I often run into people who ask what is the difference between debit cards and prepaid cards.  My response to the questions is always, what are you trying to accomplish?  Of course, the answer always vary from person to person.  Here is a simple overview of the two cards:

Debit Cards- Issued by your bank, debit cards take funds directly from the money that you have in your bank account and acts like a check, just faster. With a debit card, you don’t have to carry cash or checks, and it is very convenient to shop at a variety of places including gas stations, grocery stores, restaurants, and retail stores. They provide instant access to your money and are accepted worldwide.

• Use of a debit card is limited to the existing funds in the account to which it is linked.

• You don’t need great credit to have a debit card.

• Not all debit cards may be helping you to build your credit score. You should make sure that good use of your card is being noticed.

• One of the biggest downsides of debit cards is the possibility of overdraft of accounts.

Prepaid Cards- Prepaid debit cards are reloadable cards that allow you to only spend up to the amount you have pre-deposited into the account. If you tend to overspend or would like to control your spending then prepaid debit cards could be a good card for you.
Prepaid Cards can be reported to Credit Bureaus depending on which company you get your card with. Paying bills such as: electricity, rent, car note, and insurance can add to your credit score. Some companies that have prepaid cards and report are: American Express, RushCard, Green Dot, and UpSide.

•There may be hidden fees inside of these cards so use care before purchasing. The number one thing about prepaid debit cards, there is no chance to get into debt.

• These cards are even safer than regular debit cards. You put a certain amount of money onto the card and then you can only use the money you have.

• Since your prepaid debit card is not attached to your bank account, if it is lost or stolen your entire bank account will not be drained.

• The account holder can add money to their pre-paid charge account at any time, or money can be automatically transferred from another separate account on a scheduled basis

• There are no interest rates applied to prepaid debit cards, although there are sometimes fees associated with them.• Guaranteed approval, worldwide acceptance, and ease of use are just a few of the benefits of a prepaid card.

This information was compiled by a number of sources.  Each person requirements are different and you must do what is best for you.  Good luck and I wish you much success.  Coach!

 

In the beginning of this year, I wrote a blog about Money and using tax refunds responsibly. The first quarter of the year is over and the tax season is closing on April 17, 2012. The question remains, “What did you do with your tax return?

There are those who received their refunds and immediately went shopping spending money on “THINGS” that wasn’t apart of their plans. Others may have taken a Spring Break vacation with their families using the monies returned from taxes. In addition, there are those who had a plan and paid down debts, put money away, or invested money in ventures that will yield them returns. This article is only intended to bring awareness to established priorities.

Regardless if you had a plan or just winged it, it is important to take additional revenue serious in this still fragile economy. Debt reduction and credit improvement should be added to your short-term plan. Credit improvement will allow you to negotiate better terms on existing loans. The money you can save by paying off debts allows you to reallocated money towards paying off other high interest loans. This is one of many strategies that can save you thousands in the long haul.

As humans we can often splurge or get off track and I hope that those reading this article consider their plans and use this as a tool and not view this as a lecture. I personally see some areas I can make some adjustments.  I hope we can continue to work our plans to become totally debt free!  Join the community www.Coach-Credit.info as we grow together and find ways to collectively get out of debt, raise credit scores, and ensure our future financial success.   Oliver aka, Coach-Credit!

 

Strategies of Debt Collectors

In order to understand why debt collectors are such “hounds”, you must understand where they come into the picture. In the beginning, the bank has what we call a charge off.

What is a Charge-Off?

Because of government regulatory rules, banks have to remove bad debts from their books after six months. “Charge-off” is a financial accounting term for loss. It does not mean you are released from any obligation to pay the debt. The bank should report the account with a zero balance, but this is often not the case. Your credit report may also show an item from a collection agency for the same account. When a creditor puts a "charge off" on your credit report, it means the creditor no longer believes you will pay the bill and has written the debt off of its books. The collection agency will then come after you to pay up. While it is legal for them to pursue you, they have to live within the rules of the Fair Debt Collection Act.

Negotiating with the collection agency is an easier approach once the torch has been passed to it. If the collectors have stopped calling you, it means they're not optimistic about getting paid, and you're in a better position to negotiate a win-win deal.

Here are some negotiating hints: (ALWAYS USE THE www.CreditCoachingSystem.com/coachcredit )

• Talk to the person who can make the settlement decision.
• Be polite and accommodating, but don't offer any information on where you work or bank.
• Know what you can afford to pay, and don't agree to a penny more.
• Get everything you've agreed upon in writing before you pay. If you're doing this via phone, have a fax number ready, so they can send you a statement of what you've agreed upon before you deliver the cashier's check or money order.

There are definite rules and regulations regarding the handling of collection accounts by creditors and by the collection agencies. The Federal Fair Debt Collection Practices Act guarantees you specific rights as a consumer when a personal debt has been turned over to a debt collector. These include:

•The right to stop them from contacting you, except to notify you of specifications being taken.

•The right to receive a full written notice explaining the amount you owe, to whom you owe it, and what action you should take if you believe you do not owe the money. (Validation of Debt Form)
 

Often, I visit different credit report sites and I get confused with the endless information that is in circulation.  This video shows a topic of Credit and Employment.  Tell me what you think! http://youtu.be/HXfBWwR6FPg

This attached article was written by myslf and three other business owners in Metro South Atlanta.  We merged ideas to create a few various tips to help people stay focused and on track for 2012.  Money is hard to save so try not to waste it and take heed to these tips.  Enjoy Coach!

http://www.henryherald.com/news/2012/jan/23/professionals-help-locals-accomplish-new-years-goa/

Payday Loans, Fast Money or More Problems?

January is normally a difficult month in can be stressful for families. The holidays are gone and some families are finding it hard to pay bills. Payday loan companies often introduce themselves as the help families are looking for, in such a pinch. Seeking help from companies that offer payday loans or cash advances on your next paycheck can be tricky. Loan companies require you to write a check for the amount you’d like to borrow plus an additional interest fee to cover their services. You receive money while they anticipate cashing your check on the prescribed date of the check. This is nothing but a temporary fix however, the additional fees you pay is often a future burden. One thing leads to another and often people find themselves drowning in advance debt!!!

How Do Payday Loans Work?

Simple, all that is required is for you to fill out a simple application and sign a few forms. Once you are approved, you get the money in hand or you can have it deposited into your bank account. This sounds all too easy and people flock to these companies by the thousands. On your next payday, your account is debited for the amount you owe and the fees that have accumulated. No collateral is necessary or accepted. Please use extreme caution if you take this route to overcome short-term cash shortages. I recommend alternatives to this quick fix, because you will pay more in the long run. Coach-Credit!
 

There are many people who are gathering their tax information to get a jump on filing income taxes for the year ending 2011. Here is an example of a tactic that will be used this year to help people file for money quickly! These businesses prey on those who have less than perfect credit and find it difficult to extend credit on normal circumstances. The results can be overwhelming, stressful, and embarrassing. If you find yourself having to use these services, please use caution and make every effort to read the fine print.

The New Year means tax refund time, an opportunity or a source of funds for millions of people nationwide. While April 15, 2012 may seem like a lifetime away, cashing in on your refund in the form of a Refund Anticipation Loan (RAL) can be a source of lost funds/money for the person who jumps the gun.Many tax preparers and companies offer to pay their clients tax refunds before receiving money from the government. While you may think this is a simple and convenient cash advances, think again. The same preparer will likely charge fees and interest on top of the loan amount, reducing your overall refund. If you can make some sacrifices and hold out just a little longer, the refund will yield its maximum return. Good luck and watch your money. Coach!