How You Can Save Money by Avoiding Common Fees

Many of us don’t realize how quickly common fees could add up and the significant damage it can make to your finances in the long run. There are many different fees and penalties that can be avoided and it’s up to you to understand how. Here are some of the most common fees that should be avoided:

Late fees – If you’re paying late fees because you don’t have the money to pay your bills on time then you should start to understand your finances and budget wisely. Cut down on unnecessary expenses that will allow you to have that extra cushion you need to pay your bills on time. If you’re simply a forgetful person, write down your due dates in an organizer, pay your bills as soon as you get them or schedule your online payments automatically for a specific date.

ATM charges – These charges occur when you withdraw money from a bank machine that is not owned by your bank. These fees can range from $1 to $3. These charges can also be charged twice. Once as a convenience fee for the bank machine owner and once from your bank. Once transaction can cost you upwards of $5 and if you’re doing this too often during the course of a month, it can cost you big at the end of each month.

Reward cards – Unless you’re a business owner, you may not get the benefit of the rewards gold and platinum cards give. These cards have high annual fees that can cost you up to $150 so unless you’re a big spender, these cards should be avoided. If it’s taking you over 3 years to earn almost enough to fly then you may have already paid a big amount of your reward in annual fees.

Credit report – Ontario Law states that you have a right to get a free credit report once every year so make sure that you’re not charged by a credit reporting agency when you need it for a mortgage or a home equity loan.

Don’t knowingly allow your hard earned money to be taken from you, visit http://www.prudentcreditrepair.ca/ for more valuable information and tips on managing money.

Keeping Your Money Safe

No matter where you bank, scammers are trying to take advantage of every opportunity to take our money. A recent wave of fraud is hitting small bank customers and credit union customers. Stealing from a bank vault was an early stage of this crime but criminals nowadays are making a big business out of stealing digital money. Stealing from bank accounts or credit card records, which is more trouble for you, the consumer. This doesn’t mean that your banking institutions are not safe, they are, this just means that we should be diligent in keeping our money safe. Here are just a few tips to keep your money safe:

Check your banks policy for covering losses – Your bank should have a policy to cover losses due to fraud. They may also have security policies in place to protect you should you try to access your bank info from other sources such as online or through banks other than your own. Also, check to see if your branch has had problems in the past such as a dishonest employee which could mean that the bank is not diligent in their screening process.

Keep separate accounts with different passwords – If you have a business account with a big line of credit, it makes sense to have a separate account, with a separate debit card/credit card and a different password than your personal account. If your account is all tied in one and it gets cleared out by this crime, you will have problems maintaining your financial life until it gets straightened out.

Protect your passwords – When using your debit card at any store or ATM, protect your password. Change your password regularly. Use different passwords for all accounts. The last thing you want to do is use the same password for everything you do whether online or not. Remember to get in the habit of logging off. If you’re banking online, log out of the session rather than just closing it. The same should go for telephone banking, end the session rather than just hanging up. Not doing this will leave you vulnerable to scams.

Maintain your statements – Always review your bank statements. If you notice something wrong, contact your financial institution and record it. Reviewing your own statements and not relying on the bank to do it for you may save you a bigger hassle in the end.

Never give out your personal information to anyone you don’t know, especially online or over the phone. Banks will be more than helpful getting things back to normal but remembering the tips above will save you from finding out the hard way. For more valuable information and tips, visit www.prudentcreditrepair.ca

I Lost My Job, What Do I Do Now?

When you lose your job, you’re not only losing income. You lose structure, routine, friendships and a sense of well being. Immediately get support from your family and friends, letting out your feelings and allowing yourself to release the anger or hurt from your job loss. This will also allow them to keep you in mind should they see an opportunity for you in employment. Now that you’ve dealt with the emotions, it’s time to make a plan. Here is a list of things to do when you lose your job:

Reflect – Why did you lose your job? Did the company restructure or downsize? Were you directly responsible? You should start to think about your current skill level and abilities, how you can excel in an industry and what you need to accomplish that. Think about whether you enjoyed what you were doing or is this your chance for change.

Apply for Unemployment Insurance Benefits – Find out if you qualify for EI. It may take a while to apply and to receive your first payment, your payments may barely be enough to cover your expenses and they run out really fast but it’s definitely a step that you should take until you get employment again.

Cut Your Expenses – You will want to make your funds last as long as possible so cut back on unnecessary expenses. Talk to your creditors and explain your situation. See if you can negotiate smaller monthly payments or interest rates. Never ignore your bills. Change your cable service to basic, make a decision between landline or cell phone, cut back on entertainment. At this point, you’re not sure if you’ll find a job that is less money, more money or whether you’ll find a job in 3 months or 2 years so it’s always best to be wise.

Create a new daily routine – Embrace the change. Dust off your resume, develop coping strategies and network to increase your probability of finding a job soon. A job takes a large portion of your time and although looking for a job may not take up all your time but it will take up a big part of your schedule. Set up a time for job searching activities and also set aside time for recreation and leisure such as walking, going to the library or taking a workshop.

Remember to take care of yourself. Don’t hide on the sofa. Keep yourself well groomed and keep your sense your humour. You can accomplish so much when you’re smiling so keep smiling!

For more valuable tips and information visit www.prudentcreditrepair.ca

How To Deal With Identity Theft

Identity theft is when a person’s personal information is stolen for the purpose of criminal use. Unfortunately it has become a growing epidemic. Most people don’t even know that they are a victim of this type of fraud until they are contacted by creditors and so we need to take precautions to ensure that we are not a victim of this crime. Here are some ways in which you can deal with identity theft:

Protect Yourself – There are ways you can protect yourself from identity theft. Always protect your personal information. Shred your confidential documents and only use secure sites when purchasing online.

Notify Credit Bureaus – If you suspect fraud you must first be sure that it is in fact fraud. If there’s a charge on your credit card statement that you do not recognize, call the credit card company and find out more about the charge. Some vendors hold their credit accounts under a different name so you may not recognize the charge. Once you eliminate the scenario that it was an error and you’re sure that it’s fraudulent activity then you should contact the credit bureau to establish fraud alerts. Your account will be flagged so that all creditors will contact you before extending any credit.

Request A Copy Of Your Credit Report – Once you receive your credit report, examine it carefully. Make sure the information is accurate and report all fraudulent activity, in writing, to the credit bureau and also to the creditor. Don’t forget to continually monitor your credit reports!

Debt Collectors – If you’re being contacted by a collector to pay the balance on a fraudulent account, get the name of the person calling, the collection company name, phone number, address, the creditor info, the amount of the debt, the date of charges and account number. Explain to them that you are a victim of fraud and that you are not responsible for the balance. You may need to complete a fraud affidavit form. Follow up the call with a letter and ask for a letter back stating that the account has been closed and that you do not in fact owe the debt.

Lost or Stolen Wallet/Purse – If you have lost your wallet or purse or had it stole, report it immediately. Call all credit card companies and get new cards with new account number sand change your password to a new one. Closely continue to monitor your bank accounts.

Identity theft is a big problem and it’s really difficult to catch people who have stolen other’s identities. If your identity has been stolen then it can take a lot of work to clean up the mess. Educating yourself will help you deal with Identity theft. For more valuable information and tips visit www.prudentcreditrepair.ca.

What happens When You Default on a Loan

A default happens when a debtor is unwilling or unable to pay back a loan in which they are required to pay back. This can include anything from a mortgage, auto loan, credit card and even promissory notes.

There are some debts that you may turn your back on and not see any consequence such as a small subscription to a magazine that you got locked into when you signed up for some service. On the other hand there are debts that if you turn your back on can lead you into a difficult financial situation. You may hear stories of people who have gotten away with debt for a couple of years but make no mistake, it will catch up to you.

Loan debts can occur easily. Monthly payments on loans usually start off affordable but this can turn very quickly. There are so many reasons that can contribute to the cause of personal debt problems such as deteriorating health or loss of employment.

What can happen if I default on my loan?

· Loan default will result in a bad credit rating. When this happens, other borrowing sources will become more expensive and more inaccessible.
· Missing monthly payments will incur further interest and penalties.
· Following a loan default, collection calls will consist of the odd call but will then turn into calls from a debt collection agency and they will aggressively pursue you in order to recover the debt.
· For bigger debt problems, you may have your wages garnished. Your employer will be legally obligated to take a portion (if not all) of your paycheque and send this amount to your creditor.
· You can face emotional distress. Feelings of anger and depression will start to surface and can affect your home life and mental stability.

Loan defaults are bad for you and bad for the economy. It’s always best to make your payments on time. If that is difficult, then ignoring the problem will not make it go away. It’s always best to deal with the problem face on to ensure that you have a brighter future.

For more valuable tips and information about managing money, visit www.prudentcreditrepair.ca

Being In Debt and the Effect It Can Have On You

Debt when used constructively allows us to build a future. We are able to buy a home and cars, helping us to invest in our future. When you use debt irresponsibly by funding a lifestyle outside your means, there are long lasting consequences for you and your family.

If you have ever been in debt, you are familiar with how it can destroy you financially, physically and mentally. Debt eats away at all your positive energy because all you can do is worry and stress about money. As the debt continues on, so does the interest only furthering your debt. It becomes impossible for you to make any payments and now you’re afraid to answer your phone, open your mail or even answer your door. Here are a couple ways debt can affect you:

Setting an example – You may be sending a poor message to your family. You may be hiding your debt from your family by continuing to spend money that you don’t have. This will paint an unrealistic picture of financial responsibility. If your debt is exposed then your bad habits also make a lasting impression on your family and can encourage irresponsible financial behaviour especially in your children.

Lifestyle – Dealing with high levels of debt can and will contribute to emotional distress. You will start to suffer from anger and depression causing household fighting making your home life unsafe and joyless for you and your loved ones even though it was never your intent. Debt can cause divorce and even long term health issues. Even when debt is beyond your control due to unforeseen circumstances, it looks bad. It can mean repossession of vehicles or even force you out of your home.

So what can you do?

Don’t ignore your debts. It’s better to spend the rest of your life trying to pay off debt as opposed to putting your family at risk. Work together with your family and come up with a budget. Look at what you can cut down on and what you can live without until things take a turn for the better.

Make a list of all your debts. You may want to consolidate all your loans into one to save yourself on the higher interest cards or loans. Consider bankruptcy if it’s your only option. Consider taking out a personal loan with low interest that will also help you rebuild your credit. With the loan pay off your debt and with the extra money you’ll be freeing up by cutting out unnecessary expenses use towards paying off your loan. Consider the services of Prudent Financial who is the leader in the financial industry offering loans to people with bankruptcies, proposals and bad credit histories across Toronto and the GTA since 1984.

It’s a long tough road but if you’re tired of being paralyzed, you need to take control of your debt and take back control of your life! Visit http://www.prudentcreditrepair.ca/ for more information.

Will A Payday Loan Affect My Credit Score?

When a payday loan seems like your only option, you need to take a step back, consider your situation and determine how you got there. Do you need a payday loan because you have bad credit, is it because you have no credit or are you drowning in debt? Every individual’s situation is different.

Why would I need a payday loan?

Payday loans are used for a number of reasons. They are popular for people who need quick cash. When you’re in the position of needing money immediately, the advantages of a payday loan outweigh the disadvantages. Here are just a few reasons one would want to use a payday loan company:

· You can get a payday loan regardless of your credit score as there is no credit check involved
· You can apply in person, online or on the phone
· The application process is quick and the loan can be obtained in less than 24hrs
· No one else is involved with the loan so it’s discreet
· People in a desperate state of finance may not be aware of their options
· Payday loan companies are everywhere
· It’s a quick fix

Those may all seem like great reasons to turn to these types of loan but payday loans come with a high price so beware!

Will a payday loan affect my credit score?

Yes, if you don’t make your payments on time, you will be reported to the credit bureau, further damaging your credit score. Since payday loans are easy to obtain and you don’t need a credit check, it’s very popular to people who are already experiencing financial hardship and borrowing money with such high interest rates are only putting them in a worse situation. This is really bad for the borrower. When this happens, it’s extremely easy to get caught up in the payday loan trap with a “rollover” loan which essentially is getting another loan to repay the last loan and so on...

There are many alternatives to getting a payday loan. If you need a loan, research your options. There are many financial institutions that will provide you with a loan and also help you rebuild your credit in the process. Prudent Financial Services has been repairing credit with open and affordable loans to people with bad credit histories since 1984.

For further information visit www.prudentcreditrepair.ca