Unscrupulous individuals try to lure consumers into questionable, high-cost deals or fraudulent transactions, usually involving new loans or credit cards or offers to help deal with debt problems…Read full article 

Know When Refinancing A Mortgage Makes Sense

Only consider refinancing your mortgage if you can get a rate that is at least one percentage point lower than your existing rate and if you plan to keep that new mortgage for several years.  You must also consider the closing costs and any extra fees that may be associated with the new mortgage.

Be Smart About Switching From One Credit Card For Another

Transferring an outstanding balance to another credit card can give you a lower interest rate, but find out how long the new interest rate will last and how it will change.  Also, you must check to see if there is a fee to transfer balances from one credit card to another.

Compare the products offered by your bank and a few competitors and then negotiate the best deal

Don’t hesitate to let lenders know that you are shopping around for the best possible terms and that you are not afraid to negotiate.  Competition is a good thing for you.

Focus on the long-term cost of the loan, not the monthly payment

Many car dealers and mortgage lenders will entice borrowers by asking them how much they can afford to pay each month.  It may be better to pay slightly more money each month, but for a shorter period of time, if it means that you will be paying less interest.

Take advantage of the internet

Not only can you research credit products and comparison shop among hundreds of lenders on the internet, but you can also apply for a loan or credit card online with those same lenders.

Read the fine print before you sign up for a loan or credit card

For example, realize that if you get a new credit card promoting zero-percent interest on new purchases and you do not pay off the full balance by the due date (typically 6-18 months) you may be charged interest on all of your original purchase amount—not just the remaining balance—retroactive to the original purchase date.

Don’t pay for expensive credit coverage you probably don’t need

Many lenders sell disability, life insurance or other similar protection plans which, as an example, might cover minimum loan payments due if the borrower is to become sick or dies.  Credit protection programs may be the best or only coverage for certain people who want this kind of protection, such as some consumers who are ill or who are concerned about making loan payments if they lose their job. 

But these plans may be far more costly or more limited in purpose than other options, such as traditional insurance which is not tied to a loan.

Avoid or limit interest charges

While it may sound good to pay the minimum due on your credit card so you have more money to spend on other things, the long-term cost of this strategy could be staggering.  That’s because credit card interest rates can be quite high—with the best of rates often being in the low double-digits.  Instead, try to pay all or as much as possible of your outstanding balance to avoid interest changes

Avoid late-payment fees

These are penalties, often $30 or more, charged by your lender when you don’t make a loan or credit card payment on time.  One way to prevent late charges is to arrange, at no charge, for an automatic withdrawal from your checking account to cover these and certain other recurring expenses (such as a utility or insurance bill).  The automatic debiting of your account also takes the hassle out of making scheduled payments and saves on postage.

Clearly review your account statements and other mailings from your lenders

Check your statements as soon as they arrive to look for errors, unauthorized withdrawals and other matters you might want to question or challenge.  The sooner the problem is detected the easier it is to fix.

Don’t be afraid to ask for a break

Do you think that the fees on your mortgage or credit cards are a little steep?  What about the fee that you were charged for being late on your loan or credit card payment?  Depending on the circumstances, your lender might be willing to reduce your interest rate or waive a fee or penalty, especially if you’ve been a good customer in the past.

If you have a serious credit problem, a reputable counseling service might help you avoid losses

A variety of organizations specialize in helping borrowers deal with debt overload, minimize the damage to their credit histories and, in the worst cases, avoid foreclosures that could result in the loss of a home or other property.  Their services range from helping people establish a budget to talking with lenders to discuss modifying the terms of a loan…read full article

Don’t be afraid to complain

Your bank’s manager will probably prefer you bring a problem to their attention and be given the chance to fix it rather than see you take your business elsewhere or tell all of your friends about a bad experience.  If you don’t get satisfaction from a customer service representative or another employee, consider talking to a supervisor.