Do you feel as if you're in a money trap? Well, you're not alone. Lots of people are finding themselves in debt, but you don't have to stay there. Five tips to help you take control of your money and live a fuller, more enjoyable life.

We’re in a recession, we’re not in a recession. Depending on who you listen to and what barometer of measurement they use, we’ve either been in a recession since December 2007 or the country is still on the outside of one looking in. Perhaps we’re somewhere between the two.

Regardless of what the experts say, what it all boils down for the average consumer is where they’re at financially. Some people are employed and expecting bonuses this month, others are holding onto a job and facing a pay cut, salary freeze, or even the threat of losing employment, while still others are unemployed and are now looking for work.

For every consumer, controlling personal finances is the key to monetary health, a way to build up wealth and an important strategy in gaining independence. After all, if you’re in debt then you basically are owned by your creditors. And, forget bankruptcy as a viable option – changes to personal bankruptcy laws a few years back has made that a bad option for most people.

What can you do to get your debt under control? Several things including the following:

Pay off credit cards – Lots of people are carrying around credit card debt and paying big bucks in interest each month. If you are running balances on several cards, try not to add additional debt. Pay off the card with the smallest balance first and then use those funds to attack the next largest balance. Your debt repayment will “snowball” as you knock out one increasingly larger balance at a time.

Renegotiate interest rates – If your credit cards charge high interest rate and you cannot get a new card with a low rate (to transfer balances) consider asking your credit card issuer to lower your rate. Be careful if you ask for a “hardship rate” where your interest will be knocked down to zero in exchange for automatic monthly repayments – some card companies report this information to the credit bureaus which can adversely impact your credit report or score.

Pay down your mortgage – If you have a home equity loan or a mortgage (or both) work toward paying these debts down faster. Housing prices have dropped, a lot of homeowners have negative equity in their homes, and if you should need to sell, you’ll have more profit to show if your overall home debt has been reduced.

Trim spending – Whether laid off or on the receiving end of a salary drop, you’ll need to trim expenses accordingly. Now is the time to shop around for the best deals on insurance, communication, food, etc. in a bid to keep your expenses in line with what you make each month.

Take charge – Banks and other lending institutions are clamoring for consumer dollars, especially ever since credit has tightened. Make sure that you aren’t paying an annual fee for a credit card, that monthly bank fees are reasonable, and certainly don’t agree to pay other charges which are unreasonable. Threaten to take your business elsewhere if the lender won’t budge.

Some analysts are suggesting the current economic climate will last until next summer with others suggesting that early 2010 will be the soonest date when we’ll see some relief. No one can say for certain when the economy will improve, but don’t wait to act: you can take control of your finances today!

Adv. – How about a card you need that fits your financial objectives? Whether you are a savvy consumer or first-time user, there is a credit card that will meet your buying-power needs. Please visit nBuy.com to conduct your smart credit card search.

Photo Credit: Nusrin

Tags: credit, Credit Cards, debt, Debt Consolidation, employment, job, job loss, money, personal finances, recession

If your credit is excellent or very good, you can still find some credit card deals that are worth taking. Over the past many months, credit requirements have tightened as lenders reigned in their lending restrictions, preferring to do business with consumers who have the highest credit scores first.

For the person who has average or poor credit, securing a good deal on a credit card might not be possible, requiring people in this position to pay an application fee, annual fee, settle for a high interest rate, and be subject to other restrictions. Clearly, if your credit isn’t good, then now isn’t the time to try to get a credit card.

As for me, I’m still getting offers in the mail for new credit cards, but I’m not interested in taking the bite. However, I like to explore the various offers out there and am still finding some nice surprises, offers that I would seriously consider if I was looking for a new card.

Among the benefits being still offered to people with excellent credit are:

No annual fee — Some American Express cards charge a fee, but I won’t pay them. There are various versions of the American Express card that are free, though you may not accumulate points so easily or get other discounts. If you choose a fee card, perhaps do it through your work or personal business where either someone else will pay for the annual fee or you’ll be able to deduct the fee on your income taxes.

0% balance transfer – A number of these types of cards are still out there which I find to be surprising given the current economic problems we’re facing. What these cards offer is 0% APR on balance transfers and in some cases on purchases for up to 12 months — be careful as some charge transfer fees.

Rewards program — Most credit card offers include a points program which can yield valuable gifts or money when redeemed. For every dollar charged, get 1, 3, or even 5 points, something that can add up very quickly. Some issuers will give you a big lump sum of points, let’s say 5,000 points, the first time you use your card. Gift levels usually start at 2500-7500 points, meaning you can quickly redeem what you’ve earned for something free. Of course, if you use your card regularly and you run monthly balances, then your points are quickly canceled out by the interest you’ll pay on your cards.

Low interest rates – Interest rates don’t matter to the person who pays their card off monthly. Therefore, don’t be scared away from a card offering a good rewards program, but a lousy interest rate. You’ll never pay a penny in interest as long as you pay off your card each time a bill is presented to you.

Online access – These days, no card is worth getting if you can’t access your financial information from a secured site 24/7/365. With people traveling all over the world like grasshoppers, who can wait ’til they return home to view their statements? I like cards that allow me to view everything online, make a payment, receive notifications if something is amiss (like, who authorized a charge in Borneo when I’m standing in Boston’s Logan Airport?) Also, I want to be able to actually reach someone when I call about my statement or need to raise my credit line.

For the person with excellent credit, they’re in the driver’s seat these days. Banks and other financial institutions make money by lending money out and are clamoring for your business. Compare offers, shop smart, and snag the best credit card deal that you can find. For everyone else, grab an offer only if it’ll benefit you and not some hungry card issuer.

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Adv. – How about a card you need that fits your financial objectives? Whether you are a savvy consumer or first-time user, there is a credit card that will meet your buying-power needs. Please visit nBuy.com to conduct your smart credit card search.

Tags: credit, Credit Cards, credit score, rewards card

How many credit cards do you carry? 2? 5? 11? If you were to add up all of your store cards, gas cards and your MasterCard, VISA, American Express, Discover and other national cards, you might be surprised at that number. Then again, maybe you have several cards but are considering finding a new card, one with a special deal not offered by your current card issuer.

Compare Credit Card Offers

You probably already know this, but not all credit card offers are the same with some offering high rates and absolutely no rewards to others which will can provide for you a low, fixed rate and special rewards. Before you shop for your next card, let’s review the variety of credit card choices out there for your consideration.

Low Interest Rate Credit Cards — Higher interest rates have made these cars a bit less common, but there are still credit cards available with low rates, even 0% financing for balance transfers. In most cases, these special rates are in place until the transfers are paid off with newer purchases charged at a higher rate.

Low Introductory Rate Credit Cards — To entice you to use a particular credit card, some credit card issuers will offer to you a special “teaser rate” that will run for a number of months, usually for as long as six to twelve months. You can make purchases at the very low rate (let’s say 2.9% for twelve months) and then pay 12.9% or more on balances after that time. These cards can be a great way for consumers to make an expensive purchase and paying off their balance over a few months time without incurring a lot interest charges.

Pre-paid Credit Cards — Consumers who have bad credit as well as students who are off to college, a pre-paid credit card allows people to build up their credit rating while still having the convenience of shopping with a credit card. No need to carry around a lot of cash, if you misplace the card you haven’t lost your money and can get a new card.

Rebate Credit Cards — Use your credit card and get paid for using it! This may sound like a scam, but it isn’t: some credit card providers will give you cash rebates on certain purchases. Spend $500 and you could have $10 credited to your account, depending on the offer.

Award Credit Cards — Also known as rewards cards, an award card works like a rebate credit card: you get to select gifts based on points you have accumulated with your purchases. In many cases, one point is awarded for every dollar spent and you can redeem those points online or through a catalog sent by the credit card company. Some issuers will automatically give you 500 or more points with your initial purchase, even throwing in a bonus offer through special promotions which can double or even triple your points during a special promotional period (for example, the holiday shopping season).

Other Special Card Deals Too

The previously mentioned credit cards choices are typically MasterCard or VISA network special offer credit cards, but American Express and Discover have deals which may be worth a look too. Manage your various rebate cards with this free download to help you get the rebates and rewards coming to you.

Tags: American Express, Credit Cards, Discover, finances, MasterCard, rewards cards, VISA