you have the money to pay your Credit Card balance, you can  go ahead and pay it off, and be done with that debt. That will end most of the stress.  But we don’t suggest that you close the account.  Simply use the Credit Card once or twice per month, for small purchases only.

Second, you could eliminate the Debt.  There are secret keywords and processes that you can use to actually eliminate your Credit Card Debt (for yourself).

Outsmart your Credit Card Debt

There are also good Debt Elimination Software Programs that can help you eliminate your Credit Card Debt faster.  The Debt Elimination Software that we offer is the one preferred by Professional Debt Consolidation Companies.

Third, as a last option you could file bankruptcy.   With Bankruptcy filings doubling, we are wise enough to know that if you want to file Bankruptcy, we can’t stop you.  But we hope you’re considering all of the facts not just the positive  promises like,  immediate relief  from your Debt Obligations.

We hope you Consider the  negative impacts of filing Bankruptcy for example:

After Bankruptcy Americans Need 10-20 Years to Recover.

The Ohio State University published a  Study by Jay Zargorsky and Jeff Grabmeier.  This 2004 study found that it takes 10 to 20 years or more for those who file bankruptcy, to reach the same financial status as their peers.  This  Study goes on to site  many other findings:

• People who file for bankruptcy are more likely to be divorced, female, less educated, have lower income, live in urban areas and have bigger families than people who have never filed.
• About 81 percent of people who have never filed have savings (vs. those who filed).
• Those who filed under Chapter 7 Bankruptcy,  took longer to catch up financially with non-filers.
• Bankruptcy Filers  experienced that a ‘fresh start,’ may take longer than they expect or would like
• After 2005, there is no more ‘Fresh Start Bankruptcy’.
• Those undergoing bankruptcy are saddled with more debt.
• Recent Bankruptcy Filers have a 50% chance of getting approved for a home loan, against a 73% rate for persons who have never filed.

We encourage you to consider option number Two.

We believe you should be informed of some of the fact’s that others offering you help are not willing to tell you, about how to eliminate your Credit Card Debt (for yourself).  For this reason, we’ve developed the weapons that inform you of the secrets  to eliminating your Credit Card Balances and  winning your War on Debt (Credit Card Medic and the Debt Warriors Arsenal)! Filing  Bankruptcy is surrendering and suffering for up to 20 years.