Bad news keep pouring in for the citizens of America. Student loans are going to be scarce in the near future. In addition to that, consumers may have to pay more for the checking accounts. If the reports are correct, banks are going to reduce the number of non-interest checking accounts in the country. Most of the banks don’t charge fees for these accounts. However, this situation is going to change soon. Most of the reputed banks are planning to cut down the number of these accounts by a considerable percent. Besides, consumers will not be able to take advantage of free checking option as easily as they used to do earlier.

Read on to know how the consumers may have to spend more bucks for the checking account.

Checking accounts becoming more costly

Go through the following lines to know about the various ways in which you may have to pay more for the checking accounts:

1. Maintenance fees are rising: An increasing number of banks have started charging account maintenance fees nowadays. The sad news is that these fees are increasing day by day. The account maintenance fee has increased to around $4.37 in the year 2011. The financial experts believe that the trend is less likely to change in the coming days.

2. Fewer options to avoid fees: Some banks offer several options to the consumers so that they can avoid paying the monthly fees on the checking accounts. However, the banks have started limiting these options for generating more revenue. Earlier, you didn’t have to pay any fee by maintaining a minimum balance of $249 in the checking account. Now, the minimum balance criteria have increased to $585 in the year 2011.

3. Free checking accounts declines: According to a recent survey, the number of free checking accounts is fast declining. In 2010, the number of non-interest checking accounts for which the consumers were not required to pay any maintenance fee was around 65%. This figure has dropped to around 45% in the year 2011. The financial experts are blaming the new regulations for the drop in the number of non-interest checking accounts. The correct economic condition has also played a major role in this.

4. Debt card fees will be more prevalent: Most debit card companies don’t charge any maintenance fees on the consumers. At present, around 4% of the debit card companies charge sale fee on the consumers. Nearly, 2% of the companies charge a fee for using a debit card. The fact is maximum people are not even aware of these fees. They hardly know how to interpret the account statements.

However, it is expected that the debit card fees will become more prevalent after the Durbin Amendment. So, great ready to pay a fee for carrying the plastic card or transactions.

5. ATM fees are increasing: The ATM fees are increasing for the past 7 years. The fee has increased to $2.40 in the year 2011, an increase of 3% from that of 2010. The ATM fees increases every year, which means consumers have to pay more each year.

3 Tips to avoid paying more for the checking accounts

Here are some tips which you can use to avoid paying more for the checking accounts:

1. Make a direct deposit: One way to avoid paying monthly fees on the checking account is to make a direct deposit. Some banks are not charging any fee on the non-interest accounts when the consumers are making a direct deposit. They are giving this option to the consumers to maintain a healthy relation with them.

2. Check your account statement: Keep an eye on your account statements from time to time. This will help you find out whether or not the bank has started charging any new fees.

3. Switch to credit cards: If the debit card issuer starts charging fees and you don’t want to pay it, then you can switch to the credit cards again. Make timely payments on the cards and take advantage of reward programs.

Finally, if you feel that your bank is charging an excessive fee on the checking account, then you can switch over to another bank. There are some banks and financial institutions that are still charging moderate fee on the checking accounts due to intense competition in the industry.

Have a look at the 5 financial tips for the 3rd week of August 2011

1. Install security equipments to achieve a low car insurance premium

Installing anti-theft and security equipments can help you lower your insurance premium by as much as 10%. Various kinds of safety devices are available in the market. You can install air bags, head restraints, steering-wheel clock, alarms, hood locks, back-up sensing system, passenger sensing system, seat belts, etc, in your car.

Proper safety devices help to reduce the car theft and damage risks. This is why car insurance companies lower the premium rates. You may have to spend few hundreds of dollars for purchasing and installing these equipments. But you’ll earn long term benefits by installing these equipments. Your car will remain safe and you’ll save money on your premiums.

2. Opting for online documents can help you monitor your accounts regularly as well as save environment.

You can monitor your accounts online nowadays. You won’t have to stand in the long queue for several hours to get your account statements. You can get the account statements in your personal email. You can check your account statements at night when most of the banks are closed. You won’t have to take out your car to reach the nearest branch of the bank. This means that you can avoid exhausting fuel and polluting environment.

Online documents can help you save the environment in another way. The banks don’t need to use thousands and thousands of pages for printing the account statements. Everything is done via emails.

3. Do not use too many credit cards

Using too many credit cards is not a healthy financial habit. Credit cards come with high interest rates. As such, it may become hard for you to keep up with the payments. If you are unable to make the required payments on time, then your credit score will get hurt. Late payments will be reported on your credit report and make a negative impact on your score.

If you are irregular with your payments or miss payments for a long period of time, then the accounts can be assigned to the collection agencies. Thereafter, you’ll have to deal with the aggressive debt collectors.

4. The best place to start saving is from home.

There are various ways in which you can save money in your home. For a start, you can potentially save hundreds of dollars on your electricity bill. You can turn off the lights when you are going to your office or college. You can use CFL bulbs at your home.

If some items have been broken, then you can try to repair them yourself. You can even purchase second-hand items for your house. These items are available at a low price. You just need to pick the items that are in good condition and can be used on a daily basis.

5. Use mortgage calculators before getting a mortgage in order to decide on your affordability

Mortgage calculators help you calculate the total cost of the home loan. These calculators help you compute the annual interest rate, monthly payments, amortization period, etc. The calculators also help you compare the different kind of mortgage loans. This way, you can know which loan will be suitable for you.

There are various types of mortgage calculators available nowadays. These are monthly payment calculator, cost calculator, early mortgage pay off calculator, interest only mortgage calculator, adjustable rate mortgage calculator, etc.

Check out the 5 financial tips for the 2nd week of July 2011

Tip no 1 – Lower the usage of credit cards to avoid incurring huge debts

If you seriously want to avoid incurring debts, then it is better to lower the usage of credit cards. The interest rates on the credit cards are quite high. As such financial experts advise consumers to not use them regularly. You can make all your purchases in cash instead of credit cards. This way you’ll be compelled to spend only what you have in your wallet at a given point of time and not an extra penny. It is best to keep the credit cards for the emergency purchases and occasions. This will help you avoid getting into debt problems and lead a financially happy life.

Tip no 2 – Never co-sign for a loan if you can’t afford to pay it off

Many a times, friends or relatives ask you to become a co-signer for their loans. Most of the times, you agree to their requests out of love and respect. But it is not always a good decision for your financial health. The reason is, as a co-signer, you are legally obligated for a loan. So, if the primary borrower fails to repay the loan, then the lender will come after you for the payment issues. In such a situation, you will be accountable to pay off the loan. Therefore, before becoming a co-signer for a loan, check whether or not you have sufficient funds to repay the debt.

Tip no 3 – Maintain your state minimum coverage requirements

Every state has some laws regarding the minimum amount of coverage you need to purchase. You can visit the state insurance commissioner’s website to know about the minimum insurance requirements in your state. However, insurance experts are of the opinion that it is not a wise idea to buy only the minimum coverage. It may not be adequate for you. The Insurance Information Institute advises consumers to buy coverage as per their financial needs. You should explain you requirements to the insurance agent before taking out any insurance policy. The agent can tell you how much coverage you actually need.

Tip no 4 – Save regularly

Make it a habit to save money on a regular basis. You should save a set amount every month. This will help you meet your long term financial goal eventually. The saved amount can also help you meet emergency expenses without taking out a new loan. You can also utilize the saved amount to pay off your existing debts.

You can invest the saved amount in stock or commodity market and double your income. The extra money can be used to finance your son’s college education. Make sure you use a sizeable portion of the saved money to contribute to the retirement accounts.

Tip no 5 – You only have to do a very few things right in your life so long as you don’t do too many things wrong.

It is extremely important to take right financial decisions in life. It is the secret key to a happy and healthy financial life. It helps you avoid the money troubles with ease. For example, correct investment choices may help you reap profits and become a millionaire within a short period of time. You may not need to do anything in your life. But, too many wrong investment decisions can make you bankrupt in a single day. You can be financially ruined. Discuss with your family before making any financial decision. This will let you know whether or not you are making the right choice.

The 5 financial tips for 1st week of July 2011 are given below:

Tip no 1 – Do not use too many credit cards

It is better to not use several plastic cards simultaneously. It becomes quite problematic to pay all the bills at the same time. You may forget the due dates of the credit card bills. It may also become very difficult for you to make timely bill payments. Financial expert are of the opinion that most consumers get into debt problems as they can’t manage multiple bills at the same time. However, if you are confident that you can afford to pay all your bills on time, then you may use several credit cards to make various purchases.

Tip no 2 – Visit your State Dept. of Insurance website to remain compliant

Visit your state department of insurance website to know about the insurance laws in your state. You can know about the insurance rules and regulations in your state and follow them with ease. You can also gather knowledge on the licensed insurance companies and work with them. You’ll also be able to know whether or not your insurer is cheating you. If you feel that your insurer is cheating policy holders, then you can find out the consumers helpline number from the website and file a complaint.

Tip no 3 – Stick to a frugal budget – Eliminate stuff that you can do without

Frugal budgeting is one of the best ways to avoid debts. It not helps you to stay away from debts, but also assists you to lead a healthy financial life. It helps you save money gradually. For this, you need to spend your money cautiously. You’ll have to spend your money for purchasing the items you need. Sort out the items you don’t need in your daily life and avoid spending a penny on them. You should specially avoid purchasing branded items in the market. These are quite expensive and you can easily live without them. You get the same items at a much cheaper price from local companies.

Tip no 4 – Shop around to get the best mortgage deal

You should shop around before taking out a mortgage loan. The interest rates charged on the mortgage loans from lender to lender. Some lenders charge high interest rates where as the others charge comparatively low rates. Apart from that, it won’t be possible for you to understand the market rate if you don’t shop around. Compare the interest rates charged on the loans by the lenders and work with the one who offers you the best deal. Try to maintain decent credit throughout your life. This will help you obtain a loan at favorable terms and conditions.

Tip no 5 – Try to buy items in bulk so as to get items at discount price

Some retailers offer special discounts to the consumers purchasing items in bulk. Most of the consumers don’t purchase the products in bulk. They visit the shop and purchase 1 or 2 items. The retailers don’t make huge profits by selling few items to the consumers. If the customers buy a lot of products from their shops in a bulk, then they are able to make huge amount of money at once. This is why they agree to give discounts to the consumers purchasing products in bulk. The retailers give discounts to encourage other consumers for buying products in bulk. The retailers may agree to give as much as 20% discounts on the products, which is great.

Are you facing problem in securing a line of credit in spite of making regular bill payments? If yes, then it may be because there are certain items on your credit report, which are making the potential lenders worried. Read through the article to gather knowledge about 5 items that may persuade lenders to not lend you money.

5 Scary items on your credit report

Here are the 5 items that may terrify lenders and make them run away from you:

1. Short sale: Homeowners often go for short sales when they are unable to repay their mortgages through loan modification or refinancing. Most of them assume that short sales won’t affect their credit adversely. But this is not true. In a short sale, you’re actually settling the debt by paying much less than what you owe. The lender will report the deficit balance on your credit report as “balance owed“, which in turn can hurt your score.

2. Multiple loan applications: There is nothing unusual if you take out a credit card in a month. But if you take out 4 credit cards within a month or two, then it implies that you can’t manage your finances well. Lenders will surely not like the fact that you’re requesting each person in the city for a plastic card.

3. Continuous minimum payments: Do you make only minimum monthly payments on your card? If yes, then you need to change this habit. Lenders regard the consumers making only minimum payments as risky borrowers. They assume that the consumers are making minimum payments due to financial difficulties. Lenders would obviously don’t want to lend money to the consumers who are going through money troubles.

You should try to make more than the minimum payment on your credit cards. It will not make much difference if you make minimum payment once in 3-4 months. For example, if you pay the minimum amount after Christmas, then it is completely understandable. But if you always make minimum payments on the cards, then it will be a red signal for the lenders. They’ll think that you don’t have the financial resources to make the full payment.

4. Too many credit inquiries: A lot of consumers face serious problems in getting credit cards. These consumers submit applications to numerous credit card companies for increasing the chances of securing credit cards. There have also been instances where the consumers have applied several times in the same company.

Lenders check your credit report each time you apply for a credit card or a loan. So, this means that the credit inquiries will increase as you go on submitting multiple applications to the credit card companies, which in return will hurt your credit score.

A good trick to avoid this problem is to submit all the application within a period of 14 days. This is because the scoring models consider all these inquiries as a single inquiry. However, you can take advantage of this facility only when you’re applying for a mortgage or an educational loan.

5. Payday loans: Usually, people take out payday loans when they are in urgent need of money. In most cases, consumers go for these loans when they are laid off or underemployed. The interest rates on payday loans are higher than that of the credit cards. So, these loans are considered riskier than that of the credit cards.

When you take out a payday loan, it gets reported to your credit report. Your debt balance increases due to this loan, which in turn reduces your available credit. This makes a negative impact on your credit score. Lenders will always check your score before approving your loan application. When they come to know that you’ve low credit score, they may refuse to lend you money.

Finally, you should try your best to avoid co-signing for a loan. The reason is, as a co-signer you’re legally responsible for a loan. If the original debtor defaults on the loan, then you’ll have to pay it off. Moreover, the delinquent account will get reported on your credit report. This may in turn go against you when you apply for a loan in future.