Why Consumers Are Afraid Of Credit Cards? – 4 Main Fears

At times of unstable economical situation many American consumers have found themselves afraid of anything associated with debt, and credit cards are one of the financial tools that come first in the list. So let’s figure out if credit cards are really that scary and how to avoid making costly mistakes.

Here are the four main fears related to the credit card use:

1. Overspending.

This concern is one of the most important as many people really spend more than they should while using credit cards. But other forms of payment can also lead to overspending, so just concentrate on tracking your spending. 

You can do it online, in real time. It’s also very convenient to use the mobile app, if it is provided by a credit card issuer. With many accounts, credit card users may set alerts to be reminded that the preset threshold has been reached. Take advantage of such options!

2. Missing the Payment Due Date.

If you miss credit card payment, be sure to be charged costly fees and penalties. But you can simply do your best to avoid such situations by setting up certain reminders online as well as using an auto-payment system that is offered by most of credit card issuers. 

Besides, you can do some research to find the cards which have no penalty interest rates or late fees (for example, Citi Simplicity or PenFed Promise). Still there is a risk that your late payments can be reported to the credit agencies, meaning that your credit score can be negatively impacted. So, reminders seem to be the best option.

3. Annual Fees.

Annual fees are one of the reasons why people avoid using credit cards. But there is a way out. Premium credit cards are usually associated with the annual fees which are justified with the offered benefits and rewards. 

However, there are still cards which are offered with no annual fees, but also have certain advantages. Consider such credit cards as Discover it, Chase Slate, Citi Double Cash, etc.

4. Other Extra Fees.

In addition to late and annual fees, some Americans are afraid of other charges which may be associated with the credit card they use. The thing is most credit card issues charge additional fees for balance transfers, cash advances, foreign transactions, etc. 

And that can be rather costly. Thankfully, you can choose among simple credit cards which are provided with no additional fees mentioned. Just do some research and find the card that suits all your needs and wishes.

So, there is no need to be afraid of any financial services offered today. Many of them are really useful and may work for your benefit, if you make the right choice. Most of American consumers and people all over the world get used to paying with credit cards as it is very convenient. 

Maybe it is not necessary to refuse using the option? Just spend some time for careful research and be sure to find what you need.

How You Can Prepare Yourself Financially to Purchase a Home in Retirement

For most people, buying a house is the single largest financial transaction of their lives. Purchasing a new home at the right price and with favorable terms and interest rate can put you and your family on the road to a good financial future. Patience and preparation are the keys that will unlock the door of your dream home.

Monitor Your Credit

Mortgage lenders like to see credit scores of at least 700. You'll pay higher interest with a lower score, and might be denied a loan altogether. Check your credit regularly and make sure there are no errors that reduce your score. Also, it can hurt your credit when you apply for mortgage financing from multiple lenders. Only apply when you're ready to move forward with the home purchase.

Build Savings

Plan on saving about 10 percent of the purchase price for a down payment. It's wise to have more savings to cover closing costs, and an emergency reserve equal to several months’ expenses. The bottom line is that the more cash you have saved up, the more likely it is lenders will offer good rates.

Educate Yourself

Understanding the mortgage process is a vital part of preparing to buy a home. You must decide between a fixed rate and an adjustable rate mortgage. Fixed rate financing is the most expensive. However, an ARM can end up costing more if interest rates rise. Make sure you know how closing costs and other fees will affect the financing of your home.

Ask the Experts and Compare

When you shop for mortgage interest rates, consult experts. Start with the loan officer at your bank and your real estate agent. Comparison shop by contacting loan officers at other banks, credit unions and other mortgage lenders.

The FHA and VA

The FHA and VA loans are a good place to start. With an FHA loan, you may need no more than a 3.5 percent down and credit requirements are less stringent than for regular mortgages. You will have to purchase mortgage insurance. Veterans and military service members qualify for VA loans. 

In some cases, there is not a down payment. Check out Low VA Rates for more information. The financial advantages of either program are considerable, so you may want to check them first.

There's a lot of preparation before you will be financially prepared to purchase a home. The work and time are worth it because it's likely to save you many thousands of dollars.

Reaching Your Specific Audience is Key to Your Marketing Plan

Every product has a different audience, you must reach that audience in order to be successful. Everything that you do needs to be geared towards your audience, or you will be wasting your time. 

However, it is not always easy to find and impact your target audience. Here are 6 tips and tricks to help you focus your marketing for your specific audience.

Discover Your Audience

The first thing you have to do is determine your audience. Every audience has different habits, preferences, communication styles, etc. And you have to market specifically for your audience. 

As suggested here, sit down and create a stereotype for your audience. Write down everything that you know about them: their gender, age, where they work, what they do for fun, their shopping habits, what type of job they have, where they live, etc. While not every one of your customers will fit into your perfect stereotype, they will have many things in common. 

Focus your marketing towards the stereotype you have created. Remember that if you try to speak to everyone, you’ll just end up speaking to no one.

Appeal to Your Audience

Once you have determined your audience, you can speak right to them. Let them know why they need you. What types of advertisements will they connect to? What is it about your product that will change their life? 

Remember to make your marketing about your customer, and not about you. Create content that will set up a conversation with your audience, not a lecture. Be genuinely interested in your consumer, and they will respond. Use the three rhetorical appeals (ethos, logos, and pathos) to reach out to your consumer. 

Essentially, inform your audience that you know what you are talking about, appeal to their ability to reason, and give them something that will touch their heart. (This persuasion method was created nearly 2,000 years ago by Aristotle, and has been proven effective over the test of time.

Be Seen by Your Audience

After you have determined who your audience is and how to appeal to them, you have find ways to get seen by them. Figure out what type of media your audience is consuming, and get on it. If you have an audience in a specific location, consider putting up a billboard for them to see every day. 

Find out what magazines and coupon books go out in that area, and get an ad in the mailer as soon as possible. If you are trying to connect to businesses, go to relevant trade shows, send letters or emails to businesses, and consider visiting them in person. Don’t forget to reach them online too (see below). 

Remember to keep your marketing specific and focused. If you get contacted by a magazine that your audience doesn’t read, don’t waste your time and money creating an ad for that company. Decide what will work for you and your audience, and do it.

Decide What Sets You Apart

You and your competitors are trying to reach the same people at the same time to sell essentially the same products. Determine what it is that makes you different and advertise that. Be careful not to over-compare yourself to your competitors, as it is tacky and a huge turn-off for customers. 

Instead, focus on you and your business. What do you do that is unique to other companies? Do you offer free samples? Have an amazing return policy? Do you have a secret recipe? Do you offer a service that no one else does? 

Is your treatment plan different than other companies? Do you offer a famous favorite at your restaurant? Let your customers know why you are unique. Make sure that it is right on your website, and something that you advertise frequently.

Reach Them Online

Communication is no longer as it was. Before, you would reach customers by mail, phone calls, radio ads, billboards, or in person visits. Now we have the internet that not only speeds up communication, but makes advertising incredibly easy. Take, for example, Facebook ads. 

For as little as $5 a day, you can reach out to your specific audience and get your brand seen. Facebook allows you to narrow your target audience based on age, location, things they like, and more. Unfortunately, you do have to reach your audience online, as it how the world connects. 

Make sure that your website is up to date and you keep up on your blog. Get your brand on social media (especially on Facebook, Twitter, and Instagram), and be active on your social media pages.

Give Back

The best way to get noticed is to give back to the community. It is positive PR that gives people a good feeling about your business. While you should not give back solely for the PR, it does help your business. 

Charitable donations are also tax deductible, make you look good to customers, give you free advertising, and makes your community a better place to live in. Find a charity that works well with your business, or create your own. 

For example, if you are a cruelty-free skin care company, partner with a company that tries to make life better for animals around the country (like this company); if you are a furniture and appliance store, team up with a non-profit that rebuilds homes for low-income homeowners; and if you are a children’s toy and entertainment company, consider donating to a children’s hospital.

Road to Recovery: How to Take Care of Your Personal Finances After a Major Accident

A major accident can derail your life in several ways. Not only is your daily routine and ability to work impacted, you may also have changes in your lifestyle, interpersonal relationships and even your love life with your partner. 

After a major accident, handling your personal finances is a crucial step to ensure your future, including your retirement and investments. Here are some aspects you'll want to handle as soon as you're able.

Automate Your Monthly Bill Payments

After a major accident, you may need surgery, physical therapy and rehabilitation to heal your injuries. The last thing you need is a late or entirely forgotten mortgage payment or car lease. 

Set up automatic payment so there is no chance of a late or missed installment. This will protect your credit rating and give you peace of mind during recovery, in addition to avoiding late fees.

Get Legal Representation

No one really thinks to get legal representation to help them with their finances after a major accident because they think getting a lawyer will damage their finances further. If your accident was the result of someone else's negligence or malice, you may be entitled to a settlement. 

Find out what your rights are by contacting a lawyer such as Pritzker Law or another local law firm. If you're approached by legal counsel representing the other party, sign nothing until you secure counsel of your own and get guidance. You could accidentally sign away your rights to a settlement or, worse, take blame upon yourself. 

You want to make sure that you get out of this situation as cleanly as possible with as much money in your bank account as possible to cover your expenses and recovery after your accident.

Find All of Your Insurance

Depending on the accident and the extent of your injuries, you may qualify for short or long-term disability payments, loss-of-income insurance or other related payments. 

If you've lost a digit, a limb, sight or partial sight or suffered other permanent disfigurement, you may already be insured for that through your employer, life insurance policy or even insurance offered by your credit card company. Read the fine print and find all the insurance you are entitled to collect.

Draw up a New Budget

You wallet is going to take a hit after being hit in a major accident. After an accident, your needs and expenditures will likely change a lot. You may not need to buy coffee and lunch every day if you're not heading into work, but you may instead require copays for doctor visits, physical therapy or prescription medications. 

You may not need to sign up for the next season of ballroom dancing lessons, but you may need more fuel since you can't walk to the store like you used to. Don’t forget about your insurance payments too that you will likely have to make in order to have proper coverage otherwise you will end up paying for your medical bills out of pocket. 

Those bills can become very expensive very quickly. Consider your new limitations and needs, then draw up a realistic budget. This will help you keep tabs on your spending. Save as much money as you can. 

Cut anything from your budget that isn’t important for you to have at this time. You can always pick those amenities back up later.

A major accident is a life-changing event with big ramifications. By handling your personal finances as soon as possible, you can ensure your retirement and financial future will stay on track.