What is the difference between Term and Whole Life Insurance?

Term Life Insurance                     Whole Life Insurance
Description Term life insurance gives you protection for a specified period of time only and at an affordable cost. Whole life insurance gives you protection for your entire life and also will accumulate a cash value that the policy owner can borrow against. This option is right for you if you..... Want reassurance that your family will have the needed cash in the event of your death. Want to supplement your current coverage. Want a lifetime policy. Want an investment as well as life insurance. What are the benefits to consider? More affordable No extensive medical checks. Premiums do not increase over time. Able to borrow against.

A Cash Allowance

 Are you looking for ways to reduce your debt? Here are some simple ways to get started.

1. Make a budget.

2. Figure out what expenses you can live without or reduce.

3. Give yourself a cash allowance each week and learn to stop spending when it is gone. 

4. Figure out how much you can afford.

Top 5 Easy Credit Card Mistakes

1. Closing Credit Card Accounts

Although it seems logical to close the accounts once they have been paid off, you should never cancel an account unless it is absolutely necessary. 

Note that, 30% of your credit score is calculated by how well you manage your debt and use your available balance. You should try to use no more than 30% of the credit limit on your credit cards, for example, if you have a card with a $1,000 limit, your balance should never exceed $300.
  
 The average length of your accounts is 15% of your credit score.  Closing an account will decrease your score under this 15% calculation.  It will take a lot of time to recover the lost points to your credit score.
  
Having a wide range of credit will also help you credit score.
Although it’s a great way of stop the temptation to use your credit cards, it will destroy your credit score.

2. Running Up Too High of a Balance

This is another very easy thing to do.  It is so easy to spend, but, not so easy to pay back.  This can make your credit cards very expensive forms of payment.  If possible. always try to pay off the credit card at the end of the billing cycle.  Never leave more than 30% of the available credit, if you are looking to increase your credit score. 

3. Not Using the Credit Card

You don't need to use the credit card more than twice a year, but, it is important to keep using them.  This will ensure that the credit card company doesn't cancel your account and will continue sending positive credit information.

4. Not Checking Your Credit Report Frequently

This can get you into a lot of trouble.  You should check your credit score at least once a year.  Look for false or suspicious information. 

5. Applying for Too Many

Every time you open a new account it lowers your average length of accounts percentage and is a hard inquiry on your credit report.  So, don't fall for a cashier's spiel about saving by signing up for a store credit card.

Scam Alert

by Tara Lynn

A new scam is becoming increasingly popular through the USA and Canada.  The scam is done mostly over the phone, but, has also been reported to come right to the front door. 

The caller will claim that they are calling from a utility company (water, electric, gas).  They will inform you that you are behind on payment and that if you don't pay soon, they will cut off your service.  The person on the phone will try to convince you that you need to pay with a prepaid debit card.  To a scammers a prepaid debit card is like handing them cash.  It requires no verification or ID check to use.

If someone comes to your door claiming that they are from a utility company, ask for identification.  You may even want to call the utility company and ask if they have sent someone out to your house, before letting them in or giving them any information.

Refinancing to Avoid Interest

A couple years out of college, I had accumulated more credit card debt than I was able to pay off.  If you are in the same situation I strongly suggest trying to refinance either your car or your home and roll the debt or part of the debt into the loan.  Often times the interest rate will be lower and setting a monthly amount that has a nearby ending date also helps.  Once, you have successfully refinanced NEVER DO IT AGAIN. 

It is so easy to fall in to the same song and dance.  If you don't start to manage your finances better, you will find yourself with the same debt problems in the following years.  Going right back to where you started.

You may want to talk with an accountant or watch a money guru talk show.  The most important thing to learn is how to take control of your bad habits and learn how to not spend more than you make.  Emergencies are one thing, but, it is the first time that you use the "emergency" credit card for a non-emergency that can start you straight down the wrong path.

I know that habits are hard to break, but, this one needs to be stopped before it takes over your life.