Even servicemen and women in the United States Armed Forces, who happily enjoy a great deal of job safety, can be exposed to financial insecurity by family medical emergencies, mortgage difficulties, credit card debt or even car trouble.

Today’s economy is a difficult and unforgiving one. Even servicemen and women in the United States Armed Forces, who happily enjoy a great deal of job safety, can be exposed to financial insecurity by family medical emergencies, mortgage difficulties, credit card debt or even car trouble. If such a situation were to arise in your life, would you know how to take out a military loan without incurring excessive interest rates?

Sadly, even those in the know about civilian debt can, at times, be flummoxed by the variety and complexity of military loan choices. One seemingly tempting option is the payday loan. Payday loans provide an immediate advance on your next paycheck. Some even offer overnight payment. While these loans may seem to be an easy way to pay a credit card, mortgage or utility bill that needs to be dealt with rapidly, they are in fact a mechanism for predatory lenders to take advantage of financially desperate servicemen and women.

Unlike other, safer military loan options, payday loans generally come with incredibly high interest rates. In the past, less financially savvy members of the Armed Forces have been tricked into agreeing to interest rates of up to 800% on their payday loans. At this interest rate, a borrower would be required to return 4000 dollars to their lender in exchange for a meager 500 dollar military loan.

The problem of predatory payday loans has become so pervasive and damaging that that both the Federal government and quite a few state governments have felt forced to step in on multiple occasions in recent years. In 2006, for example, Congress passed a law limiting payday loans to an interest rate of 36%. In eleven states, payday loans are outright illegal, as they are considered forms of usury.

While payday loans may seem tempting to cover your short term needs, they are never the answer. A trusted financial institution that specializes in military finance can provide with you a range of military loan options. Good financial advice from such an institution can help you stay out of debt and even generate assets to invest in and retire on.

Popularity: 6% [?]

It has been said that most people spend more time selecting a new cell phone or shopping for clothes than they do managing their investments.

For many of us, keeping track of our 401K or other investments ranks with a trip to the dentist on our “must do” lists.

However, if you don’t have an easy and efficient way of managing your investment portfolio, you are highly likely to make mistakes that will inevitably affect your financial future. To prevent this from happening, you need to take action now and start using a good portfolio manager software system.

A good portfolio management system is like having an expert who devotes his or her entire day to keeping track of all of your investments, and knowing exactly when to buy or sell. The noted investment manager David Swensen, who manages Yale University’s multi-billion dollar endowment, noted in his bestseller “Unconventional Success” that the majority of small investors “buy high” and “sell low”.

Simply put, they don’t have a system for managing their money, and when the market swings wildly, they panic. Having a good portfolio management program in place will go a long way toward making sure you don’t fall into this trap. And it will make managing your investments on a day-to-day basis a whole lot easier in the long run.

Having a good investment software program will save time and money, and may well preclude the necessity of hiring a financial manager to do it for you. So what program should you choose? What should you look for when selecting an investment management program? As with many products, portfolio management software programs range from the simple to the feature-bloated and everything in between. You should review the various offerings and make your purchase decision based on your assessment of your own needs and interests. But there are some core features you will find in most consumer-oriented portfolio software programs, and you should look for at least these features in any program you are considering:

Manage Investment Decisions

The core goal of a portfolio management system is to improve your investment decisions. A good program automates this task for you. It does the heavy lifting to help you size your positions, time your trades, identify and take advantage of trading weaknesses, improve your risk management, and so forth.

Investment Portfolio Records Management

With this basic feature, you keep track of your transaction history for an infinite amount of portfolios and investments. You can keep track of mutual funds, stocks, bonds, options, commodities, Forex, and even cash accounts. You will be able to manage tasks like redemptions, purchases, transfers, distributions, spin-offs, re-combinations, splits and mergers, and so forth.

Reports

The software will offer several report types including custom reports. You will be able to control the content of the reports with various filters.

Yield Calculations

This feature will allow you to choose a variety of multiple yield types to report how well (or poorly) your investments and money are performing.

Multiple Investments And Portfolios

Allows you to keep track an infinite amount of portfolios and investments. If you manage other peoples’ portfolios, this type of software will be indispensable.

The benefits of using a portfolio management program are numerous and important. First and foremost, you will save money (or avoid losing it through incompetence). Second, through the discipline that a program imposes, you will inevitably improve your investment skills and learn better money management. Third, you will gain some peace of mind from knowing you are managing your investments properly, rather than doing your calculations on the back of a napkin. As with so many financial matters, that peace-of-mind may be the most valuable benefit of all.

About the author

This article was written by Neil Street, who writes on a range of topics for leading websites. His interests include real-time trading risk management and market-risk issues.

Popularity: 39% [?]

Nearly everyone looks for ways to keep their phone bill down. Since almost everyone has a cell phone, it is quite likely that most people are spending more then they should to maintain that phone.

If you were to look at your bill it is likely that you could look at it right now and immediately find charges for services that you do not even use. The consulting industry uses a term, scope creep, that means a project slowly grows out of control. For most consumers this is what happens with their bill. Over time we add services in the form of extra lines, minutes, or data and our bill creeps up to a higher and higher amount until it is eventually out of control. If you want to get your bill back under control you should consider some or all of the following tips.

1. Watch your minutes

One of the biggest expenses for any cell phone owner is going over your minutes. If you consistently go over your minutes it is probably worth investing in a plan that gives your more from the beginning. There are also some free tools available that will let you know what your usage is and warn you if you are close to reaching your limit.

2. Consider a prepaid phone

If you do not use your phone a lot and do not want to shell out the money every month to maintain it you might consider a prepaid cell service. These services allow you to pay for only what you use and can be significantly cheaper then a traditional phone with equal service from a legitimate carrier.

3. Get rid of the phone insurance

Unless you have a very expensive phone and are particularly hard on them insurance is usually not worth the investment. It can cost about $200 which is not a great investment on a phone that is typically less then $500.

4. Look for discounts

Most carriers have ways to keep your phone bill down through employee discount programs. In some cases you might be entitled to a discount through the company you work for, or in cases of small businesses through their suppliers. You may wind up saving upwards of 20% on your bill.Â

5. Avoid buying ringtones

Yes, they are cute and can make the ring of your phone a bit less jarring, but they are quite simply a cost that can be eliminated.

6. Double check your bill

There are online services that will evaluate your bill for a small fee. They can then tell you how to save money. Typically the reports can show consumers how to save hundreds of dollars each year based on their actual usage.

7. Swap SIM cards

If you break a phone prior to the expiration of your contract you might have to pay a steep price for a new one. But, if you have other phones under the same account you can instead replace an older one, getting a lower price on the new phone, and simply swap out the SIM card from the broken phone.

9. Negotiate

When your contract expires you can negotiate to get a better deal. Since plans are typically cheaper as time goes on it is likely you can do better then your previous contract. Just make sure you get the same or better services.

10. Reconsider unlimited plans

Unless you have a texting addicted teen under your account odds are you do not really need an unlimited plan. While most of us like having them because they relieve us from worry about overages we probably don’t need them. Look at your actual usage to determine what your actual needs.

11. Combine you and your spouses plans

If you are living together and are not sharing a cell phone plan you are probably wasting money. Combine into one account and you will easily save lots of cash each month.

12. Do not cancel a contract

If you want to switch carriers mid contract it will cost you a lot of money. Instead look to one of the online services that link up people like you with people who are looking for a cell contract. That way you help someone else and get out of costly fees.Â

Finding ways to keep your phone bill down is a great way to cut household expenses. You can then use that extra money for more fun things like going on holiday or to pay off other bills.

About the author

This article was written by William Eve, a regular personal finance writer for Home Loan Finder, a 100% free mortgage comparison and application service. Visit the Home Loan Finder website for more great ways to save money and the most competitive investment loans and first home buyer loans on the market.

Popularity: 14% [?]

You may think that now is a terrible time to invest in real estate. You know that you stand to show a significant return in the long run, but phrases like “mortgage lending crisis”, “real estate market crash”, “economic downturn”, and “the bubble burst” have effectively scared you off. However, it is a business, like any other, and if you enter into it with a solid plan, armed with a set of knowledge and skills to help you, success is just a matter of time and effort. But there are a few things you need to consider before you get gung ho about buying homes.

1. Check yourself.

How do you know if you have a personality suited to real estate investment? You must possess several traits in order to succeed in this market, including being outgoing, personable, intuitive, assertive (even aggressive at times), tenacious, determined, and above all, hard-working. Excellent communication skills are a must and the ideal candidate will also boast an aptitude for math. If you don’t like dealing with people, you can’t handle stress, or you lack a strong will to succeed, you should probably consider another occupation.

2. Set goals and follow through.

Are you interested in flipping houses or renting? Answering this basic question could make a huge difference in how you approach your investment in real estate, from the purchase price to the number of properties you acquire to how much you’re willing to put into fixing them up. Of course, it could also determine how soon you see money coming in and the amount you stand to gain on your investment. Just remember that managing a rental property has its own unique set of challenges, so consider that before fantasizing about a renter covering the monthly mortgage.

3. Get educated.

There’s a lot more to buying a house than doing a walk-though and signing the paperwork. You need to be able to assess the ability of any property to turn a profit (based on condition, location, size, cost, and a number of other factors). Think about taking a course in real estate investing or management, or even going a step further and getting a license to help you really understand the business and the market. The information you gather is going to save you a lot of heartache (and money) down the road.

4. Know your mortgage.

There are many different types, so you don’t want to get stuck with one that doesn’t meet your needs. While this certainly falls under the aforementioned category of education, it is important enough to list on its own. Understanding how mortgages work is an absolute necessity if you don’t want to get yourself into serious financial straits with lenders over the long haul.

5. Count your cash.

Now is not the ideal time to get a loan, even if you have significant collateral, so you better have a big enough start-up fund to float you for awhile just in case you encounter issues that need to be addressed with the property, or you experience delays in selling or renting. If you’re approaching this as a viable business opportunity, you may even want to seek out other investors to pool funds. And you could certainly do worse than having an extra opinion to help you through those tough calls.

About the author

Kathleen Macky owns a real estate website where you can browse Wesley Chapel homes for sale.

Popularity: 11% [?]

However, more time and research has exposed a group of sinister events that actually took place. It seems that some people knew more about the coming catastrophe than they were willing to let on.

When the credit crisis developed in 2008, everyone blamed the bankers for taking unnecessary risks. At the time, they explained that they simply hadn’t understood the risks and needed to update their risk assessment tools. Investigations since then have revealed a more disturbing reality behind what happened.

Goldman Sachs was heavily involved in producing CDOs—bundles of investments that derived their value from the amalgam of the underlying assets. These might be securitized mortgages or even something as exotic as an airline flight. In theory, CDOs should be quite secure, but many CDOs were based on weak assets. This is where sub-prime mortgages got involved. A number of companies like Goldman Sachs originated CDOs based on these mortgages, assuming that they were more valuable than they actually were. During this period, the originators made a huge profit on every CDO they produced and times looked good. Of course, you know the story—the bottom dropped out of the housing market, consumers couldn’t meet rising mortgage costs, the CDOs became utterly worthless, and the taxpayer ended up carrying most of the bill. When the various stimulus bills were being debated, banks tried to depict themselves as victims along with everyone else. After all, they had lost massive amounts of money too. However, understanding what these banks really did is hardly as simple as reading a forex broker comparison.

However, more time and research has exposed a group of sinister events that actually took place. It seems that some people knew more about the coming catastrophe than they were willing to let on. The basic story is that a few aggressive and highly intelligent hedge fund managers realized that sub-prime mortgages were practically worthless. Advanced knowledge about any part of the market is always valuable, and these managers knew how to turn their understanding into returns. The method was to find CDOs that were doomed to failure and bet against them. Using investments that essentially work like insurance policies, they could reap huge profits as soon as the sub-prime mortgage market collapsed.

First, however, they needed faulty CDOs to bet against. So they put up a small amount of money for Goldman Sachs to originate the investments. In fact, they paid for the core of the investments which is also typically the riskiest part. When other investors saw them take this on, they assumed that something was happening and invested vast amounts of money in the rest of the CDO—expenditures far beyond what the hedge fund paid. When the fund failed, these investors suffered huge losses. Of course, the hedge funds lost their initial investment as well, but reaped a huge profit from their hedging contracts (the financial “insurance” they bought against the failure). Essentially, they worked the equivalent of shorting a stock.

The other agencies that made a profit, at least in the short term, were the originators—financial companies like Goldman Sachs who charged a premium for putting the CDO together. What has now become evident is that Goldman was willing to do an extraordinary thing in that process: they let the hedge funds have a significant say in how the CDO would be put together. Naturally, the hedge fund managers asked for investment assets that were essentially doomed to failure. Goldman let them do it. To make matters worse, it now appears that Goldman never made a full disclosure about the fact that this was happening. In other words, the investors who naïvely bought the rest of the doomed CDO didn’t know that Goldman was working with the hedge funds like this. These investors risked their money in good faith without all of the pertinent information—and later suffered huge losses. As the SEC now alleges, Goldman’s actions were essentially fraud.

This is why the current investigation and allegations are so crucial. The question is whether the regulatory agencies can give Goldman enough trouble to make sure that it doesn’t happen again. In other words, will investigating Goldman really help?

The answer is probably mixed. It is certainly crucial that destructive and misleading financial practices like this should be punished. It is also fairly certain that punishing Goldman for what they did will send a message to other banks and set a precedent for the future.

However, don’t expect this to be the end of problems like this. Fraud will continue for as long as the financial markets exist. In a few years, someone else will commit the same type of fraud with different financial instruments. Worse, the fraud Goldman committed is so widely spread among financial companies, it is impossible for the SEC to deal with it sufficiently. Expect a weak settlement in which Goldman suffers a token penalty that is still less than what they profited. Unless the SEC suddenly becomes more aggressive, the positive results of the investigation will only be partial.

Popularity: 11% [?]

It’s a vast financial jungle in these early days of the 21st Century and it’s never been more important to budget.

Money is hard to come by and even harder to keep. However the internet has a wealth of choice for easy ways to set up and maintain a personal budget. Here are the top five online budgeting tools.

5. SmartyPig.com

You get two for the price of one with SmartyPig. Not only is this software a great budgeting tool but it also throws in a high yield, FDIC-insured savings account. You can also enlist friends and family to help you save for your specific financial goal while protecting your personal information. It’s also free to sign up and use. Plus, once you’ve attained your financial goal, there are options as to what to do with the money. Transferring it to a store gift card can add up to an additional 12% to the amount being allocated.

4. Geezeo.com

Something of a bare bones online budgeting option, Geezeo provides the usual tools to help you manage your finances but the real treat here is the community aspect of the site. You set your financial goals and form groups with other site users who can encourage or advise you as you go. There is also expert advice available as well. Checking, credit and savings accounts can all be maintained here though the group aspect is the real selling point. If you’re looking for a more interactive way of handling your finances then you might want to give Geezeo a try.

3. Mint.com

Another free budgeting option, Mint allows you to see all your credit card and banking transactions side by side, giving you a clearer picture of exactly how much you are spending and where. Safe and reliable, you can easily keep an eye on your money and the handy cash vs. debit ratio as you can download your purchases to your Mint account. To use Mint, you will have to input some of your banking security codes, which is a genuine concern for most. However they use the same security company as Bank of America so you can breathe easier.

2. BudgetPulse.com

Simple, easy to use, comprehensive, and free! Now what budgeter doesn’t like that last one? This software is a great way to monitor one’s finances. You can create personal budgets quickly and the software does not link to bank account data or ask you for personal account numbers or passwords. Quick charts and graphs illustrate your expenditures in an easy to follow manner. Safe, secure… did I mention it was free?

1. Mvelopes Personal

This award-winning software is free to try but does cost a bit to use. However it boasts revolutionary and innovative financial software, which allows you to easily set up a comprehensive budget that helps you to live within your income. Again, ease of use and simple graphics show you where you are spending your money. Things are further simplified through the use of budgeting envelopes into which you transfer funds earmarked for specific expenditures.

About the author:

This was article was written by Andrew Salmon. He contributes blog posts about budgeting and the IVA debt solution for a number of websites.

Popularity: 10% [?]

There are many ways to cut corners in this recession, but many of us tend to overlook a very important cost that can be cut in a most advantageous way: our cars.

There are many ways to cut corners in this recession, but many of us tend to overlook a very important cost that can be cut in a most advantageous way: our cars. Instead of avoiding maintenance for our cars as a way to skimp on costs, certain maintenance types should be even more important to avoid serious future issues. Here are some tips on what car maintenance you can perform yourself, and what is important not to skip over in order to keep your car in tip-top condition for many years to come. Auto mechanics charge high hourly rates because they know that many tasks do not take much more than twenty minutes. With a little research, you’ll be surprised how much money you can actually save!

Oil Changes:

Though it may no longer be necessary to change your oil as often as it once was, it is still a very important part of your car’s maintenance. Most oil changes cost from $20 to $100, depending on the type and amount of oil you use. There are a few tricks to this. The first is to buy your own oil and bring it to the shop, rather than paying extra for the same stuff. The other option is to change your oil yourself. It may seem like a huge task, but there are videos all over the web to help you learn more about changing your oil by yourself. It is actually quite easy, and you can save a bundle each year.

Tires:

Tires are going to wear out, and probably at one of the worst possible times. However, if you continually check your tire pressure, fill them as necessary, and keep a spare with you at all times, you are much less likely to find yourself up a creek without a paddle. Keep a tire gauge in your glove compartment for easy access, and check the air on a regular basis.

Brakes:

Let’s face it, brakes are very important, and there is not a whole lot we can do to keep them from wearing out. However, you can learn how to change your own brake pads, and quite easily. This can save you up to a hundred dollars a year on San Diego brake repair, and it only takes auto mechanics about 15 minutes to complete this expensive task. You should also dry out your brakes whenever they are exposed to heavy rain or excessive water. Driving through puddles can trap water in your brakes and cause issues, so pound on your brake pedals the following day to ensure that all the water is out. (At a slow speed, in a vacant area, stomp on your brakes three times to shake out excess water.)

Fluids:

Another maintenance trick you can do without contacting the professionals is a quick fluid check. Check the oil regularly; this can help you avoid changing it when it is still in good condition. You should also check your transmission fluid every year or so. It does not need to be changed as often as oil, but it should still be checked. Your brake fluid is also important to check. Cars should not consume brake fluid, so every time you check it, you should still have an ample amount of fluid left. Low brake fluid could mean a wear and tear or a dangerous leak in the brakes. Power steering should also have fluid that you should check regularly, as well as coolant and windshield washer fluid. If you live in a hot area of the country, it is even more important to check your coolant as often as you check your oil. Make sure to go to a reputable mechanic, like Robert’s Auto in San Diego, if ever you are in doubt about your fluid levels, as it might be a sign of a costly leak, that when overlooked, can cost you a lot more in repairs later.

Popularity: 19% [?]

“Money often costs too much” – Ralph Waldo Emerson

One of the most frequent reasons that couples argue is money – or at least that is the way in which other underlying problems may be manifested. For a new partnership, or indeed an existing one, it can take a thorough examination of the “real” people within the relationship to get to the root of the problem, and avoid the common financial mistakes that couples make.

Separate Bank Accounts

Nearly all arguments related to money are caused by a conflict in core values, and it is these values which each individual brings to a relationship that influences how they work, rest and play – and spend! Inasmuch as maintaining a level of financial independence may be important to one or both of the partners in a relationship, there will be times when “boring things” have to be accounted for, and a joint pool of money is a necessity to cover these items. Provided that there is an equal and fair distribution of any funds that are left over, joint accounts are a good way to building trust and reinforcing a relationship. By all means keep individual accounts, but only to cover your pocket money rather than the household expenses.

Ignoring Debt Management

It is almost impossible to get through life without acquiring a number of substantial debts and the way to approach these as a couple is as a joint debt. Most people will have acquired a debt of some nature - even before you met them. There is finance on the house, on the car, credit card bills or student loans to pay off. We live in an age when relationships often come with “liabilities” such as a child or pet, and in the same way as you would accommodate a child or pet into your life, you have to do the same with debt. There is no benefit in thinking “Oh, that is their debt. I do not have to deal with it”, because any debt will affect the relationship and the amount of disposable income that is available to you both – so you better both deal with it!

Who Buys What?

Most of us will have grown up in an environment where mom buys the groceries and dad buys cars, audio/visual equipment and computers. We have seen our first role models behave in this way and some of it is still subconsciously with us. Our individualistic tendencies will lead us into situations where we may feel that we should be able to buy this or that, but the way to consider all purchases is as joint purchases, decided together, from the household budget and equally contributed to. There should be no division of “who buys what” and by talking through how you are going to spend your money together, problematic scenarios can be avoided.

Money Secrets

Keeping quiet about how much money you have put aside, or how much debt you have gotten into, can create one of the biggest problems in a relationship. One partner may be completely stressed out about how the bills are going to be paid at the end of the month, whilst the other is picturing foreign holidays, expensive wines and fast cars. There may be a time when one partner has found themselves in debt and is reluctant to tell the other. It could be because they have made a silly mistake or the way that events have unfolded against them, but by keeping money secrets, you not only amplify the problem but damage the relationship. “A problem shared is a problem halved”.

Lack of Flexibility

Remember that you are a team and should be working together. There has to be a certain amount of give and take regarding the finances in a relationship. You may be very compatible with your partner, but no two people are exactly alike and by applying a little flexibility in how you manage your money together, you will get through many of the issues facing couples today. There is an old saying that “when poverty comes through the door, love flies out the window” and if you can combine common sense, honesty and elasticity to your financial situation, then you will avoid the common financial mistakes that couples make.

About the Author

Guest Post by Sarah Harris, representative for Massage Therapy, the premier online resource for those trying to locate massage therapy schools.

Popularity: 20% [?]

The company, feeling that they needed to encourage not only the purchase of diamonds but the purchase of more expensive diamonds, decided on a new marketing strategy.

Not too many years ago, a man had to save up to purchase an engagement ring before he could propose. Now, with the availability of credit cards and store financing he can buy the ring immediately and pay for it later. This can sometimes lead him to wonder, does two months salary on an engagement ring still ring true? To answer that question, it may be helpful to understand where the concept originated.

Up until the eighteenth century, diamonds were so rare and expensive that only royalty or the extremely rich could own them. New deposits in South America, followed by extensive finds in South Africa the following century, finally brought the prices down. By the end of the nineteenth century, thanks in large part to the Industrial Revolution, more people could afford to purchase them.

At the turn of the twentieth century, about ninety percent of the worldwide diamond market was controlled by De Beers. The company was founded in 1888 and at one time had total control over all South African diamond production. To protect their interests, De Beers tightly regulated the availability and therefore the price of diamonds. These controls kept prices fairly stable, and despite the fact that more people could afford them, diamonds were still considered a luxury beyond the means of many.

The company, feeling that they needed to encourage not only the purchase of diamonds but the purchase of more expensive diamonds, decided on a new marketing strategy. They promoted the idea that an engagement ring should cost two to three times what the prospective groom earned in a month. The campaign was so successful that it soon became fixed in the public mind as a long standing and immutable tradition.

This concept is no longer valid for a number of reasons. For one thing, it is rare today for the prospective groom to make the decision alone. For another, most newlyweds are both employed. They may already be pooling funds and making financial commitments together. But perhaps the most important reason this practice is outdated is that not all brides want a traditional engagement ring. They may prefer an antique ring, which may or may not be set with diamonds. Or they may prefer an engagement ring set with their birthstones. Many brides even design their own rings to incorporate the groom’s birthstone as well.

Couples may also decide that there are more pressing needs at the moment than an expensive engagement ring. Often, a costly anniversary ring is given at a later date when it can be more easily afforded. There is certainly nothing wrong with purchasing a ring in the price range De Beers suggested. However, adhering to an outdated rule of thumb merely because a century old advertising campaign was so widely believed does not, in and of itself, justify the purchase.

About The Author

Sarah Harris is the Marketing Manager for Adiamor, a diamond jewelry website. Adiamor offers a large selection of engagement rings, loose diamonds, and other fine diamond jewelry at affordable prices.

Popularity: 35% [?]

Many people are struggling with debt at the moment – some know it and others are doing their best to bury their head in the sand and ignore their problems. The following list of warning signs will help you identify a debt problem before it gets too unmanageable.

1. You are making the absolute minimum payments on your debt each month

Paying off the minimum owed on your credit cards each month is going to get you nowhere. You have to get rid of that debt as fast as you can otherwise your interest charges could add up to thousands and thousands of dollars.

For example, if you have $5000 worth of debt and your interest rate is set at 19% with a minimum payment of $200/ month – it will take you almost 13 years to pay off that credit card. So get rid of the credit card debt as fast as you can.

2. Your credit line has been decreased or you’ve been turned down for credit

Creditors will often look at a few sources when they’re deciding to lend you money. They will base that on your FICO score so if you’ve been declined or had your credit limit decreased it will show that you’re a risk to lenders. Pay attention to these warnings otherwise it could take you years to be able to borrow money again.

3. Your savings are gone and you need to use cash advances

If you’ve been overspending each month it might put you in desperate position to take a cash advance to pay your bills. Things are bad enough that you’ve used up your savings but now you’ve taken out a cash advance, which will have a high interest rate on it too.

Your incomings have to be more than your outgoings… it’s that simple.

4. You’re starting to live paycheck-to-paycheck

If you’ve living paycheck-to-paycheck that means that you would be in serious trouble if something were to happen with your job.

Unemployment insurance doesn’t come right away so what would happen if you lost your job? There are way too many variables and possibilities in life so you should be prepared by at least having a few months worth of your salary saved up. It’s that simple.

5. You’re starting to get calls from your creditors

This means serious trouble. If you’re getting endless calls from collections agencies and other creditors it’s time to come up with a solution fast. By ignoring creditors you can be taken to court or even have your bank account seized.

Getting phone calls from your creditors is the most obvious clue that your finances are in trouble but all five of these warning signs should be looked at so that you can avoid serious repercussions like bankruptcy or debt management.

About the Author

This article was contributed by the website DebtManagement.org.uk.

Popularity: 16% [?]