This is a guest post by Garrett Driscoll from Debt Eagle. Visit his site if you are having credit card debt problems, need advice on settling, or are considering bankruptcy.

Filing for bankrupcty can sometimesbe the best bet for someone with unpayable credit card balances.

A credit card bankruptcy can lower monthly expenses, stop interest from accruing, and give you time to restructure your debt without fear of legal repercussions. The credit card bankruptcy process can give financial relief, but does come at the expense of your credit and your assets.

When you file for bankruptcy your credit will be affected for a span of 7 to 10 years. This might make it more difficult to borrow money, rent a home, or even get a job.

You may lose certain assets to your creditors, but if you are facing credit card debt that is no longer manageable, it still might be the best move.

A few years ago it was much easier to eliminate credit card debt through a chapter 7 bankruptcy. But in 2005, the Bankruptcy Abuse Prevention Act was passed and made it more difficult to charge off credit card debt and other unsecured debts.

Chapter 7 can be a good option for someone with minimal assets to protect from a liquidation (i.e. home, car). It can give debtors a fresh start, but will still leave a big ding on their credit reports. After a chapter 7 filing, a debtor’s assets are liquidated by a judge and the proceeds are divided among the creditors.

After the assets are sold and the proceeds doled out, a debtor would be completely debt free. But since the 2005 law, any monthly income that exceeds $100/mo. will disqualify a debtor from filing Chapter 7.

The courts will conduct a “means test” to determine what your expendable monthly income is. If you have over $100 or more in extra income per month, you would not be able to completely discharge your debts through chapter 7 and would only be able to set up a repayment program through chapter 13.

Can a credit card company stop my bankruptcy?

When a bankruptcy goes to court, a credit card company may try and stop the discharge of debt by filing an “adversary proceeding”. Usually this is due to instances of fraud.

The company might claim that a debtor applied for a card with false info or that they made charges without any intent of repayment.

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If a person made a large amount of charges after they sought help from a Bankruptcy Attorney, or there was an indication that the they made charges with the intent to dismiss them in court, your judge might consider the creditors side.

But, once the bankruptcy is finalized, you may not be sued over these debts.

Can Chapter 13 bankruptcy help with credit card debt?

With chapter 13 bankruptcy (AKA: wage earner’s bankruptcy) you are allowed to keep certain assets (house, car, etc.), while making a reduced payment to your creditors.

This type of proceeding allows people with an income (of $100/mo or more), to create a repayment plan over a typical period of 3-5 years.

A Chapter 13 filing can stop foreclosure for a period of time and can allow the debtor to catch up on delinquent mortgage payments.

Another important thing about chapter 13, with regard to credit card debt, is that interest will stop accruing. The interest on your credit card balances will come to a halt and you can begin to repay the outstanding debt.

This means that there are no more balance increases after you file for bankruptcy. Sometimes dealing with this debt through bankruptcy can be easier than with non-consumer friendly terms on many of these cards.

Once you have a repayment plan in place, a trustee is appointed by the courts to make payments to these creditors on your behalf. All of the creditors are paid by the trustee out of one single monthly payment made by the debtor.

Is bankruptcy expensive?

The court filing of the chapter 7 and chapter 13 paperwork costs around $300, but this does not include the price of a lawyer.

Internet consensus puts the entire package of a bankruptcy (legal help included) at at around $1000-$3000, but the price will vary depending on your lawyer and type bankruptcy you are filing.

You may be able to get a slight break, if you can negotiate installments to pay your legal fees. But if you are able to get rid of alot of debt, that bankruptcy can pay for itself.

Counseling before bankruptcy

The 2005 Bankruptcy laws also state that any individual seeking bankruptcy, must receive mandatory credit counseling. This applies to both chapter 7 and chapter 13.

This counseling must be sought through a government approved company within the 6 month period before the filing. The debtor must also complete debt education classes in order to have their debts dismissed.

Usually these courses can be very beneficial and help debtors understand the ins and outs of the bankruptcy process before they file.

This is important because these are complex financial actions and can seriously affect the filees future. The more knowledge you can gain about this process, the more prepared you will be.

Note from Jason: Bankruptcy has grown in popularity in recent times.  In my opinion, you should never rush into bankruptcy and it should almost always be a last resort after careful and prayerful consideration.  A heartcheck regarding your motivations for bankruptcy is wise also.  Everyone’s situation is different, so make sure you take a full inventory of your options before a bankruptcy is considered.  Check out this Credit Card Payoff Calculator to give you an idea of how long it will take to pay off your debt.

Ever ask yourself this question?

What’s better – to pay off the mortgage early or to save and invest more money?

My guess is that we’ve all asked this question at some point or another. 

Maybe you’re thinking about refinancing your mortgage and looking at how you could pay off your mortgage early.

Paying off the mortgage early is a goal that a lot of folks have and are committed to make happen!

But what is your mortgage payoff?

How much extra cash do you need to throw down on that loan to get to your mortgage payoff?

How much interest would you actually save?

How many years would you cut down on your loan with an early mortgage payoff?

Should you even try to pay off your mortgage early, or is it better to invest your money?

Those are the questions we want to look at today and I’ve got a great little calculator for you as well!!

Benefits to an Early Mortgage Pay Off

1. Peace of Mind – you can rest easy knowing you’ve got no liabilities!
2. Increase “Imputed Income” - This might be more of an ethereal benefit, but bear with me – Let’s say your mortgage payment is $1,200 per month. If you are in the 25% tax bracket, you have to earn $1,600 to net $1,200 after taxes.  So basically not having to pay $1,200 a month is like earning $1,600 tax free!
3. Increase Savings – once you’ve paid off your mortgage you can really start socking some big money away.
4. Increase Giving – without having a mortgage payment, you can use that money to help the needy, give to your favorite charities or increase the giving to your church.
5. Increase Net Worth – this is obvious here, but worth noting.  Net worth is simply everything you own minus everything you owe.  Take away the liability and your net worth increases dramatically, which is creating wealth!
6. Increase Freedom – what I mean is that you no longer have to work just to maintain your liabilities, but rather having no mortgage or no debt frees you up to pursue things like your passions and your purpose!

So, as you can see there are some pretty big advantages to knocking out that mortgage!

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Concerns With An Early Mortgage Pay Off

1. Opportunity Cost – If your mortgage rate is only 5%, but you can get 8% in the market, you are giving up 3% by paying off your mortgage.
2. Lack of Liquidity – Instead of building up an account (whether a non-qualified brokerage account or a Roth IRA) that you can access should you need it, your money will be tied up in the equity of the home.  Sure you can get access through a home equity loan, but you have to pay interest on that.
3. Missed Tax Advantages – You can’t write off mortgage interest if there is no mortgage interest.

Those are the three main concerns I see with paying off your mortgage early.  Maybe you can let us know of some other concerns or disadvantages to paying off the mortgage early.

Instead of just choosing one way or the other, maybe you want to pay off your mortage AND invest like Nickel is doing from Five Cent Nickel!

Mortgage Payoff Calculator

So maybe you’re wondering what it would take for an early mortgage payoff?  How much would you save by paying the mortgage off. 

Here’s is a handy Mortgage Payoff Calculator compliments of MortgageLoan.com.

Check out ChristianPF for some advice on how to pay off your mortgage early?

You Also Might Be Interested In These Calculators

• Mortgage Refinance Calculator
• Credit Card Payoff Calculator

What Are Your Thoughts?

Readers, what do you think – should you pay off your mortgage or invest?

How many years would you trim on your mortgage by re-doing your budget and throwing some extra cash on that loan?

This was an original post I did on credit card mistakes at ChristianPF.com.  I’ve adapted it a little for my site.

We all make mistakes, it’s in our nature. 

Sometimes we make them because we don’t know any better – other times we make them even though we do.

Most of us have made pretty big flubs with the plastic – I know I have - so it’s always good to get some helpful reminders on handling credit cards so we can avoid mistakes and eliminate credit card debt.

You can definitely get out of credit card debt completely by avoiding some of these credit card mistakes:

Not Realizing You Have Credit Card Problems

Okay, this sounds silly, how can you not recognize that you have credit card problems? 

Here’s how: 

I spent the majority of my college years and shortly after living the high life without any regard to the thousands of dollars I was racking up!

I spent the rest of the time out of college trying to eliminate my credit card debt!

I didn’t even realize that I had a credit card problem.  I just figured this was a normal part of existence and that once I made more money, then I would pay off that debt! 

No big deal right?

Little did I realize that I needed to make some drastic changes!  Get real with yourself and ask if you’ve got some spending issues.

Credit card debt help comes in the form of helping yourself first and realizing you have a problem and need to eliminate debt!

Not Paying Attention to Due Dates

This recently happened to me.  I got my email notification of the statement, logged it in the back of my mind that I needed to pay that bill and unfortunately got busy and never bothered to pull that statement out of the back of my mind until two days after the bill was due.  I plain forgot!

I know what you’re thinking – just automate your bill pay! 

Yes, I should do that, but I do like  to take a look at what’s on the statement and make sure everything’s correct.

This kind of forces me to do that. 

Making a late payment even if it is only by a few days can rack up ridiculous charges that only compound your debt. 

Those annoying charges can also have an impact on your credit scores. 

Being vigilant about paying your debt and paying it on time is key to eliminating your credit card debt.

Not Paying Your Bill in Full Each Month

This is where it all begins doesn’t it?  You’re a willing victim to the crazy cycle. 

You buy something you can’t afford and think, “I get paid in two weeks, I’ll just put it on the credit card and as soon as I get the bill I will pay it off” and then something else comes up. 

Emergencies happen or you find some other trinket you want to buy and you put that on your credit card too.  At the end of the of the month you receive a hefty bill. 

What do you do? 

If you only pay what you can and wind up leaving a balance on the card that accrues interest at insane amounts, you’re asking for trouble and perpetuating the cycle! 

Just think, with a little discipline and some self control you could’ve avoided unnecessary spending and used that money to open a Roth IRA or fund some other type of investment account.

If you want to eliminate your credit card debt, you must stop adding new charges and begin paying your bill in full each month.

Not Negotiating With Credit Card Companies

It puzzles me that more people don’t call their card companies to ask for credit card debt help.  

What I mean is that you can negotiate things like interest rates, late payment fees or even payment plans.  

If nothing else, it doesn’t hurt to give them a call and find out what they can do for you. 

The person who never asks, never receives.  Now of course there is no guarantee that the credit card company will do anything, but wouldn’t it be nice to know if they were willing to do something?  

Eliminating credit card debt is not easy, but don’t make it harder on yourself by making simple mistakes that can easily be avoided.

Other Tips?

Readers, what other tips would you offer to eliminate credit card debt?

Want to know how long it will take you to pay off your credit cards?  Check out my Credit Card Payoff Calculator!

Should I Refinance My Mortgage?

That’s the question we want to answer today.

Mortgage rates are still very, very low.  Who would’ve ever thought we’d see mortgage rates this low for this period of time. 

I remember thinking back in August when we first started building our house and mortgage rates were at their lows that we’d never see those rates by the time we got our home mortgage loan.

But to my surprise we ended up getting a 4.875% rate even with a 60-day lock!  I was ecstatic!

Mortgage rates are still very competitive and so if you haven’t taken advantage of a mortgage refinance, you may want to seriously consider it soon – before mortgage rates start going back up again!

But, is refinancing your mortgage a smart thing to do?  What is you don’t plan to stay in your current house forever?  Should you still refinance?

These are good questions to ask!

Thankfully there are handy mortgage refinance calculators that can help us make decisions like this.

Here are some things to consider when refinancing your mortgage, and then I’ve attached a mortgage refinance calculator that I found on mortgageloan.com.

What is Your Current Mortgage Rate and What New Rate Could You Get?

What is your existing rate on your mortgage?  Where are rates at now in the open market? 

Here’s where rates are at today:

Or, to get an idea of mortgage rates in your state, check out GoBankingRates.com, which allows you to choose your state and the mortgage amount and compare rates in your area.

If you can drop your rate by at least a percent or more, you’ll want to seriously consider a refinance.

How Long Do You Plan to Stay in the House You are Refinancing?

Are you only planning on staying in your existing home for another year or two?  Maybe you’ll want to hold off on the refinance!

If you plan to stay a little longer, then the closing costs may not be as bad as you look at your break-even point.

Have a good idea of your time frame so you can make a more educated decision on whether the costs of refinancing your mortgage will be worth it.

What Type of Mortgage Loan Do You Have Currently?

Do you have a 5-year Adjustable Rate Mortgage (ARM) that’s about to expire?  You may want to refinance very soon and get a fixed-interest loan!

Do you have a 30 year mortgage and you’d like to get that down to a 15 year mortgage? 

The difference in rates may allow you to do that without adding much more to your payment.

What Is Your Home’s Value and Can You Get Rid of PMI?

With the real estate crash that we’ve seen the last couple years, it doesn’t always make sense to refinance.  Decreasing home values have made it difficult to really make sense of the numbers in many cases.

But, you’ll want to know what your home’s value is and if you can get rid of PMI if you are still paying it. 

PMI is private mortgage insurance that lenders typically charge if your loan-to-value ratio is not quite 80%.  If you have paid off a chunk of your mortgage and think your loan-to-value is at least 80% then you may want to refinance so you can get rid of that pesky PMI!

Mortgage Refinance Calculator

Check out this handy mortgage refinance calculator and determine if a mortgage refinance is right for your situation!

You might also be interested in this Credit Card Payoff Calculator!

What Are Your Thoughts?

Readers, have you refinanced your mortgage recently?

How did the process go? 

What tips would you offer other readers to help them through the mortgage refinancing process?

Graduation season is upon us! 

In the next several weeks, students from all over the country will be sporting their cap ‘n gown, bouncing down the aisle at their ceremonies with bright eyes and wide smiles – ready to embark on the next phase of their lives!

It’s an exciting time.

It’s also a scary time because so many of these same college grads – the ones who worked hard, studied intently and graduated with scholarly wisdom are not, in fact, money students and they’ll make some very dumb mistakes with their money!

I know this is true because I was one of them.

I graduated from college with some lofty dreams and poor money skills – even though I was a money student and was going into financial planning – go figure!

Here’s a look at five BIG mistakes College Grads make with their money:

1. Not Learning the Basics of Personal Finance

This is where it all starts.  Unfortunately, many colleges don’t do a very good job of teaching money skills to students.

Sure they have personal finance courses, but most are not required and there is very little education on the do’s and don’ts of money management.

This stinks! 

Grads should be put into a position to be the best money students and take advantage of the one asset that most folks wish they had back – TIME! 

The bottom line is that everyone I talk to says, “I wish I would’ve started financial planning when I was younger!”

2. Think That a Credit Card is the Same as Cash

The hallways were buzzing with excitement.  People were flocking around little tables that described the events, clubs and activities on campus.

It was the first day of school and I was checking things out. 

That’s when it caught my eye – a table near the bookstore with a wide-smiled young guy waving a T-shirt and encouraging students to take one.

“Free T-shirt!!”, I thought, very cool. 

The T-shirt had a picture of the earth on it, and although I don’t remember what the tagline was at the time, it went something like this:

The World – In Your Hands!

It was the T-shirt that a credit card company was handing out for signing up for a new card!

“Wow!  The world in my hands – yeah, I can own the world!!”

I was a moth drawn to the light – I made my way over, signed up for the card and began a painful journey two weeks later when the card arrived in the mail.

I fell into the trap of thinking that my credit card was the same as cash.  Sure, it sounds stupid now – but not at the time.  I was swipin’ that thing every where I went and figured, “I’ll just pay it off when I get the bill”.

Unfortunately the journey continued after graduation and didn’t stop until I got serious about wiping out the debt!

How many college grads will embark on the same journey!?

3. Not Saving for Emergencies – Or At All!

“I’ll wait til I make a little more money before I start putting into my 401k”

“I’ll wait til I furnish my apartment before I start putting into my emergency fund”

“I’ve lived like a pauper for 4 years of college – now that I’m making money I want to have some fun!”

Ever say those things?  Know someone who has?

Unfortunately, not saving anything is a HUGE mistake many college grads will make!

4. Develop a Habit of Overspending

Habits don’t form over night. Many overspending habits are formed during college and just continue at a more rapid rate once you graduate.

Some grads get a job and start making money and all of a sudden feel like they can buy anything!!

They spend and spend with little thought as to how they will pay for it. 

Many grads will want to keep up with their friends who just landed great-paying jobs. 

As Das EFX so poignantly put it - “You betta check yo self before you wreck yo self”!

Yes, I just threw a Das EFX reference in there! 

5. Buy a New Car Without Knowing the True Costs to Own

Is there anything better than the new car smell? 

It’s got to be one of the top 5 smells in the world – along with freshly- mowed grass!!

That new car smell can be so enticing.

It was for me.  This was another mistake I made in college.  I was making a little cash and wanted some wheels.

Who doesn’t, right? 

True, but I leveraged myself beyond my ability, ended up doing a GM “Smart Buy”, which is a lease disguised as low monthly payments and a large balloon at the end!

Don’t be enticed.  Get yourself in position for an emergency fund, start saving aggressively and then figure out if you can buy a new car or not.

What Other Mistakes Would You Include?

Readers, what are some dumb mistakes you made during college, upon graduation or in your early years?

Questions for First Time Home Buyers

Don’t put one of the biggest financial decisions of your life at jeopardy by getting the wrong advice when finding a first time home buyer loan.

For many first home buyers, this can waste both time and money as they end up choosing the wrong loan for their hard earned deposit.

This guide will provide valuable information on finding the deposit for your loan and how to choose the best first time home buyer loan available.

How Much of a Deposit Do You Need for Your First Time Home Buyer Loan?

With so many first time home buyer loans available, there are even options for buyers with no deposit!

Despite this, with a bigger deposit you can take advantage of a greater selection of first time home buyer loans and find the most competitive interest rate while reducing the start-up fees.

Put more money down and you can receive lower interest as the provider does not have as much at stake and recognizes you as a low-risk customer.

Working hard to build up a good deposit can also let you avoid Private Mortgage Insurance or PMI.

Many lenders will insist that customers take out mortgage insurance if their deposit is less than 20% of the purchase price.

For first home buyers this can add up quickly, with insurance often costing up to 2% of the loan.

To put this in perspective if you were to take out a loan of $250,000 you could potentially be forced to pay a whopping $5,000!

Many lenders will make an exception for first home buyers as they realize the difficulty of saving for a 20% deposit and will offer first time home buyer loans up to 95% of the property value.

This has resulted in a high number of competitive 95% loans on offer with great features for first home buyers.

By being offered a greater selection of first time home buyer loans and being given the ability to take luxury in more competitive interest rates and features, buyers with a 20% deposit are generally in a better position than those without a deposit to offer.

However, with good first time home buyer loans on offer for those with smaller deposits saved, you can still find a loan with the right features to help you make the transition from renting to buying.

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How Do You Find the Best First Time Home Buyer Loan?

While it may be tempting to base your loan decision on the interest rate alone, it’s vital that you also take into the consideration the different features for each loan based on your unique financial situation and goals.

By not taking advantage of the right features, you can easily pay far more than is necessary.  This generally comes down to weighing up the interest rate and the flexibility of the options available.

Every first home buyer should consider these questions when comparing different first time home buyer loan options:

• What are my first home goals?
• What are my spending habits?
• Am I capable of budgeting?
• Am I eligible for the first home owners grant?
• How might my stream of income change in years ahead?
• Will I be able to manage a loan with ongoing fees?
• What are the exit fees of this loan?
• Does this loan offer portability?
• Does the loan offer redraw facility?
• If ahead in repayments, can I stop making deposits for period of time?
• Can I see myself moving in the next 5-10 years?

Your answers to these questions can greatly influence the loan you decide to go with.

Your first time home buyer loan should save you both time and money but also offer flexible options to ensure you aren’t struggling to make repayments down the track.

How Do You Choose the Right First Time Home Buyer Loan?

Comparing first time home buyer loans on the market can often seem overwhelming with many buyers unsure as to what loans will let them take advantage of a good interest rate while still giving the right features for their home loan needs.

You can make the process much easier by following these three simple steps:

1. Decide what your loan should offer based on the questions above.
2. Find the products on offer from the different providers that meet your criteria and create a shortlist.
3. Once you have your selection of first time home buyer loans, examine each one closely to make your final decision. Don’t be afraid to do extra research and seek advice. Remember this is one of the most important decisions you will ever make.

By following these three steps you can find the best first time home buyer loan for your specific needs. The loan you decide to go with should help you achieve both your short and long term goals.

With thousands of first time home buyer loans available, the hardest part is sorting through all of the competitive deals to find what is best for you.

Reward yourself now and in years ahead by following the necessary steps to get the best first time home buyer loan possible.

This has been a guest post by Fred, who is a personal finance writer. He provides budgeting tips and helps people to choose the best first home buyer home loans online.

 This was a post I did for ChristianPF several months ago regarding assistance with medical debt.

Doesn’t it seem like a check-up and a physical will have your wallet screaming for mercy these days? 

It doesn’t require major surgery to rack up a pile of medical debt.

At some point, some of us might even deal with a major health issue that requires exams, scans, check-ups and surgery and a big pile of medical debt to boot.

Hopefully your health insurance provider will pick up the majority of the costs, but what do you do about the remaining amount that you owe? 

Or worse – what if you don’t have insurance?

Here are five quick tips on dealing with your medical debt: 

Medical Debt Tip #1 – Check for Errors

Let’s face it, we all make mistakes.  I know what you’re thinking – why does it seem like insurance companies make more errors than the rest of us? 

There may be some truth in that, but the fact of the matter is that you should be double checking your debt and records anyways. 

Inevitably you will come across some errors that may be piling up your medical bills more than necessary. 

Checking for errors could save you hundreds of dollars.

Medical Debt Tip #2 – Check Your Attitude

I have a tendency to get fired up when I find an error or when I find out I have to pay something that I thought the insurance was covering. 

A while back, I had gone to the same doctor twice in one month and as I was checking out after the second appointment, the nurse politely asked me to pay a portion of the bill. 

I could feel the tension rise as I wondered why the insurance company hadn’t paid for this. 

What would get accomplished if I ripped into the nurse and told her I wouldn’t pay!?  Not much.

But, don’t we all get like that to a degree sometimes when we think something is being paid for but realize it’s not (don’t leave me hangin’ here!)

The best thing to do when an error is uncovered - or you get word that you are on the hook for a portion of the medical bill is to be humble and gracious.

This can apply to all areas of life – things are more likely to be resolved with an attitude of humility rather than making sure everyone knows you are upset!

Medical Debt Tip # 3 – Apply for Medical Financial Aid

This is a new one to me. 

I didn’t realize there was medical financial aid for until a friend of mine mentioned they applied and used it to help pay their medical debt when they had their baby. 

There are certain guidelines that must be met (income levels, percentage of debt to income etc.). 

But many times even if they don’t pay 100% of the debt they may pay a big chunk. 

Often, if your medical debt-to-income ratio is over 30%, the hospital will give medical financial aid.

Put it this way – every little bit helps! 

So if you can get any portion of the medical debt wiped out through Medical Financial Aid go for it!

Find out if the hospital has a financial aid department and give them a phone call or a visit to request an application. 

You’ll need to list all your assets and income so they can make a determination.

Medical Debt Tip #4 – Call to Negotiate a Discount

I’m amazed at how many people don’t do this.  Is it because we feel uncomfortable asking for things? 

Do we feel awkward and bad? 

Give the insurance company, hospital or doctor a call, speak to the billing department (remembering #2 above) and ask them for a discount on your medical debt.

If it’s a smaller bill and you can afford to pay it off – give them a call first to ask if they will give you a discount if you pay the bill off in full. 

Many times they will apply some percentage off the bill.

I heard a story recently that someone who required emergency surgery racked up about $5,000 worth of medical debt.

After calling the doctors and sharing their story, they agreed to reduce the bill down to $200!

Not every story will be like that, but the point is don’t be afraid to negotiate your medical debt - you never know until you ask. 

Medical Debt Tip #5 – Ask For a Payment Plan

If you can’t pay your medical debt off in full, the last step is to ask for a payment plan. 

Many doctors and hospitals will put you on some sort of plan to pay a regular amount monthly until it’s paid off.

This is better than being sent to collections and better than a sharp stick in the eye. 

Get on the payment plan and pay your bills on time! 

After six months or so of paying on time, repeat steps 2 & 4 to see if you can get a discount again.  You never know until you ask!

Good health is priceless, but inevitably we’ll all deal with some medical debt during our lifetime. 

Remembering these tips will help ease that medical debt burden when that time comes!

What Are Your Thoughts?

Readers, what other tips would you have for dealing with medical debt?

Do Credit Card Balance Transfers Make Sense for You?

Do you own several credit cards from different providers?

Do these cards have high interest rates and are you carrying loads of debt?

If you answered yes then more likely than not you are having a hard time trying to juggle payments and organize a solid payback plan.

This scenario sounds all too familiar for many people and can be incredibly stressful for those involved.

If you are having difficulties with your current cards then one of your options can be credit card balance transfers to a provider that has a lower interest rate.

The benefit to this is that you hopefully you reduce the amount of interest you are paying and give yourself a more manageable payment.

You can use this handy Credit Card Payoff Calculator to determine your new payment and how long it will take to climb out of debt!

How to Initiate Credit Card Balance Transfers

The first step to successful credit card balance transfers is to find a company that offers a low interest rate.

There are several options available to you and a good place to start looking is on the Internet, many websites provide a comparison chart that lists the pros and cons of each credit card.

Jason here – I suggest calling your current card companies first and letting them know you are interested in a balance transfer deal and see what they can do for you.

They might be willing (or have some promotions going on) to negotiate to keep your business.

Or, for instance, if you go to the corporate website of the provider you may find a list of their best credit card deals currently on offer.

Remember to find out as much information relating to balance transfers as you can.

Questions to Ask About Credit Card Balance Transfers

Here’s a few questions you’ll want to find out before you initiate your credit card balance transfers:

• Is there an introductory rate and if so how long does it last?
• When this introductory rate ends, what is the new increased rate?
• Is there a fee for balance transfers?
• Is there an annual card fee?

You might be able to find some zero percent balance transfer deals out there.

Try to find more than one good deal on balance transfers, as the next step is to apply to the credit card companies and you are not always guaranteed approval.

You will have to go for companies that you’ve never used in the past; many credit card providers will automatically refuse applicants that already have a card with them.

Once you’ve successfully completed your credit card balance transfers, moved the balances of all of your current credit card accounts into one, then stop using the old cards or cut them up - you’re now on your way to paying off your credit cards!

Choosing a credit card provider with a good balance transfer rate can be frustrating, so here are a couple I have used in the past from a well known company, but at the end of the day – do your own research!

Different cards are right for different people.

1. MBNA Platinum Plus Amex card.
2. MBNA Rate for Life card.

This has been a guest post by Sandra from Thinking Money - a site designed for getting free financial advice and ideas on how to save and make money.

So you’ve probably heard of the 529 College Savings Plan, but what exactly is it and how does it work?

That’s what we want to answer today.  Surprisingly, 529 College Savings Plans have been available since 1996 with the Small Business Job Protection Act.

The 529 plans were then refined in 1997, 2001 and again in 2006 with the Pension Protection Act.   529 College Savings Plans have really become one of, if not the most popular way to save for college!

529 College Savings Plans got their name from Section 529 of the IRS code that allows for the special tax provisions related to these savings plans, which we’ll address.

What Exactly is a 529 College Savings Plan?

A 529 College Savings Plan is simply an account that allows you to save for college and has federal and (depending on the state) state tax advantages with regards to contributions and withdrawals for college.

Each state has its own 529 plan and has selected a company to administer their plans for them.  For example, I live in Indiana where we have the Indiana College Choice 529 Plan through UPromise Investments.

There are actually two types of 529 plans - a college savings plans and a prepaid tuition plan.  They share the same tax advantages, but there are some differences that we’ll reserve for a later post. 

Today we’ll focus on the college savings plan portion.

How Does a 529 College Savings Plan Work?

A 529 College Savings Plan is simply an individual account that you save into where you pick a model or a target portfolio to invest into based on your age and risk tolerance.

Many plans have an “age-based” portfolio where the allocations are more aggressive in the child’s earlier years and as they get older the allocations switch to a more conservative mix.

There are also static portfolios where you can pick an allocation that doesn’t change over time. 

These accounts are set up in the parents name with the child listed as beneficiary, so the parent retains the ownership and decision-making powers on the account.

When it’s time for college, the beneficiary can use the funds at any college in this country and abroad – as long as the school is accredited by the U.S. Department of Education.

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Advantages of a 529 College Savings Plan

529 College Savings Plans offer some pretty attractive advantages for those seeking to save for college – here’s a few: 

• Tax-deferred growth - The money you contribute to a 529 plan grows tax deferred each year.
• Federal tax-free withdrawals – If the money is used for college, your withdrawals of contributions and earnings are not subject to federal income tax!
• State tax advantages – States may provide their own tax advantages to 529 plans. For example, Indiana allows for a 20% state tax credit up to $1,000 on contributions!  Check your states rules on 529 College Savings Plans. 
• Anyone can open and contribute -  You don’t have to be a parent to open and contribute, which makes these plans very attractive for grandparents!
• High contribution limits -  A lot of plans allow for very high contribution limits, sometimes upwards of $300,000 or more!  In contrast, Coverdell Education IRAs allow for only $2,000 per year.
• Flexibility - You are not limited to choosing your own states plan, although you may not receive your state’s tax benefits. 
• Simple and easy – You don’t have to worry about the investments too much since you choose model portfolios and 529 College Savings Plans are very easy to open – you can do it right online!
• You can switch beneficiaries – In other words, let’s say your oldest daughter decides she doesn’t want to go to college, you can remove her as beneficiary and add your son as beneficiary.

Disadvantages of a 529 College Savings Plan

Of course there is no such thing as a perfect savings plan, so here are some of the disadvantages:

• Investment options - You can pick portfolios, but not the underlying investment options.
• Investment inflexibility - Your plan may only allow you to change investment portfolios at certain times throughout the year. 
• Consequences of not using money for college- Known as “nonqualified withdrawals”.  You’ll have to pay a 10 percent federal penalty on the earnings part of any withdrawal that is not used for college expenses – depending on the state, there may be penalties from them as well. You will also pay income taxes on the earnings too!! 
• Fees and expenses – Of course there are fees associated with 529 College Savings Plans. You may have annual maintenance fees, mutual fund expenses and the like.

Do You Have a 529 College Savings Plan?

Credit Card Payoff Calculator

Have you ever wondered what your credit card payoff would be? 

In other words, how long will it take at your current rate and payment to payoff credit card debt!?

Some of us probably don’t want to know because we don’t want to get depressed. 

But it’s actually a good idea to see what exactly you need to do to get rid of that credit card debt faster!

I stumbled upon a mortgage site that has a ton of calculators to use, so below you’ll find one that I thought might be helpful in calculating your credit card payoff.

Before you jump right in, consider these three reasons why you should calculate your credit card payoff:

To Get a Reality Check on Your Credit Card Debt

I remember back in college when I first started making credit card mistakes and racking up debt I had a relaxed attitude towards it.  It just wasn’t a big deal for me – that is until I started getting deeper and deeper in debt.

I needed a reality check on my current situation to understand the devastating affects of credit card debt!  Seeing how long it will take you to payoff credit card debt will give you that reality check!

To Motivate You to Payoff Your Credit Card Debt

Hopefully what that reality check will do is then motivate you to start getting rid of credit card debt faster!  Getting “gazelle-like-intensity” as Dave Ramsey likes to call it!

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To Help You Understand the Dangers of Credit Card Debt

Credit cards are wild beasts that need to be tamed!  Do you believe that?  They really are. 

If you’ve got a relaxed attitude about your credit cards and don’t really seem to care (like many people I talk to) you need a quick wake up call to see the dangers of credit card debt!

So go ahead, type in your situation in the Credit Card Payoff Calculator below and see what your credit card payoff really is!

What Is Your Credit Card Payoff?

Care to share your results with us below?  Let’s motivate each other to pay off those credit cards!!!