The first step to cut expenses is knowing where the money is going. Start tracking your expenses for 30 days. This way you will have a clearer idea of how much you spend and where can adjustment be made

2. Get on a Budget

Creating a budget can be perceived as a great challenge, but in simple words it is just separating spending and assign them an amount. To create a budget, first you will need to determine your income, your fixed bills (rent, utilities, debts) and your need (food, clothes). In this area you must also consider an emergency fund that will help you when unexpected spent arrives.

3. Evaluate Your Subscriptions

Check your monthly subscriptions such as cable TV, streaming services, weight loss programs, etc. Make a list of all your subscriptions with its own price. Now with an exact amount of how much you are spending try to eliminate the ones you do not frequently use or the ones you do not really need. Cancel those possible and cancel their subscription to emails or newsletters, this will avoid going back to subscribe.

4.  Lower Your Housing Expenses

Here are some options you can take in consideration to reduce housing expenses:

In case your rent:

• Get a roommate.
• Try to do home repairs by yourself, for a discount on the rent.
• Move to a cheaper apartment,

In case you own a house:

• Refinance your debt to get a lower rate.
• Rent a part of your house.

5. Eat at Home

Preparing your own meals at home can make you save a lot of money. This could seem hard but planification is the key. Define what you will eat during the week and stick to it. Look for some creative meal’s ideas on the web, that will make your job easier. You can prepare your meals during the weekend.

6. Shop with a List

Saving money at the grocery store can easily start with a shopping list. This good habit can cut off food expenses, promote meal planning and sticking to it can help you cut down on impulse buying.

7. Use Cash Only

Using cash-only can give you a big dose of reality to your expenses. Start month with paying all your expenses described in your budget. And use leftover cash on your irregular expenses.

Getting Started…

The perfect time to reduce your expenses in now. Taking it one step at a time will make it easier and will bring amazing results to improve your finances. At any time, you can consider reaching us to assist you during all process and give you extra tips or advise to keep you going and get effective results

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In an evolving society where social media and modern technologies has taken more space than regular communication channels, debt collectors have been facing some challenges when trying to reach lenders with what can be called as outdated standards.

A new rule now allows debt collectors to contact you on social media, email, text and of course phone. This rule was approved last year by Kathleen Kraninger, president of CFPB (Consumer Financial Protection Bureau)

When being reached by collectors, some criteria must be met:

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In a survey completed by Bankarete.com 42% of consumers in the US with credit card debt have increase their balances since Covid-19 arrived at north America in March 2020. 47% of those with increase said, this was caused by the pandemic.

These results bring to our mind a known and widespread problem, credit card debt is easy to grow and hard to reduce. And one of the main reasons of why getting out of credit debt is so hard is that the average annual percentage rate is more than 16%.

In the US the average person with credit card debts owes $5,525. And many of them can only afford to pay the minimum payments, resulting staying in debt for about 16 years and pay a high $6,000 in interest.

With a rough difficult future for that 42%, one of the possible solutions is to negotiate lower rates or to elaborate a plan to get debt free, usually Nonprofit credit counseling agencies can assist consumers at no cost. Borrowers can also consider consolidating their debts with a new loan, reducing expenses to battle debt, prioritize debts with the highest interest rates first, etc.

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The benefits and great value offered by credit cards vs the debt free method with debit card. Make an informed decision when you use a payment method.

According to a study released in 2020 by the Federal Reserve Payment, debit cards are used almost twice vs credit cards, but in reference to money spent, credit card has a solid 30% advantage above debit card payments.

The use of credit or debit card depends on several factors, such as your level of comfort with debt, the ability to pay later and the willingness to accept certain risks in exchange for certain rewards.

Here’s a quick reference of how and when:

Credit card benefits:

Debit Card Benefits:

If you are already in a big credit card debt it is so important to discontinue the use of credit cards immediately. The responsible use of credit requires financial discipline and even sometimes disciplined users can easily get into debt problems facing rough circumstances such as the loss of a job or big, emergency expenses.

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Different types of debt such as Mortgages, medical debts, credit cards, among other debts for personal, household or family purposes and cover in the FDCPA.

The FDCPA does not include or cover business debts and in general their regulation do not apply to the original creditor to whom you originally became indebted. FDCPA laws do regulate debt collection agencies, lawyers who regularly collect debts and debt buyers.

Restrictions when collecting a debt:

Mandatory information debt collectors must provide you if required

Any debt collector who contacts you is required by law to provide you certain information about the debt they claim. That information includes:

If the debt collector does not provide you this information in the first contact, they are required by law to send you a written notice that includes that information within five days.

The post Are there laws that control what debt collectors can say or do? appeared first on Innova Credit Counseling.

Credit cards are the large lending product used by consumers, more than 175 million consumers have at least one credit card. The Consumer Financial Protection Bureau known as CFPB estimated that Americans paid $120 billion per year in credit card fees and interest. What give us $1,000 spent per every American household per year.

But being the most consolidated financial product for consumer, do not necessary indicates they are the best option financially.  Credit card rates and interest usually are relatively expensive for consumers. Indeed, interest rate on credit cards increased by more than 20% (from 2015 to 2019).

This has brought CFPB to the mission to search for a fairer competition in the credit card market that can be reduced to 3 main topics:

• Uncover anticompetitive practices. In an industry with a small number of major players, anticompetitive practices can be common. CFPB uncovered that over the course of 2014, the biggest players in credit card industry withhold information previously reported to credit bureaus about borrower repayment making it more difficult for other issuers to offer competitive pricing to customers.
  
• Offer an easy way for consumer to compare fares and refinance your credit card. To get a specific rate from a credit card, consumers often must apply for those credit card. Multiple applications could be necessary to check rates and this can lead to a negative impact on consumer credit score, taking away consumer right to shop for the lowest rate. The CFPB is looking to give consumers more control of their financial data, escaping from high rates and lousy service and allowing them to create more options for themselves to find better deals.
  
• Scrutinize junk fees. Many of the worst practices of the credit card industry were eliminated thanks to the CARD Act of 2009, but industry is still hugely dependable of fees. Given the millionaire amounts collected on fess for many transactions, competition may be ineffective when putting down prices. CFBP will consider ways that help consumers to reduce fees and give them a more affordable cost of credit.

The post An average of $120 billion in credit card interest and fees are paid by Americans each year appeared first on Innova Credit Counseling.

We’ve all experienced unexpected financial emergencies such as medical bills, a reduction on our income a car accident or even a damaged cellphone and it often feels like these events arise at the worst time.

Building up an emergency fund an excellent way to protect yourself to not mess up with your budget when an unexpected financial emergency arrives. By putting money aside, you will be able to re get back on track financially or a have a quicker recovery.

In this article we will review some helpful topics not only to create a emergency fund but to handle it correctly.

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With government decision of resuming loan payments there are certain aspect you should take in consideration:

Step 1: Make sure you have updated any change on your contact information or check if it is accurate.
To make sure you get billing statements or other type of notification before your payment due date, check or update your contact information on your StudentAid.gov profile.

Step 2: Evaluate your options depending of your credit type if you can’t afford payments.
Depending on the type of loan you have you could have different options if you can’t afford payments. Your options will depend on whether the loan is federal or private:

• Federal loans:
  • • Check out for repayment plans
    • Look for a temporary authorized pause
• Private loans:
  • • Ask us for forbearance options

Step 3: Watch out for scams
Scammers could try to take advantage of circumstances related to the pandemic and government relief packages. If you are looking for help, look only for certified agencies or counsellors. Scammers may claim you are eligible for loan forgiveness. Please remind these types of offers are in 99% chances a big scam.

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