For renters, your debt is unsecured because no collateral (a home or a car) was used to get the loan. When a debt consolidation company steps in and negotiates the amount owed to creditors, the negotiation will be marked as a settlement. Debt consolidation companies can charge anywhere from 3- 5% of the total debt owed. However, the negotiation will negatively effect your credit rating. The debt will be gone, but the negative credit rating indicates that the debt was not paid back as originally promised.

For home owners, debt consolidation does not require you to take out a second mortgage loan. Through debt consolidation, you can combine all your loans and other debts into one single payment, making it easier to keep track and hopefully end up costing you less.

Debt consolidation companies extend their debt handling services not only to individuals, but also to business enterprises. Many businesses that have been on the brink of bankruptcy as a result of bad credit have sometimes been pulled back by debt consolidation companies. As a business owner, you can still hold on to your business even in the face of a bad debt, thanks to debt consolidation companies.

  Everything you read today about the money market is dismal; falling stocks, rising prices, stagnant housing market and more seem like there’s no light at the end of the tunnel. But it’s important to look at the big picture. No matter what the current economy is like, it’s never too early to plan for your future.

Develop a Habit

Begin saving today. Do not wait until tomorrow! Time is on your side when considering your retirement; the earlier you start, the more prepared you’ll be. Putting aside any money, no matter how small, will turn into a life-long habit you’ll incorporate in your schedule. The more time you save, the more time your money has to grow.

Know Your Need

Estimate your current annual expenses. Calculate your future needs with an inflation rate of 3% (the average). You can find inflation calculators at Calculator Web to help you determine how much you’ll need in the future in order to maintain and pay for your current lifestyle.

Participate With Your Employer

Contributing to a 401(k) is perhaps one of the most beneficial and easiest methods to save for your future. Not only does a 401 plan include an immediate tax deduction, but also it usually comes with a matching contribution from your employer.

Invest in the Best

Before you go ahead and invest all your savings in one area, be sure to do your homework. Often, your best method to investing includes a variety of products including stocks, bonds and mutual funds. If you’re unsure where to invest, consult a financial advisor to help you invest in the right areas.

Resist Temptation

Do not dip into your savings. It’s tempting to take small increments out to pay bills, loans, or for that Coach purse you really want. Don’t do it! Once you start, you’ll find it hard to stop. Consider if what you’re planning to ‘cheat’ on; do you really need the money, or can it wait until next month?

For additional resources on saving up for your future, read these articles:

• Best Investment Bets During Bear Markets
• 3 Major 401(k) Mistakes

The recent economic roller coaster has left everyone-- from Wall Street hot-shots to blue collar workers-- feeling queasy. While the hefty $700 billion dollar buyout may be on the horizon, the effects of the Wall Street slide are hitting the homes of Americans everywhere now. Follow these tips to ensure your financially secure now and throughout the next fiscal year.

Check the Piggy Bank

Be sure that your hard-earned money or savings is FDIC-insured. This means that up to $100,000 per person on your account will be insured by your bank. If you're not sure whether you're covered, use this tool to determine who's insured and who isn't.

Hibernate for the Winter

Who knows what the winter could bring besides the usual freezing cold temperatures and snowflakes. Create a winter emergency fund in case of, well, emergencies. Calculate your anticipated monthly expense for one winter month, multiply by 3 (or 6 if you're really ambitious) and start saving!

Not sure where to get the extra dough? Cut back spending on dining out, gourmet coffees and movies; opt for brown-bagged lunches or outdoor picnics, grocery store coffee and $1  movie rentals from redbox.

Be Indispensable

The financial crisis at hand has had everyone worried- including your employers. Some companies are facing major cut-backs, and your job might be at risk. If you're seeing signs of the pink slip, make yourself an integral part of the company (if you are already, then congratulations!). Evaluate the company and brainstorm a few ideas to decrease spending and increase productivity, such as four day work weeks or telecommuting options.

If you think your company might be downsizing, prepare yourself both emotionally and on paper. Re-read your resume, add new accomplishments and bolster your successes with documents that prove it (ie: 'Nice work, Bill' emails). Also, assess your skills. Is there an area you should receive more training? Consider enrolling in an online continuing education course to expand your range of capabilities; you'll look like a go-getter with a positive outlook despite the dismal economic circumstances.

For those that are waiting for the hammer to drop, don't wait to find your next job. Browse freelancing sites such as iFreelance and SoloGigs to start earning now.

With these tips in mind, no matter what the outcome of the bailout, you'll be secure financially. If you have additional tips or suggestions on how to weather this rough ride, please let us know in the comments!

It's old news that Wachovia sold its banking services to Citigroup this week.  What may shock you is how Wachovia also froze thousands of college institutions' accounts. Though you may not be a current student, the effects of this account freeze are startling for everyone-- student, educator, or American.

According to an article written on The Chronicle of Higher Education, many colleges are bracing for a hard financial impact. Though many larger institutions have plenty of short-term income to supplement the lost of assets due to the freeze, smaller institutions are worried.  Some have even alerted local representatives that they might not be able to make payroll. The article highlights President Edward F. Leonard III, of Bethany College, Kansas, stating, "[Bethany College] has enough money to cover costs for now because students just paid tuition, but [I'm] worried about the second semester, when the college typically dips into its short-term funds to pay for a variety of operating expenses."

The sobering effects of the Wachovia sell, in conjunction with Congress' inability to draw up a rescue plan, leaves Americans everywhere wondering, what's next?

If you’re tired of reminders being sent in the mail that you owe debt, or have been hitting ‘ignore’ on the phone when you know your credit card company is calling, you should consider accepting the inevitable: you are in debt and you owe money. But all hope is not lost; here are some simple ways to pay off your debt sooner than you thought possible.

Step #1 More is Better

Whoever said “less is more” was wrong when it comes to paying credit card minimums. Paying the minimum (typically 2% or 3% of the total debt owed) simply delays the pain of paying what you owe. Create a long-term financial budget that devotes more than what’s required to pay your bills. If you’re unsure where to fuel the extra finances, start scrimping and saving. Say ‘goodbye’ to those skinny iced lattes or brown bag your lunch. You’d be amazed to know that your $8 work lunches amount to $3,000 a year on just that one midday meal!

Step #2 “C” is for Consolidate

If you have outstanding debts on multiple cards, consider combining them into one lump debt. Examine each credit card’s interest rates, and if possible, transfer higher interest rate debts to lower interest cards. Keep an eye out for promotions offered by credit card companies. Often, these companies will offer significantly lower interest rates that could save you money. The money you save by consolidating can be put toward your monthly payment.

Step #3 Tap into Your Savings

Sure, you’ve been saving up to take a fabulous vacation in the Cayman Islands, or you’re looking to retire at the ripe age of 38. Using your savings toward your debt might be a painful reality to face, but it’s a worthwhile option. The higher the interest rate on your debt, the better this decision is.

Step #4 Talk it Out

Creditors do not know who their individual borrowers are. Let yourself be known! Contact the companies and tell them your situation. They might assume you’re just withholding the money. If you’re having trouble making payments, some companies will re-negotiate terms of the debt owed, which may result in lower monthly payments and interest rates. You’ve got nothing to loose!

Step #5 File for Bankruptcy

Consider filing for bankruptcy as a last resort for individuals seriously in debt. Before filing, consider all the repercussions that will result from this drastic action. Credit companies will retain your bankruptcy information for an entire decade, so for the next 10 years, you’ll have trouble getting credit. Also, as ludicrous as it sounds, filing for personal bankruptcy costs money! Attorney and court fees quickly amass, and in this situation, must be paid prior to become bankrupt.

Thermometers aren’t the only things rising this summer. With the ever-increasing cost of daily essentials like gas and dairy products, Americans across the nation are looking to cut their summer spending habits. Check out these tips to keeping cash in your wallet.

Turn It Up

Investing in a programmable thermostat can equate to over $180 in savings per year. By bumping temperatures higher in summer and lower during the winter months, not only will your wallet thank you, but so will the environment! According to Energy Star, changing settings during a typical 10-hour workday to 8 degrees lower in the winter and 7 degrees higher in the summer can help save energy, lower your energy bill and maintain a comfortable temperature in your home at all times.

Bonus: If you tend to be more cold-blooded, layer up! Invest in thermal sweaters and blankets in case you’re chilly.

Cut the Caffeine

If you’re a caffeine junky, you probably find yourself running to the nearest Starbucks or local coffee joint once or twice a day “because you need it”. Look at your spending long-term. That tall caramel macchiato runs at $3.45 a pop and is packed with 120 calories. Over a typical 50-week year, that means $862 of your salary was spent on coffee alone, as well as 30,000 extra calories sipped.

Bonus: Can’t kick the habit? Purchase coffee for your office in bulk; add caramel drizzle for that extra sweet flavor.

Write it Down

Have you ever just “had to have” the adorable skirt or perfect shoe you hadn’t intended on buying? Don’t worry, most of us fall prey to wandering eyes while shopping; whether it’s the grocery store or the tres-chic shop around the corner, we’ve purchased things we don’t need. In order to beat temptation, write a list before you leave for the store. If your list is too long, try eliminating things you simply want, instead of need. Also, be sure to shop on a full stomach; shopping while hungry encourages more spontaneous purchases (candy bars, chips and other junk food items).

 

Bonus: If you’re still having trouble sticking to a list, try walking to the store; you’ll only be able to buy what you can carry and its good exercise.

Re-imagine Renovation

By now, you’re probably recycling your canned and paper goods, but have you ever considered saving what you’re ditching? Instead of buying a plastic shelving unit, old coffee tins make perfect storage units for all small garage parts. Plastic grocery bags make great make-shift trash bags and paint tray liners.

 

 

 

 

Bonus: Can’t keep all those plastic bags contained? Re-use tissue  boxes and store plastic bags in this convenient, portable box.

As the countdown narrows toward Election Day 2008, both Republican and Democratic presidential nominees are imparting what platform changes they'll institute upon entering the White House. Among their many proposals, both have discussed income tax percentages. For many unaware tax payers, they could be on the cusp of a potential tax increase by 20%, which is a significant increase compared to recent years.

So before the 2008 election day arrives, be sure to determine which tax bracket you are classified under. Tax brackets are determined based upon the amount of income earned annually, as well as your status as an individual (single, married filing jointly or qualified widower, married filing separately or head of household).

The 2008 tax bracket breakdown can be seen below:

*If you qualify as 'married filing separately or 'head of household', determine your income tax rates here.

The Candidates & Their Platforms

John McCain will maintain the highest income tax bracket at 35 percent. His platform goals reflect the importance of small business owners who offer a large proportion of job opportunities nationwide. Additionally, McCain plans to phase in an increase in those eligible for dependent exemption by two-thirds.

Presidential hopeful Barack Obama plans to institute a generous "Making Work Pay" tax policy that includes a credit of up to $500 per person, or $1,000 per working family. Also, senior citizens earning less than $50,000 per year would not be subjected to income tax. 

Find out more information on McCain's 'Reform, Prosperity, Peace' campaign and Obama's 'Change Our Country Needs' campaign.

Despite the plethora of financial troubles, some individuals are seeking to start building their credit this fall, namely students, recent graduates and those with low credit scores. With so many types of credit cards to choose from, it’s difficult to know which one is right for you.

Shop Around

Before signing the dotted line on any card, be sure to evaluate what you are looking for in a credit card. If you’re a frequent flyer or drive a gas-guzzler, using a rewards-based credit card might be best for you. For students or individuals looking to establish credit, find one with low rates and no annual fees. Prior to using, be sure you can pay the bill to zero for each and every purchase; this way, you’ll eliminate the risk of gradually slipping into debt.

Read, Then Sign

Agreement terms are written in fine print, encouraging confusion and a headache. Maybe your initial rates are a steal, but after a year, they could triple. It’s not uncommon for this hard-to-read section to detail changes within 6 months or a year after signing. If you have trouble deciphering the legal jargon, hire a lawyer to explain the agreement. Once you fully understand the terms of agreement, then and only then should you sign the dotted line.

With the government taking over lending giants Fannie Mae and Freddy Mac, many assume that mortgage rates will lower and the credit crunch will ease. Are homeowners celebrating prematurely?

According to an article on CNNMoney.com, Treasury official Henry Paulson believes that the much-needed financial relief will take longer than expected. Paulson states, “The primary mission of [Fannie Mae and Freddie Mac] now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us.”

Yet, Paulson encourages homeowners to remain hopeful. Because the government has taken over these lenders, mortgage rates are poised to drop. Additionally, the lower rates will potentially increase borrower applications, which are down 27% from August 2007.