Learn about Auto Insurance - Part 3

Continued from part 2


Collision/Comprehensive Coverage

There are two types of insurance which cover damage for your vehicle.
Collision coverage pays for damage to your vehicle caused by a collision or rollover.
Comprehensive coverage pays for damage to your vehicle from some cause other than collision such as theft, fire, vandalism, flooding, hail or collision with a bird or animal.
Generally, collision and comprehensive do not pay for the entire loss because you almost always purchase these coverages with a deductible.

How Deductibles Affect Price
A deductible is a specific amount of money you pay before your insurance company begins to pay on a claim. Higher deductibles result in lower comprehensive and collision premiums.

Most insurance companies reduce their payment because of depreciation, which is the decrease in the value of your vehicle, or its parts, due to wear, tear and age. You would not, for example, be reimbursed the full price you paid for tires that have 20,000 miles on them. Your insurer would reimburse you for the value of the tires at the time of loss.

By using a deductible to eliminate the cost of processing small claims and by applying depreciation to some items during repair, insurers can provide collision and comprehensive coverage at lower premiums.

If your vehicle is stolen and not recovered, or is a total loss (“totaled”) following an accident or other covered event, collision and comprehensive coverage will pay you the vehicle’s actual cash value prior to being stolen or damaged; therefore, you do not need to select limits for these coverages. As your vehicle ages and its value declines, so does the amount you will collect for a total loss to your vehicle.

You may want to consider not buying collision and comprehensive coverage on an older vehicle. If your vehicle is financed or leased, the lender or lessor generally will require you to carry these coverages with specified deductibles.

Coverage On Rental Vehicles
Collision and comprehensive coverage will generally extend to a rental vehicle, but the coverage is limited to the amount necessary to repair or replace the vehicle. In the event of an accident, some rental companies charge for incidental damages, such as loss-of-use, diminution (loss)-in-value or administrative charges. These incidental charges are usually not covered by collision/comprehensive. To avoid these, consider buying a damage waiver from the rental company.

How Premiums Are Determined

Insurance companies use the past experience of millions of drivers to make predictions about the frequency and average cost of auto accidents during the policy period.
Insurance companies try to distribute costs as fairly as possible, by grouping similar risks and charging each group premiums appropriate for its risk of loss. This enables insurers to set premiums based on the likelihood that, overall, drivers with similar characteristics will experience a predictable amount of losses during the period covered by the policy.

Of course, insurers generally do not know each of their insureds personally. Even if they did, they could not accurately predict if and when each individual would have an accident. But by grouping insureds and using past experience, insurers are able to predict what percentage of each group will have accidents over a period of time

Factors That Influence Auto Insurance Premiums

Following are some of the factors that will influence your auto insurance premiums.
Gender: Males generally pay more than females. This is because male drivers, as a group, are involved in more accidents than female drivers.

Age: Your age can also place you in a more expensive grouping. Drivers younger than 25 years old tend to have more accidents than drivers over 25 years old. As a result, a 17-year-old single male may pay 3 times as much for insurance as a 30-year-old single male. Some companies offer lower rates to those between 50 to 65 years old, since this group has lower accident rates. After age 65 rates may begin rising again, and individuals over age 70 may have difficulty finding insurance at a reasonable price.

Marital status: Statistics show that, as a group, married drivers have fewer accidents than single drivers. Therefore, married drivers usually pay lower premiums.

Even if your age, gender and marital status do not put you in a group paying lower premiums, you may have other characteristics that qualify you for reduced insurance premiums.

Driving record: Your driving record will play a crucial role in determining your premiums. Extensive studies show that drivers who are at-fault in an auto accident in the past 3 years are more likely to have another accident than drivers who have not had an at-fault accident. Similar data applies to moving traffic violations. Because of this, individuals with at-fault accidents or traffic convictions on their records pay more for their insurance — usually for 3 years following an incident.
How much more these individuals pay depends on the frequency of their accidents or convictions and the type of conviction. An accident in which you were at-fault will weigh more heavily against you than a minor traffic violation. You can expect a poor driving record to greatly increase the price of insurance.

Some individuals with poor driving records have a difficult time finding insurance at any price. For them, there are state-regulated insurance plans — sometimes called “assigned risk plans.” These individuals cannot select the company that writes their insurance. Instead, the state insurance plan assigns the “risk” to an insurer.

These plans guarantee that all drivers can buy the minimum amounts of insurance required by their states. The resulting coverages may sometimes be less than what is needed for full coverage. Once their driving records improve, individuals in this category should be able to get standard coverage.

If you have not owned a vehicle for 3 years, some companies will rate you as if you have never driven before and may refuse to insure you. Be prepared to pay higher premiums initially and ask companies how long you have to be a policyholder before they will consider you experienced and lower your premiums.

Note: Some states do not allow insurance companies to consider some of the above factors in determining auto insurance premiums.

Type of vehicle: Vehicles, like drivers, are grouped by risk. Statistics show which vehicles tend to be involved in more accidents, to suffer more serious damage, to cost more to repair and to be stolen more frequently. These risk factors affect insurance rates. Choosing a vehicle with a poor record in these areas can more than double collision and comprehensive coverage premiums.
Most companies charge more to insure high-performance vehicles and sports models due to the higher risk involved.

Other factors: Anything that might influence the frequency and size of claims you make on your insurance policy may affect the price you pay for coverage. For example, the number of miles you drive affects your likelihood of having an auto accident and, therefore may influence your premiums.
Rates are regulated on a state-by-state basis, so the way an insurance company sets rates in Florida will be different from the way it sets rates in California. Rates vary considerably from place to place. Those who live in a small town or suburb are less likely to have accidents than those living in a large city. Vehicle repair, medical care and legal services generally cost less in a small town. Insurance companies may take these things into consideration when setting rates.

In many states, your insurance premiums will reflect not only your own age, gender and driving record, but also those of other licensed drivers in your household. If your spouse has a poor driving record, it is likely to mean higher insurance premiums for the family vehicle, even if your driving record is perfect.

Continued to part 3

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Learn about Auto Insurance - Part 2

Continued from Part 1

This is the series of articles to learn about 'auto insurance' so that you understand well which kind of benefits you get from your insurance policy coverage.

Medical Payments/No-Fault Coverage

Medical payments coverage pays reasonable and necessary physician and hospital bills, and, if necessary, reasonable funeral expenses for you, your family and your passengers, regardless of who is legally liable in the auto accident. It does not cover pain and suffering.

It also covers you and your family members while in another individual’s vehicle or as pedestrians.

No-fault coverage, like medical payments coverage, pays reasonable and necessary physician and hospital bills and funeral expenses. No-fault coverage also generally covers lost wages as well as the cost to replace household services normally performed by the individual injured in the accident. No-fault coverage does not cover pain and suffering.

There are two main objectives of no-fault coverage.

First, it speeds payment to accident victims.
Second, it intends to lower the cost of auto insurance by reducing the number of lawsuits for minor claims.

To accomplish these goals, each insured’s own insurance company pays medical expenses, lost wages and certain other financial losses resulting from an accident, regardless of who caused the accident. As a result, more accident victims are compensated for their injuries, and they are paid faster. In exchange for these benefits, no-fault laws may limit an insured’s right to sue; however, in cases of death or serious injury, no-fault laws generally allow policyholders or their families to sue.

Personal injury protection coverage implements the no-fault concept. States that have no-fault laws require drivers to buy personal injury pro-tection coverage. This coverage varies from state to state, and similar coverages may be offered as an option in states without no-fault laws.

Before you buy medical payments or no-fault coverage, clarify what it covers in your state. Then look closely at your current coverage. If you already have good medical and disability insurance, you may not need much additional protection. Avoid duplicating insurance coverages. Your insurance company or agent can help you determine what coverages and limits to buy.

Uninsured/Underinsured Motorist Coverage

In most locations, at least 1 in 10 drivers has no liability insurance. In some locations, as many as half of the drivers may be uninsured. That is why insurance companies sell, and many states require, uninsured motorist (UM) coverage.
If an uninsured driver is legally liable in an auto accident, uninsured motorist coverage:

Pays what the individual’s insurance company would have paid if that individual had liability insurance.
Covers you, your family and your passengers for medical expenses, lost wages, and other injury-related losses including pain and suffering, up to the uninsured motorist limits you purchase.

In some states, uninsured motorist coverage also pays for damages to your vehicle after a deductible. If you already have collision insurance, though, this coverage may not be needed.

You must be careful not to duplicate coverage if you are to get the most from your insurance premium dollars. Examine the coverage you already have before buying more.

If you have good life, medical and disability income insurance, you may need less uninsured motorist coverage. Likewise, if you carry high no-fault coverage limits, you may need less uninsured motorist coverage because no-fault covers you for medical bills and lost wages regardless of who is legally liable.

In most states, when you buy uninsured motorist coverage, you also can buy underinsured (UIM) motorist coverage for bodily injury to you, your family or your passengers resulting from the negligence of someone whose liability insurance limits are insufficient.

The definition of an underinsured motorist varies significantly from state to state. In most cases, property damage is not included in underinsured motorist coverage.

Continued on: Part -3

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Learn about Auto Insurance

The information and tips provdide at this post would help you learn about 'auto insurance', and all the related stuff. This all stuff is provided by 'The USAA Educational Foundation', which is non profit organization and offers the educational information for public awareness, so you can rely on the information.

You should always familiarize yourself with the products you are buying like auto insurance. By becoming an informed consumer and comparing insurance companies, you will get the best value for your insurance dollars.

You will manage your insurance premium dollars well if you self-insure as much of the risk as you can. A good rule is: Do not buy insurance for the losses you can afford. Use your limited premium dollars to buy insurance to protect yourself against the losses you cannot afford.

It is best to read your policy to understand it. Insurance coverage is very specific. Policies are legal contracts containing exceptions, exclusions and limitations.

What is Auto Insurance?

Auto insurance is a method of pooling the risks of many drivers, so no one individual has to bear the entire cost of an auto accident. Accident claims are paid from the combined premiums of all insureds in the pool.

Six Basic Coverages

1- When you buy an auto insurance policy, you are buying a package of individual coverages. Each coverage protects you against different types of losses. Once you understand the various coverages, you can decide which ones to include in your personal insurance package.

Bodily injury (BI) liability coverage pays, up to the coverage limits, for damages due to injury or death of others in an accident for which you or the operator of your vehicle are legally liable. In some, but not all states, this coverage applies to family members who are injured while occupying your vehicle. It also pays your legal defense costs. This coverage is required in all states.

Property damage (PD) liability coverage pays, up to the coverage limits, for another individual’s vehicle or property that has been damaged in an accident for which you or the operator of your vehicle is legally liable. This coverage is required in all states.

Medical payments coverage pays, up to the coverage limits, for reasonable and necessary physician, hospital and funeral expenses for you and your passengers injured or killed in an accident, regardless of who is legally liable. Payments are usually limited to expenses incurred within a specified period of time after the accident. This optional coverage is available in states without no-fault coverage. It may also be an excess coverage in those states that require no-fault.

No-fault coverage, sometimes referred to as personal injury protection (PIP), pays lost wages and certain other expenses in addition to the expenses covered by medical payments coverage. It is mandatory coverage in approximately half the states.

Uninsured motorist (UM) coverage pays, up to the coverage limits for injuries for you, your family and occupants of your vehicle caused by an uninsured motorist. In some states it pays for damages to your vehicle. It also covers pain and suffering.

Underinsured motorist (UIM) coverage pays, for bodily injury to you, your family and occupants of your vehicle resulting from the negligence of someone whose liability insurance limits are insufficient. The definition of an underinsured motorist varies from state to state.

Collision coverage pays, subject to a deductible, for damage to your vehicle caused by a collision or rollover. This coverage is usually required if you have a vehicle loan.

Comprehensive coverage pays, subject to a deductible, for damage to your vehicle from some cause other than collision such as theft, fire, vandalism, flooding, hail or collision with a bird or animal. This coverage is usually required if you have a vehicle loan.

Non-Owned Coverage

Most personal auto insurance policies provide all of the preceeding coverages, not only when you or someone else is operating your vehicle, but also when you or your family are operating a vehicle you do not own or regularly use, including a rental vehicle. Non-owned coverage is provided only if there is not insurance on the vehicle or the insurance is inadequate.

Optional Coverages

Here are additional coverages that you can consider.
Rental reimbursement pays, up to a specified amount for rental vehicle charges while your vehicle is being repaired for damage covered under your policy. If you prefer not to incur the cost of renting a vehicle yourself and cannot be without a vehicle while yours is being repaired, you might consider this coverage.

Towing and labor covers costs incurred for services rendered at the place of breakdown or for towing to a repair shop. For example, it covers the delivery of gas but not the cost of the gas. If you lock the keys in the vehicle or need a tire changed, this would also be covered. These services are often included in auto club memberships, which can result in unnecessary duplicate coverage.

Umbrella liability (a separate policy) provides an additional $1 million or more liability coverage beyond your other liability insurance. Because this is often secondary coverage — paying after you exhaust other coverage — umbrella insurance costs less than you might expect. This secondary liability coverage applies to your auto, homeowners, renters or boat liability coverage. The umbrella policy also provides primary liability coverage against claims such as libel and slander.

To learn and read more about 'Auto Insurance': The USAA Educational Foundation
OR

Read part 2 of this post

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Learn About Real Estate Investing at - REIClub

I always say that there are plenty of resources at the net, about learning. You need to surf for the stuff from reliable sites. Often government based, educational or non-profit services are reliable places to get the specific information.

You can browse hundreds of free real estate investing articles to learn about real estate investment.
Topics include creative real estate, wholesaling, 1031 exchanges, asset protection, commercial real estate, hard money lenders, IRA investing, landlording, lease options, mobile homes, no money down, owner financing, rehabbing, tax liens, and more.

Their real estate newsgroups and Real Estate Discussion Forums allow real estate investors to chat and share information. Participate in the newsgroup forums that cover the gamut of real estate topics including how to get started, Carlton Sheets, landlording, lease options, financing, and many more.

Read Real Estate Investing Success Stories

Subscribe to the monthly newsletter to stay informed on web site updates including new articles, features, products, events and more. Each issue provides helpful tips and detailed information to improve your investing business and knowledge.

4 FREE BONUSES FOR SUBSCRIBING:
(Only While Authorized)

1.) Ebook ==> "Buying Homes in Nice Areas With Nothing Down" (288 pages)
2.) Ebook ==> "Special Introduction to Real Estate Investing" (112 pages)
3.) Ebook ==> "Think and Grow Rich" by Napoleon Hill (260 pages)
4.) Audio ==> "Profit From Commercial Real Estate" (103 minutes)

Link to subscribe: Real Estate Newsletter

Get Free eBook:

Download page for the "How To Create Multiple Streams of Income Buying Homes in Nice Areas with Nothing Down!" and more free e-books:
- Download link

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Tips for Investing In Real Estate Business

Investing in Real Estate is very profitable way of income. But without expert advice or a good knowledge of Real Estate business, you cannot succeed. I hope that tips and suggestions in this article would guide you in this connection.

Many people are finding tenant in common (TIC), or undivided fractional interest, to be an investment option that makes sense. TIC is a real estate method in which a group of people buy a significant real estate asset together, often much larger than they could obtain individually. Each investor is on the title and deed for their percentage of ownership and they own and control the property. Each owner receives rental income and the tax benefits of traditional real estate investing.

“Tenant in common ownership can benefit the individual new to real estate investing or seasoned pros. Some investors are looking for a new source of income post-retirement. Others have managed apartment complexes, mobile home parks, etc., themselves, but they don’t want the hassles of maintenance and management any longer,” says Curt Smiley, owner of TIC Investments, Inc., a real estate company focused on offering individuals access to corporate-grade real estate. “TICs open up new options for investors with many benefits.”

If you are thinking about investing in real estate, Smiley suggests you consider the following:

* Building Occupancy
How much of the building is currently leased? When investing, you should know the occupancy percentage and existing lease terms for each tenant.
* Risk Assessment
A property with a majority of the space leased to government agencies or Fortune 500 companies generally offers less risk than properties where a majority of the tenants are smaller, independent companies.
* History
Before investing, you should have adequate information about the history of the building and the history of the real estate company packaging the TIC opportunity.
* Experienced Counsel
TIC investing can be complicated. It’s best to work with a TIC representative who has years of experience and knowledge in the industry. Can they tailor a program to match your specific needs? Can they analyze the proforma to determine if the projections are realistic? All your questions should be answered in detail.

There are many benefits of TIC investing. Here are some of the reasons why people are choosing this method:

Equal Ownership
Smiley explains that TIC ownership allows each investor to have the same ownership rights regardless of the equity invested so that no individual or group has direct control.

Complete Investment
Investors work with a sponsor, who is the real estate company that packages and offers the TIC opportunity to the public. The sponsor first locates and secures the property then performs due diligence on the asset. The sponsor also obtains an appraisal, Phase 1 and the non-recourse loan thus the price the investor pays is a full, complete investment.

Control without Hassle
One of the most notable benefits of TIC ownership is the property management arrangement. The property management company works directly for the TIC owners. This characteristic enables investors to have a voice in all the substantial decision-making on the property without worrying about the day-to-day, tedious aspects normally associated with owning real estate.

Income
Historically, TIC Investments have returned a 10 to 15 percent average annualized return to owners. “Just as with any investment, there are risks, but many investors are very successful by choosing TICs. A good TIC representative will work directly with you to analyze your investment goals and risk tolerance, find the best opportunities and diversify your investment if possible,” says Smiley.

Tax Benefits
A 1031 Exchange is an IRS procedure which allows investment property owners to defer paying capital gains and depreciation recapture taxes on their equity principal. A TIC investment also allows individuals to write-off property depreciation, interest on the loan, etc., often sheltering much of the owners’ monthly income.

An investment in a TIC property offers attractive advantages, but it’s not for everyone. A TIC option may not be right for you depending on your particular tax situation or if you want complete control over the daily responsibilities of your property. However, if you are seeking a stable real estate investment that will not require your constant attention yet may provide you with reliable, monthly income, it may be a good choice.

Courtesy of ARAcontent

Watch the clip: Real Estate Investment Success Story at "YouTube"

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Importance of Life Insurance

This article would help you understand the importance of "life insurance" and why you should include 'Life Insurance' in Your ‘Must Have’ Budget.

As you re-examine your monthly expenses to cover the escalating costs of food and fuel, it’s important to consider life insurance in your plans. While it may be tempting to think a life insurance policy is out of reach in today’s economy, it’s actually more affordable than you think -- especially if you plan for it in the same way you budget for everything else.

The reason for doing so is simple. Most of us dream of being financially secure to enjoy life’s pleasures and to protect loved ones. We all hope to achieve milestones such as purchasing a home, having children, enjoying vacations, sending the kids to college and having a nest egg for retirement.

We also have the best of intentions to save and put money aside if emergencies arise, but as we all know, it’s very challenging. However, preparing a financial plan can help you navigate through life’s events to achieve these goals. A critical component of a sound plan is life insurance, the backbone of financial security.

“As the saying goes, it’s always better to be prepared, and life insurance can help you plan for the unexpected,” says Christopher Pinkerton, president of the United States division of Foresters, a leading fraternal benefit society that provides members innovative life insurance products and membership benefits. “People often believe they can’t afford this type of protection, but in reality, they can’t afford not to -- it ensures financial security for both today and tomorrow.”

Life Insurance Costs Decreasing

As the cost of everyday essentials rises -- from gas to groceries -- you’d think the cost of life insurance would, too. However, the average cost of term life insurance has decreased significantly in the past decade, according to statistics from the Insurance Information Institute.

For example, a 40-year-old nonsmoking man healthy enough to qualify as a standard risk paid $1,300 per year for a $500,000, 20-year plan in 1996. In 2008, a man in the same circumstances could expect to pay $725 per year.

Why does life insurance cost less today? The good news is people are living longer due to positive lifestyle changes and improvements in medical technology. The average man will now live until 75 instead of 70. The average woman will live to 80 instead of 77, says the U.S. Department of Health and Human Services. Increased life expectancy has resulted in lower premium rates.

Budget-friendly Protection

How do you put aside money for life insurance when your wallet is already being stretched? Start by creating a month-by-month budget, setting a savings goal and projecting your financial needs. A qualified professional financial advisor can help you assess your situation, determine future goals and show you how to achieve these milestones.

Minor adjustments to everyday spending habits can also have a big impact. For example, if you choose to carpool to save on gas, consider a similar adjustment to pay for life insurance, such as going out to dinner less often. Say you eat out once a week and the bill averages $50. By sacrificing one dinner a month, you can afford a quality life insurance policy and provide needed protection for you and your family.

“By investing a relatively small amount monthly for a quality life insurance policy, you are taking a positive step toward ensuring that your family can keep the house, send the kids to college or sustain the family’s livelihood if there’s a loss of one or both income providers,” says Pinkerton. “Some life insurance products can also provide savings and investment options for a home, a family bequest or even a vacation.”

Including life insurance in your budget can help keep you and your loved ones financially healthy for whatever the future may bring, filling the gap between financial needs and financial realities. Everyone, no matter whether you are single, married and starting a family, or entering retirement, needs life insurance because it provides financial protection for an uncertain future.

Where to Start

A good first step is to try an insurance-needs calculator to estimate how much life insurance you may require. Conventional wisdom recommends households should carry anywhere between five to 10 times their annual income in life insurance. You can find a calculator at: www.foresters.com/calculator.

Following this, find a qualified financial professional you can really talk to who understands your needs. A customized approach, identifying financial goals and priorities, as well as an analysis of your financial needs and risk tolerance is a critical part of the process. From there, you and your advisor can decide what type of life insurance and how much is right for you.

Courtesy of ARAcontent

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Learn about stocks and investment at -"Jeflin's Investment Blog"

To get traffic and attract new visitors there have been lot of contests around the blogsphere. As we know it that there are millions of blogs around, and to get exposure and attracting the audience you need to write well. These contests are a good way of getting traffic, but it is also very important that you write rich content, or you can't keep your readers attatched to your posts.


You have a chance to win $25 cash by just subscribing to the "Jeflin's Investment blog", but I hope that you would like to stay a subscriber of this blog, because there is a lot to learn about stock and property market. The blogger has been a retail investor in the local(Singapore) stock market for years. So the tips and advice you can get from the blog are helpful.

Let's come to the contest details.

Contest entering rules:

1. Subscribe to the blog RSS Feed.

2. Write a post spreading word of this contest to others in the blogosphere. Your post must contain a link back to this post.

3. Leave a comment in this post and the link which you have written the contest for me to verify.

4. Please announce the winning in your blog, to ensure the money is really paid out.


To know more about the post and contest: Win $25 cash money

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Why do you need health insurance?

This post would help you understand why we need health insurance and at the bottom of the post you can download FREE e-book about general question and answers relating to health insurance.

Why do you need health insurance?

* The purpose of health insurance is to help you pay for care.
It protects you and your family financially in the event of an unexpected serious illness or injury that could be very expensive.
In addition, you are more likely to get routine and preventive care if you have health insurance.

* You need health insurance because you cannot predict what your medical bills will be. In some years, your costs may be low. In other years, you may have very high medical expenses. If you have health insurance, you will have peace of mind in knowing that you are protected from most of these costs. You should not wait until you or a family member becomes seriously ill to try to purchase health insurance.

* We also know that there is a link between having health insurance and getting better health care. Research shows that people with health insurance are more likely to have a regular doctor and to get care when they need it.


This guide describes different kinds of health insurance plans and answers common questions. There is a glossary of health insurance terms as well as resources for more information.

This guide briefly describes the different kinds of health insurance plans available today, including:

- Network-based plans.
- Non-network based coverage.
- Consumer-directed health plans.

Note: This guide offers general information only. Do not rely solely on this guide in making health insurance decisions.

Health insurance plans vary widely, both in cost and in benefits. Before enrolling in a health insurance plan, you should consult the plan brochure and read the policy to get specific information about the benefits and costs and the way the plan works.

This guide was developed jointly by the Agency for Healthcare Research and Quality and America's Health Insurance Plans to provide consumers with general information about health insurance options.

For the print version, 36 page free e-book :download the PDF File (175 KB).

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How to spot and avoid 'Credit Card Trap'

Many people would be realizing that many Credit card companies are deceiving us with misleading offer terms, and charging us with higher fees. Consumers are naturally sinking further into high-cost credit card debt. Government or public interest services provide a wealth of information about the facts and realities of finance matters. This research based report is provided by "US-PIRG", offering you the reality about 'credit card'companies and their traps.

This post would help you spot and avoid the'credit card trap':

As credit card companies intensify their marketing campaigns to boost profits, consumers are being flooded with more flashy credit card offers than ever before. In the second quarter of 2000, credit card companies sent a combined total of 992 million solicitations, a record high. The average household receives eight credit card offers each month, and students, who often have no regular income, are encouraged several times a week by posters, fliers, and on-campus marketers to apply for credit cards.

At the same time, credit card companies are charging outrageous interest rates as high as 30% per year. Consumers, students, and others are subject to a host of unfair and deceptive terms and conditions, saddled with enormous fees, and encouraged by credit card companies to make low minimum payments so that the companies can earn more in interest. As a result, the average credit card debt for Americans who carry balances reached $5610 in 2000, an increase of nearly one-third since 1995.

As consumers struggle, credit card companies are making bigger profits than ever. Between 1995 and 1999, thanks in part to aggressive marketing and misleading practices, companies’ profits skyrocketed from $7.3 billion to $20 billion.

In order to reduce their own debt losses and increase profits, the credit card industry is spending millions—more than $6 million in the first half of 2000––to pass further bankruptcy restrictions and to defeat pro-consumer bankruptcy legislation. The credit card industry is seeking to make it more difficult for consumers to declare bankruptcy and to increase the amount of debt for which consumers will be liable after declaring bankruptcy. Economic experts have pointed out that by making it more difficult for cardholders to default through bankruptcy, these industry-sponsored, anti-consumer bankruptcy restrictions will encourage credit card companies to be more predatory in lending, because the risk of issuing cards to higher-risk consumers such as students and those with low incomes will decline.

An additional measure of the problem with credit card marketing is increased attention by regulators. In June 2000, the Treasury Department’s Office of the Comptroller of the Currency (OCC) imposed a civil penalty and restitution order totaling over $300 million against the sixth largest credit card bank, Providian. In September 2000, the Federal Reserve Board issued new regulations requiring improved disclosures in credit card solicitations.

The state PIRGs conducted two surveys for this report. In a survey of 100 credit card offers during the summer of 2000, the state PIRGs found two major themes:
(1) credit card terms and conditions are becoming less favorable to consumers; and
(2) credit card marketing practices are misleading and deceptive.

In an on-campus survey of college students, conducted during the current school year, the state PIRGs found that the marketing of credit cards to college students is too aggressive. The state PIRGs compared these results to those of a 1998 PIRG survey and found that the situation has not improved.

The report is provided by "U.S. PIRG -The federation of state Public Interest Research Groups" which delivers persistent, result-oriented public interest activism that protects our health, encourages a fair, sustainable economy, and fosters responsive, democratic government.

If you want a read it in detail and want a full pdf version to print this report, click on the link below:

- Credit trap-pdf report

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Learn about 'Credit Repair' and 'Bad Credits'

I have reviewed the sites where you can learn about 'money, finance, budget, debt, credit, credit cards, bad credit repair' and most of the resources offer FREE tips, advice and suggestion for a financial secured life.

These articles or posts are not meant to point to other sites only, I select useful resources and links which I find helpful in teaching us about money matters. During the search for this blog posts, I could learn a lot myself and I hope that these "learning" posts would help us lead a 'debt free life'

"Consumer debt and credit counseling.com" a free resource for bad credit report repair, and consumer debt consolidation!

You can learn about

- "Credit Bureaus" - credit bureaus who they are and what what they are all about, credit bureaus, what these mysterious bureaus are really all about and how that effect

- "Credit Repair"

- Budget Advice for normal people
Easy to follow budget advice if you are trying to plan out your money: "Bugdet Advice"

- Bad credit lenders | Getting you the money you need
bad credit lenders get you money and help you restore your valuable credit score.: "Bad Credit Lenders"

- No Interest Credit Cards - The best deals explained here
Find no interest credit cards here and how they work. Programs revealed inside
: No interest Credit Cards

You can estimate how much these articles are helpful by reading few lines, which are taken from 'Credit Bureaus'page. In fact I didn't know these facts before.

'Credit Bureaus' and what they do ?

There are three major credit bureaus, technically called credit reporting agencies or CRA’s:

-Equifax
-Transunion
-Experian

- It was only in the 90's that credit reporting was expected to become available to the public and by 2000 all three credit bureaus had online systems to retrieve your own personal credit report. And its legal!

The good news is that the credit bureaus are not supposed to divulge any personal identifying information without your permission. i.e. you fill out a loan application.

Did you know that you can tell the credit bureaus that you don't want to be included in those mass mail lists that credit card companies use to send you junk mail?

Yeah you can opt-out and get A LOT LESS junk mail. It's free of course.
Inside the FCRA there are some powerful laws that allow you and I to take control over our own credit.

The three digit score the credit bureaus calculate is not free however. This you must pay for. But don't let that stop you from making sure the information in the report is accurate!

Site link: Consumer debt and credit counseling.com

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How to save money on 'Auto Insurance' ?

'Auto insurance' is the biggest part of expensese which we have to fix in for driving catagory. Everyone in the state of Washington is required to have basic liability insurance. But is there any way to save money on 'auto insurance'?

These basic tips would guide you to get the best deal and save yourself (or your parents) some money.

- Liability insurance covers damages and injuries to others caused by you with your car. It is sold as two separate types. Bodily injury and property damage are the two types of liability insurance. Bodily injury liability protects you if you are in an accident where someone is hurt or injured, while property damage liability covers the damages you cause to another person’s property.

- Your insurance policy describes the amount of liability coverage in split limits. The Revised Code of Washington states the minimum split limits as $25,000/$50,000/$10,000. The first amount is the maximum that your insurance company will pay for bodily injuries of one person; the second amount is the maximum your insurance company will pay for bodily injuries of two or more people and the third amount is the maximum your insurance company will pay for the other person’s damages.

- You might feel relieved to know that Washington only requires liability insurance, but even a basic liability plan can be very expensive. According to the Washington State Insurance Commissioner, insurance rates are determined by the following factors:

• Age: Drivers under the age of 30 are charged higher rates because statistics show they have more accidents per mile.
• Gender: Males under the age of 30 are charged higher rates than females because they are involved in more accidents per mile than any other demographic.
• Car: Sports cars and high performance cars cost more to insure because they are involved in more accidents, they cost more to repair, and they are more likely to be stolen.
• Location: If you live in a heavily populated area, you will most likely pay a higher premium (amount you pay to your insurance company). If you move, you should immediately inform your company about the change.
• Driving Pattern: If you use your car more, you will have to pay more.
• Driving History/ Claims History: Your rates increase for every accident and claim made.
The Washington Office of Insurance Commissioner also offers several ways to save money on car insurance. They include:
• Choose the right car--Before buying a new car, always ask your insurance agent what your rates will be for any cars you are considering. Consumer Reports is a great way to research information on the accident and theft rates of different vehicles.
• Pay a higher deductible--If you increase your deductible (amount of damages you pay before your insurance takes over), your premium will decrease.
• Take advantage of special discounts--Ask the insurance company if they have any special discounts. Discounts are available to drivers that have had no accidents or convictions and to young drivers who are good students. You can also get discounts for safety additions such as anti-lock brakes, seat belts, air bags, and anti-theft systems.

When choosing auto insurance, remember that all companies’ rates are different, and you should always check the rates of as many insurance companies as possible. You can also ask people you know about the companies they use. They will be able to tell you how the company treats their customers. The Washington Office of Insurance Commissioner website has an article that compares the number of complaints filed against different companies, so you can check on how your insurance company was rated.

These tips are provided by Teen Consumer Scrapbook, a site (sponsored by "Washington State Attorney General")created by a group of teenage students who want to share their consumer knowledge with us.

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Why we need to make budget?

Money management and making a budget is an important step we can take for a financially secure future. But why we need to make budget? -----

This question first came into my mind when I first heard about making budget, because like many other people I should live the life for today and don't worry about the future. But gradually realities of life teach me that life is not that easy. Unfortunate and unexpected situations can happen anytime and preparation for those times requires to think seriously about our finances. I hope that these tips would help you learn more about "Budgeting"

Why we should make budget?

* Budgeting gives an accurate picture of your financial position. It will almost certainly demonstrate that money is not being spent according to the priorities and will highlight where changes in spending habits can be made and, possibly, where savings can be made.

* Budgeting also helps make money go further. The fundamental aim of Budgeting is to ensure that basic needs are met and that, where necessary, steps are taken to get you out of debt.

* A budget can be a very effective brake on large impulse spending.

* Budgeting can help prevent the running up of debts to the point where contractual payments can no longer be maintained.
* It will help to reduce stress levels.

Some hard fact to keep in mind:

- Evaluate your standard of living. Advertisers are constantly telling us that, as consumers, we should happily gratify ourselves today with no thought of tomorrow. Following this route exposes you to enormous risks, particularly if you use credit to finance your standard of living.

- When evaluating how you live you need to think about what you would do if your circumstances changed dramatically. As millions of people have eventually found out to their cost, there are no longer many, if any, guaranteed jobs for life.

- Develop some form of cushion to help cope with a negative change in circumstances rather than spending to the limit.

- Set out your financial goals - these may include such things as a pension, savings accounts for the children, etcetera. Then prioritise these and try to establish how long it will take to reach these goals. Bear in mind that all your goals will not be achievable immediately, but you may need to start planning for them now.

- If you feel your situation is spiralling out of control, start to buy everything on a cash basis.

- When you are thinking of buying something that is non-essential ask yourself whether it is something you or your family really need or whether it is something you just want.

- Don't be afraid to haggle over prices, especially if you are paying cash. A cash customer is in a much stronger position to bargain than a credit customer.

How to stay in control?

- Keep your own accounts and always check your bank statement

- Budget for irregular bills and expenses

- Use direct debits which may give you small discounts

- Educate your family about managing money - it could save you much heartache

- Start a regular savings plan - no matter how small the amount

- Seek help immediately if debts start to build up

Source: CCCS-Budget

*** A complete solution to Prepare a personal budget: Budget Plan

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How to get out of debt?

Everyone desires to lead a debt free life but we need to learn how to get out of debt?

I wrote many posts about tips, advice and ideas from different sites, because the aim of the site is to provide you stuff which could help you. May be the tips for debt, credit or other money/finance related matters, are sometimes same, but we don't know which tip or advice could change our whole life. Getting advice and tips from experts or suffered people who are trying to get out of debt or could successfully do it, are good examples for us. We can learn a lot from them.

This tutorial is from "tutorial.com" which sells tutorials and online courses. It also offers few tutorials FREE of cost. "Learn to get out of debt" is one of those free tutorials. Sometimes very simple tutorials are sufficient for us to solve our critical situations. So the way tutorial is written is very easy to follow.

I am providing you excerpt from only first part, if you think that it works for you, you can read the 4 more steps. I have given links to more FREE tutorials from the site at the bottom of the post.

"Learn2 Get Out of Debt"

Lend yourself a helping hand: You need to take control of your finances--before they take control of you. Remember that you're consolidating now so your financial life will be simpler in the future.
Calculate your total debt: make a list of everything, including credit cards, personal loans, auto loans, and student loans. Don't forget to include all your outstanding home and utility bills, and any money you might owe friends and family.

Now, make a worksheet showing these outstanding balances plus any interest rates or managerial fees that apply. You'll also want to separately list your assets, including all savings, property, and investments.

Next, you'll need to compare what you owe against your net monthly pay (after taxes). In a perfect world, your debt is considered manageable if the total (not including your mortgage) is less than 20 percent of your net pay. If your debt totals more than 20 percent, don't panic--that's why you're reading this 2torial.

Note: If your debt is 80 percent of your income or more, your financial situation is very serious. It's time to get a second job or, as a very last resort, consider filing for bankruptcy. It's important to realize, however, that bankruptcy stays on your credit record for ten years, so you should consider every option available to you before taking this drastic route.

More free tutorials: (Each tutorial has links to more tutorials, so check the right side bar)

- Continue reading step 2

- Balance Your Checkbook

- Calculate Utility Costs

- Negotiate a Raise

- Calculate Tips

Lease a Car

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