Your Secret Weapon Against Credit Card Debt

The television advertisements and dozens of junk mail advertisements you get all make big promises. They are real good at selling the idea that they can get you out of credit card debt with some phenomenal program or secret weapon that you can find only by coming to them. When you think about it, these people are pretty despicable. They are seeking to make money by preying on people who already are deep in debt. The want to victimize the victims and in many societies, they put people in jail for that.

Anyway, you and I both know that most of those slick marketing productions that pitch getting you out of credit card debt through some sophisticated and costly program are a bunch of hot air. But there is a secret weapon right under your nose that if you can set off its amazing power, it can get you out of credit card debt and keep you there.

This secret weapon is pretty amazing and you know we aren’t trying to market anything to you because this secret weapon doesn’t cost anything, doesn’t require you send off for anything and you can find it right in your own home and put it to work immediately at no cost to you. But it is also a secret weapon that is not “sexy” and it will not make you go “OOO” and “AHH” by impressing you with its slick design.

The secret weapon is a budget. See, we told you it wasn’t a sexy solution. But when you analyze why you have the credit card debt in the first place, putting a rock solid budget in place is the foundation of a long term solution to your problem. The marketers can give you all kinds of fancy analysis and discussion on the cause of credit card debt in your life that will put the blame on everything from the foreign exchange rate to immigration to global warming. But it doesn’t do you a bit of good to point fingers about the problem. The only thing that will do you good is to give you the tools and weapons to fix it.

There is just no getting around it, you are in trouble with your credit because you are living above your means. In other words, you are spending more than you make. This isn’t to throw a lot of blame and guilt around. There are a lot of situations that can cause you to live above your means. You could lose your job or have an emergency in the family that can cause you financial worries. But when the money going out is the more money than is coming in, you have a problem that will drive up your credit card debt.

To write a budget, you simply sit down and take inventory of those two factors. You inventory how much money you have coming in. Then you inventory how much money you have to pay out. This step alone is a huge step forward toward getting your debt problem under control. A computer spreadsheet like Microsoft Excel is excellent for this kind of family budget planning and analysis because you can move things around and let the computer do the math for you.

Don’t make excuses about this. If you don’t know how much a certain kind of spending costs you, dig out your receipts for the last few months and get a feel for it. But once you know your income and your bills, you can tell if there is a gap. Then you can make plans to close that gap either by getting more income or by cutting out some bills or both.

It won’t be easy and it won’t be fun. But if you get on a budget and stay there, you have the basic foundation for a solid family financial plan and you can move forward from there. You may go on to use some other tools to bring your credit card debt under control such as credit card consolidation or balance transfers. But don’t do a thing before you find that secret weapon and make it start working for you. And that secret weapon is a realizing and reliable family budget.

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Credit Card Debt Info - Working With Your Credit Score

When you see advertisement after advertisement on television of businesses who want you to find out your “free” credit score, that is a red flag that someone is looking to make some money off of you. The funny thing is they are not lying to you but at the same time, you are exactly right that those companies paying good money for television advertising are looking to make a buck off of you.

The truth is, you can actually find out what your credit report says about you. What they are telling you about that is true. Your credit report tells you your credit score which helps you understand how creditors see you which is important if you go to get a new loan. But your credit report also shows a detailed history of your past use of credit, currently open accounts and anyone who has checked your credit score in the last year.

This is important information for you because anyone can check your credit report anytime they want to. And if there are too many inquiries on your credit report, that itself can drive down your score. So if you find someone is checking your score too often, you can take action to put a stop to it.

But there are a couple things they are not telling you on those advertisements. One is that if you use their services, they will give you the credit report for free but not the credit score. They are going to have their hand out for that little tidbit of information. But the truth that those companies will not tell you is that you can get that score at least once a year absolutely free if you know how. In other words, those people hitting you up on television to check your credit score are relying on the fact that (1) you don’t know how to check it yourself and (2) you are willing to give them money for something you can get for free if you know how.

The basic information you should know about credit reports is that there are three agencies that maintain credit reporting and they are named Equifax, Experian and Transunion. You can check on what each of these companies has in their file at any given time. In addition to a lot of detail about your credit history as we just discussed, your credit “health” will be represented in the form of a number of a “score”. That score will run between 300 and 850. The higher your credit score, the better you will be received by credit organizations who are deciding whether to extend you a loan.

Once you have this information, you can take action to improve how you stand on your credit history. First of all, review the credit detail in depth. You may find accounts still open that you have not used for years. Close those accounts. If you have a credit account that is not being used, it is of not value to you, it only runs down your credit score and there is always a danger someone will use it.

But the next step is to start being “credit smart” in how you use credit to help see that credit score go up over the next year. The steps to do that are….

Always pay your bills on time. Late payments are reported to the credit bureaus and it runs your score down.

Make more than the minimum payments. If you only pay the minimum on each credit card you owe, that will get noticed by the credit tracking software and make your credit score go down.

Cut down on the amount of times your credit score is checked. Excessive inquiries into your score indicate that you are looking at getting more credit and that hurts your score.

Close unneeded credit accounts.

Start closing some of your credit card accounts once you pay them off.

Don’t take out any new accounts.

Don’t let yourself get excited by the virtual nonstop advertising about your credit history. You do not need to know this information every day. But check it a couple times a year, no sooner than once every three months to keep tabs on what is going on with your credit history. It’s the responsible thing to do and you can just change the channel on those noisy commercials too.

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Credit Card Debt Info - Time to Get Help

Do you ever wonder if there should be a 12 step program for people who have a problem with credit card debt? The idea might not be as ridiculous as it sounds. The 12 step program is one of the most successful therapy programs there is for helping people with addictions. And in a lot of ways, our love of credit and of buying things using our credit cards amounts to an addiction.

And like people who are suffering with an addiction, many times the biggest step forward is when you recognize that you have a problem. Too often when someone has the beginnings of a credit card debt problem, there is a sense of ambivalence and “just let it go” because after all “everybody does it.” And when you have a problem that threatens to become a huge problem, that is no time to be lazy and decide to just let it continue because you think everybody does it.

That attitude of “oh well” is exactly why the credit card companies are making record profits. If we all would get mad because they are enslaving our family budgets, we would rise up and throw them off and the world would change dramatically for us. But we can’t fix the world. But you can fix our own world and start at home, with your own credit card “addiction” and maybe even use some of the principles of 12 step programs to get started.

Most professionals who work with people needing 12 step programs will tell you that the biggest obstacle is getting the troubled person to know they are in trouble. We all live in a bubble where we tell ourselves and each other that “everything will be all right.” 12 step programs use tough love to tell the people who come there that everything will NOT be all right unless they take steps to change their addictions because their addictions will destroy their lives.

Well folks, we might need some tough love when it comes to us not taking action to fix our credit card debt problem before it destroys our lives. We have to find a way to get over this idea that we should just endure credit card debt and get motivated to do the hard work to dig ourselves out before the task becomes insurmountable. In a lot of ways the problem is pride. We may suspect we have a credit card debt problem but we don’t want to tell someone else we have one. We are proud and we want others to think we always have it together.

That pride says “just take care of this yourself” and it will keep you from talking about the problem with your spouse, your family and then even going to someone like a credit card consolidation company to find out how to get this problem under control. The big moment when an “addict” becomes a recovering addict is when he or she recognizes that the problem is there, that it is huge, that it could destroy their lives and that it is time to seek help.

Maybe that time has come for you. Maybe its time to not let your pride be so stubborn that you wont turn and seek help from people who know how to help you get this problem under control. So let this little discussion be your “intervention” to give you a slap in the face that the faster you let that pride go and seek some help, the faster the credit card debt problem will go away and you will be back on a solid financial footing once again. And once you get this “monkey off your back”, you will never want to become enslaved to credit card debt again.

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Time to Get Good and Angry About That Credit Card Debt

There is something strange about what happens to all of us psychologically when we see our credit card debt just keep climbing and climbing with no end in sight. For some reason, our emotional reaction is often one of ambivalence or even acceptance as though having a mountain of debt to credit card companies is a part of life and no big deal.

But it is a big deal. When a huge portion of your monthly budget goes to servicing debt, it’s a big deal because that money could be going toward a better house, a new car or even just for something fun for you or your family. Whatever it might buy is a lot better than it just being thrown away as interest on a ridiculously high credit mountain.

So as much as we all do strive for peace and keeping a positive attitude about life, in order to get some motivation to get out there and defeat this monster we call credit card debt, it might be time to get good and angry about the way credit cards handle our accounts and find the guts to finally find a way to just up and fire them.

In the retail world, it is a crime to use false advertising or pull off hat is called “bait and switch”. Bait and switch is a tactic where they advertise a price for a retail item and then when you get to the store, the price is wrong on the shelf or for some other reason (like, we ran out of the ones at the sale price), they bilk you into paying the non-sale price. That’s cheating and it’s wrong.

Credit card companies are the international grand champions of bait and switch. When they send you those glossy, well worded invitations to low interest, “no cost” credit cards, they have no intention of honoring that offer. Oh sure, they might set up the accounts that way. But if you read the fine print of what you are signing when you apply for the credit card, they retain the right to change the rules of how your credit bill is handled without notice and without restrictions. That means that even if they said there will be no annual fee, they can impose one and there isn’t a darn thing you can do about it.

Even more outrageous is the fact that credit card companies can and often do raise the cost of what you are paying for the goods or services you bought using your credit card, again without any notice at all. So if you bought a refrigerator on your credit card which at the time was charging 8% interest, the credit card company can up and raise your interest level to 20% overnight, with no reason for doing so and with no notice to you. So what just happened is they jacked up the price of the refrigerator you bought and you have to pay it. If that doesn’t get you good and mad, well, it should.

If you watch how the credit card companies handle your accounts, you can tell they are looking for any excuse to raise your rates. If your payment comes in an hour late, they can double your rates. And guess what? They are the ones who determine if your payment came in late. So if you mail it a week and a half a head of time, they can still claim it as late and jack up your interest rate and impose a huge penalty for late payment.

It’s just amazing and completely outrageous that credit card companies are able to change the rules of how you do business with them with no respect for you as a customer and with no intervention by any federal agency. In fact, the concept that the federal government is in the pockets of the credit card companies is reinforced over and over again.

Getting good and mad about credit card debt can mobilize you to do some things that are long overdue. It might be overdue for you to contact your congressman and start putting them on notice that we aren’t going to take this anymore. But it is definitely overdue for you to see the credit card companies for what they are and fire them by getting rid of that credit card debt once and for all.

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Credit Card Debt Info - The Route Out of Debt

There is no question that having some credit cards is a great way to pay for things that is more convenient and even safer than always paying cash. And it really isn’t practical to pay with everything by check because so many purchases would be slowed down by that method or retailers just don’t accept them like they used to.

In many cases, having a credit card is down right necessary. Any more buying gas involves using a credit card at the pump which saves time and effort. And because a credit card always delivers a report to you at the end of the month in statement, it’s an easy way to keep track of how you are spending your money.

The problem comes when you spend more on the credit card than you can repay. Unfortunately, credit card companies are not there to keep you from living beyond your means. If you make your payments on time and are a responsible credit card owner, they will keep increasing your credit limit so you can charge all you want. But when the debt level on those credit cards becomes a debt you carry from month to month, that is when credit card debt can get out of control.

You don’t need to be told that good financial management is the key to keeping your credit card debt problem at bay. But sometimes the bills stack up and circumstances beyond your control call on you to use that extra credit and you end up with a credit card bill that is becoming uncontrollable. That is when you have to turn to alternate methods to build a route out of debt and back to a firm financial footing.

One of the real culprits of getting out of debt to the credit cards you own are the high interest rates that are often charged to service that debt. If you have to pay 15%, 20% or more for a large credit card debt, the amount you pay in that actually brings down the principle is so small that the time when you can expect to be debt free is far into the future.

So the first step is to move that debt to a credit vehicle that is more manageable. There are a number of ways to do this using resources you may already have at your disposal. Many turn to a second mortgage on their home. By working with your mortgage company, they can advance you another loan based on the amount of equity you have in your house and that interest rate can be capped at a reasonable level so you can pay down that debt and not keep fighting that ever rising interest rate problem.

You can also look at your life insurance to see if you can draw a loan against that accumulated value. If you have been paying on it for many years, a life insurance policy that carries value such as a whole life policy may have enough equity that you can use that money to leverage your debt and retire the credit card debt entirely. You may still have to face a regular payment to pay off the life insurance loan but it is manageable and something you can budget against which puts the control back in your hands.

A third option is to use a professional debt consolidation company. This is yet another credit resource who will be making money from the loan via interest. But this kind of agency is not a credit card company so they will just loan you enough to retire your debt and then work with you to work down that debt while living within your means otherwise.

Once you select the right route out of debt you are going to use, it’s important you do not let that credit card debt climb up again. Learning good budget skills and working to keep your lifestyle within your means is crucial to not only getting out of debt but staying that way. But with good money management, a responsible debt consolation plan working for you and a mature approach to your finances, you can see daylight on getting out of debt once and for all.

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The Jail Cell of Credit Card Debt

There is a thing as what the experts call “the problem solving process”. This is a systematic method for solving problems that you always use to go from the starting point where the problem is to the ending point where the problem is resolved. There are six basic steps to the problem solving process and none of them can be skipped. They are…

1. Recognize the problem
2. Define the problem
3. Propose solutions
4. Identify risks and costs
5. Select the best solution
6. Implement the solution.

This process always works because there is no room for emotions, excuses or procrastination. You step from the first phase to the last in prompt fashion and the problem becomes solved.

Many times when it comes to credit card debt, people don’t like to recognize the problem. In 12 step programs like Alcoholics Anonymous, the first step is always to just recognize that you have a problem. And this is very often the biggest obstacle for someone who is seeing their credit card debt begin to take over their lives.

The credit card companies are no help. They like nothing more than to do all they can to make you incur more and more debt. It isn’t necessarily that they are evil but this is how they make a living. The money from the interest you pay on your credit card debt goes to pay for the houses, meals, college educations and fancy cars of many credit card company executives. That alone should make you want to pull the plug on this grand scam called credit card debt.

Let’s call a spade a spade. Credit card debt is a loan that you don’t have to fill out any more paperwork than just to get the card. Once you have it, the credit card companies are thrilled to jack up your credit limit to where you can buy more and more and more all the while your interest rate creeps up too. Before long the debt level is huge and you are sending them hundreds of dollars and a big part of that payment is the interest.

Interest is money that doesn’t buy anything. It is money the credit card company gets for doing nothing more than housing your debt. If we could get perspective on credit card debt, we would see that there is no rational explanation why one credit card can charge 5% interest and another one charge 25% interest. The credit card companies owe us no explanation of what that money goes for.

It’s not like when you buy a loaf of bread that may cost one dollar for one kind of bread but three dollars for another kind of bread. In those cases you can easily see that the higher priced bread is of higher quality, tastes better or is more nutritious than the cheap bread. You literally get more for your money. When a credit card company charges you a higher rate of interest, there is no increased value for what they give you. They don’t give you anything. If a credit card company raises your interest rate from 10% to 20%, you don’t get twice as much good service or any kind of product for that extra money that are taking out of your product.

Then how can they get away with it? They do it because they can get away with it and there’s no indication that any governmental body is going to make them stop. They get away with it because we don’t get outraged and drop them when they cheat us like that. And they get away with it because credit card debt is a jail cell and we can’t get out.

The purpose of this discussion is to get us to step one of the problem solving process. It is to make us aware that we are being had and to make you good and outraged. If you are outraged that you have a problem, then you can move on to step two and there and four and look for a solution and then do whatever it takes to make that solution happen. And when you do that, you are well on your way to springing open the door of the jail cell of credit card debt and walking away a free man or woman, hopefully never to go into that jail again.

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The Basics of Credit Card Debt Consolidation

Credit card debt consolidation is a term that gets thrown around on television quite a lot. You see so much advertising for this service that you have to know that someone is making a lot of money off of people like you and me that have serious credit card debt problems. But once you understand what credit card consolidation is and how it is accomplished, it is very likely you can accomplish the same goals and get the same benefits without paying anyone an excessive fee.

The reasons these services have sprung into existence is that with the economy being so difficult and with gas prices and prices for so many of life’s necessities going higher and higher, many people are spreading their debt over many credit cards. The result is an average family might have three or four or even more credit cards with high debt run up on them and the interest fees being charged can get quite high.

Despite the customer friendly language credit cards use when they try to lure you into running up your debt even higher, these credit cards are making credit card companies a lot of money and they want you to pay them down slowly so they can continue to charge big fees month to month. So the first of credit card consolidation is to get all of that debt into one account, get rid of the credit card debt and perhaps close those accounts entirely and get a reasonable interest rate you can deal with over time.

So the first core principle or “basic” of credit card consolidation is getting rid of multiple creditors and getting all of your debt into one account or at least fewer credit accounts. At the same time its preferable to work with a creditor who is willing to work with you with the goal of reducing debt so the interest rate can be set at a level significantly lower than what you were paying to the credit cards so more of what you pay goes to pay down the debt and less to interest and fees.

One tactic that is often used to move your debt to lower rate interest loans is to use zero percent short term offers from credit card companies. Now watch those because sometimes there are transfer fees that are as high as an interest payment. But if you can move several thousand dollars to a zero percent loan for six months, you can then work on paying off higher interest credit cards while that part of your debt is not running up the balances. But watch out because at the end of the zero percent period, sometimes the interest rate on that loan will shoot up higher than any of your other loans.

The important things that you take charge of your credit and not let it be in charge of you. Start a log or a spreadsheet where you document each credit card you have, what the interest rate is, the expiration date on short term low rates, what you credit limits are and what your payments are. This kind of consolidation of your records will tell you which credit cards need the most attention and where you should look to consolidate two credit cards into one or all of them into the one credit source that you feel you can work with long term. Then you have a partner to help you make a plan to get out of credit card debt and stay that way.

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Credit Card Debt Info - Teaching the Kids About Credit

One of the ways some of us get into credit card debt trouble comes out of nothing more than lack of awareness of how credit cards can sneak up on us. The first time you maxed out a card and faced the overwhelming task of paying down a credit card and getting yourself back on firm financial footing, it can be a sobering experience. And if you have gone through this experience, the school of hard knocks taught you well that it’s easier to prevent credit card debt than to recover from it.

Maybe the best thing about getting hard won knowledge is that you can pass it along to your kids. So how can you go about helping your children establish a good relationship with credit and learn how to use it responsibly so they don’t have to learn about credit card debt and credit card abuse the hard way? Just like everything else in life, they depend on you to teach them how to function as adults. So we should take this responsibility seriously.

First of all, teaching kids to use credit effectively is not about keeping them from having credit. If anything, the opposite is true. A credit card is as essential a tool for modern living as a car and a cell phone. We would even make the bold statement that to send a child out to fend for himself or for herself without a working credit card in her pocket, a respectable credit rating already building up and the training in how to use credit is nothing less than irresponsible parenting by adults. It is equivalent of sending your child into a battle with no weapons. Credit is essential and smart use of credit is even more essential.

You can help your kids begin to understand the basics of getting good credit by getting them a credit card in high school or college. You can pay the bills but this is a good way for them to pay for what they need and you can keep track of their spending from that monthly bill you get. But make sure that credit card is in your child’s name so as you pay it off each month, they build up the good credit rating from what you are doing. Consider it another one of the many legacies you are passing along to your kids.

But don’t just let your kids go hog wild with their credit card. In fact, you can work with a credit card company to establish a credit limit and not allow it to go up. In that way, you can set a limit on the amount of credit they have each month. And if they go over it and suddenly cannot buy lunch because they abused their credit, that afternoon of going hungry will teach them more than two days of lecture about fiscal responsibility can do.

Make sure your kids are aware that you paying their bills is a privilege and that they are very lucky to be able to start their adult lives with a sponsor like this. Then give them three jobs they must complete to show they are worthy of this privilege. (!) They must save all receipts of every purchase they make. If they buy something and don’t get a receipt, they must make one. (2) They must maintain a ledger of spending. This is similar to a check book ledger but it must be complete with every purchase they made and a running total and it must be maintained daily. If an expenditure shows up that is not on that ledger, they will be required to pay that back to you or risk losing their credit card. (3) They must sit you once a week to review the credit card bill and explain item by item what each entry on there is. This will do a lot to keep them from using the credit card frivolously.

These simple habits if done over a period of months will teach your children how to track, monitor and be aware of their spending and their use of credit. In that way, when you cut the apron strings entirely, they will not only have the credit they need to have a good adult life, they will be wise in how they use it. And there is no better gift you can give to a child than that.

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Taking on Credit Card Debt

Credit card debt is the kind of thing that can go from a convenience to a cruel taskmaster in a short time. Very often the reason you may have a credit card debt problem may not be anything bad about you. It only takes a few bad breaks to drive your debt level dangerously high. Some unemployment, a few high medical or home repair bills or other unexpected expenses and before you know it, you have a big problem.

There are a lot of advertisements for credit card debt consolidation. The first word of caution we all should have about using these services is be careful. A good rule of thumb is that if they have money to advertise on television, they are going to make money off of you in some way shape or form. If you have bad credit and few resources to tap to get that problem under control, the interest rate on the debt consolation could be just as much of a prison as the debt itself. But there are good services out there too so just shop wisely.

So it’s a good idea to have a strategy for taking no credit card debt and starting to turn the corner on dealing with the problem. And part of that strategy is using the resources you have. The biggest asset you may own is your home. Now, most of us are hesitant to use our homes as collateral to get our credit levels down. But if you have a fair amount of equity in your house, it can be a tool to get a second mortgage that has a favorable interest rate that is capped so it doesn’t float up and down at the whim of the lender.

A good place to start finding a good home equity loan is the lender who is handling the loan now. If the company that handles your finances now is doing a good job and doing business with you openly and fairly, you can get to them to negotiate a loan that both gives them some interest to make the loan worthwhile to them but gets your debt level under control. So if you can put all of your debt under a 30 year home equity loan at an interest rate sometimes 5-10% lower than credit cards, that frees up your budget to handle your expenses and start to see daylight on getting out of debt.

Another option for getting your credit cards under control is a credit management service. These agencies will take all of your outstanding credit card bills and work with the lenders to come up with a payment plan so they know they will get paid but the amount you have to put out is manageable by you. Again, these services will have fees but if they can at least put a fence around your rapidly expanding credit card debt situation, it might be a fee worth paying.

The important thing about you taking the first step of seeking help with your credit card debt is that you are taking charge of the situation. Too often, we feel hopeless and develop a victim mentality when we see those debts just keep going up knowing full well that at some point the monthly payments will overwhelm us. Reaching out to skilled and qualified services that can give you back some feeling of control over your debt can be liberating to you and give you hope that there may come a time when the trap of credit card debt still holds you captive. And that will be a wonderful feeling of freedom when you finally get free and are able to live within your means again.

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Taking Credit Card Debt Down the Way You Ran it Up.

Sometimes we don’t take the time to get a real world understanding of not only what credit card debt is but how we got into this mess and what its going to take to get out of it. The first steps of solving the problem are the most important because by identifying what the problem is, you also identify what it isn’t. So if we can think logically about the problem of being buried in credit card debt, the path to digging out will become more clear.

It doesn’t take a committee to figure out the heart of how all this debt got started because it boils down to a very basic statement of economic fact. And that is that you got in debt because you spent more than you made. In other words, you are living at a standard of living higher than your income can support. And the overflow goes to debt.

It is pretty brutal when it gets to that level of honesty but when you look at it that way, then the solution begins to become clear to you. Now it’s important when doing this kind of analysis that no guilt is allowed. There are a lot of perfectly acceptable reasons you may have fallen into the debt. It’s not like you are necessarily running around spending lavishly on expensive cars and trips overseas.

Lots of things happen to a family budget that you have no control over and using your credit to handle it is the responsible thing to do. You may have lost your job or source of income. There may have been a family medical crisis that you just had to handle with credit funding. There are home repair emergencies, weather emergencies or trips you have to take to keep everything together. So for whatever reason as that credit hill turns into a credit mountain, then it becomes the family emergency to tackle.

The solution is evident from our diagnosis. It quite simply is not only to get to where you live within your means but to generate sufficient income to start paying that credit card debt mountain down the same way you drove it up, a little at a time. There are a lot of very adult things you can do and should do to make this dream a reality. You have to stop the debt from going up so to cancel as many credit cards as possible reduces the chance they will continue to accumulate charges.

Getting control over spending is going to take some family discipline. But if the whole family knows it’s also a family quest to get this debt off your backs, everybody can pitch in. You can eat at home and never out. You can scale back extras like cable TV or entertainment buying. You can let the holidays be about love and not gifts for a few years.

This also might be the time to think about adding some additional income to the family budget to get that overflow that you can use to attack the credit mountain more aggressively. One adult might take a second job and everyone agrees that every cent of that job will go against that debt. Keep good records and when the family sees that the debt is coming down, celebrate, albeit do so cheaply.

This is a hard step especially for the parent who has to work two jobs or if you have to send mom back to work for a little while to get this situation under control. Sometimes it can be made less harsh if the second job is something the adult going out likes to do like work a book store or a garden center which may be a hobby. Or if the job is on the internet, that parent could work in the comfort of home and make that extra money.

But as the size of that debt starts to go down and month after month it gets smaller and smaller and the interest payments get smaller and some of the credit cards get paid off and all of a sudden there is more money in the family budget, that extra hard work and careful cost cutting will have all paid off and everyone will breath a sigh of relief because you took the credit card down the same way you ran it up, one month at a time.

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Taking Action on Credit Card Debt Before it’s Too Late

There may be some comfort for you if you are facing the rising threat of credit card debt in your family finances. That comfort might come from the fact that this is a problem for thousands of families in the country. But this is faint hope because it is still a problem that needs to be solved and solved by you.

But before you start to examine what you can do about your credit card debt problem, you have to ask yourself why so many people in our country have let themselves get into this fix. Well, there are a lot of reasons why a family’s economy goes negative so the bills overwhelm the income and the credit card debt starts to go up. It could come from a lost job, a health emergency, the need to get the kids through college or other reasons. It isn’t always that you got into credit card debt because you were lazy or because you are the type of people who just like to live high on the hog.

It might also be comfort to know that there are people further along in the credit card crisis that they are having to think about selling their homes or declaring bankruptcy. But again, that may not be as much comfort as a cold warning of what might be lying ahead for you if you cannot find a way to put a stop to this rising flood of credit debt. But there is one difference between those people who have reached that level of desperation and where you are today. And this is the difference that you can take comfort in because this one fact will be the one that will keep you and your family from getting to that level of desperation.

That comfort is that if you are this worried about credit card debt as it is just not starting to become a problem, they are not too late in getting with it to stop the problem before its too late. Its really an amazing thing but one reason so many people are in deep trouble over their credit card debt is partly because they looked away from the problem for so long and did not decide to take decisive and serious action to stop the problem from overtaking them when it was still possible to stop it.

Psychologists have a word for what happens when you are in big trouble and you refuse to believe it. That word is denial. And even though these thousands of people who let their credit card debt problem get out of control are not in need of psychiatrists, for some reason there is a real tendency to ignore this problem month after month and year after year until it overwhelms you and its too late for some of the solutions that could stopped the problem early.

So if you suspect you may have a credit card debt problem starting to grow under your nose, take action now. Don’t wait thinking it will somehow dry up and blow away on its own because it won’t. Don’t spend time thinking that a few thousand dollars of credit card debt will cap and you will slowly work it down. Go back to the basics and examine your budget and evaluate if you are living above your means. And if you are, well to put it simply, fix it! And when your lifestyle is in balance with your income, your budget will stabilize and you will be able to use credit cards wisely and not see massive debt result. It’s never too soon to take action and if by taking action, you stop the problem in its tracks, you will be one of the families who handled credit card debt wisely, by avoiding it entirely.

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Credit Card Debt Info - Stupid Credit Card Tricks

There has been an ongoing skit on the David Letterman Show called “Stupid Pet Tricks”. It was an aptly named bit because the things people teach their pets to do are truly silly. Letterman did so well with that skit, he followed it up with another series called “Stupid People Tricks.” Well, when it comes to the dozens of credit card offers that you get in your mailbox every week, you might think that some of these credit card companies would like to be on the next series called “Stupid Credit Card Tricks”.

These promotions that you get for credit cards seem to be playing on just about every tactic they can find to get you to take out yet one more credit card. You would think that the fact that credit card debt is a virtual epidemic in this country would let the credit card companies know that its time to get on the side of the consumer to learn responsible use of credit. Instead they do all they can to get you to have more, not less, credit cards and use them as much as you can.

We need to be smart consumers because as much as credit card companies try to make credit cards seem fun and happy and like big toys in your wallet, they are not toys. We should never forget that a credit card is nothing more than a way for the credit company to extend to you dozens of small unsecured loans that they will create credit payments on the fly to enforce through your credit card bill that will include high interest rates and additional fees as they see fit.

This is not to say that having a credit card is not a good thing. Good credit is one of the real assets any responsible adult will use to help make life easier and to make the necessary purchases in life. And more and more credit is becoming the currency of choice replacing cash and checks as the preferred method for paying for gas, at restaurants and any more even at retail outlets and grocery stores.

While the spread of credit as actual currency is a fact of life for us, it is also a major move by the credit card companies to take over the economy and to make you even more dependent on them. So the best defense is to take charge of your credit card life and make sure that you are the boss of your credit cards, not the other way around.

The stupid credit card tricks can be really fun to look at and sometimes enticing. They will appeal to your sense of school pride by giving you a credit card in your college school colors. You can get credit cards that give donations to save the environment, help the poor or create a college fund for your kids. There are all kinds of premiums, cash back concepts, frequent flier miles and gifts and toys that credit card companies will fork over just to lure you into getting more credit cards and using them a lot.

To put it bluntly, you and I need to learn not to be suckers for these deals. We can laugh at the stupid tricks they try to use. But if a credit card company is going to try to trick you into getting a card or using one, they are not doing business honestly with you. You want a credit card company that deals straight with you. They should offer fair rates that don’t change at the drop of a hat. They should sustain a reasonable credit limit and not always be jacking it up to try to get you to buy more stuff on the card. And they should have good customer service and be ready to renegotiate your relationship with them so you are getting good value from their service, not just paying for a bunch of toys and frills that do you no good whatsoever.

By keeping in mind what a credit card company actually does and that credit cards are mature adult tools, not games or toys, we can keep in perspective how to use our credit cards and how to keep from abusing credit which will lead to the nightmare of credit card debt.

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Credit Card Debt Info - Playing the “B” Card

When you are trying to get out of credit card debt, sometimes desperate times call for desperate measures. There is a progression of alternatives most people go through in trying to find ways to drive that credit card debt problem down and get it under control. At first just trying to pay them off month to month seems reasonable. But as the debts mount up, more creative measures are often tried.

It is when you take that next step of leveraging debt against debt that you know things are getting out of control. This is when you start paying off one credit card with another. Now there are reasons to do this such as moving debt from a high interest account to another that is doing business more favorably for you. But you have to watch those “deals” because often there are transfer fees or other hidden charges to sneak up on you. And if the lower rate is a “limited time offer”, the advantage of the lower interest rate for a few months may not be worth the extra fees. And if that new credit card carrier then jacks your fees up higher than they were on the old creditor, you are worse off than before.

When the credit card debt then begins to become a real problem the next level starts to take advantage of your assets. You can take out a second mortgage and get a pretty good rate that is controlled because that is what they called a “secured loan” which means you are using the equity of your house as collateral to fight the credit card debt. But these kinds of loans are risky because if you did default on them, you could lose your home.

When the credit card debt begins to get serious again, even despite all these serious measures you have taken, you can get pretty panicky. And you can get resentful because there is no question that the credit card companies seem to do all they can to keep you trapped in this debt as long as they can. And why shouldn’t they after all? They make a lot of money off of your credit card debt. And they don’t have to do anything to keep it rolling in.

This is why when it comes to making a decision between just starting to default on the credit card debt, it might be time to pull out the stops and go after the credit card companies to put a stop to the escalating bill. But you can put a stop to it by calling them directly and not being afraid to play the ultimate card, the “B” card – bankruptcy.

Now, declaring bankruptcy has become more difficult since the current administration in charge of our government made it harder for regular folks like you and I to use this tool to stop the constant escalation of our credit debt. But it still is possible to use bankruptcy and if you do, the credit card companies could lose all of that money. And they know it too. Now you don’t want to threaten bankruptcy unless it really is a possibility for you. But if it is and you call the credit card companies and let them know this is your next step, you suddenly have all kinds of leverage with them.

Once the credit card companies know you are serous about going that route, if you tell them you would like to work out a deal to pay off some of the debt you owe, they may be very open to reducing your debt by half or more. And if you can get that kind of deal from every credit card company you owe and you can get them to lower your interest rate to make your ability to pay more reasonable, you might be able to avoid the bankruptcy entirely. And if that is the outcome, you did a good job of showing the “B” card but never having to play it.

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Credit Card Debt Info - Moving that Debt to a Better Place

Balance transfers are one of the big methods that are common used to try to get some control over an out of control credit card debt. While many balance transfer offers you get from credit card companies in the mail are not a great deal, some of them can really help if you are just trying to get the debt you are trying to keep up with under control. And getting that debt to a credit home where the interest rate is not only reasonable but not constantly changing is a big goal of making balance transfers.

There are some general guidelines you can use to pick which balance transfers to even consider in the first lace for moving your debt. It is worth your while to be a wise consumer and chose a credit agency carefully because it is a competitive market and, as with anything else, there are good guys and bad guys out there. Some guidelines to take into consideration are…

§ If you can do business with a company that you already have accounts with, that’s better. Not only do you have a history of how they treat their customers, it will not affect your credit score to just use an account you already have established.
§ When moving your debt to an offer for a lower interest rate, make it is not an offer with an expiration date. Some very low interest rate offers are only for a few months which really don’t do you that much good. Better take 3-4% for the life of the loan than zero percent for three months.
§ Keep your eyes open for transfer fees. These hidden charges can take all of the value out of a seemingly good offer. If they say there are no transfer charges, make sure that’s the truth. Read all of the fine print of any offer whether it’s from a new credit source or someone you have worked with for a while.
§ Only respond to offers you get in writing. Stay away from phone solicitors or email offers. There are more scams than respectable offers done this way.

Also keep an eye on the credit ceilings of the offers you are getting. If the offer is to use an existing credit account, you should know how much credit they can offer you and how close you are to using that credit up. But it is of no value to you to go through the trouble of arranging a balance transfer to try to capture a lower interest rate only to find that they could only accommodate a small amount of the needed funds.

The other kind of balance transfer other than just moving debt from one credit card company to another is to move funds to a secured loan. A second mortgage is a secured loan because you are putting up your home equity as collateral. These types of loans are easier to get because you have something to put forward for it but you are taking a risk because of the security you are putting up.

Use the same sense of good common sense and examining the creditors when you choose a company to take out a secured loan. Two things you can over look that can come back to haunt you are early cancellation fees and variable interest rates. If you are putting up your home, you deserve to lock in the interest rate. And when you look at the final paperwork, look for those early pay off fees. If everything doesn’t look just right, don’t be afraid to get up and walk out. There are plenty of credit companies out there to deal with and you can find one who will do business fairly and honestly with you. You just have to have the patience to keep looking.

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Manage but Don’t Be Managed by Credit

The epidemic of credit card debt in the last five years would make you believe that credit cards are a bad thing. By themselves, credit cards are not bad. They not only can be a tremendous convenience, in many situations a credit card is absolutely essential. And building a good credit history and reputation is just one of the ways you go about establishing yourself as a viable financial entity in our society.

But like everything else in life, you can handle credit well or handle it poorly. It is when you start being pushed around and living in slavery to your credit card debt that you start to feel like a victim. So to regain control over your financial life, you have to manage your credit cards and the debt you owe there and don’t let it be the boss of you.

The number one rule of managing your credit card debt is to eliminate fees and any charges other than the interest rate itself. So you must make it a hard and fast rule never to be late on a payment. Being late is a disaster not just because the credit card company will tack on another $30-$50 fee to your debt for a late payment. Being late on a payment is also an alarm to the credit card companies that can set them off raising your rates, demanding excessively high minimum payment levels and passing along negative reports about your credit score.

To make sure you are never late, keep a good tracking system going every day so you know what credit card payments you have coming in and when they will come due. Then you can look at your income and begin to balance what you are making with what you need to come up with to at least make a minimum payment on each card. Now, many credit card management articles and advisors say never pay the minimum payment. This is bad advice. There is one situation where you not only should but must make at least the minimum payment and that is to keep from paying late. Far better to pay the minimum amount on time than to go late just to pay an extra few dollars on your balance.

Also keep an eye on the additional fees your credit card company or companies are charging you. If they are adding fees for credit protection or membership fees, its time to call them and either have those fees dropped or terminates the credit card. Don’t worry because you can terminate a credit card even if you still are carrying a debt balance on that card. They will hold the account open until you pay it back but close it to any further charges.

Taking your creditors by the scruff of the neck and making them play ball is the way you become the boss of your credit rather than it being the boss of you. Next to additional fees and charges, getting control over your interest rate is the next area of focus so you can be paying more on your debt level and less in interest. You can also call the credit card company and negotiate a better interest rate. Don’t let them push you around. The credit card business is tough and competitive and they do not want to lose you as a customer. So don’t be afraid to let them know you will close that account if you cannot get a rate you can live with.

By being the boss of your credit, you not only can make a plan to get out of debt, you will get the good feeling that you are handling a tough situation rather than being handled by it. And that sense of control is worth a lot, especially when you are starting to put some controls on something as easy to lose control of like your credit card debt levels.

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Make the Credit Card Companies March to Your Tune

Does it ever seem like credit card companies seem to treat their customers like indentured slaves? The policies that these credit companies use to handle your accounts are at best unscrupulous and at worst, down right outrageous and robbery. If any other industry tried to cheat their customers out of money like the credit card companies successfully do every day of the year, they would be investigated and jailed with a vengeance. But our government doesn’t do that so the credit card companies literally have a license to steal.

The way these companies handle your accounts has a lot to do with why your credit card debt is so hard to get rid of. When you owe a few thousand dollars to a credit card company and they are constantly slapping you with fees, jack up your interest rates and adding charges to your account for “membership dues” and bogus things like this, it becomes clear that in addition to the debt, the debt carriers are the enemy, not your friend in trying to get your debt down.

You can put them on notice and make them march to your tune but you are going to have to “be the boss” to get that to happen. But if you get dozens of credit card offers and perhaps have a half dozen credit card accounts already open, you may have the flexibility to put them on notice that they credit card companies have a job of serving you, not you serving them.

To make these arrogant companies face the music, they have to know that they can be fired. To put them on notice, first make sure you know what they are up to. Get a year’s worth of statements and track the extra fees, the membership dues and each time they jacked up their interest rates on you.

Then armed with that information, call them and demand to talk to someone who can make changes to your account. If the clerk doesn’t want to play ball, start the process of closing the account. That will get their notice. You might have to actually close the account but don’t miss the chance to make comments when they come to the part of the process where they ask why you are closing the account.

This is where you get your licks in. You can leave as the reason something like this. “I am closing the account because you are imposing unreasonable fees and membership dues and I want the interest rate dropped to a certain rate and capped.” That will get some attention. You will either get to a manager right away or one will call you. Be prepared for a bunch of lame excuses and don’t argue. They can say they raised your interest rate because you were late on a payment so this is a penalty. Ok fine. Then a good answer is, “I have a policy of not paying you for work you do not do. So my policy says I drop the account.” As long as you stay on your strength, there is no answer they can give.

The secret weapon you know and that they don’t want you to know is that you are a premium customer. The credit card companies know there are a limited amount of people who can carry a debt and make the payments. And each time they lose a customer, that pool of victims, or customers, goes down. And don’t be fooled by any talk that they have no leverage to change the rules of the game. They can and they will. You can demand they rebate to you all charges imposed since last year. They can scream that you are being unreasonable all they want. You are within your rights to respond, “It’s unreasonable you impose fines and fees on my account without notice and for no additional value or work that you are doing. Its usury and I am within my rights to close this account and file a complaint with the Better Business Bureau and with the US Attorney General.”

This is not just scare tactics. These are words credit card companies live in fear of hearing. So use the tools you have and put the credit card companies on notice that they are going to march to your tune or, to borrow a catch phrase from Donald Trump, “You’re fired”.

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Credit Card Debt Info - Knowing When to Panic

There is another level to what should be the purely financial problem of how to handle your credit card debt. That side has to do with the human toll that carrying that debt from month to month and year to year can have on a person and on a family. A family’s finances are at the core of what make the family work. The old joke goes “Money can’t buy happiness but it can rent it.” And while that’s cute, money and debt can make the difference between a family that is able to live peacefully within its means and one that is on the verge of disaster.

So when you sit down and decide that its time you took seriously the challenge of conquering your credit card debt, you have some battles to fight that are not just about interest rates and minimum payments. The truth is that none of us can face down something as overwhelming as a massive credit card debt if we just don’t think we can do it.

A person’s self confidence is rooted in the idea that he or she can and has had success at facing a challenge before. So we can take on a new challenge because you did it before and you can do it again. But when it comes to facing tens of thousands of dollars of credit card debt, it’s possible you have never faced such an elusive enemy. It is an enemy that seems to want to swallow you up. And that can cause despair and make you just want to throw up your hands and give up.

So the question comes, when is the best time to panic? Well, you know the answer to that question is – NEVER! This is not just pie in the sky optimism talking here. There are some very pragmatic reasons that you should stubbornly refuse to panic no matter how bad the credit card debt threatens to get.

For one thing, if you are the responsible adult in the house whose job it is to handle the finances of the family, those people you love depend on you to guide your family out of messes. This is the job of a head of household so the last thing they want to see is for you to come unglued because of a few bills. So for the sake of the people you love, keep your head and keep looking for options and answers.

The other reason to not panic is that there is always something you can do. You can get another job or find another income source to keep paying those debts down. And as long as you can make the payments on any given month, there is hope the next month you will start to pull ahead. As long as you have your health and there are jobs to be had, you can work and get out of this mess. It might take some hard work but you can do it.

But even if you cannot work and the bills keep getting higher and higher, that is not a good reason to panic. You can renegotiate with lenders to get some control over the debt. You can use a credit consolation service to get your payments down and get on a schedule to pay them off over time. And at the very end of the spectrum of what you can do, there is bankruptcy. And as bad as that word sounds, bankruptcy is not the end of your world. Lots of people use it and come out the other side of it fine and ready to take on the world again.

So take some heart in the fact that you really are not doomed and there is always a way out of the mess you are in. It might take some looking, some creative thinking and some leadership to get there. But you can only find those resources inside yourself if you stubbornly refuse to panic.

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Credit Card Debt Info - Is Zero Percent For Real?

The desire to climb out of credit card debt is universal for anyone who is fighting this big problem. And it isn’t an isolated problem. More and more people are having big problems with credit debt especially in these times when you just about have to use credit every day.

There is something a little strange then about credit card companies coming in with offers to help you climb out of credit card debt when its they that are the problem in the first place. It’s almost like a drug pusher pushing a new drug that can get you off drugs but the drug he is pushing is just as addictive as the last one. But when you get offers for new credit cards each month, they often are pushing plans to help you get out of debt by going into debt to them.

Probably the offer that comes in that is most difficult to over look are the offers to let you do a balance transfer of some of your debt and pay no interest on it. These are often called zero percent offers and they have skilled marketing people write the copy for these offers so you are prone to believe that you really are going to be able to have a loan paying no interest so you can just pay off the principle and that’s that.

So are these zero percent credit card balance transfer offers for real? Well they are in the sense that they might transfer some of the funds and yes, the interest rate you will see on the first statement will be zero percent. But, like all things, there are catches and things to look out for. You have to remember that the credit card companies are entirely in the business of collecting interest. They don’t do anything else. They offer no value to society, build no roads or hospitals, sell no food or medicine, make no TV shows to make you laugh. They sit there, house your debt, collect interest and try to talk you into running up more debt.

So when you get a zero percent offer, they plan on recovering the lost money from the time they support your debt and you pay no interest. One way they do that is with a transfer fee. They will almost always charge you a 3-5% balance transfer fee with a minimum and sometimes a maximum value. Read the fine print carefully to make sure you understand how much this is going to be and that you agree to it. But be aware that the transfer fee is nothing more than disguised interest. So calculate that against the interest you would have paid leaving the debt where it is sitting now before you cash in on a zero percent balance transfer.

Also you will rarely see a zero percent balance transfer that is not for a very limited time frame, usually no more than three to six months. So with the transfer fee factored in, you have to wonder if the effort of moving the money was worth it. And at the end of the introductory period, they are going to raise your interest rate to something that they, the credit card company want it to be. Be absolutely sure you know what that interest rate is going to be and that they live up to that stated level of interest. If you enjoy that zero percent transfer for three months and then face years at 21% interest, you did not win in that transaction, the credit card company won.

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Inside Out Credit Card Management

When the economy or personal issues and problems result in a high credit card debt, we often find our debt spread over three or four or more cards. So you may have a Visa, several MasterCards, a Discover card and a Capital One card and maybe many more each carrying several thousands of dollars of debt. The result is an ugly parade of bills from each company each needing a minimum payment that pays the interest and takes just a small amount off of your debt.

If it seems that the debt mountain never seems to go down, that’s not an illusion. The situation is not designed to help you get that debt down. It’s a cruel mixed message the credit industry sends us because if you have high credit card debt, your credit rating goes down. But even if you have too much debt, the credit card companies just keep raising your credit ceiling and sending more and more credit card offers to lure you into more debt.

The instinct is to keep taking out more accounts and transferring money to those deceptive zero percent offers that expire in a matter of months and leave you with yet another bill to pay that only makes managing that debt even more impossible. If you do get a little money ahead, the instinct is also to pay more down on the debts that have the highest interest rates to try to slow the erosion of your finances due to high rates.

But there is another approach to handling this debt that goes completely opposite your instincts and gives more control to you to begin seeing headway against those debts. But to use this approach, you will have to think with your head, not your emotions and not panic but think about how to get as much principle paid down as possible. This inside out approach to paying down your credit cards is simple and gives you a roadmap to freedom from debt.

First of all, stop taking out more accounts. That only gives another credit card company access to your money. They can charge you membership fees and try to lure you with credit insurance. If you have three or more credit resources already, that’s plenty.

Second, use short term offers wisely. If one of your existing accounts offers you a zero percent deal for a few months, take it but transfer a small amount to that account. Then you can focus on paying off that transferred amount and see 100% of your payment go against principle which is the fastest way out of debt.

Third, pick a card and pay it off. It might be the card with the lowest balance which is one you might give the least to so you can respond to the higher level debts. But if you pay that card off, that is one less bill coming in each month and it gives you a great feeling to know you are slowly killing off the monster of credit card debt one card at time.

That brings us to the cornerstone of the inside out method. Instead of paying on the card with the highest interest rate, pay them the minimum payment and put your excess funds against the cards with the lowest rate. In this way you are getting the most bang for your buck with the small amount of extra funds you may have to pay on the debt. That debt will go down more quickly and then you can attack the bigger accounts and begin to whittle away at them too. And by using a smart approach to the credit card debt you have, you take control of the problem and put it on a program to go away. And that will be the greatest feeling of them all.

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Credit Card Debt Info - Hitting the 401K

There is sometimes a sense of panic that sets in when you see your credit card bills begin to spiral out of control. When you are fairly new to that sense of being trapped by credit, you may turn to a second mortgage. But then if the credit card bills continue to grow and grow, as they are designed to do, you suddenly realize you have put your home on the line and it might now be in danger if you default on those bills.

This is when that mountain of debt can begin to knock on the door of your last remaining resources to try to fight back and you have to make some important decisions. And one is whether it would be a good idea to cash in your retirement money or borrow on your 401K to get enough money to try to bring down your debt levels. So deciding whether this is a good idea is a huge gamble because if you win, you could eliminate debt entirely. But if you lose, there goes your protection for your senior years and maybe the little nest egg you wanted to pass along to the kids as an inheritance.

Hitting the 401K to pay off your credit card debt is a bad idea for a lot of reasons. The most obvious reason is that your retirement money is tax deferred so when you put it into that account, you didn’t pay any taxes on it. You don’t have to pay taxes on it until you take it out. On top of that, the money is intended to stay in reserve until you hit retirement age so in a lot of cases, if you take it out early, there is a big penalty you have to pay.

So right away if you cash out your retirement funds to pay down or pay off your credit card debt, you are losing a lot of money to those penalties and taxes. You might want to calculate how much that penalty is going to be compared to the interest you might save because it’s a big pay off just to get to those funds.

The prevailing logic of hitting the 401k is that in theory you will save more money from the interest than you would make from the investment. But there is some solid logic for leaving those retirement funds right where hey are. For one thing, debt will come and go but retirement funds have a tendency to going away and never coming back. Once you cash out those retirement funds and give the money over to credit card debt, your retirement is gone. But if you find ways to take care of that credit card debt and leave your retirement alone, it is there for you and you have that sense of ownership that the debt has not taken everything from you.

One possible alterative is to borrow against your 401K and use it as collateral. Now in this case you are still just swapping out debt for debt. But secured debt is often easier to get a favorable interest rate and you can cap it so the rate doesn’t float around like credit card debt. So there is some rational for going that route. But if that is an option, you are still putting a very important part of your financial future on the line so tread carefully.


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Handing the Debt Off

The credit card business is one of the most competitive industries there is. You can tell that because you no doubt get dozens of invitations for new credit cards every week. That is because the only way a credit card company can continue to grow new business is to steal the business away from another credit card company. It isn’t really a business where there are a lot of new customers coming into the market. The types of accounts the credit card companies want are people who are carrying a lot of debt, who continue to pay on the debt but never pay it off and who have no history of defaulting on their loans. If that describes you, then you are on the A list for a potential customer for a credit card company.

If you have a lot of credit card debt, it really isn’t that flattering that other credit card companies want your business. Even more infuriating is when a credit card company who already has you in debt sends you offers for still more credit cards. But there may be a glimmer of light in this tough situation. You might be able to leverage you’re “A list” position with the credit world to find a way to manage your credit card debt more successfully.

Typically if you have three or four or more credit accounts, the credit ceiling on those accounts probably have gotten pretty high. That is because, as we just reviewed, if you carry debt but pay on it, that sets a cycle in motion for the credit card companies to offer you as much debt as they think you might use so you can owe them even more money. Again, while this seems cruel and heartless, that is how these folks make their living so they have to find some way of attracting the debt of the A list customers.

But another method they also use is to offer you an attractive rate of interest to either start a new account or transfer debt from an account you have to your existing account. A common “come on” is to offer you zero percent financing which seems wonderful because in theory you could transfer all of most of your debt to the generous company and not pay any interest which would greatly speed your pay off.

Transferring balances has its good side and its negative side and you need to be smart about both. Read every word of the offer, even the small print on the back of the page because you must understand any hidden fees you might face if you accept their generosity. Almost always the zero percent or low percentage rate is for a very limited time of perhaps three or four months. In credit card land, this is a heartbeat. Then once they have your account balance of your debt built up, they can jack your rates up and you are right back where you started.

So be smart about using these kinds of offers. A great tactics is simply to transfer a fairly small amount of your debt to the zero percent offer. Transfer $1000 and then pay it off over the three to four mouth period. You win because you paid no interest and they lose because they can’t sting you with a high interest rate at the end. Also be aware of any transfer fees or membership fees if you are taking out a new card. These fees can amount to additional interest and negate much of the benefit. But if you are smart and use these offers shrewdly, they can be terrific ways for you to drive down your credit card debt surfing “come ons” from the credit cards companies in a clever fashion.

More Credit Card Debt Info

Getting Everybody Into the Act

In most families, there is one person whose job it is to take care of the family budget. It usually is dad or mom and it is that adult’s job to make sure all the bills are paid and that the family budget is healthy so the family can afford the good things everyone needs to live a comfortable life. This is an important job because no family can continue to function without a viable and realistic budget. Many have said that if a lot of companies or even our country were to be run with the same sense of reality and making the books balance that the average mom uses, we would all be better off.

The only problem with this system is sometimes its easy to look at the family budget as “mom’s problem” or the problem of whoever it is that takes care of paying the bills. So when a serious problem comes up like an explosion of credit card bills, mom can get pretty overwhelmed especially if there is no way to curb credit card spending so there can always be enough on hand to pay those bills off.

This is where taking on the challenge of beating high credit card debt has to be everybody’s job. For starters, everyone needs to know the limits on spending. It does no good if the person who does the budget knows exactly how much everyone can spend on food, entertainment and new things but nobody else follows those rules. If the other spouse and the kids are out on the town on a spending spree, that is going to overwhelm the budget.

So if that is one of the sources of credit card abuse in your family, its time for the family to get together and have a discussion. Each member of the family must understand that there is such a thing as fiscal responsibility and if credit card abuse is done by any one member of the family, the privilege of that credit card is going to be taken away.

But the family unit can really become a powerful force for change when it comes to taking on a mountain sized credit card debt. It will take some skill to present the challenge to the family that defeating this foe must be a family job and everybody has to get into the act. But if you do get everybody in on the challenge and take it on as a big adventure, not only will it bring about a lot of family unity, it can be a lot of fun too.

The attack plan must be seen as just that, an aggressive attack on the credit card problem that can threaten the family’s financial safety. That is cutting costs. Have everyone in the family come up with one way to save money each week. It might be as simple as turning off their lights before leaving for school or as ambitious as giving up cable TV or cutting in half the amount of times they have to go to the movies. If each person can contribute one big cost savings a week, that sense of accomplishment and self esteem for pitching in to win this war with credit card debt will pay off.

In the same way, if each member can think of ways to increase income, that can really help the budget out. It might mean the kids picking up more chores so dad and mom can work second jobs for a little while. It might even mean that the kids will do some chores or take part time jobs and add a little to the budget from what they make. But whatever the contribution, if everybody gets into the act, the family can win against credit card debt. And that is a worthwhile family project.

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Getting a Premium Interest Rate

The challenge of tackling a massive credit card debt can seem almost impossible at times. When you look at the many bills rushing in each month and then you start going through that credit card bill, the idea of actually starting to pay that bill down can be overwhelming. And part of the reason that uphill battle to win over debt seems so hard is those almost ridiculously high interest rates credit card companies are allowed to charge.

If you have a credit card debt in the thousands of dollars and that interest rate can get above 15%, that is going to mean that a large portion of your monthly payment is going to go toward the interest. And what that means is that your balance will go down slowly which is very discouraging especially if you are also using the credit card so your balance continues to go up and up and up.

How often have you looked at the average interest rate that the credit card companies are charging you and thought, “I sure wish there was some way I could but that interest rate in half or less”? If you could just get that interest rate down under 10% or even better, that step alone would help you put more of the payment money you pay out each month toward reducing the debt. And if that rate could be locked in so it isn’t constantly being jacked up by the credit card company, then you have a real path toward paying off what you owe once and for all.

There may be a way to actually get a credit card rate you can live with from the credit cards services you already are working with. It goes back to that old advice that your mom or dad might have given that goes – “You don’t know until you ask.” That’s right it is very likely that if you call the credit card company and explain to them the situation, they might have the resources to negotiate a rate with you that you can live with and offer you the same services a credit consolidation company would offer.

It’s good to take a moment and look at the world through the eyes of the credit card company. They are in business to keep good customers who pay their bills. For credit card company, the worst kind of customer is one who is constantly late on their payments or doesn’t pay at all so they have to go through the expense of nagging those customers for the money. And customers who have the resources to dump them because their rates are too high are also a big threat to their livelihood because they depend on you needing them and being willing to pay those interest rates and fees.

So rather than see you dump them or take your debt elsewhere like to a credit consolation service or a second mortgage, its better business for the credit card company to cut your rate and continue to make some money off of your debt. Competition is just as intense for the good customers in the credit card world as it is in any other business. So if you pay your bills and are the kind of customer these companies like, you have a bit of leverage with them that you may not have known you had.

Make sure when you call the credit card company to renegotiate your rate that you talk to someone who can actually change things. And bring some clout with you. Be prepared to cancel your credit cards or move your debt to another card or credit service. If you let that credit card company know you are unhappy because of the rate, they will have some kind of program to keep your business. They aren’t going to tell you about it but its there. And if you are persistent and want it bad enough, you can get the credit card companies to play ball your way and give you a premium interest rate you can live with.

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Divorce and Credit Card Debt

When a marriage comes to an end, it’s always a tragedy. Of course the rending of the family unit and the difficulty for the kids is the hardest thing about separating at divorce. But the difficulty of separating one house into two can be difficult and tedious to say the least. You have to go from one checking account to two, two homes instead of one and separate accounts for everything from credit cards to utilities.

The is an additional overhead to how to handle a divorce situation if in addition to splitting your assets, credit card debt that may have been a part of the shared family financial picture also must be split up. To the credit card company, that family credit card is the property of that shared entity which was the marriage. So when the union splits up, the transition from a financial point of view of your accounts separating is not over night.

So one of the many issues to be discussed and a plan made for is how to separate that credit card debt. Whoever continues to hold the family accounts will continue to get those bills and be expected to pay them. Now the least preferable way to handle the debt is to build the payments into any forced settlement agreement such as child support. So at the time the divorce is final, the amount of the debt and the payments that must be made could be calculated and half of that put into the amount that the income generating partner must provide.

But that leaves the management of those credit card debts to one partner and the other one just has to pay a set amount. And if the credit cards get used by either partner, that legal amount would have to constantly be changed and that would prove to be a constant headache of administration.

If the divorce is a shared responsibility so each spouse can work with the other to adjust the financial picture in an advantageous way, then how to separate the credit card debt should be part of that planning. Part of that planning is how to use shared assets to pay down that debt. You may have a home that will be sold, retirement accounts or other assets that were set aside for the future of the marriage. Before you sell those things, close those accounts and distribute the funds, look at using the outcome to retire that shared debt.

But it’s likely some of that debt load will live on past the divorce. In those cases splitting into two individual accounts may be the way to go. In that way, if the family was carrying $10,000 in debt, if each marriage partner walks away with $5000 of the debt, that is at least fair and equitable and how each individual handles that debt is up to them.

There are two ways you can go about splitting the credit card debt. If the debt is with a carrier with whom you can negotiate and conduct a dialog, getting a meeting or having a conference call with the managers there would be productive. The credit card company would far rather negotiate with you how to handle this debt load then deal with it chaotically after the fact. So they may be willing to set up separate individual accounts and split the debt for you.

But you can always use the method many of us have used to manage credit card debt up until now. Each of you can set up some new separate credit card accounts. You no doubt have dozens of credit card offers coming in that you can use to kick off this process. Almost always part of the set up offers for these accounts are balance transfers. So if you take out individual accounts and use the balance transfers to move each partners shared part of the debt to those accounts, that would be a clean way to split the debt up.

There may be adjustments to be made to the 50-50 split idea based on who is the primary bread winner and maybe who ran up the debt and on what. But by negotiating the terms of how you are going to separate the credit card debt when you separate the marriage, that will be one more than that you are handling in a mature and responsible manner in the middle of a very tough situation.

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Credit Card Debt Info - Tips

All Blog Posts related to Credit Card Debt Info - Tips

Avoiding Credit Card Debt Before it Sneaks up on You

Divorce and Credit Card Debt

Getting a Premium Interest Rate

Getting Everybody Into the Act

Handing the Debt Off

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Inside Out Credit Card Management

Credit Card Debt Info - Is Zero Percent For Real?

Credit Card Debt Info - Knowing When to Panic

Make the Credit Card Companies March to Your Tune

Manage but Don’t Be Managed by Credit

Credit Card Debt Info - Moving that Debt to a Better Place

Credit Card Debt Info - Playing the "B" Card

Credit Card Debt Info - Stupid Credit Card Tricks

Taking Action on Credit Card Debt Before it’s Too Late

Taking Credit Card Debt Down the Way You Ran it Up.

Taking on Credit Card Debt

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The Basics of Credit Card Debt Consolidation

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Credit Card Debt Info - The Route Out of Debt

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Avoiding Credit Card Debt Before it Sneaks up on You

In this modern time where the economy has been such a challenge for everyday people like you and me to keep up, it’s easy to get into credit trouble when your credit bills begin to stack up. So if you are in the position to just start learning the ropes of the world of credit cards, there are a lot of things you can do to avoid credit card debt before it sneaks up on you and keep your nose clean, as they say.

This is an outstanding goal for you if you are just getting your first credit cards. If you know or talk to anyone who is battling tens of thousands of dollars of credit card debt, you know what a jail sentence it can be. Once that credit card debt gets that high, the time it will take even under the best of conditions to bring it down runs into the years if not decades. And for all that time, thousands of dollars of money goes down the drain to credit interest that doesn’t buy you any food, tickets to the movies or new clothes. It just goes away with no value to you at all.

But if you are new to the world of credit, getting a credit card is a good thing. But once you get one, keeping it under control is job one. You will find it amazingly easy to use a credit card once it comes. In fact, the retail world makes it difficult to conduct transactions any other way. You can pay for gas at the pump that way and even charge your groceries at the grocery store. And while all of these great uses for credit are helpful, you can end up with a whopper of a credit card bill at the end of the month. And if you don’t pay that bill off, that is the first step on a lifelong jail term in credit card debt jail.

So there are some guidelines you should follow to both use credit responsibly but also to keep building your credit rating which has a real value to you. Remember that what the credit card companies don’t tell you is that making a charge on a credit card is a loan. Even if you just charge ten bucks to go to the movies, you took out an unsecured loan to finance that movie ticket.

So once you start using a credit card, keep in mind that you will be paying back everything you run up on it. It is NOT free money. A good practice is to save every receipt every month and keep a running tally of what you have spent on credit. Now only can you use that to cross check your credit card, it keeps you honest because each time you add a charge to your credit card, you can update your tally so you know for certain that you will be able to pay it off when the bill comes.

Paying off the credit card each month is the number one best way to keep your credit problems under control. Now it isn’t a bad idea to let a little bit of the debt drift from month to month. This builds your credit history and credit rating which will pay you well down the road when you want to buy a larger purchase. But by staying on top of your credit and what is going onto your card, you will start out with the kind of habits that will lead to a life of good credit use without credit card jail. And that is a wonderful gift to give yourself early in life.

Job Interview Tips

Here are all blog Poste related to Job Interview Tips:

Interview Tips – What to Wear to a Job Interview

Interview Tips – The Panel Interview

Interview Tips – Responding to Taboo Questions

Interview Tips – Put a Positive Spin on Everything

Interview Tips – Procedural Questions

Interview Tips – How to Preparing for a Job Interview ?

Interview Tips – Poor Working Relationship with your Boss

Interview Tips – Pauses and Silences are Okay

Interview Tips – Make a Connection

Interview Tips – Know what Your References are Going to Say about You

Interview Tips – If you Get Stumped by a Question

Interview Tips – How to Thank an Interviewer

Interview Tips – How to Answer the Tough Interview Questions

Interview Tips – How Not to Obsess after a Job Interview

Interview Tips – Explaining Gaps in Employment

Interview Tips – Etiquette Rules during Job Interviews

Interview Tips – Enthusiasm in a Job Interview

Interview Tips – Don’t Make Assumptions

Interview Tips – Don’t be Late for an Interview

Interview Tips – Bring Doubles of Everything to an Interview

Interview Tips - Be Thorough but to the Point

Interview Tips - Be Specific when Answering Questions

Be Honest in Job Interviews

Be Confident in a Job Interview

Job Interview Tips -Ask Your Own Questions

Top 12 tips on how to do well in a job interview
(Watch the Video)

Interview Tips – What to Wear to a Job Interview

Possibly even more stressful than the questions you are going to have to answer, you are going to have to find the perfect outfit to wear to a job interview. You want to look professional and like you are going to fit in with the company. A good rule of thumb for men is that you can’t overdress for the interview – shirt and tie or a suit is always a safe choice. For women, picking the clothes is more challenging.

For both men and women, pick an outfit that you feel comfortable in and that fits you properly. You don’t want pants that are too tight or a shirt that is too snug across the chest. It will be a distraction for both you and your interviewer. Along the same vein, pick colors that suit you but aren’t too bright or patterns that are overly bold. You want the focus to be on your answers, not what you are wearing.

Remember too that your overall appearance is going to be judged, and this includes more than the clothes you are wearing. Hygiene and grooming: be clean, neat and tidy. It is probably best not to wear a strong scent – chances are you will be in a small room and it could make others uncomfortable. Your finger nails should be short and clean, your hair clean and tidy, and have mints with you or brush your teeth immediately before leaving for the interview.

You may wonder what all of these details has to do with your qualifications and getting the job. It has to do a lot with it, especially if you are going to be dealing with the company’s customers face-to-face. The company will want to hire employees who are going to represent the company in the best possible light.

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Interview Tips – The Panel Interview

An interview is stressful; you are on display and have to sell yourself as the best candidate for a position in a company. The only thing worse than an interview is the panel interview – when two or more people are asking you questions and watching your every move. This situation may not intimidate everyone, but it is certainly not a comfortable position to be in.

The reason for a panel interview is to get the opinion of multiple people at the same time on the viability of a work candidate. Typically the people that attend are from various departments within the company – a representative from human resources and the department that is hiring at a minimum. This saves time and money for the company and lets them see how the candidates react under pressure.

When you are listening to questions during a panel interview, maintain eye contact with the person who is speaking. Once the question has been asked, make sure to address your answer to all who are present. Make eye contact with everyone and include them in your attention. Be prepared for follow-up questions from any or all of the attendees. Each one is going to want to know information from an angle that will directly affect their department.

You may find that in some panel interviews, only one person does the talking and everyone else is there simply to observe. Still address all of your comments to the group and don’t let this unnerve you. It is definitely stressful, but not unusual. Be flattered that they consider you a strong enough candidate to gather more than one person to evaluate your interview and choose you to work for the company. An interview is an investment for a company, an expenditure of money in the form of salaries; you are there because you have a chance at the position so take advantage of the opportunity.

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Interview Tips – Responding to Taboo Questions

Not all interview questions are acceptable. There are certain topics that should not be brought up and information that a potential employer has no right asking for. Some of these questions are not legal and others while legal may leave you feeling uncomfortable. You do not have to answer certain questions, but how you let the interviewer know this can determine if your application will continue forward.

For more information on questions that should not be asked or that you do not have to answer, contact your local government office that handles labor relations. They can provide these guidelines to you at no charge. If questions are being asked about your private life (and you are uncomfortable answering them), you do not have to. You can mildly tell the interviewer that you plan on devoting the time you spend at work to work and your personal life stays in your personal life. And try to leave it at that. If the interviewer keeps pressing, you will have to decide if the job is worth it to you.

It is your decision to provide the information you do – know your rights beforehand – but you can still decide to answer a question that should not be asked. Keep in mind that if a potential employer wants details about how you spend time outside of work it may be because they expect their employees to put in a lot of extra hours and they are trying to gauge if you have commitments that would prevent you from doing this.

Other questions, such as sexual orientation, past relationships, and other lifestyle choices have no business in an interview setting. If there is a physical aspect to the job and a medical evaluation is necessary, this is typically done by a doctor or other medical professional who will give you clearance. You do not have to provide details to the interviewer.

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Interview Tips – Put a Positive Spin on Everything

A potential employer wants to hire people with a positive attitude. You should project this image in your demeanor, facial expressions, and most importantly in the content of your answers. You may be the strongest candidate that the interviewer has seen but you still will not get the job if you are negative and insult former bosses or co-workers.

The best way to do this is to put a positive spin on all of your answers. Many interviews will include a question along one of these lines:

*Have you had a challenging relationship with a co-worker or boss? Tell us about it.

*What conditions in a workplace make it hard to do your job?

*How can people tell when you are in a bad mood at work?

Really, all of these are trick questions. Yes, the interviewer really does want to know how you have handled conflict in the workplace and how you deal with a bad day at work. But, they want to see if you can explain this without talking negatively and show that you can problem solve your way out of certain situations. Even if you have a great story to tell about you and a co-worker, unless you handled yourself as professionally as possible and the story portrays you in a positive light do not tell it.

If an interviewer asks how co-workers or customers can tell if you are in a bad mood, there is only one right answer, “They can’t.” You can (and should) elaborate on this, but by answering the question in this vein you are showing that you can leave personal problems and stresses outside the workplace without them affecting your job or others.

Be the kind of person that people want to hire, realistic with an attitude of getting along with others and the ability to get a job done.

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Interview Tips – Procedural Questions

Procedures are a part of life, especially in the working world. Each company has their own set of policies and rules that they expect their employees to follow. An interviewer is going to ask questions to determine if you would do things they way they want (for instance making a sale or handling a customer complaint). Without training, you will not know with any degree of certainty how the company would want you to handle different situations but there are ways to answer that can increase your chances of getting the job.

What an interviewer is looking for in an answer is your philosophy towards circumstances that occur in the company. Your natural instincts and personality is going to come through at some point no matter what you have been trained to do. Questions like, “How would you satisfy a customer if they wanted to return something after the return policy has expired?” can be tricky to answer. The best way to answer them is to begin with saying, “Of course, if hired I would abide by the company’s guidelines – but in this circumstance I would…”

By starting your answer with this phrase you are showing that you recognize a company is going to have its own policies and ways of doing things and that you are flexible enough to modify your way of doing things to align with those processes. Even role playing scenarios for are a test to see if your way of thinking is in line with the company’s. This genre of question can backfire on you though if your answer is completely opposite what the company is looking for. If you have done your research on the company prior to the interview you should have a good idea of how they handle customers and sales in general.

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Interview Tips – How to Preparing for a Job Interview ?

It is completely natural to feel nervous before a job interview but you can minimize pre-interview jitters with some preparation. Hopefully you have completed initial research on the company you applied for before being called in for an interview but you are going to need to do more. You will never know exactly what is going to be asked of you (unless you have an inside source), but you can be ready for the questions by knowing your stuff.

Look up the company website and study the history, about us page, and the products and services that are offered. Even if you are pretty sure you are not going to be quizzed on how the company came to be, it will give you insight into how the company operates and their philosophy. By of these factors should influence how you answer your questions. If it is obvious they place high value on team players, you should brainstorm situations when you have displayed this trait.

If you are applying for a sales position, you can be prepared for any role playing questions because you have taken the time to learn the company’s products and services. It will be impressive to your interviewer that you have taken the time to research the information. It shows a commitment to details and a true interest in the company.

Another way to prepare for an interview is to complete a practice run with a friend or family member. Have them ask you questions and answer them as if you were already in the interview, don’t break character during the role play either. There are many questions that are asked in a typical interview (what are your strengths and weaknesses) don’t let them come as a surprise to you – practice so you can answer with confidence.

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Interview Tips – Poor Working Relationship with your Boss

It may be the reason you are looking for another job in the first place – you and your current boss do not work well together. And good for you for taking charge of the situation to find something that is a better fit for you. But how do you approach this situation so it will not hinder your chances at a new company? There are a few steps you should take first and you need to mind what you say during the interview.

A lot of interviews will contain at least one question about your working relationship with your current boss. They can take many forms and you should prepare for a lot of different types of questions that may be asked. No matter what the question, even if it is one asking you to describe conflict with your boss, be positive and do not bash anyone in your answers.

Remove any emotions from the equation and explain the situation using the facts and highlight all of the professional steps you have taken to rectify the situation. Don’t try and make your boss sound like the bad guy, and try to de-emphasize the entire event. It may seem like an opportunity to vent about the situation but if you do, your are cutting off an avenue to escape the working relationship you want to get away from. Present the facts, be neutral and highlight your problem-solving skills.

If you are concerned that your current boss will sabotage your efforts to find another job during the reference check stage you can solve this in a couple of ways. If your boss is reasonable and the two of you just don’t work well together, chances are you don’t have to worry too much. Be sure to give him or her a heads up though. If you aren’t comfortable with this, try and find another manager that you have worked for in the company previously that you can pass on as a reference.

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Interview Tips – Pauses and Silences are Okay

There are going to be a lot of periods during an interview when there are going to be pauses in conversation or flat out silence. This can be initiated by you or the interviewer and in most cases either is not an indicator that something is amiss.

You can ask for a moment to think of an answer and during this time there is most likely going to be complete silence. This is fine and perfectly normal, don’t get distracted because no one is talking, use the time you have asked for wisely and think of the best answer or example you can give.

If the interviewer is taking notes (and most likely they are), be comfortable with the fact that there is going to be pauses in between questions and they try and write everything down. This is actually a good thing because it means they have liked what you have to say and want to remember it when they are later making a decision on who to hire. Don’t feel the need to fill this space, let them continue writing and wait for the next question.

If you have answered a question and it is met by silence and the interviewer is not writing anything done, you may be at a loss as to what you should do. It could signal that the interview is expecting more information or they are not satisfied with the answer. You won’t know unless you ask, “Do you want me to elaborate on that?” If the answer is no, just patiently wait for the next question to be asked.

Don’t worry that the interviewer is not praising you on your answer to each question and continue onto the next one. They do not want to give you an indication of how you are doing during the interview and are trained to be neutral when responding to answers, if the respond at all.

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Interview Tips – Make a Connection

Depending on how popular or sought after the job you are interviewing for is you will have a lot of competition for a few positions. A stellar interview is crucial to make you stand out from the rest of the crowd. To give yourself an added edge and cement yourself in your interviewer’s mind, try to make a personal connection with them at some point in the interview.

A personal connection can take numerous forms. If you are in the interviewer’s office and they have a picture of a sailboat on their wall (and you happen to love sailing), make an appropriate comment that identifies you as a sailor too. This may not put you above others more qualified than you but it will help you to stand out amongst those you are in direct competition with.

Take your cues from the interviewer, if they seem uncomfortable with relaying any personal information or are not comfortable veering off topic then follow their lead. If a personal conversation does develop, let the interviewer guide it. When they bring it to a close and either get back to the questions or say good bye, leave it at that.

At the end of the day, interviewers want to hire people that are qualified and who will fit in with the rest of the team at the company. If you can make a connection and have the right skill sets you will be giving yourself a better chance than someone else. You will also help the interviewer recall who you are and stick out in their mind as that candidate who knew a lot about sailing.

If you are not comfortable with discussing personal topics during an interview, don’t feel that you must go out of your way to do so. At the end of the day, your qualifications are what you should be highlighting.

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Interview Tips – Know what Your References are Going to Say about You

Before attending an interview, you should have your references lined-up and ready to provide to the interviewer when asked. More than just writing down names and phone numbers of previous employers and bosses, you need to do additional preparation. Finding out how a former employer views you and your work history with them is vital before providing that information to a potential employer. Even if your memory of your time spent there is positive, you don’t know how you were remembered or what will be said unless you ask.

Your first step should be to contact everyone that you are considering using as a reference. You will want to confirm they are working for the same company and if their phone number is the same. If a boss has moved to another company, you can still utilize them as a reference provided you can track them down.

When you reach a potential reference, don’t assume they will remember you and everything about you – remind them. Things you say during your conversation can have a positive outcome on what they have to say about you later on. Ask them if they are comfortable providing you with a favorable reference and if there is any feedback they have for you. If you are very comfortable you can flat out ask how they felt about your time working with them and what they would say about you if someone called to ask.

If you are not comfortable with providing a direct supervisor or boss you can use other employees in the company that old a supervisory position. Think of people you have worked closely with on projects or such – they are valid and reputable people to provide as references too.

But if you have made it through the interview process, a reference would have to go quite badly for it to affect a possible job offer.

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Interview Tips – If you Get Stumped by a Question

You can prepare for an interview until you are blue in the face and still get stumped on a question during the process. It is okay, it happens to a lot of people. Some questions come out of left field, sometimes you draw a blank, and others – you really don’t know what to say. Here is a brief run down of what you can do in these three situations.

A (Seemingly) Off Topic Question – These may be thrown in to the interview out of curiosity by the interviewer or to gauge your knowledge on a certain subject. It is not a reason to dismiss the question though and not pay it the care and attention you would to any other one. Do your best, and if you really can’t figure out the correlation between the question and the job you are applying to, you can ask at the end of the interview – along the lines, “out of curiosity….”

You Draw a Blank – Ask for a minute to compose your answer, and do some fast brainstorming. If you feel that the silence is becoming uncomfortable, you can ask to come back to the question at the end of the interview. As long as you do go back to it, this is an acceptable solution. Silence is okay during an interview when you are trying to think of an answer, do not feel obligated to fill the silence, concentrate on the answer you want to give.

You Don’t Know What to Say – If it is a matter that you are sure what the interviewer is looking for in an answer, ask for clarification. Sometimes asking for an example of what they mean can guide you in what you should say. If you take a shot in the dark, you might provide what they want – but why take the chance?

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Interview Tips – How to Thank an Interviewer

You may think that it is best to follow-up with an interviewer to thank them for their time and keep your name in the forefront of their mind. While this may have that affect on them, it may not be in the positive way you are looking for. An interviewer takes time out of their regular job to fill vacancies in a department. It is an extremely busy and stressful time for them and they do not want (nor have time to) take calls from everyone that they have completed interviews with.

But this is not to say that sending along a thank you is a bad idea, it’s not. The method that you thank your interviewer is going to make a difference. If you received a business card, send a quick e-mail to thank them for their time and that you are looking forward to hearing from them. Quick and to the point and leave it at that. Do not expect a reply because you probably won’t get one and do not follow-up on your e-mail to make sure they received it – you will become an annoyance.

Second to sending a quick e-mail, you can send a short and professional thank you note (this means no scented stationary or something too cutesy). The message should be similar, thanking the interviewer for taking the time to sit down with you, express how much you enjoyed speaking with them and learning more about the company. It is a nicety that while not necessary, can be an added touch to a strong interview.

It may not guarantee you the job, but thank you notes, if done the right way, may open doors for you in the future. If there are openings in the company at a later time, the interviewer may remember you and think of you before others.

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Interview Tips – How to Answer the Tough Interview Questions

Each interview has at least one, a question that you really don’t know the best way to answer. It is the one that you agonize over for days and keep going over it and over it in your head and you ask others how they would have answered. There is not way to avoid these types of questions but you can answer them with confidence to give yourself peace of mind until you get a call back.

Do not feel that you have to answer immediately after you have been asked a question. You are not on a game show where the fastest contestant to answer wins. Your interviewers will appreciate that you have taken time to formulate your answer. If you are concerned by a prolonged silence – don’t be, it is normal. If you have been asked a question that you do not know exactly what to say, ask for a moment to think of an appropriate answer. This is preferable to taking a long time to answer without explaining what you are doing.

If you really can’t think of an answer off of the top of your head, ask if you can come back to the question in a moment – keep trying to think of an answer. Don’t think that if you get to the end of the interview and you haven’t answered the question that you are off of the hook. Even if your interviewer doesn’t ask again, it has not gone unnoticed that you didn’t respond to a question. The best case scenario is for you to bring the topic back to the question and answer it accordingly. Thank your interviewer for giving you the extra time to come up with the right answer.

If it is a lengthy question that is broken into parts, break it down into, don’t try and answer it all at once – you can always ask for parts of the question to be repeated.

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Interview Tips – How Not to Obsess after a Job Interview

The interview is over and you can’t help but sigh with relief. You made it through and it wasn’t as bad as you thought it would (or maybe it was, but hey it was a good experience). Now, you might think you are in the clear and all you have to do is wait. While it is true that waiting is the next step, it is not that easy. Some even find it more difficult between the time the interview has been completed to the time they hear back from the company on whether or not they received the position.

Unless you discover that you have given the interviewer misinformation, don’t continue to go over your answers again and again. If you look for flaws you will find them. It is unnecessary torture. Keep yourself busy and if you are on a serious job hunt, continue with your search and put the interview on the back burner until you hear back. If you did provide wrong information that would be crucial to a decision you may want to consider following up to correct the wrong depending on what it was. If it was for a driving job and they asked if you have had any speeding tickets in the past three years and you said yes but later discovered it happened four years ago – definitely call. If on the other hand, you were quoting sales results and underestimated the number of sales you made; it would probably be best left as it was.

Keep yourself busy as you wait for an answer from your interview. And if it happens that you didn’t get the job use it as a learning experience. If there were questions you wished you would have answered differently at least you know that now for the next interview you attend.

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Interview Tips – Explaining Gaps in Employment

When you get to the interview, be prepared to discuss your resume. In addition to explaining why you left previous companies and chit chat about the position, if you have any gaps in employment be prepared to explain them. Many people are scared that an interviewer is going to discover that they were without a job for a period of time. It is not necessarily a bad thing, but you do have to be able to tell the interviewer why in the best possible light.

You should always be honest when explaining any absence from working, but you do have license to spin what you did do in the best possible light. For instance, if you were laid of your job and had a hard time finding a replacement but spent a lot of time with your children you could say, “I took an opportunity to spend a few months with my children in between jobs.” If you took any courses or classes that adds value to your skills as an employee be sure to mention that as well. You may find it beneficial to add a brief explanation on the resume itself or in a cover letter. Most times it is hard to get to an interview if there is a lengthy and unexplained employment gap.

If you are unsure what possible questions could be generated from your resume, have another person look at it. It is best to be prepared for certain questions and scenarios that will likely come up in an interview. You do not want to be caught unaware or floundering for an answer. Give yourself time to figure out the best explanation for times of unemployment so an interviewer sees it as reasonable or even beneficial to them in the case of additional education and classes.

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Interview Tips – Etiquette Rules during Job Interviews

During an interview you need to mind your manners and follow an unspoken code of etiquette. This is more than your mom’s “keep your elbows off the table.” Business manners are going to be key, an interview is so much more than what you have to say – it is how you present (or sell) yourself. If part of the job you are applying for is dealing with clients or executives from other companies, you can be guaranteed how you act is part of the decision making process.

Eye contact, you have to be able to maintain eye contact without being uncomfortable. There are some acceptable ways to do this. If you are answering a question, it is okay to glance away when gathering your thoughts but if you are listening to someone keep your attention focused on them (even if their eyes are wandering). This shows good manners and that you care about what they have to say.

Do not under any circumstances have gum or a mint in your mouth during the interview. If you want to be sure that you have fresh breath, chew gum or suck on the mint before arriving at your destination but discard or finish them before you enter the building. It is distracting and rude to have them in your mouth when answering questions.

Use your interviewer’s name, ideally you found out who you would be interviewed by when the meeting was arranged. If it isn’t provided to you, be sure to ask who you will be meeting with and their position. When you arrive, shake hands and greet the person by name. If you are just learning their name, repeat it and remember it. You want to be sure to get it right and thank them for their time when you are leaving.

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Interview Tips – Enthusiasm in a Job Interview

Are you excited at the prospect of getting a new job and are thrilled that you were called in for an interview? Well, then show it when you are being interviewed! Bring an energy and attitude to the interview that will make the company take notice. The process of interviewing is usual a long and boring one for those on the other side of the table. Do your part to make it easier for them to choose you as the best candidate.

Just think of all the people before and after you that are also going to be interviewed for the same position. If all other things were equal – qualifications and the answers to the interview questions – what is going to set you apart from the rest? You can be enthusiastic and smile when answering (when appropriate) and still maintain an aura of professionalism. You want to exude charisma and keep the interviewer’s attention. They have heard a lot of the answers already, but you can get the message across with more than words.

Someone who is excited to get a job and lets that excitement be known is going to have a better chance than someone who talks in a monotone and with little to no emotion. Don’t be afraid to smile and use phrases as “that’s great” or “wonderful” when you are told about the company. Be the type of person that the company wants to represent them and you will increase the chances of a job offer.

A few words of caution: don’t go overboard. Be genuine in your enthusiasm and be yourself. Sincerity is key or your enthusiasm could work against you instead of for you. If you are naturally bubbly by nature, tone it down a bit for the interview so you do not overwhelm your hosts.

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Interview Tips – Don’t Make Assumptions

This is a good piece of advice to follow in life, but it also has a special place in an interview setting. You want to be viewed as someone who understands what is necessary and can deliver the expected results – more than just in the interview room – and making assumptions will not guarantee you will be viewed like this.

The easiest and best way to avoid assumptions is to ask for clarification. If a question is asked that is ambiguous or you really aren’t sure what they mean, ask them to explain it to you. Sometimes, without meaning to, an interviewer will use company jargon or acronyms in a question or in conversation. You can respond by saying, “I’m sorry, I’m not familiar with that term, could you explain it to me please?” Not only will this show that you are paying attention but it will also demonstrate that you have an interest in the company and what they are about.

When you are answering a question and you need to include company specific terminology, be sure to explain what you mean. In addition, you cannot assume that your interviewer will know what you are talking about either. Take a moment to either set up your answer with the required information to understand what you are talking about or pause and explain certain phrases or words. Better yet, if you can use common terms in the place of company specific ones, it is the preferable way to go.

Lastly, don’t assume that the job is in the bag. No matter how confident you are that you are the most qualified person for the position – it isn’t yours until you have received a job offer. Make the best impression you have and keep the mindset that you are still competing for the job and sell yourself accordingly.

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Interview Tips – Don’t be Late for an Interview

This may seem obvious, but it happens way too often. No matter the reason, there is no excuse for it (besides an injury or family emergency and then kudos for you for showing up). Getting lost, bad traffic, or losing track of time doesn’t matter to an interviewer. They are taking time away from their primary duties to sit down with you to try and give you a job. It is rude and disrespectful to not show up on time.

Here are a few tips to ensure this doesn’t happen:

* Do a dry run. If you are going to a city or a part of the city you are not familiar with drive there a few days before. Ideally you will do it during a week day at a similar time to your interview time to gauge the amount of time it takes to get there.

* Leave early. Not just 15 minutes early, you can plan to arrive 30-60 minutes before your interview time. Don’t go into the building though. Get into the area, find a coffee shop and relax while reading the paper or reviewing your resume.

Not only will this ensure that you are on time it also gives you time to relax and calm yourself before walking into the building.

* Pay for parking. Don’t circle the block 12 times looking for cheap parking on the street. Pay the money to park in a parking garage. You do not want to waste valuable time looking for parking and start to stress yourself at the same time.

If you are running late (but really, you shouldn’t be), make sure you call. The interviewer may not have time to complete the interview if you are running late and you will save both of you the time if you let them know. You can try and salvage the faux pas by trying to book another appointment right away. And if you are lucky enough to get a second chance, follow the tips above to arrive not only on time, but early.

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Interview Tips – Bring Doubles of Everything to an Interview

In addition to a list of questions you want to ask and a pen and notepad you should also bring duplicate copies of anything else that you may need to provide to the interviewer. When booking the interview, ask if there is anything specific you should bring with you (normally references is the only requirement). But if you are applying for a driving job, a driver’s abstract may be required or if you are applying as a writer you may be asked to bring in a sample of your work.

Make sure to write down the requested items to bring and make duplicates. If more than one person is going to interview you, bring one for each of them and then one more. This show forethought and preparedness. You also don’t want to make your interviewer look bad by not being prepared if they forgot or lost your resume. Let them know that you brought an extra copy for them and hand it over.

Chances are this won’t happen, but won’t you be happy if it does and you are prepared? By brining more copies than are required, you can provide your extra copy to the other interviewers so they are not all huddled around the one copy of your writing portfolio or resume.

Even if you are not asked to bring references to the interview, take the time to type out and print copies anyway. If the interview went well you are sure to be asked for them and this again, shows that you think ahead and make the necessary preparations. Do not show up without any special documents that were specifically requested of you, if you do not think you can obtain them in the timeframe given be sure to let the person know before you arrive for the interview.

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Interview Tips - Be Thorough but to the Point

If you love to talk and when you are nervous can go on and on, or if you are the opposite and clam up when you are in a stressful situation – you need to be conscious of this and not do either in an interview. When asked a question, an interview wants enough information that will help them understand what you are talking about, but not extraneous irrelevant information.

If you are answering a question using an example from your previous or current job and there is a lot of jargon or acronyms – try to use more common place term that more people are familiar with or explain what you mean in the beginning. If you are asked to describe a time when you lead a project – explain what the project was about, how many people you managed and any key points that demonstrate what a great job you did. What you don’t want to do is get side-tracked and give details that aren’t relevant to the question. The interviewer is not going to be interested in a play by play of the entire project – they want to know your role in it.

Keep on topic; take a moment before answering a question to organize the details in your mind. You don’t want to start answering, get sidetracked and forget the point you were trying to make. If you stay on topic and know what you are going to say, you are going to be able to keep the interviewer’s attention.

If you are a person of few words, practice with a friend or family member before your interview. Learn how to expand your answers so you give thorough information without living the interviewer wanting more. But if you are in doubt, less is better – an interviewer will ask follow-up questions if necessary.

“Tell me about a time you led a team project.” Include what the project was, how many people, and any challenges including how you overcame them.

“Tell me about a conflict you had with a co-worker.” Only pick situations that had a positive outcome.

Employers today want to know how you are going to perform on the job before they even hire you. By answering situational questions specifically you can assure the interviewer you have the skills and thought processes that they are looking for.

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Interview Tips - Be Specific when Answering Questions

Sometimes – or more like every time – you go for an interview, your nerves make it hard to concentrate and answer questions to the best of your ability. The important thing to remember is to really listen to the questions being asked. If the interviewer tells you they want a specific example, don’t answer with a general how you would do something – it is a surefire way to ruin your chances for the job.

These types of questions are known as situational questions. If an interviewer were to say to you, “Tell us about your favorite vacation.” You wouldn’t respond by telling them about all the places you would like to go or make a generalization:

“My favorite vacation is to go someplace hot with my family and sit on the beach.”

Instead, you should answer as specifically as possible including all the pertinent details:

“My favorite vacation was two years ago when I went to California with my family. We spent a lot of time on the beach. It was very relaxing.”

The second answer adds credibility. It is obvious that you are providing information from something that actually happened as opposed to making something up just to answer the question.

Potential employers are trying to gauge how you react or perform in specific situations.

Common questions that are asked include:

“Tell me about a time you led a team project.” Include what the project was, how many people, and any challenges including how you overcame them.

“Tell me about a conflict you had with a co-worker.” Only pick situations that had a positive outcome.

Employers today want to know how you are going to perform on the job before they even hire you. By answering situational questions specifically you can assure the interviewer you have the skills and thought processes that they are looking for.

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Be Honest in Job Interviews

There is a difference between telling a story highlighting the positive to make you sound better and lying to the interviewer. It is rare for a company to not conduct reference check these days so don’t say anything that can not be verified by your boss or other references that you provide.

There are many ways to get into trouble during an interview and lying is the most severe. Common fibs that are told include educational degrees that you do not hold, saying that you are a manager when really you are a team lead and taking credit for a project that was completed by a coworker. All of these things can make you sound good at the time of the interview, but what if the interviewer talks to your boss about the stellar project you ran for the company when it really wasn’t you. Your boss is not going to lie for you and if you were in the running for the job, you won’t be anymore.

The best way to handle these scenarios is to tell the truth but put you in the best light. Maybe you were a part of the project, instead tell the interviewer the part you played and share the success of the project as a whole. An employee that can recognize and share in the success in others is preferable to one who doesn’t tell the truth or wants all of the credit for themselves.

This does not mean that you have to share all anything that doesn’t put you in a positive position though. The key is to be honest and only bring up examples that are going to highlight your talents and work history in the best possible way. Don’t claim or state anything that cannot be backed up by your references.

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Be Confident in a Job Interview

Who isn’t nervous during a job interview? Even the most self-assured candidate is going to have a moment or two of self-doubt. But the trick is to keep this to yourself and portray an image of confidence. This is what a potential employer wants to see if you are not confident in your own abilities why should they be. Here are a few ways to exude confidence.

Make eye contact, nothing is more of a dead give away of poor self-confidence than a person that will not look someone in the eye. Walk up to your interviewer, extend your hand and look in them in the eye when you greet them and express your pleasure of meeting them. And don’t beat around the bush when you are talking. Saying thinks like, “Well, I kind of helped with a project but I didn’t run it myself,” screams I do not think I am worthy of this position. Instead, say this, “I assisted in a very successful project and played a key role in bringing it to completion.” Your role in the project may not have changed the perception the interviewer has of you has.

If you haven’t been on very many interviews or it has been some time since you last attended one, it is understandable to be nervous. The more interviews you complete, the more confidence you will gain in your abilities to sell yourself. And you have to remember that if you were not qualified you would not have gotten the interview in the first place. Use that knowledge to your advantage and instill confidence in yourself. As a back-up measure, get some friends or family members to remind you of all of your great traits and what makes you special – an ego boost before an interview can certainly boost your confidence level.


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Job Interview Tips -Ask Your Own Questions

Okay, you have made it to the end of your interview and the interviewer says it is now your turn. They want to know if you have any questions for them. And most likely you do: “How did I do” and “Are you going to hire me” – unfortunately you can’t ask either one. But there are questions that you can ask to glean some information on how you performed and to determine if the company is a right fit for you.

Although it is not acceptable to ask how you did in an interview, it is okay and encouraged to ask what the next steps are and the timeline for them. Depending on how this is answered, you may be able to figure out their reaction to you. But this is not full-proof and is not a guarantee. If they take the time to explain all the checks they need to go through, how many people they have left to interview and so on, they are probably interested and want you to understand that there is still steps left in the process. If they only tell you that you will hear from them within a certain period of time via letter, well it isn’t as promising.

Look at the opportunity to ask your own questions as your chance to interview the company. Of course you have done your research prior to attending and have made up a list that you wrote down before attending. Show your preparedness and pull out the list to ask your questions. Things like company direction and expansion show an interest in the business. Feel free to take notes; it can earn you brownie points. Ask questions that are important to you as well, if vacation time and benefits are a deal breaker for you, find out now what the company has to offer.

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