Use these 7 smart money management tips for safe shopping.

1 – Try to use cash or a debit card instead of a credit card to keep from increasing your debt. If you use a credit card, pay off the balance as soon as your statement arrives.

2 – When you do use a credit card, check your statement to see if it is a daily or monthly interest rate card. If it is a daily interest card, pay it off online as soon as the charge hits your card to stop the interest compounding every day until you do pay.

3 – Never allow the cashier to leave your card lying on the counter where someone can read, or snap a photo of, the card information.

I have a client who had someone use a cell phone to photograph their card when the cashier placed in face up on the counter rather than handing it back to my client, and then use my client’s card to wire money from Western Union to their brother in another state. I caught it when I saw the $600 charge and asked my client about the charge.

4 – If you are shopping online, use a Credit Card because it offers more protection for online shopping than debit cards.

If fraudulent charges are made with a debit card and you don’t report the activity within two days, you can be held liable for up to $500. On the other hand, if unauthorized purchases are made on your credit card, U.S. Federal law limits your liability to just $50, and in most cases the credit card issuer will waive that fee.

5 – Check your card statement for fraudulent charges online or as soon as you receive it in the mail. You may face unlimited liability if you fail to report the fraudulent charge within 60 days of receiving of the statement that lists the fraudulent purchases.

6 – When shopping online, make sure your computer has the latest virus and spy protection software.

7 – When shopping online be sure to shop only on trusted and secure sites with https:// as the URL in the web address bar at the top of the screen. The “s” is the signal that the website is secure. You can also look for a closed padlock icon on the bottom of the screen in the shopping cart areas.

What other good tips can you think of? Leave them in a comment.

Do you need some debt relief? You are not alone. Here are 5 tips on reducing debt that you can do right now.

1 – Knock Off Using Credit

The place to start is by locking away the credit cards and figuring out how to cut expenses back to function within your income. Figure out ways to increase your income and instead,use only cash. This is the single most effective action you can take.

2 – Never Commit to Spending More Than Your Company’s Income

When you pay for an item with credit because you don’t have the cash, you are committing your business’ future income to pay the credit company. That’s the recipe for economic slavery. Evaluate whether or not the item will increase the company’s production of income. If the item will increase the business’ production of income, work out how to set aside the cash to pay for it over a short time period instead of whipping out the credit card. Find ways to increase the company’s income and use it to pay both current expenses and pay off credit debt.

3 – Pay More Than The Minimum Payment That’s Required

An effective way to reduce the debt every week is to take 10% to 15% off the top of the company’s income and use it to pay down the debt. Set a goal to pay at least 3 to 5 times the minimum required payment on each credit card and line of credit. Set aside some of the payment money every week before the statements arrive in the mail. It is less difficult to set aside a smaller amount over 4 weeks than to try to come up with a big chunk in one week.

Your debt reduction program should also include the strategy of paying more on the highest interest rate card. Another strategy is paying off the lowest balance cards as fast as possible. This will free up more cash to pay against the higher interest rate cards.

4 – Never Pay Late or Spend Over Your Limit

Never sabotage your debt reduction program by getting hit with $25 to $39 over-the-limit or late fees plus the interest on those fees. Plus, if you pay over 30 days late, your credit record carries that big black mark against you for 7 years – a whopper of a penalty.

Recently a Vice President of a U.S. bank appearing on the news stated that over 24 Billion dollars was paid in interest, late fees and over-limit fees last year on credit cards. I hope you don’t think the credit company minds too much if you go over your spending limit or mail your payment late. They collected billions because of it.

5 – Find Ways To Cut Expenses

A requirement of a debt reduction program is more cash as fast as possible to pay the debt off. Examine where your business’ income is going and reduce all unnecessary expenses that do not contribute to making more money. Before you spend, work out how much money each and every purchase is going to return to your company.

TIP: Continue promoting your your company and its products to everyone – this is one area you don’t want to stop spending on. Just make sure you are getting a handsome financial return on the promotional investment.

Correctly managing the money in a business to make sure it survives takes more than a program to reduce debt, but this is a great place to start. There are other steps in my money management software program that can be taken to increase the business’ income, pay bills on time, have savings for emergencies, increase profitability and pay yourself a bigger paycheck. Who doesn’t want that, right?

Sandra Simmons, President of Money Management Solutions, has years of experience helping professionals and private individuals manage their income to eliminate debt. Claim your FREE Debt Reduction Solutions Guide

© 2007 Sandra S. Simmons. All Rights Reserved.

Need a debt consolidation program? You are not alone. Here are 5 tips on reducing debt that you can do right now.

Debt Consolidation Step 1 – Knock Off Using Credit

If you haven’t done this one, then this is the place to start. Put the credit cards and line-of-credit checks under lock and key, and operate as if you don’t have them at all. Figure out how to make more income and pay cash instead. This is the single most effective action you can take to start your debt consolidation program.

Debt Consolidation Step 2 – Never Commit to Spending More Than Your Income

When you pay for an item with credit because you don’t have the cash, you are committing your future income to pay the credit company. Then you experience economic slavery. Ask yourself if you just want the item or if you really need it to increase your production of income. If you need it, figure out how to make the cash to pay for it over a short period of time, instead of buying on credit. Find ways to increase your income and use it to pay both current expenses and pay off credit debt. That will really but the rocket booster on your debt consolidation program.

Debt Consolidation Step 3 – Always Pay More than the Minimum Payment Required

Your debt consolidation program will be most effective if you carve out a minimum of 10% to 15% of your income. Use this money to reduce debt. Set a target of paying 3 to 5 times the minimum monthly payment on every credit card. Set aside some of the payment money every week until the statements arrive. It’s always easier to save small amounts over 4 weeks than to pay a big bill all at once.

Your debt consolidation strategy should include paying more on the highest interest rate card. Combine that with paying off low balance cards as fast as possible. As you pay off a card, use the money you were paying on that card against the highest interest rate cards. Don’t cancel a card, as this lowers your credit score. Just keep the card locked away and don’t use it.

Debt Consolidation Step 4 – Never Pay Late or Spend Over Your Limit

Do not destroy your debt consolidation strategy by getting hit with late payment or over-limit fees of $25 to $39 on which you’ll pay interest. Plus, if you pay over 30 days late, that black mark stays on your credit record for 7 years – a harsh penalty to pay.

Recently a Vice President of a U.S. bank stated that last year over 24 Billion dollars was paid out in interest, late fees and over-limit fees on credit cards. Do you think the credit card company really minds if you pay late or go over your limit? If they didn’t want you to spend over the limit they could have declined the charge, right?

Debt Consolidation Step 5 – Cut Back on Expenses

Reducing debt requires as much cash as possible, as fast as possible. Look closely at where your income is being spent and cut back on any expenses that do not contribute to the production of more income. Before you spend, figure out how much money that purchase is going to bring back in to you, your family or your business.

TIP: If you are a business owner, always promote your business to everyone – don’t cut back on that activity.

Correct business money management, to ensure your financial survival, takes more than a debt consolidation program, but this is a great place to start. There are other steps that you can take to increase income, pay bills on time, have cash reserves for emergencies, increase profits and pay yourself more money. Who doesn’t want that, right?

P.S. Claim your FREE Debt Reduction Solutions Guide

P.P.S. Sign up to attend our ongoing series of FREE business building on-line webinars at BizWebTV.com/AdvanceNotice

Buying with a credit card is an alluring trap invented by our modern financial system.

Buying something using a credit card is not bad, IF you have the income to pay the credit card balance in full when the statement arrives, plus all your other bills.

But buying with a credit card because you don’t actually have the money, is simply committing your future earnings to the credit company under the threat of a bad credit rating. That is financial slavery.

Credit card debt = financial slavery

Buying with a credit card

when you can’t pay

is financial slavery

Over the past few years, financial experts have helped a lot of people to get out of the credit card trap with debt reduction programs. Helping people do this is not looked on favorably by the credit companies; they lose all that profitable interest. They take counter measures to hook more people back in by offering 0% percent interest for some period of time.

Are they really giving you 0% interest? Only if you can pay off the debt before the time frame is up. What they are counting on is you NOT having the ability to pay it off.
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