I was just talking about CDs earlier this week and they provide an easy way to safely put away some cash cash. Usually they pay a slightly better interest rate than a regular savings account, but the downside of the higher interest is the fact that these are time deposits. That means you buy a CD with a specific term, usually anywhere from a month to five years. While you can almost always cash out of a CD before the term expires, there is a penalty for doing so. So, if liquidity is what you\'re after, a CD may not be the best choice. Here are the details on how early withdrawal penalties work so you can understand when you can cash out and what the damage will be.
Watch Out for CD Early Withdrawal Penalties originally appeared on About.com Financial Planning on Wednesday, July 28th, 2010 at 20:38:46.
'); document.write('Interest rates are still at record low levels across the board and that means it\'s hard to earn much money on your savings. Even though rates are down, CDs are one of the few bank products that can at least help give you a little something. But as you probably know, one of the drawbacks of CDs is that they are timed deposits, meaning you lock your money up for a few months or years. And to get the best yields you usually have to go with longer terms.
This is where creating a CD ladder can help. It takes a little time to get one established, but once you do you\'ll be able to maximize your earnings by investing in the highest rates while still having CDs maturing like clockwork giving you regular access to the funds so that you can use them for something else or keep the CD ladder going. Learn more and get started today.
CD Ladders: How to Create a CD Ladder originally appeared on About.com Financial Planning on Sunday, July 25th, 2010 at 10:20:11.
'); document.write('You may have heard that your credit score is important, but what is a FICO score? FICO is short for Fair Isaac and Co. The Fair Isaac Company developed custom software back in the 1980s that helped other companies determine a credit risk based on a number derived from a person\'s credit history. This number soon became a standard that was adopted by the three main credit bureaus: Experian, TransUnion, and Equifax. The FICO score ranges between 300 and 850.
If your credit score is suffering, there are things you can do to help improve your score. While there\'s no silver bullet that can give you a good score overnight, just a few changes in your behavior can go a long way in improving it. Learn more about your credit score today.
Understand Your FICO Credit Score originally appeared on About.com Financial Planning on Tuesday, July 20th, 2010 at 18:54:07.
'); document.write('Wouldn\'t it be nice if you could lower the interest rate on your credit cards? Actually, you may be able to, and it might take only a few minutes of your time. If you have an account in good standing with a credit card company, try giving them a call. If you aren\'t habitually late and have been doing business with them for a while, a simple phone call may open the door to a lower rate. It doesn\'t hurt to ask, and the worst they can say is \"no.\" Learn how to ask for a lower interest rate.
Lower Your Credit Card Interest Rates With a Phone Call originally appeared on About.com Financial Planning on Sunday, July 18th, 2010 at 16:28:11.
'); document.write('If you\'re in debt and have multiple credit cards making your life miserable you know how important it is to get out of debt. Unfortunately, when you\'re juggling a number of debts, big or small, it can seem like an impossible task. That\'s where the debt snowball comes in. By doing little more than you\'re doing right now, you can put the debt snowball to work so that you can not only pay off your debt faster, but begin paying off cards completely, which has a huge psychological impact. If you\'re struggling with debt and wish there was a better way, read on to find out more about the debt snowball method.
Get Out of Debt With a Debt Snowball originally appeared on About.com Financial Planning on Wednesday, July 14th, 2010 at 11:31:46.
'); document.write('Do you find it difficult to keep your spending under control? It isn\'t an uncommon problem, and for many people, spending money makes them feel good. But like most things, you need to practice moderation. The best way to do this is by creating a budget. A budget will help you itemize, track, and see where your money goes. While this is a good start, it won\'t cure your overspending habits.
Like any other habit, there are underlying forces at work, and until you understand what factors are enabling the habit, it can be difficult to break. Overspending happens for a number of reasons, but some of the most common driving forces are:
Once you identify some of the factors that influence your spending behavior, you can then focus on changing those specific behaviors. This will go a long way in helping you break the habit of spending too much money or going into excessive debt. And if that isn\'t enough, there are even outside groups that can help you.
Do You Know Why You\'re Prone to Overspending? originally appeared on About.com Financial Planning on Monday, July 12th, 2010 at 10:02:25.
'); document.write('A budget creates the foundation for even the most simple financial plan. Without a budget it\'s hard to keep track of where you\'re money is going, how much you\'re spending, and where opportunities for savings might lie. Even though budgeting is one of the first and most important aspects of a financial plan, very few people actually create and follow one.
For many, following a budget sounds like a chore. It creates images of tedious expense tracking, cutting out all of the fun things in your life, and being forced to count every penny. Fortunately, that doesn\'t have to be the case. Budgeting can be as simple or complex as you make it, but no matter how you create your budget if you follow it, you\'ll be on your way to financial independence.'); document.write('