Banks Reduce Credit Limits

Recent news indicates that credit card companies may be reducing credit limits on consumer accounts in response to the troubling economy. Consumer Action, a non-profit consumer advocacy organization, conducted a study this past summer entitled, "Consumer Action's Credit Limit Survey." According to this survey, 18% of the 1,083 participants revealed that their credit limits had been lowered by their banks this year. Consumers that plan to apply for new loans or credit may also face more stringent guidelines. A July 2008 Federal Reserve Board survey indicates that 65% of domestic banks had tightened their lending standards on credit card debt loans during the previous three months.

Is this good news? For years, many credit card companies have enticed consumers to spend by increasing credit limits and charging a relatively low minimum monthly payment. The convenience of credit cards have allowed some consumers to charge luxury items they would not normally buy with cash, cover emergency expenses, or pay for necessities such as groceries or gas during tough economic times. Shrinking credit lines could be viewed as a positive step in the right direction as many consumers may be required to live below their means.

Common Financial Setbacks

During your life, you will probably experience some sort of unexpected financial incident or emergency that will cause you to dip into your debt settlement savings fund. Below are some common situations that may drastically change a person's financial situation. At Credit Answers we realize that you may have your own complex set of circumstances that may require additional resources.

A Divorce Occurs

Divorce laws can be complicated and may differ by state. You may choose to seek the advice of an attorney that specializes in this field. Search for a divorce attorney in your area at Family Law Software. Under the section labeled "For Individuals Facing Divorce," click on the "Find Professionals in Our Directory" link. This site sells divorce-related software, but also offers valuable information about the divorce process. You can also check out the "Divorce Guide---A World of Help" link located under the "For Individuals Facing Divorce" column for a variety of helpful information and calculators. A certified divorce planner (CDP) may also be able to assist you. This professional is a financial planner that has completed additional training and education related to the financial issues of divorce.

A Family Member Passes Away

Coping with the loss of a loved one will undoubtedly take an emotional toll on family members. During this difficult time, most families will struggle with the unbelievable shock and grief of the situation. Therefore, finances and money will not be at the forefront of someone that recently lost a loved one. This will be a time that family members can band together to support one another in accomplishing some of the following necessary tasks.

- Locate important documents, such as insurance policies and the most recent will.
Before committing to any funeral costs, consult with other family members and perhaps a lawyer about any prior instructions or arrangements.

- Obtain multiple copies of the death certificate, which will be needed to apply for death benefits (such as life insurance policies or Social Security) and to access bank accounts.

- If the family's medical insurance is through the deceased person's employer, consider options for continuing coverage.

Making the Most of Gift Cards

In recent years, gift cards have become a popular present among gift-givers. The National Retail Federation (NRF) estimates that gift card sales will total $26.3 billion this holiday season. Here are some ideas to keep in mind when using or purchasing gift cards.

Read the fine print before you buy.

Although NRF reports that 92 percent of the nation's top retailers have no expiration date or dormancy fees associated with their gift cards, it is still wise to read the fine print. Gift cards from credit card issuers such as VISA, Mastercard, and American Express are more likely to expire and tack on fees for activation, maintenance, and inactivity. This information may appear on the card itself, on the accompanying sleeve or envelope, or on the issuer's web site.

Report your card lost or stolen.

If your card is lost or stolen, report it to the issuer immediately. Some issuers will not replace the cards, but others will replace them for a fee. According to the National Retail Federation, improved technology has allowed some retailers to reissue lost gift cards if consumers have the original purchase receipt. Some stores also encourage gift card recipients to register their cards online so they can check their balance and receive a new card in the event that their gift card is lost or stolen.

At Credit Answers we believe in educating our customers so they can get the credit card debt help they need. If at any point you have a credit card debt question, one of our experienced debt management settlement coaches will be happy to help you live better debt free. Call 1-800-297-6417 24 Hours A Day!

Benefits of Shopping Online

Malls and department stores may not be bustling with as many customers this holiday season. According to Deloitte's 23rd Annual Holiday Survey, online retailing will continue to grow this holiday season, with a record 71% of consumers spending at least part of their holiday budgets on the Internet. The survey shows that difficult economic conditions are a factor in the Internet's continued growth. More than one-third of consumers say they will shop more online in order to save on gas. In addition, because of the economic environment, more than half will be on the lookout for free shipping offers from online retailers. The tips below discuss in detail some benefits of shopping online.

Enjoy the convenience.

Before the days of online shopping, you may remember battling crowds, standing in long checkout lines, and fighting for parking spaces at a busy mall. These types of hectic environments may trigger stress and cause consumers to make impulsive or extravagant purchases. Shopping online allows you to browse the Web in the privacy of your own home. You may be more likely to make rational purchasing decisions and stay within your budget when you do not have to worry about diving on a store shelf for the last toy that is in demand. As mentioned previously, making purchases online can also help you save money on gasoline. According to a survey from the National Retail Federation, 23% of the participants claim that they shop more online because of high gas prices.

Take advantage of free shipping.

Shipping fees can be one of the hidden costs of ordering items online. However, according to a survey from the National Retail Federation, 78% of online retailers plan to offer free shipping with conditions during this holiday season. Many online stores require customers to spend a certain amount of money in order to receive free shipping. This is a great perk, but be careful of using free shipping as an excuse to buy extra items that you may not need. For example, if you only plan to spend $25, think twice before you spend $50 just to receive free shipping. Visit www.freeshipping.org for a list of offers from more than 850 stores.

At Credit Answers we believe in educating our customers so they can get the credit card debt help they need. If at any point you have a credit card debt question, one of our experienced debt management settlement coaches will be happy to help you live better debt free. Call 1-800-297-6417 24 Hours A Day!

Credit freeze laws are streamlined in certain states

A security freeze gives consumers the ability to freeze or lock access to their credit files against anyone trying to open up a new account for credit or services in their name. When a security freeze is in place at all three major credit bureaus, an identity thief cannot open a new account because the potential creditor or seller of services will not be able to check the credit file. When the rightful consumer is applying for credit, he or she can lift the freeze temporarily using a PIN so legitimate applications for credit or services can be processed. Most states give the credit bureaus up to three business days to lift or remove the freeze after a consumer makes that request. As of September 1, consumers in Arizona, Idaho, New Mexico, Utah, Wyoming, and Washington, D.C., will be able to lift or remove the security freeze within 15 minutes of making an electronic request to the credit bureaus using a PIN. This same provision goes into effect in January 2009 in Delaware, Indiana, Maryland, Montana, Nebraska, and Tennessee. The rules for using a security freeze vary across the country because of different state laws governing their use.

At Credit Answers we believe in educating our customers so they can get the credit card debt help they need. If at any point you have a credit card debt question, one of our experienced debt management settlement coaches will be happy to help you live better debt free. Call 1-800-297-6417 24 Hours A Day!