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Statistics provided by the US Census Bureau show that the number of credit cards owned by American consumers is increasing. Many people have credit cards as an emergency backup resource when they need extra funds. However, with high credit card fees and interest rates, your credit card debt can get out of control. Instead of dealing with the stress of your increasing debt, consider canceling your credit cards for the following reasons:

Eliminate your debt: Not owning a credit card means you don’t have unnecessary debt. If you max out one credit card and decide to pay off your debt with another credit card, you’re still left with credit card debt. This vicious cycle can escalate and leave you in a financial mess.

Maintain your budget: Staying within your budget is easier when you use cash for your purchases. Physically seeing the money you have makes you more reluctant to frivolously spend it. Handing over a credit card each time you make a purchase doesn’t make you realize how much you’re spending altogether. The shock sets in once you get your credit card statement. If you want to use a card to make your purchases and stay within your budget, use a prepaid card. Store-bought prepaid cards only allow you to spend the amount of money you put on them. When you run out of funds on your prepaid card you can replenish it as your budget allows.

Protect yourself: Each time you hand over your credit card to make a purchase you give others access to your credit card information. Whether you purchase items online or in a store, you subject yourself to identity theft. When you use cash there’s no need to disclose personal information. Identity theft can create a financial nightmare that leaves you with debt that can take years to clear up.

Avoid temptation: Credit card companies often offer tempting bonuses to attract consumers. Frequent flyer miles and points you can accrue when you use your card are not worth the hassle of paying back the money owed. Annual fees and interest rates quickly add up and add to your financial stress. Avoid using your card or acquiring one just to gain points or bonuses.

Save up: Instead of keeping an emergency credit card on hand, get rid of it. Instead, start saving up so you have at least $1000 available for emergencies.

Despite the fact that payday loans are one of the more unfamiliar types of loan products to many people, payday loan lenders may offer more loan opportunities for borrowers with bad credit than other types of traditional lender.

Payday loans are often given to borrowers with bad credit, with amounts often up to £80-£1000.

Payday loan basics

Often referred to as cash advance loans, or cash advances, this loan product is intended as a very brief cash fix when you are in an emergency situation. If an unexpected veterinary or repair bill comes about, or you fail to plan enough cash for your holiday, payday loans may be a way to cover yourself efficiently.

These lenders are sometimes more sympathetic to the needs of bad credit borrowers because the cash advance amounts are smaller and they are more concerned with your ability to repay the funds (plus any interest and fees) on your next payday.

Payday loan uses

Credit preservation may be one of the main motivations for people using cash advances in order to preserve their credit score, whether that have a less than perfect credit history or not. Delaying payment on unexpected bills beyond the payment deadline can lead to negative marks on your credit score. If the numbers all add up, it may be worth considering paying a cash advance fee and interest for quick cash versus being charged a late payment fee and getting marks against your credit history.

Application process

Applying for a cash advance loan is often relatively simple. You can complete an online application, get a quick review, and, if accepted, get your cash advance funded within a few hours. This efficiency is part of the nature of the payday loan. Its primary purpose is to help you in quick cash emergencies. Tedious and drawn out application processes do not work as well in this loan sector as they do in other traditional loan areas.

Getting a decision on your cash advance request is often fairly quick. Payday loan lenders will generally want to know that you have income to cover your loan and interest and any fees, so being in regular employment with a regular income will usually be essential. Funding may be dispersed to your bank account, giving you quick access.

It is the time of the year again when we all make resolutions to try improve our lives. If you are one of millions who set financial goals, but never seem to reach them; there are a few simple steps you can take to achieve each and every one this year.

Setting Your Starting Point

Before you can get started setting any type of financial goal you should have a clear picture of your current financial standings. Make a spreadsheet of your monthly expenses separating any “extra” income that can immediately go towards specific goals like savings and paying off debt. When you gain a better understanding of how you spend monthly, you may find new resolutions all together! It’s possible to meet your “start saving for college” goal, you just need to dine out less giving you that little extra to meet your marks.

Be Realistic About Your Battles

Now that you have a picture of your financial standings, it is time to make a list of all of the financial goals you want to achieve in the year. When making this list, remember you are working with in a twelve month time span. If “becoming a billionaire” is number two on your list, you need to readjust your goals to be more obtainable. It is important to push yourself, but be sure your goals are both obtainable and realistic. Some great annual goals include paying off your credit cards, saving for a down payment on a house, or start saving for retirement.

If You Fail To Plan, You Plan To Fail

List in hand, your first instinct is to jump right in and accomplish these goals! Not just yet, as it is important to set very specific plans to reach your each of your financial goals. This step is crucial and often overlooked, leaving many to fail in their goal achievement. Use your monthly expenses spreadsheet during your planning. The plan in which to reach your goals is just as important as the goals themselves.

Use All Resources Available

Remember that when it comes to finances there are many areas where most of us are completely in the dark. It is not a bad goal to become more financially savvy in the new year. Each month learn something new about your finances. A couple great places to become more savvy is learning more about your taxes and current investments. If you have credit card debt, look into lowering interest rates or eliminating the cards with the highest interest rates completely. Rewards programs on your current credit cards can be used towards your financial goals, or even to avoiding going further into debt and getting off track. Just because you are trying to reach a few financial goals doesn’t mean you can’t take a holiday this year.

Everything Is Better Together

One of the final steps in reaching your financial goals in the new year is to find a goal buddy. When held accountable, people are much more motivated to accomplish their goals. A spouse is an excellent source for a financial goal buddy and will help you both have a firm grasp on your family’s finances. If you’re single, find a friend or family who is financially savvy and ask them to be your goal buddy. For those who are private and prefer not to include a person they know into their personal financial picture, remember there are many tools online to help you out. There are sites to sign up for monthly accountability newsletters and other user groups you can join to help keep you accountable and moving towards reaching every one of your financial goals this year.

Timothy Ng is a personal finance writer, and has a real passion for encouraging people to compare credit cards to ensure they get the best deal. Check out his comprehensive guide to credit cards where he provides an in-depth overview and analysis, to help you find a better deal.

The holiday season is fast approaching and this means that you may have some travel plans on the horizon. Christmas is a great time to get together with your loved ones, but it is also a time to watch your finances. Here are some helpful tips to help you stay smart with your money during the holiday season.

Use prepaid travel cards

These cards serve as a useful alternative to credit cards and debit cards. Money can easily be loaded onto the prepaid card and it can then be used for travel reservations, purchases and cash withdrawals. The nice thing about these cards is the security they provide. Since they are not connected to any of your bank accounts you don’t have to worry about identity theft. You will also have to limit your purchases and expenses since you have a limit on the balance. You can budget your expenses before you buy the card so that you are not tempted to spend more than you can afford while you are away.

Make a travel budget

A lot of people never consider making a budget for their travel activities and this can end up being a huge mistake. When you are away from home it is easier to spend money since you are more carefree and have less restrictions that you would at home.

You need to sit down and plan out what you need to spend for necessities and how much you can use for activities and purchases. This will help stop overspending because you’ll know before leaving exactly how much you can afford to spend. You must also remember to put some money aside in case an emergency arises while you’re away.

Avoid costly souvenirs

During the holiday season you will have enough to spend your money on without having to worry about purchasing expensive souvenirs. Christmas is a time of giving and you really don’t need to worry about bringing home anything fancy for your friends and family. Just let them know before you go away that you won’t be spending any money on souvenirs so they won’t be expecting anything when you return.
Avoid eating out

If you are heading off to visit family or friends this may not be a too much of a problem, but it can come up. If you are staying in a hotel and need to eat some meals look out for local cafes that offer good food at a reasonable price. Hotel restaurants are usually overpriced and the quality is not always the best.

Plan your trip wisely

Spontaneity has its place but only when funds are available to sponsor it. If you are running on a limited budget being spontaneous can get very expensive. You want to get through this holiday season with a smile on your face in January knowing that you were able to avoid temptation and managed to stay on budget. The more you plan out your trip during the holiday season the more money you will save on reckless impulse spending.

Added expenses

Travel agents are going to be very encouraging when it comes to a holiday trip and will make many suggestions about holiday add-ons for your trip. Keep in mind that the more excursions and add-ons you purchase the more money goes into your travel agent’s pocket. Let your agent know upfront what your plans are for the holiday and that you do not plan on purchasing anything extra. This will curb your temptation to buy an interesting excursion or experience.

Finance ideas don’t come to your mind as a flash of lightning. You gather ideas from your experience. With every passing day, you attain maturity and you learn from your failures. Given below are 6 finance ideas that you can adopt in 2010 so that your finances are better off in the current year as compared to 2009. Since the economy is still in a state of recovery, you should do your part so that the worst is over at least for you.

Pay off debts

With recession and credit crunch, it is quite unlikely that you didn’t have debts to deal with. If you can manage to tackle debts on your own, go ahead and do the same. If not enroll in a debt relief program that will help you to manage debts. Avoid bankruptcy by all means. So, the sooner you get rid of debts, the better it is.

Budget your finances

It is important to prepare a budget that can help you to manage your finances better. Write down expenses. Assign cash to the different expenses depending on your income. The catchword is living within your means.

Build an emergency fund

It is very important to build an emergency fund. It can act as buffer when you‘re cash strapped. Keep aside few dollars from your paycheck even if it means putting away USD$50 every month. This is one of the finance ideas that can take care of your rainy days.

Invest to get good ROI

Lock in your money in a good investment vehicle that assures you to give back good returns. In other words, the ROI or Return on Investment should be good.

Review credit reports frequently

Review your credit report from time to time. You are entitled to get a free copy of your credit report from the 3 credit bureaus once in 12 months. So, pull out one from each to check for inaccuracies. If you come across any, report the same without delay.

Don’t abandon your insurance coverage

Do not get rid of your insurance coverage just because you want to cut back on costs. This is not one of the wise finance ideas you should follow. Try to curtail unnecessary costs but retain and maintain your insurance policies. It is better to pay your insurance carrier than to pay a hospital or a vehicle repairing station.

Following finance ideas can save you immensely. It will help you to stand on your feet financially and maintain your financial equilibrium.