Guide to personal finance – Part 5

The world of personal finance for the average American has never been so confusing and as muddled with options as it does today in the early 21st century. Here are a few of the products and services out in the marketplace that will surely consumers even more:

1. Credit Cards: Credit card companies can be as slippery as a snake. They have all kinds of tricks to gouge your wallet and drive up your bill. While arguably unfair, all these tricks are legal, leaving you no alternative but to stay as informed as possible to protect yourself. If you don’t have a Master’s Degree in English or Finance, I suggest asking a lot of questions before signing up. Ask yourself if you really need this credit card and what are your goals. Are you going to use that plane ticket to take a yearly vacation? Is the cash back at the end of the year worth the additional spending you will do each and every month with the credit card in your wallet?

2. Merchant Account Credit Account: Did you know that when you accept credit cards on-line through a Merchant Account Credit account or at your local business, you can expect your sales to increase by an astounding 50 to 400%? You simply can’t compete if you don’t accept credit cards. However, be prepared to pay a price for this service. Transaction and maintenance fees can add up quickly and eat into your hard earned profit.

3. Credit Counseling Agencies: A day doesn’t go by that you’re not bombarded with e-mail and TV ads for companies promising to reduce your monthly payments, lower your interest rates and stop creditors from harassing you. If that’s begun to sound like music to your ears, various consumer advocates have two words for you: “Buyer beware.”

There are many reputable firms, but credit counseling agencies tend to fall into one of three categories: the good, the bad and the ugly. Knowing the difference can save you a lot of heartache – and money.

Clients typically pay for counseling, a one-time set-up fee, and a monthly maintenance fee. So beware of agencies that also charge an application fee, a membership fee, a hefty up front fee often called a “voluntary contribution,” or a per-creditor fee on top of monthly maintenance.

4. Colorado Debt Consolidation: If you live in Colorado, or any other state, don’t feel lucky! There is little difference or advantage in living in one state versus another when it comes to debt consolidation. You don’t get a special deal or relief by living in Colorado! Debt consolidation