Personal finance planning http://www.lechec.com Personal finance planning Wed, 22 Feb 2012 13:15:00 +0000 en hourly 1 http://wordpress.org/?v=3.1 Seeking Higher Yields? Try These Alternatives to US Treasury Bonds http://www.lechec.com/2012/02/Seeking-Higher-Yields-Try-These-Alternatives-to-US-Treasury-Bonds/ http://www.lechec.com/2012/02/Seeking-Higher-Yields-Try-These-Alternatives-to-US-Treasury-Bonds/#comments Wed, 22 Feb 2012 13:15:00 +0000 admin http://www.lechec.com/2012/02/Seeking-Higher-Yields-Try-These-Alternatives-to-US-Treasury-Bonds/ Seeking Higher Yields? Try These Alternatives to US Treasury Bonds

By Larry Lane for http://www.Investorzoo.com

Let’s face it; it’s tough to get high yields in bonds in our current economic environment. The 10 year bond is currently trade at 3.66%. This means you’re willing to tie up 10 years of possible growth for a return of 3.66%. While there is virtually no risk of default if you hold until maturity, your reward is barely outpacing inflation after you pay your taxes. If you are looking for slightly better returns, consider an alternative to US Treasury bonds.

Federal Agency bonds
Federal agency bonds offer an opportunity to increase yields without increasing risk too much over US Treasury bonds. While agency bonds aren’t backed by the US Government,it would be hard to imagine the federal government letting an agency default. That being said, one doesn’t need to go far to remember the debacle of Freddie Mac and Fannie Mae to recognize that no security is 100% safe.

Maturity of these bonds ranges from one to thirty years and can be purchased in increments of $1,000. Interest from most of these agencies is tax exempt from federal and state income taxes. It is for these reasons high net worth investors and those with high incomes benefit the most from these types of investments.

Municipal bonds
Municipal bonds or “muni bonds” are issued from states, cities or local municipalities. Like federal agency bonds, municipal bonds are federal and state tax free. Those individuals in a high income tax states and high income earners may find municipal bonds a good investment due to their tax free nature. These bonds are rated by Standard and Poor’s and Moody’s.

Municipal bonds come into two categories:
1)General obligation bond: These bonds are based upon the municipalities’ ability to collect taxes

2)Revenue Bond: Bondholders of this type of investment will only be paid based upon the revenue the project generates. Examples of a revenue bond would include a bond offering on a bridge project or electrical plants.

The interest rate a bond pays will depend on the credit worthiness that the rating companies assign. As with all investments, the higher the risk the higher the interest rate you can expect to receive.
You can purchase these bonds through a broker, much like you would a stock. You will not receive the actual bond, but a book entry; marking you as the owner of record of the bond. Before purchasing any bond, you should ask for an official offering report. This report will give you financial details of the municipality or bond project you’re financing. In effect, you are lending a municipality or agency money. Unfortunately there are no standard reports for bond issuers to follow unlike a public corporation.

If you’d like to spread your investment risk, you can purchase municipal and federal agency bonds through an ETF or mutual fund for additional portfolio protection.

Since interest rates fluctuate, the value of your bonds will as well. If you are forced to sell before maturity, you may see a net loss or gain on your investment.

As always, please consult your financial advisor to see if bonds fit in your portfolio and investment strategy.

Larry Lane is the editor for InvestorZoo.com, a social networking site dedicated to personal finance. Email questions and comments to Larry.Lane@InvestorZoo.com

The article above is information of a general nature and the information provided may not apply to your personal situation. Please consult your financial planner or licensed professional for investment advice.

About the Author

Larry Lane is the head blogger and biz dev for InvestorZoo
a social networking site dedicated to personal finance.
Are you a financial professional looking to help people with money issues and gain world wide exposure? Please drop me an email at larry.lane@InvestorZoo.com or call me directly at 425-591-9315.

]]> http://www.lechec.com/2012/02/Seeking-Higher-Yields-Try-These-Alternatives-to-US-Treasury-Bonds/feed/ 0 Core Elements of a Successful Budget http://www.lechec.com/2012/02/Core-Elements-of-a-Successful-Budget/ http://www.lechec.com/2012/02/Core-Elements-of-a-Successful-Budget/#comments Wed, 22 Feb 2012 07:18:00 +0000 admin http://www.lechec.com/2012/02/Core-Elements-of-a-Successful-Budget/ When you are designing and writing a budget, it is crucial to include the core principles you’ll need to be successful in your finances. The main mistake many people make when creating a budget is that they don’t start with their actual income. Instead, they start with their assumed or projected income.

To budget using the zero-based budgeting system, write down your actual paycheck amounts when you deposit them into the bank. These amounts are what you are allowed to spend. If they are low, you spend less. If they are high, you spend more.

Make a prioritized list of expenses with an area of focus at the bottom of the list. For example, you might start with the essentials: food, shelter, utilities, clothing, and transportation (all of these must be within reason). Your area of focus is an expense that is part of a larger goal. For example, you might try to pay off debt, build your emergency fund, save for retirement, or save for education. All extra money after your general expenses should go into your area of focus.

When you are finished allocating money to all of your expenses, you have nothing left to spend. This is the nature of a zero-based budget. The reason this is important is that it allows you to give purpose to every dollar. When you give purpose to every dollar, you’ll be able to avoid the temptation of overspending.

Another core element of a successful budget is using the envelope budgeting system. Spending cash is psychologically difficult when you see that there are only a few dollars left in the bottom of your envelope. Use cash when it comes to discretionary expenses or expenses where you typically overspend. For example, if you have difficulty keeping expenses down at the grocery store, perhaps you need to make a “Food” envelope.

You’ve heard it said before, but it needs to be reiterated that in order to have a successful budget you must spend less than you make. Remember, the extra money you have left over should go toward your area of financial focus. Try to widen the gap between what you make and what you spend. The wider this gap, the more successful you can be in the world of personal finance.

There you have it! If you follow these core elements of a successful budget, you will prosper not only in your finances, but in your life as well.

About the Author

If you are looking to improve your budgeting methods, read another great article on how to make a better budget today!

]]> http://www.lechec.com/2012/02/Core-Elements-of-a-Successful-Budget/feed/ 0 Chiang Mai Real Estate – Housing And Life Style In Chiang Mai http://www.lechec.com/2012/02/Chiang-Mai-Real-Estate-Housing-And-Life-Style-In-Chiang-Mai/ http://www.lechec.com/2012/02/Chiang-Mai-Real-Estate-Housing-And-Life-Style-In-Chiang-Mai/#comments Tue, 21 Feb 2012 16:37:00 +0000 admin http://www.lechec.com/2012/02/Chiang-Mai-Real-Estate-Housing-And-Life-Style-In-Chiang-Mai/ Chiang Mai is a wonderful place for families, retirees or single people. It is an expanding area with all facilities such as schools, hospitals, public transport, supermarkets and shopping joined with the extraordinary mountain loveliness of the historical city, usually known as The Rose of North. The people of Chiang Mai still embrace the magnificent traditional Thai Nature which has made this a well-liked country for both holidaying and living.

Renting is very simple for either condominiums or the houses and easy to setup, perfect for short or long term stay. You can choose from a wide variety of houses and condominiums according to your need. They vary from studios to four bedroom lavishness. There will be variation in the cost superiority and advantages. By and large you will get your moneys worth.

The tourists will simply love the most special Chiang Mai city. The combination of breezy mountains coupled with flamboyant sunny days makes Shangri la will make it the most sought after place for many years to come. The weather in the north of Thailand also varies in the rainy season as well, nonstop rainfall is quite unusual. There will usually be heavy downpour during the day for about thirty minutes to an hour but gets dried as soon as sun rises.

There are a lot of immigrant in Chiang Mai usually estimated to be roughly around 5000. You will find Chiang Mai more enticing than Bangkok. The Maenam valley is a plateau though one can still revel in the forest mountains that flounce northwards to Burma. You will be quite delighted to see the hill tribals clothed in multi hues trying to pitch their handicrafts to the passersby. The city centre of Chiang Mai is completely secured with a palisade which even Bangkok does not have.

Bangkok is so difficult discern than Chiang Mai. Motorcycling, walking and bicycling are sensible options to driving. Get yourself the tuk tuks that are accessible there. In fact, a comparatively efficient system of songtaews runs a kind of shared service around larger Chiang Mai. You can get hold of one as easily as a cab service. For those lovely moments you find a whole lot of restaurants on the river bank of the Maenam Ping the Ping River of Chiang Mai.

For those with health concerns, there is even a strong stress on healthcare as well, as Chiang Mai has a number of quality hospitals comprising of the Chiang Mai University, Chiang Mai Ram plus McCormack Hospital.

One can expect to get at least a bit from Chiang Mai. It is a combination of all the features required for a better living like good routine simple living cultural diversity and also cheap housing. Indeed, buying or renting a house in Chiang Mai can allow you to enjoy a fulfilling and tranquil lifestyle.

About the Author

Author is an avid real estate related writer and you can find here more details about Chiang Mai Real Estate, House Chiang Mai and Property Chiang Mai

]]> http://www.lechec.com/2012/02/Chiang-Mai-Real-Estate-Housing-And-Life-Style-In-Chiang-Mai/feed/ 0 Obama’s Free Grant Money – Claim Free Money Before It’s Too Late http://www.lechec.com/2012/02/Obama%e2%80%99s-Free-Grant-Money-Claim-Free-Money-Before-It%e2%80%99s-Too-Late/ http://www.lechec.com/2012/02/Obama%e2%80%99s-Free-Grant-Money-Claim-Free-Money-Before-It%e2%80%99s-Too-Late/#comments Tue, 21 Feb 2012 05:47:00 +0000 admin http://www.lechec.com/2012/02/Obama%e2%80%99s-Free-Grant-Money-Claim-Free-Money-Before-It%e2%80%99s-Too-Late/ Let me show you how to get a $12,000 Free Government Grant from the US Government in as little as 7 days. Click here now!</b

Taking the economic crisis into consideration, the Obama administration has devised a financial grants program. President Obama has diverted more than 700 billion dollars for these grants. The details of the grants are available at different government websites. You must claim your share of the free money before it’s too late.

It is quite simple to claim the government grants. All you have to do is fill out the application form found on Federal Government’s website. In there’s any confusion in filling the form, download the guide that will take you through the complete procedure in detail. The website provides all the details of these grants. You must understand one thing: once the form is filled, the information will be sent. So make sure you write everything very carefully and make no mistakes whatsoever. You must also have valid proof for anything that you mention in the application form.

The eligibility criteria for every grant is quite flexible:

- You must be a citizen of the United States

- You must be at least 18 years of age

Grant money is available for students, single moms, small business owners, low wage workers, low income households etc. For example, those who are single get $600 if they’ve earned $3000 and paid their taxes. If taxes have not been paid, then they get $300.

President Obama has approved more than $700 billion in stimulus spending over the next 2 years. The important part is knowing where and how to apply.

Apply for Obama’s Free Grant Programs Now!

Let me show you how to get $12,000 Free Government Grant from the US Government as little as 7 days.

About the Author

Let me show you how to get a $12,000 Free Government Grant from the US Government in as little as 7 days. Click here now!</b

]]> http://www.lechec.com/2012/02/Obama%e2%80%99s-Free-Grant-Money-Claim-Free-Money-Before-It%e2%80%99s-Too-Late/feed/ 0 Fighting Debt Problems – How to Cope http://www.lechec.com/2012/02/Fighting-Debt-Problems-How-to-Cope/ http://www.lechec.com/2012/02/Fighting-Debt-Problems-How-to-Cope/#comments Mon, 20 Feb 2012 16:37:00 +0000 admin http://www.lechec.com/2012/02/Fighting-Debt-Problems-How-to-Cope/ When you have debt problems, it is advisable that you know the exact amount that you owe, gathering all the documents involved and the calculation of the amount. Later, you will need to make priority list and see which of your current debt is the highest interest rate. If you realize that you have only a small amount to pay, then it would be a good idea to see how you can reduce your costs if you or one of your family members can get a second job, or you can sell the assets that you do not use or need.

However, it is important that when you realize you have a great amount of repayment, call the lender and find a way to pay the debts as soon as they accumulate. In addition, you should stop any payment that you currently accepts credit card as much to do to collect debts, high interest rates on credit cards and higher credit for that, you have access to. If you are a person who likes to keep some money away for rainy days and during an emergency, then you are in luck, as that money is very convenient for these situations.

If you have multiple debts from different lenders, then it is a good idea to keep all your payments and transactions noted down, such as Notepad. This is not the only way to encourage you to proceed with their plans, but also a good way to make sure that you do not forget any of your debts and have an overall opinion on its financial position.

While the focus on the payment of debts, you should also keep a small amount of money at the end of each month, reward yourself. It may not seem important at first, but it is very important you are motivated to continue to solve their financial problems. Working with huge debts, has a long and demanding process, so you should try to be patient until you see actual results.

Sometimes it may happen that you have too much debt must be handled separately. In this case, it is important to recognize you have a problem and seek professional help. Most of the experts can give you a hand, but you need to know about the fraud.

About the Author

Visit checksandbalances for information about Checks and Balances .

]]> http://www.lechec.com/2012/02/Fighting-Debt-Problems-How-to-Cope/feed/ 0 My Silver Can Beat Up Your Dollar http://www.lechec.com/2012/02/My-Silver-Can-Beat-Up-Your-Dollar/ http://www.lechec.com/2012/02/My-Silver-Can-Beat-Up-Your-Dollar/#comments Mon, 20 Feb 2012 09:58:00 +0000 admin http://www.lechec.com/2012/02/My-Silver-Can-Beat-Up-Your-Dollar/ If the dollar index drops, the price of silver will be affected. So what does that mean to you? Take five minutes to read about 200 years of silver money in America.

What is the history of silver throughout the ages and even in the United States. Silver coins have been used since the time of Alexander the Great. Silver is a relatively easier metal to work with than steel. In modern times there are endless industrial uses for silver. Silver even has medical applications.

In early America before the establishment of a national mint what commonly circulated for money was not British money but pieces of eight. These were Spanish coins and according to historians were probably the most widely used coins at that time. The standard size of our dollar was derived from the Spanish dollar. The Morgan dollar is actually based on the size of the Spanish coins from the 16th and 17th century.

In the American colonists war with Britain the Continental Congress issued paper dollars called Continentals. These dollars were issued to raise funds. However these dollars were not backed by any precious metals, only a government promise. After the war the government was so indebted that debts associated with the Continental dollar could not be paid off. This is where the phrase “..not worth a Continental.” came from.

The founding fathers had a negative view of paper money. This significant fact led to an inclusion in the constitution, Article 1 Section 10 which stated that gold and silver coins would be the legal tender to pay any debts. The government was against fiat money from the start.

Fiat money not backed up by any precious metals leads to dire economic situations. The country of Zimbabwe has seen inflation exceed 6000 percent. The Zimbabwean government issued $1000 notes that would not even buy a loaf of bread. In the 1920s German republic the government issue $1000 mark notes that were so devalued that people actually used these notes as fuel for fires.

Most of America’s economic history has used the gold standard during which the government issued legal tender notes. These notes were redeemable for silver dollars. These dollars were approximately 90 percent silver. During the Civil War there was a coin shortage. Union government issued fiat money because people were hoarding coins for their metal content. People hoarded coins because they feared inflation.

There came into existence national bank systems where individual banks could issue money that was fractionally backed by gold and silver. We also had United States silver certificates that be traded for silver dollars. The laws changed in 1971 where the dollar bill is now backed by nothing but a promise from the government.

If you want silver there are several things you can do. You can purchase collector coins which can range in price up to thousands of dollars. You can buy government issued bullion coins from the United States or foreign countries. But be careful with coins from China. Counterfeit coins from China are common. You can buy silver dimes minted prior to 1964. After 1964 the silver content was diluted. Prior to 1964 the silver content was 90 percent.

Thank you and have a blessed day.

About the Author

Ronald Roberts is a former military officer and MPA graduate who volunteers with his local community hospice. His favorite quote is: Never despise a humble beginning. His blog is http://www.americaneaglesilverdollar.info. For a more direct approach to increasing your wealth visit http://www.besilverrich.com.

]]> http://www.lechec.com/2012/02/My-Silver-Can-Beat-Up-Your-Dollar/feed/ 0 Get Paid to Take Surveys http://www.lechec.com/2012/02/Get-Paid-to-Take-Surveys/ http://www.lechec.com/2012/02/Get-Paid-to-Take-Surveys/#comments Sun, 19 Feb 2012 03:55:00 +0000 admin http://www.lechec.com/2012/02/Get-Paid-to-Take-Surveys/

Get Paid to Take Surveys
You can be one of the many people who have seen the great advantages of answering Paid Online Surveys. It has become quite popular because it is so easy to do-all you have to do is express your thoughts and opinions about certain topics-and pays well.

Get Paid to Take Surveys
It is free and anyone can do it. Make money online is not a rocket science. You do not a great skill to make some extra money online.
There are a number of ways to make money online. We will list some of the good ways to get paid to take surveys online.

A smart guy once figured out that you can get your site indexed very fast if you run some Google Adsense. Just that coupled with a few high quality links to your site and the Google bot will be after you. It doesn’t seem a hard thing to do

Join paid surveys and get paid to take surveys online.

There is no easy way online to make money. All are scams. If you know about adsense, host multiple blogs with http://www.blogger.com and make it popular and use adsense on those blogs to get CPM and CPC money.

Legitimate paid survey sites work this way: As soon as you become a member, they will ask you to participate in a survey. You get paid after you complete it.

I will begin by listing some of the common and trustworthy websites/online Websites I personally used to earn money online. These sites are international, have no age limit and require no fees or credit card information from you to get started.

Unfortunately the fact of the matter is if you really want to make money online you are going to have to invest a lot of time learning the appropriate skill sets. Namely the ability to create your own websites or by doing freelance work such as writing articles, creating graphics or programming.

About the Author

Join paid surveys and get paid to take surveys online.

]]> http://www.lechec.com/2012/02/Get-Paid-to-Take-Surveys/feed/ 0 Investing into Etfs http://www.lechec.com/2012/02/Investing-into-Etfs/ http://www.lechec.com/2012/02/Investing-into-Etfs/#comments Sat, 18 Feb 2012 03:24:00 +0000 admin http://www.lechec.com/2012/02/Investing-into-Etfs/ Exchange traded funds (ETFs) are becoming more and more popular among ordinary traders and institutional investors. The biggest advantage of the exchange traded funds is the ability of diversification with a single purchase – many traders do not have enough funds to invest into extensive portfolio. If you want to invest into the biggest US companied you may buy SPY or DIA exchange traded funds, if you want to invest into hi-tech public companies – you have QQQ. You may find highly popular and liquid Etfs that are traded on the American Stock Market and that cover China publicly traded companies, strongest stocks from Brazil, Taiwan, Japan and other emerging markets.

Another great factor that attracts many retail and professional traders is the simplicity of trading. Most of the traders prefer to avoid fundamental analysis which includes stock research, studying balance sheets, etc. With ETFs, this entire job is done by the sponsors of the funds. Furthermore, ETFs traders may focus solely on the technical analysis.

It is amazing that over the last couple of years spy (S&P 500 tracking stock) has become the most traded ETF all over the world; in addition it is in the first paces by trading volume among US stocks as well. XLF is another traded fund that is highly liquid and is very popular. It tracks financial sector of the S&P 500 index and after 2008 stock market crash, due to its high volatility, many traders took it in their arsenal. IWM (track the Russell 2000 index) is another great fund that highly traded as well. There are many other Exchange Traded Funds that are quite popular. You may find various ETFs that track Silver (SLV), Gold (GLD), oil (USO), gas (UNG), etc. Special attention could be given to the leveraged funds that allow leveraging the portfolio and substantially increase potential profit.

Over the last couple of years emerging markets have become quite popular on the US stock market. EEM (covers emerging markets stocks) is in the top 5 most traded ETFs. Japan, Brazil and Taiwan are not far behind. Actually, these exchange traded funds (ETFs) are more popular than the DIA (tracks the Dow Jones Industrial index) and just a little bit below SPY at the current moment.

As you may see there is a great section of trading vehicles could be found among funds. There are not lot of reasons could be found do not trade them. They are traded in the same way the stock are. You may by them on margin, you may trade them short, you may buy and sell them during the trading hours, you may receive dividends on them, and etc. So, why to bother by research stocks when the research is already done and all you have to do just pick it up.

About the Author

Charts, quotes, technical analysis, signals for indexes and exchanges (S&P 500, Nasdaq 100, DJI, etc) are essential in options trading, trading index derivatives (QQQQ, SPY, DIA, etc), index emini futures and index tracking funds.

]]> http://www.lechec.com/2012/02/Investing-into-Etfs/feed/ 0 Gaining Control of Your Relationship With Money – 4 Steps For Digging Out Of Debt http://www.lechec.com/2012/02/Gaining-Control-of-Your-Relationship-With-Money-4-Steps-For-Digging-Out-Of-Debt/ http://www.lechec.com/2012/02/Gaining-Control-of-Your-Relationship-With-Money-4-Steps-For-Digging-Out-Of-Debt/#comments Fri, 17 Feb 2012 19:53:00 +0000 admin http://www.lechec.com/2012/02/Gaining-Control-of-Your-Relationship-With-Money-4-Steps-For-Digging-Out-Of-Debt/ If you have excessive debt, you don’t have to be told that it can feel like you are in a prison. You are held captive to past financial decisions along with possible overspending. You need to get your debts paid off before you can even think about your future plans and dreams.



There are four key steps in getting out of debt.



1. You must acknowledge that you have a problem



The absolute most important component of digging out of debt is acknowledging that you have a problem and you know you have to do something about it. Paying off your debt has to be a high priority, or you will likely end up facing a major debt related issue such as having your electricity shut off – or even having to file for bankruptcy.



2. Cut up your credit cards



Identifying the and acknowledging the problem is step 1. The second step is a really tough one – actually cutting up your credit cards. It’s true that you’ll not be able to actually close your account if you still have an open balance, but you can effectively close the account by simply cutting up your cards. Oh, and remove them from any computer program you may have such as RoboForm where you store the numbers. Under no circumstances can you use a credit card again until you are completely out of debt. Understand that this could take YEARS to do. Once you are out from under the mountain of debt that you may find yourself saddled with now, you’ll be happy you did this. You may also find that you will never use a credit card again, perhaps sticking to a debit card only so that you’ll have access to online shopping and having the ability to rent a car.



3. Set up a realistic budget and stick to it



When you put a budget together, be realistic! There is absolutely no sense to put a budget together that looks great but you have no way of maintaining. You have got to be serious about your budget if you want to have any chance of getting completely out of debt.



4. Contact all of your creditors



Communicate with your creditors to let them know you are in a bit of a bind and that you are having difficulty making payments. Let them know about the bare bones budget you’ve put together and ask them if they’d be willing to accept lower payments. Most of the time, creditors will do this for you as they feel that they’d rather have something coming in than having your file bankruptcy.



Beware, however, that your lower payment could end up actually going higher because your creditor may end up raising your interest rate when they find that you are having trouble. They may cut your credit line as well, but that’ll be OK because you don’t want to use any more credit until you get your debts paid off in full.



Some creditors will play hardball with you and for some reason would rather see you go bankrupt than let you pay lower payments. If you run into one of these type of creditors, get in touch with a credit counseling agency. These agencies are well versed in communicating with creditors and working out solutions on your behalf. Be forewarned however – there are many, many, many scam artists in this arena. Many of these scammers will end up charging you an arm and a leg for their service via a higher overall monthly payment than they have actually negotiated with your creditors. The way to avoid these type of operations is to contact the National Foundation for Credit Counseling at 800-388-2227. This is a network of credit counseling agencies that is nonprofit, so they will not be making money due to your debt problem.

About the Author

Bruce has been writing personal finance issues since 2008. In addition to his writing, Bruce also operates a number of informative web sites. You can check out his latest website here: Black Leather Ottoman featuring the Storage Ottoman Bench

]]> http://www.lechec.com/2012/02/Gaining-Control-of-Your-Relationship-With-Money-4-Steps-For-Digging-Out-Of-Debt/feed/ 0 Why You Should Not Stress Over Debt Collection Agencies http://www.lechec.com/2012/02/Why-You-Should-Not-Stress-Over-Debt-Collection-Agencies/ http://www.lechec.com/2012/02/Why-You-Should-Not-Stress-Over-Debt-Collection-Agencies/#comments Thu, 16 Feb 2012 16:11:00 +0000 admin http://www.lechec.com/2012/02/Why-You-Should-Not-Stress-Over-Debt-Collection-Agencies/

One of the worst things about credit card debt is having to deal with collection agencies, which is why it makes absolute sense to do your best to settle your debt with the credit card company, before they turn over your account to a collection agency. However, if your credit card balance has already been sold to such agency, you will have no other choice but to deal with them.

To minimise the stress related with dealing with collection agencies, you should make sure that you always know your rights as a consumer. The first thing to do is look up the Consumer Credit Act 1974, which outlines laws that protects you from unfair practices, including collection practices. If you know what the debt collection agencies can and cannot do legally, then your stress levels will surely go down.

One of the most important things you should know when dealing with debt collection agencies is that they are required by the law to furnish you with the original copy of your credit card agreement. If they are unable to do that upon your request, then they have no right taking your money from you. A good example of this is the case of Phoenix Recoveries v Kotecha Jan 2010, where in the Court of Appeal Civil Division passed judgement that “A creditor had failed to satisfy a debtor’s request under the Consumer Credit Act 1974 s.78(1) for a copy of a credit card agreement as it had not, on the evidence, included the original, actual terms and conditions in respect of interest rates then in
force. The creditor was, accordingly, not entitled to proceed to enforce the debt under s.78(6).” Clearly, they also need to follow rules, and since most debt collection agencies cannot, or will not produce such a document, then you can rest easy.

Although you can beat debt collection agencies at their game, it does not mean however, that you should just forget your credit card debt. Remember, this debt affects your credit rating. You should still do your best to get out of debt, especially if you wish to rebuild your credit score. The important thing though, is that while you do your best to rebuild your credit score and pay off your credit card balance little by little, you can do so with peace of mind, knowing that these debt collection agencies really do not have a hold over you.

About the Author

Article By : Peter Carville. Peter Carville is a freelance article writer who writes for Financial Facts about the current financial news and the credit crunch.

]]> http://www.lechec.com/2012/02/Why-You-Should-Not-Stress-Over-Debt-Collection-Agencies/feed/ 0