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Collection agencies can be a real pain in the neck. Their representatives are annoying, rude and they won’t leave you alone until you pay them. Besides that, a collection agency is capable of ruining your credit profile for up to 7 years and that can really hurt you in many ways. So if you have one of the abovementioned annoying persons calling you, read on.

Before anything else, let’s clear up what is a collection account and what is a collection agency. Simply said, a collection account is opened on a bill that you haven’t paid for a while. Like your cell phone bill, or your credit card payment – if your cell phone carrier or bank for some reason haven’t received any payments from you over an extended period of time,  they will do a couple of things. First, they will try to call you. Second, they will mail you. And third, if they still haven’t heard from you, they will sell your bill to a collection agency. What happens is that the collection agency pays the money you owe for you, and takes over your bill. So now you owe that money to a collection agency. They will open a collection account under your name, get your credit reports and post a collection record on usually all three of them. Then they will get your contact information and start harassing you by phone and mail.

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We all have heard how important the credit score is how good credit history is going to save you money and how a higher credit score will make our life easier. However there are still people out there how don’t really understand how important is to take care of their financial profile and keep it in good shape. Maybe this article will give them the boost they need to start paying more attention to their credit history & score and start paying less to the creditors.

So what is the real cost of bad credit? Besides financially, bad credit will hit you with a lot of stress as well. You can barely get a normal credit line, your low score will prevent you from financing your car, your house or your education.  And if you have a family on your back, that could really hurt your household. A 2006 survey by DivorceMagazine.com showed that 18% of the divorces in young families are caused by financial problems. You can even be denied a job on the basis of your credit report. Bad credit will really force you to flush money down the toilet. For nothing. Higher fees, high interest rates and low credit lines will keep you in the same circle and you will need a ton of green to get out of it.

Poor credit profile will cost you more on everything: you mortgage, your car, you credit cards, your school loans. Consider this: Based on your score, a $150,000 mortgage can cost you anywhere from $926 to $1411, a $485 difference per month. In a matter of fact, most of the auto insurance companies also check your scores and keep them in mind when calculating your premium. That’s right . Bad credit equals higher insurance premium. When you are looking into renting a new apartment, the landlord or the broker also checks your report. You may be denied to rent if it doesn’t satisfy their requirements.

My thoughts: make fixing your credit profile a priority. There are numerous ways you can help yourself and all that it will cost you is nothing more but a little bit of your spare time. Check the “Debt” section of this website, read the articles that are posted there. You will get many ideas and tips on how to start managing our debt and your financial profile, which will ultimately result in money and nerve savings.

Tags: score | fico | credit | loan | debt | bad credit

UAE and specifically Dubai was the topic of an attention-grabbing episode of 60 Minutes on CBS yesterday. Steve Kroft was reporting the story, produced by Ira Rosen.

For the past 20 years Dubai has steadily grown as the most ambitious sheikhdom in the Middle East. Construction never stops in the fastest rising mega polis, ruled by the founder of Saudi Arabian Airlines - Sheikh Mohammed bin Rashid Al Maktoum. In a matter of fact, for the last seventeen years that airline has being mounting with the rate of 20% per year, becoming the second most profitable airline in the world. 

Mohammed’s message is clear: “We want to be number one in the world. In everything.” For the past decade he is reshaping the country’s image immensely. Free medical insurance, tax exemptions for Dubai’s natives are just some of the perks. “The government runs by a business model” Rashid Al Maktoum says. The new Dubai International Financial Centre comes directly under the chairmanship of the Dubai Crown Prince. The largest shopping malls, the most expensive hotel, the tallest building in the world are just some of the establishments that this country has to offer to its foreign investors.

Dubai doesn’t just undergo a small economical transformation. Twenty-five thousand foreign immigrants join its populace each month. Americans, eastern Europeans, Asians are what more than a half of the population in Dubai is nowadays. Microsoft, IBM, Merck, Bosch are just some of the companies that have recently opened up new facilities offering thousands of jobs. New laws and rules are constantly added to improve the quality of the society.

Sheikh Mohammed bin Rashid Al Maktoum’s “vision 2010″ plans for the future are vastly turning into a reality. The economic boom in Dubai is surely to attract more and more businesses, settlers and funds. Is Dubai the next top immigrant destination?

Tags: dubai | uae | petrol | mohammed | sheikh | 60 minutes

Here we have 40(!) great  articles on everything Finance. Welcome to the Blog Carnival of Twentysomething Finances! Thanks to everybody who participated!

Steve Faber presents - How to Avoid Foreclosure posted at DebtBlog.

ChristianPF presents How to budget with ING direct posted at Money in the Bible | Christian Personal Finance Blog, saying, “ING Direct is my secret budgeting tool. Here are a few steps to start budgeting using ING Direct.”

Silicon Valley Blogger presents Stop Overspending Now! 14 Ways To Conquer Binge Buying posted at The Digerati Life.

Sara Goldstein presents How to choose better-quality clothes posted at The Bargain Queen on Fashion and Beauty, saying, “On limited collage finances, it’s essential to stretch your clothing budget as far as possible — and that means buying things that won’t fall apart after the first wear. Here’s how to pick better-quality clothes.”

Michael Cohen presents Why You Shouldn?t Buy Classmates Stock posted at Classmates.com Sucks.

KCLau presents Should you focus on Increasing income or reducing expenses? posted at KCLau’s Money Tips, saying, “Cash flow chart involves simple mathematic calculation: Saving = Income - Expenses. Savings is the priority since it appears first in the equation. To increase saving, we can either increase income, reduce expenses, or doing both at the same time. Which option requires your most attention?”

Frugal Panda presents Fly or Drive: Which is Cheaper? (A Definitive Answer, Once and For All) posted at Frugal Panda.

Ryan Russell presents Is Debt Consolidation A Good Idea? posted at Care on Credit, saying, “Debt consolidation comes in several forms, including credit counseling, balance transfers, and debt consolidation loans, so review your options carefully before making a decision.”

Joy Miller presents 10 Online colleges offering credit for life experience posted at Online College Blog, saying, “Several reputable, regionally-accredited colleges and universities allow you to earn credit for life experience.”

Sagar Satapathy presents The Amero: An Introduction, A Short History, and What it Would Mean for Our Economy | Currency Trading.net posted at Currency Trading.net.

Roshawn Watson presents Do Your Friends Keep You Broke? posted at Watson Inc, saying, “I was shocked to learn that your income will often mirror that of your five closest friends. I had to ask myself who is in my inner circle. Learn from billionaire J Paul Getty. He said that if he were down to his last five dollars, you wouldn’t find him in some cheap restaurant trying to eat all he could. He would rather be in a nice hotel lobby drinking coffee with visionaries and leaders. His rationale was that the people he wanted to be a part of his future were at the hotel not the restaurant. Believe him.”

Matthew Paulson presents Be on the Lookout: Con Artists Stealing Guardianship of Senior Parents posted at Getting Green.

Larry Russell presents Understand the confusing securities market motion picture posted at THE SKILLED INVESTOR Blog, saying, “Securities markets are usually very quick to adjust prices to reflect new information. However, this price adjustment process may take longer and be more volatile, if the new information is ambiguous.”

Juan Millon (1mil) presents Creating My Own Website: Step 3 Registering A Domain Name posted at Millionster.com.

Sam presents How to Save on a Home Mortgage Loan, Mortgage Refinancing, Second Mortgage Loan. posted at Surfer Sam and Friends, saying, “How to Save Money on a Home Mortgage Loan All Interest Rate Quotes Are Not Alike Don’t Let Closing Costs Scalp You”

Roshawn Watson presents Two Financial Questions You SHOULD Ask Your Friends posted at Watson Inc, saying, “Strife over money has severed many good relationships. When it comes to discussing finances, avoidance is understandably our medicine of choice, especially when friends are involved. However, perhaps avoidance is not the best strategy”

Mike Lazear presents The Great Office Escape posted at The Great Office Escape, saying, “A great way to save in your 20s is to resist the temptation of car ownership! Reap the benefits by seeing your savings rise and experience some other bonuses along the way to being car-free.”

John Crenshaw presents Pay Off Mortgage, Lose Tax Deduction? posted at Truthful Lending dot Com, saying, “The home ownership tax deduction is one of the most commonly misunderstood aspects of home ownership. Find out why it’s ok to lose that deduction when you pay off your home.”

The Free Geek presents Broke? Alcoholic? How to Drink on a Dime: 10 Surefire Tips posted at Free Geekery.

Dax Desai presents 4 China Stock Picks posted at Dax Desai, saying, “4 Great Chinese Stock Picks & 1 Day Trading Pick”

the baglady presents Early Retirement May Not be Optional for Twentysomethings posted at xynny.

FIRE Getters presents Live Rent Free and Earn as a Caretaker posted at FIRE Finance.

Logan Flatt, CFA presents How to Get Ahead In America (2nd of a 12-Part Series) posted at PowerWealth.com, saying, “If there is one refusal that has been central to my financial success in America, I would say this is it.”

ChristianPF presents Do I need an Emergency Fund? posted at Money in the Bible | Christian Personal Finance Blog, saying, “How an emergency fund can make or break you financially.”

Super Saver presents Time To Plan for 2007 IRA Contributions posted at My Wealth Builder.

Dianne M. Buxton presents Global Impact Charity Engages With a Broader Vision posted at manifestingsuccess, saying, “How early do you want to start? Now? Get wealthy, help others and join the system that is going to do it. No cost to you or anyone you refer.”

Shawn Edwards presents Video — 5 Simple Steps to Get Your Finances Under Control | Desty Online — Online and Offline Businesses posted at Desty Online.

KCLau presents Build your Financial Dream House with a Financial Consultant posted at KCLau’s Money Tips, saying, “Architects design and build real houses. Similarly, financial planners design and build your financial house.”

Mr Credit Card presents Overstock.com Credit Card | Overstock Credit Card Review posted at Ask Mr Credit Card’s Blog.

Jason Elder presents Personal Loans With Bankruptcy posted at A Bankruptcy Lawyer’s Blog, saying, “Here I discuss a few things you may not know when dismissing personal loans in your bankruptcy”

James presents Payday Loan Tips and Tricks posted at Payday Loan Cheapskate.

Shelby Crutchley presents Appliance Insurance - Security, or a Rip Off? posted at Island Girl’s Money, saying, “This entry is about the benefits vs. cost of over-insuring yourself for certain things, like appliances.”

Jimmy Atkinson presents 25 Ways to Earn More and Work Less posted at Ask the Advisor.

Michael@TSM presents Fall TSM Travel Writing Contest: Win $125! posted at Traveling Stories Magazine.

Aaron Wakling presents Credit Checks - What They Are And What You Need To Know posted at The Credit & Credit Card Blog, saying, “Credit checks involve sensitive personal data. Therefore, many people are concerned about precisely who they’ve entrusted with their records. Fortunately, the Fair Credit Reporting Act has established unambiguous rules governing credit checks.”

Millionster presents How Rich Dad Changed My Thoughts About Money posted at Millionster.com, saying, “I was first introduced to Robert Kiyosaki’s books by a good friend of mine — a CEO from Las Vegas. His parents were both business owners so he pretty much had a good head start in his financial education — suffice it to say I took his recommendations in full confidence.”

poetloverrebelspy presents Comparing Foreign Websites for Deals posted at Less Than a Shoestring, saying, “Wasn’t sure if the above post or this one http://nobudgettravel.wordpress.com/2007/10/11/baring-my-budget-london/ would be more your speed. I write about thrifty travel options.”

Michael Bass presents Escaping credit card debt without filing bankruptcy. posted at Debt Prison, saying, “Escape credit card debt without filing bankruptcy or debt settlement.”

Wenchypoo presents Holiday Dinner Rip-offs posted at Wisdom From Wenchypoo’s Mental Wastebasket.

Silicon Valley Blogger presents How Much Credit Have You Turned Down? Maybe Half A Million Dollars Worth posted at The Digerati Life, saying, “Thanks!”

That concludes this edition. Submit your blog article to the next edition of twenty something finances using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Tags: credit | debt | insurance | investment | retirement | savings | blog carnival

Individuals often fall into situations when they need cash fast but have no way of getting it. Credit is not an option, since your score numbers are really low. So here are a couple of alternative ways to raise some cash quickly.

Seek help from family and friends. This is the first thing on your To-do list. Talk to your parents / offsprings and other relatives. Call your best friends and ask them to lend you some money. Don’t take money from your colleagues. Make sure that you pay those loans on time. You won’t be charged interest if you don’t but you will never get a loan from them again.

Sell your old stuff. And the new stuff also.Look around and see what you can get rid of. You can easily sell electronics and furniture on Craigslist. If you don’t have anything old to sell, price your new belongings. You can always get another TV, DVD, stereo when you are in a better financial shape. Sell your books, CD’s & DVD’s, video and computer games. You can pretty much sell everything that you can live without, just post it and then post it again and again. You will be surprised what people are looking for.

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I was just complaining about Citibank’s bad customer service a couple of days ago. Yesterday I have noticed that they have bumped up my interest on one of my cards to 32.32%! I called to see what happened and they said that I was late on a payment back in August and that’s when the APR went up. So I argued a bit and then asked to speak with a supervisor. She deserves to have her name mentioned here - Jennie lowered my APR to initially 17.4%, then, without me even asking her for a lower one, she lowered it to 10.4% and then once again, before I could say “Thanks” she said that she will give me a 0% APR for 4 months and 10.4% thereafter. I just couldn’t believe I felt like it was my birthday!

Tags: citibank | apr | charges | reversal | supervisor

Driving around in a car really costs more and more these days. Besides the high gasoline and maintenance prices, vehicle insurances also can take a solid bite out of your pocket. Your insurance companies charge well, but thankfully there are some ways in which you can help lower your auto insurance premium.

Your insurance premium is computed on the basis of many factors, such as the year, make and model of your vehicle, your driving experience and record, your place of residence, driving habits and even your credit score.

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Deb at The Dollar Stretcher gives some valuable tips on how working moms can save some money. Where There’s a Will, There’s a Way!

 Money-Saving Ideas for Working Moms at The Dollar Stretcher

Tags: save money | savings | work

Credit cards can either help you out or ruin your life. This is why choosing the right plastic is an important task which shouldn’t be underestimated. Picking the right one involves understanding of how credit cards work, shopping around and comparing and finally selecting “the winners”.

There are several types of different credit cards out there, each one comes with it’s different benefits and drawbacks.

Travel and Entertainment Cards. These have to be paid in full every billing period. They usually don’t have a predetermined limit. Examples: Diners club.

Bank Credit Cards. MasterCard, Visa, Discover are all examples of a bank credit card. Your bank will define your credit limit according to your credit profile. You will have minimum payments per month, finance charges and some of them will come with benefits, such as cash-back or gift points, depending on your bank.

Retail Store Credit Cards. Macy’s, Sears and others are retail store cards which you can only use to shop in the retailer’s network. You will have minimum payments per month, finance charges and fees, which differ from store to store.

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