Specialized Consumer Strategies - When to Spend and When to Save

It can be tricky to know exactly what is a good use of your hard-earned money, and what is not worth it when it comes to making purchases. Specialized Consumer Strategies works with their clients to help them create a stable budget and avoid problems like debt and bad credit. Many people struggle to save money, especially when they are consistently tempted with potential purchases that seem like a good idea. However, there are a few easy ways to evaluate whether or not a purchase is a smart move for you and your wallet.

The first is to ask yourself, how often will I use this item or experience? You can then take that number and divide it by the price of the purchase to determine the cost per use. For example, if you are contemplating buying a new winter coat for $200, and you plan on wearing it roughly four times a week from November to March (20 weeks) for two years, then your cost per wear would be only $1.25 (200 / (4 x 20 x 2)). This would be a good purchase, because even though it is expensive, you are really getting your money’s worth out of it. However, if you are buying a new cocktail dress for $200 and you only plan on wearing it three or four times, then this is not a good investment because the cost per use is very high. It is also important to consider what else you need to purchase in the same time period and how much income you have coming in. For example, if you know you will be getting a bonus soon, then it is okay to spend a little more on something that might usually be considered frivolous, but it you are trying to save for a car, now might not be the best time to buy that designer bag.

Specialized Consumer Strategies - Why Interest Rates Matter When Choosing a Credit Card

Specialized Consumer Strategies provides debt management and budgeting services to clients looking to improve their financial situation and save money. One of their biggest focuses is educating their clients on credit and the importance of having good credit and using credit cards wisely. Too often, people use credit cards as a financial crutch, and it is very easy to fall into a cycle of debt that is difficult to get out of. Because of this, it is important to consider many different things before opening a credit card.

One of the most crucial things to consider when opening a credit card is the interest rate on the card. Many people open new cards without really thinking about the interest rate and what that means for their spending. Cards with very high interest rates will often end up costing you more money than they are worth, especially if you only make your minimum payments every month. Store credit cards are especially notorious for having high interest rates and should be avoided at all costs.

To avoid paying any interest at all on your credit purchases, you should pay off your entire balance every single month. However, in this economy, that is not always realistic for everyone. If you know that you cannot pay your entire balance off every month, you need to be sure that you have a card with a low interest rate, and focus on budgeting so that in the future, you can pay off your entire balance. Specialized Consumer Strategies helps consumers find credit cards that work for them, and create budgets so that they can shop smarter.

Specialized Consumer Solutions - Easy Ways to Improve Your Credit Score

Specialized Consumer Solutions is a financial advising company that helps their clients get out of debt and live more financially stable lives. One of the most important factors for financial health is having a good credit score. Having a good credit score can enable you to get loans and open credit cards easily, as well as make it easier for you to buy a house or car, among other things. However, many people unintentionally do things to hurt their credit score, or do not build up any credit at all, and they struggle to obtain the things they want in life because of it. However, there are a few simple things you can do that will have a positive effect on your credit score over time.

If you can, you should pay off as much of your credit card balance as possible every month, and keep the balance on your credit card low. It is also best to have just one or two credit cards that you use often, instead of several credit cards that carry small balances. Closing all of your credit cards that you do not need can give your score a boost.

Ultimately, you need to show creditors that you are responsible and can manage debt effectively. So even if you have made mistakes in the past, making payments on time every month and keeping your balances manageable will yield improvements in your score. Specialized Consumer Strategies Solutions works with their clients to help them improve their credit score and reach their financial goals.

Specialized Consumer Solutions - Reasons to Avoid Store Credit Cards

One of the biggest pieces of advice that Specialized Consumer Solutions gives to people looking to improve their credit is to avoid store credit cards. Many popular retail stores, like Target, Best Buy, Nordstrom, and many more offer a store credit card with perks like a sign-up discount, high amounts of store reward points, and more. At first, these perks seem very enticing, and you may be tempted to open a card at your favorite store. However, this is a very easy way to hurt your credit.

The biggest reason not to open a store credit card is that the interest rates on them are usually extremely high. It is common for store credit cards to have interest rates ranging from 15 to 25 percent APR. Usually this is how they compensate for the original discount you received when you signed up for the card, so they still profit off of your credit purchases, even though it seems like a good deal. Also, while other types of credit cards usually offer an initial period before interest starts being charged, store credit cards will often charge you interest on your very first purchase, so you end up spending more money than you realize.

The only way to manage having a store credit card without hurting your credit or paying large amount of interest charges is to pay off the entire balance immediately. However, this is not realistic for many people. Therefore, Specialized Consumer Solutions highly recommends that you avoid store credit cards in order to save your money – and your credit score.

Specialized Consumer Strategies - How to Deal with Collection Accounts

In helping clients become better managers of their finances, Specialized Consumer Strategies comes across various situations that require the right knowledge to navigate. One of these is collection accounts. Collection accounts are those that have fallen so far behind that the creditor writes them off as bad debt, and probably assigned or sold them to a collection agency. For credit card debt, an account can be assigned or sold after a set period, for example, 180 days.

The agreements between the collection agencies and creditors are varied, but when debt is sold, the collection agency pays the creditor a percentage of the face value and can keep the full amount (if it’s able to collect). Where debt is assigned, the creditor agrees to give the agency a commission or flat fee for collection.

While federal laws lay out what collection agencies can or can’t do, Specialized Consumer Strategies encourages clients to familiarize themselves with the laws.

When debt collectors come calling
Debt collectors work fast, and they generally have better collection rates on recent defaulters than old ones. If your account goes into collection, expect the phone to ring off the hook. The collection agency will try to contact you through every possible means.

You should know some debts are negotiable. This mainly depends on whether the debt has been assigned or sold to the agency. A debt collector handling an assigned debt will stay on the creditor’s leash. Debt collectors that handle sold debts might have room to reach a settlement.

Specialized Consumer Strategies - Make Wise Financial Decisions Everyday

In addition to helping clients understand how to eliminate debt from their lives, Specialized Consumer Strategies also works to ensure they can make wise financial decisions. Life is filled with choices, and making wise financial decisions ensures clients can accomplish their short and long term financial goals.

Wise financial decisions are the foundation of a good relationship with money. Every day, you’re likely faced with many decisions, some of which have financial effects. Your ability to make good decisions determines whether you enjoy the financial success you desire.

Here are some decision-making techniques you can apply:

Make financial decisions early

It’s easy to think of your willpower as a container of energy that’s full every morning. As the day carries on, you are likely making small decisions. With every decision, your willpower continues to decrease, until you have little left at the end of the day. Mentally, you are more worn out by then, which makes it important to make the important ones at the beginning. If a decision has financial implications, make it early in the day when your mind is fresh and can think things through.

Change your routine

Many individuals’ daily routines are filled with temptations. You drive by a fast-food store or coffee shop and you’re tempted to get something to eat. If gadgets are your thing, passing by the computer shop on your way to the office probably gets your heart racing.

To avoid entertaining the thought of making an impulse purchase, change your routine.

Specialized Consumer Strategies - Understand the Different Types of Credit

Specialized Consumer Strategies is a financial consulting firm that helps individuals understand how to approach credit and debt. Turning to credit for financial support is normal in many people’s lives. Credit takes many forms, and it allows you to purchase now and pay back later. With this in mind, it’s important to understand the various forms of credit and learn to manage it wisely.

Revolving credit
Revolving credit allows you to make different payments regularly. Often, these payments are dependent on how much you’ve used in a particular period, like a month. The payments made are subject to a set minimum payment, and you have the option to defer payments forward to the next month (which means more interest charges for the extra time). A common example of revolving credit is a credit card.

Installment loans
An installment loan requires you to make a fixed payment each month until you have settled the principal amount. The amount borrowed is paid back over a period of time, and interest is charged. Business loans, mortgage loans, and student loans are some examples of installment loans in the market.

Secured credit
Secured loans are tied to an asset, such as your house or vehicle. This form of credit is considered safe by lenders because if you default on payment, the lender can repossess the asset to cover the borrowed amount.

Specialized Consumer Strategies provides clients with information on how credit can benefit their lives and businesses.