All About Debts

Copyright 2006 Debt Management Credit Counseling Corp.

Debt Help Boca Raton, Fla -- One day you might be at work or at home surfing the Internet and run into an advertisement stating that a particular bank offers a 4.8 annual percentage rate for their savings accounts. You may be thinking to yourself, wow that percentage rate is much higher than my 0.35 percentage rate at my local bank. Better yet, this bank does not require a minimum deposit or length of time like many conventional bank CD's. Is this too good to be true? There has to be a catch! With a little bit of research you are able to confirm the information in the ad, but the offer is from an Internet Bank. Should I put my money into a bank that I cannot touch, and see every day as I go past driving to work? Welcome to the wave of new ways to bank; Internet Banking.

Credit card and even more so Store card interest are set at exorbitant rates for one reason alone, companies make their money from the consumer’s inability to settle their card balances. Credit card debt is unsecured, whereas other debt like your mortgage is secured (your home acts as security against your debt). With credit card debt, there is no backing security, which means that credit card debt is high risk for banks and hence the high interest rates

Counseling Debt Why do online banks offer higher than regular bank establishments?

Barclays Bank credit cards now fall under the umbrella of 'base rate tracker' credit cards, which means their typical APRs vary with the base interest rate as set by the Bank of England. If interest rates go up, your card's interest rate will too. If rates go down, however, so will the cost of using your Barclays Bank card.

Consolidation Consumer Debt According to an article published in the March 17, 2006 online edition of The Baltimore Sun, online bank rates can offer higher rates because they do not have the overhead of brick-and-mortar branches. They do not have the expense of purchasing property and constructing a building. For the computer savvy consumer, these great banking services are a mouse click or two away and available 24 hours a day. Comparisons of these banking services are at your fingertips.

A debt consolidation mortgage loan is often advisable when someone is paying off credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Homeowners will usually get a lower rate through a secured loan using their property as collateral. Another possible advantage is that interest you pay on your debt consolidation loan may be tax deductible. Your tax consultant can advise you on the matter,

Debt Settlement With all the different Internet schemes going on in this day in age, there are very legitimate reasons why people are scared or even paranoid to deal with their finances online. Phishing is one scheme that has made people very wary. In a typical phishing case, you will receive an e-mail that appears to come from a reputable company that you recognize and do business with, such as your financial institution. In the e-mail, phrases such as (immediate attention required) or (please contact immediately about your account) among many others will appear. The e-mail will then have a link directing you to a phony website where they can take all your private information. Then we all know what happens from there. This is why people hesitate to handle their finances on the Internet. So how can I make sure any bank (including an Internet Bank) is legitimate?

How to stop three quarters of your money going down the drain. South Africans now spend 75% of their monthly income on debt repayments! That's three quarters of every Rand earned! And considering that your cheapest debt is costing you probably at least 11% interest a year, your average debt about 23%, your most expensive debt possibly 40% and old debt 50% per annum, what this all adds up to is that most of your money is going down the drain (or to make the banks richer, if you prefer!).

Debt Free Make sure the bank is FDIC insured.

When investing, this is your original investment. When borrowing, this is the amount of debt, excluding interest. Capital and Interest Mortgage Also known as a repayment mortgage rate mortgage Whatever happens to the Bank of England base rates, the interest rate you are charged on this type of mortgage will never rise above a certain cap during a set period.

Consolidation Debt Service According to the official site, www.fdic.gov, there are four major tips to find out if the bank is legit or not.

Company Consolidation Debt . Confirm that an online bank is legitimate and that your deposits are insured.

Consolidation Debt Online . Read key information about the bank posted on the website.
o Most online banks have an "about us" section that will describe their institution.
o You may find the official name, the address of the bank headquarters and if they FDIC insured.

Consolidation Debt Free . Protect yourself from fraudulent websites.
o Watch out for sites trying to copycat online bank sites in intent of gathering your information.
o Always make sure you type the web address correctly.

Debt Problem . Verify the bank's insurance status.
o Look for the familiar FDIC logo or the words "Member FDIC" or "FDIC Insured" on the web site, but beware that some bogus bank sites that phish for your account information will put a fake FDIC logo on their site.
o Go to the FDIC search engine and check to see if the bank is insured by the FDIC at http://www2.fdic.gov/idasp/main.asp?formname=inst

Credit Debt As of this month, according Bankrate.com, HSBC was offering a 4.7 introductory rate. ING DIRECT was offering a 3.93 introductory rate. Almost all of the online banks were in the threes and fours. So as you can see - there is a great opportunity to save quite a bit of cash. So, why not put your money to work for you? But make sure when you are considering Internet banking, do your homework first.

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Card Credit Debt Eliminate Pete Glocker is employed in the Education and Charitable Services Department at Debt Management Credit Counseling Corp. ("DMCC"), a 501c(3) non-profit charitable organization located in Boca Raton, Florida. Pete graduated from Florida Atlantic University with a BA in Multimedia Journalism and was a web producer Intern for Tribune Interactive products Sun-Sentinel.com and SouthFlorida.com. DMCC provides free financial education, personal budget counseling, and debt management plans to consumers across the United States. Debt management plans offered by DMCC help consumers relieve the stress of excessive debt by reducing credit card interest rates, consolidating and lowering monthly payments, and stopping collection calls and late fees. DMCC financial counselors can be reached for free education materials, budget counseling and debt management plan quotes by calling 800-863-9011 or by visiting http://www.dmcccorp.org . Pete Glocker can be reached by email at pete@dmcccorp.org.

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Pete Glocker is employed in the Education and Charitable Services Department at Debt Management Credit Counseling Corp. ("DMCC"), a 501c(3) non-profit charitable organization located in Boca Raton, Florida. Pete graduated from Florida Atlantic University with a BA in Multimedia Journalism and is an experienced web producer for Tribune Interactive products Sun-Sentinel.com and SouthFlorida.com. DMCC provides free financial education, personal budget counseling, and debt management plans to consumers across the United States. Debt management plans offered by DMCC help consumers relieve the stress of excessive debt by reducing credit card interest rates, consolidating and lowering monthly payments, and stopping collection calls and late fees. DMCC financial counselors can be reached for free education materials, budget counseling and debt management plan quotes by calling 800-863-9011 or by visiting www.dmcccorp.org. Pete Glocker can be reached by email at pete@dmcccorp.org.

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