Credit cards have historically been used by consumers for their flexibility, instant gratification and protection from unexpected events.

Those benefits have of course come at a high price, as Americans and others have racked up huge debt loads which have weighed them down for years and made it difficult to do anything but live from paycheck to paycheck. This is true not only with low-income people, but for many with high incomes as well.

Although it’s always better to build up a cash moat in preparation for potential difficult economic times, many do use a credit card for that same purpose. That could get more costly in the years ahead as banks and other financial institutions scramble to find ways to deal with the regulatory climate which has made it harder for them to generate revenue and earnings from their credit card services.

So for those of us looking to save money and build wealth, we have to take a serious look at whether there is really a need to use credit cards in light of how costly they’re going to be going forward, and if it’s worth the high interest rates and debt incurred from them.

We know that higher interest rates will obviously cost us more, and when we pay more to pay off debt, we have less capital to save.

The question then becomes whether there are times when using a credit card is worth the extra cost and debt load.

Other than the situation mentioned above of having one available for emergency use, it’s doubtful whether using a credit card really helps us other than to satisfy our desire for instant gratification.

If we don’t have a cash fund built up to protect us, then it may make sense to have a credit card available for use until you’re able to build up personal cash reserves. There will be some fees associated with that for sure, and you may have to use it occasionally to keep it activated and worthwhile for the company issuing it, but just be sure to pay back the borrowed funds quickly before you get hit hard by interest rates.

Some financial advisers have recommended using a credit card to make certain types of high-end purchases in order to protect themselves from certain types of fraud.

I’m not that big of a fan of that, as if I’m going to make a big purchase, I’m going to do it from a trusted store and not from someone I’m not sure of.

Consumers shouldn’t go out and buy a big item primarily on low prices, unless those lower prices are offered by reputable and well-known companies. So the idea of using a credit card for large purchases in order to protect yourself from fraud loses the impetus of its argument when taking into account buying from a trusted store.

No matter what the circumstances, it’s still better to buy with cash or debit cards than going the credit route, as it leaves you in a stronger financial position and provides you with more money to invest with and build up your savings and wealth.

The Federal Reserve has stated more than once that it has no intention of raising interest rates anytime soon, and that eliminates most, if not all, avenues of generating a decent return on any safe investment.

While we enjoy a low inflationary period during these times in general, at the same time we get almost nothing for a return if we want to invest in some type of cash account.

So whether it’s a savings account, CD, money market account, money market fund, or any other type of cash investment, you’re not going to get much of a return right now, and it doesn’t pay to invest in something long term just to get a couple of percentage points of interest.

There’s no doubt inflation will kick in in the not too distant future, and if you’re invested in something so you can beat today’s terrible short-term cash investment vehicles, you’ll pay for it in the long run when inflation really roars, which with food is already happening, and is expected to increase over the next several years, if not more.

The answer to where to safely put your money right now is in what we’ve already mentioned: a cash account of some sort. All I’m saying is no matter where that is, it’s not going to give you any type of return worth talking about, and in most cases almost zero.

So why bother with even doing it in the first place? First, you need an emergency fund built up to protect you. If you don’t have one, the last thing to be concerned with is whether you can get a little bit more interest for you money. The first thing to be concerned with is to launch a plan where you put away a certain amount each month to build up at least a six-month reserve in case of an unforeseen situation that may happen to you.

Next, we’re not only in an economic environment thinking in terms of making money, we’re also in an environment where preserving capital is just as important. To do that, you have to forget about interest rates when they’re as low as they are today, and think more in terms of preserving your capital.

One psychological aspect to keep in mind is you’re probably doing better today than you were about a year-and-a-half to two years ago when you could get a decent return of five percent on a safe account. The reason is inflation was high at the time, and so in terms of growing earning power, you do as well today as then because there is very little inflation now, although it is starting to go up in some areas, but not enough yet to make a big difference.

It’s not really any better in this particular interest rate environment, but neither is it any worse.

So in terms of low-interest rate investments, think on a short-term basis, because inflation will return with a vengeance, and you don’t want to be stuck with a puny long-term interest rate just because you could get a little better rate today for a longer term commitment of your capital.

I wouldn’t invest in anything over a year, and would prefer something much less than that. Even a savings account or money market accounts may be the best bet because of the needed flexibility to transfer funds quickly to a better investment when rates begin to rise again.

Finally, forget about rates as far as the determining factor in a safe-money savings plan. The point is to get in the habit of putting money away to have emergency funds available. Interest rates are secondary at this time, but that could change when the Fed decides to increase interest rates.

Until that time, there’s nothing to do but keep saving and waiting, as it’s probably going to be a least a year before interest rates go up, and so trying to force something to satisfy your desire to have better interest rates could come back to haunt you when they really go up and you may be stuck with a long-term investment that is losing ground to inflation.

Don’t panic and do something you’ll regret. Interest rates will return in time, and until then it’s best to place your cash in something you can have immediate access to than anything else. Flexibility rules the day in a low interest rate environment, and that’s more important than anything else, other than putting the money into something safe in the first place.

Concerns from the economic crisis have those quickly approaching retirement wondering how to continue to grow their retirement fund in order to retire comfortably.

If you’re one of them, or are in your mid-40s, you want to start thinking in terms the catch-up provisions allowed by law for the time you reach 50, whereby you can put away another $5,500 into a 401(k), 403(b), or government 457 plan. Any of these quality for the extra money.

So whether you’re late to the funding of your retirement game or are approaching 50, there are options available where you can make up those lost years. It’s better to start right where you’re at than to think you’re too late and do nothing about it. That’s why the added incentive of $5,500 a year is allowed for those 50 or older in age.

What’s amazing about this particular provision, is it has been in place from the government since 2002, yet only about 13 percent of those eligible use it to build up their retirement nest egg. Incredible when you think of what another $5,000 a year can build up to over a decade or two.

Another valuable part of the catch-up provisions is the additional ability to put away another $1,000 to a Roth or traditional IRA, as well as another $2,500 to a Simple IRA. All of this can make a huge increase in your retirement when implemented together.

That means if you take full advantage of the catch-up provisions for the approved of retirement accounts listed above, you could put away $22,000 annually there; $6,000 a year in a Roth or traditional IRA; and $14,000 more to the Simple IRA (including $2,500 catch-up). Not bad at all.

Most people balk at this point because they wonder where they’re going to get the extra money to invest. But there are a ton of ways to cut back on expenses when you start thinking about it, and you begin at the things you’re paying for you don’t need to have.

Can you walk or ride a bike rather than pay for an expensive health-club membership? What about all the bells and whistles on a mobile phone contract? Do you really need the hundreds of channels on your cable TV contract?

You get the idea. There are tons of ways to cut back expense without completely taking away some of the enjoyment and pleasures of life. Just step back and look at them objectively and you’ll find hundreds of dollars a month available to use the catch-up provisions which allow you to put away thousands more a year into your retirement.

Once you get to that age, you’ll be glad you took the steps and a little bit of temporary sacrifice to do it.

Earlier in December 2009, Electronic Arts gaming company announced it was getting into the prepaid debit card business via its sporting game division.

Branded under the Visa debit card umbrella, the card allows you to build up points which you can then use toward acquiring an Electronic Arts sports game.

With young males being the primary, targeted demographic of sporting game divisions of gaming companies, it could be a real boon to them in that they offer something they don’t have access to with a bank.

Of course adult males also enjoy sporting games, so it then generates the question of whether this is a good deal and if it’s helpful in your finances beyond making it easier to acquire a sporting game to play.

First with kids who have no other means to pay than cash, this could be helpful in that it and an enforced and built-in limit in that you can’t spend beyond what’s on the card. So if it’s parents doing this for their children, or a child taking some of their own cash and investing it in the card, it does have the value of limiting the purchase to what is on the card.

From the standpoint of making it easier to buy games this is a good deal, as many of the things to generate those actions are included with the card. Things like building up points to use toward purchasing more games, and young kids without access to a bank account can use the cards to pay for game subscription fees on the Internet or to buy a variety of virtual products offered by Electronic Arts.

So if you want an easy way to conduct business with more options, a Visa debit card from Electronic Arts could be the right thing for you.

Now the problem. Since we’re a savings Web site, the problem with a prepaid card like this is it’s just too good, and it offers you absolutely so many ways to spend money more easily, that it could get you to spend far more than you normally would, defeating the purpose of the usual use of a debit card, which is built-in restrictions which keep you on budget and limited in your spending.

In other words, you’re going to be spending more money with a debit card created for the purpose of acquiring products from a company, and which offers you the carrot of rewards to get you to spend more than you had planned to.

It’s a great business move which will generate more sales, and will also add more loyalty to Electronic Arts.

The card itself, like most debit cards, will be re-loadable, and can be filled from a direct deposit of your payroll check, your regular checking account or even another debit card, among other ways.

Again, you can only decide if this will do you any good. When a company makes it easier for you to spend on their products, they’re making it easier for you to spend. If you have self-control and can manage the debit card responsibly, it’s a good idea. If you can’t you’ll find that this really isn’t a financial tool but a marketing ploy which will take money away from you rather than help you save it.

It may be better just to get a regular prepaid debit card than a specialized one like the Electronic Arts one, which is almost guaranteed to cost you more than you would save.

We recently started talking about prepaid debit cards and the value they can add to you in a variety of ways. One of the better known prepaid debit card companies is MetaBank, which offers several options for those interested in using a debit card. MetaBank offers both MasterCard and Visa debit cards to consumers.

Prepaid debit cards are desirable for a number of reasons. For those who have bad credit it’s a great way to control your spending without fear of overdraft fees which can hit you hard. Some consumers also don’t qualify for a regular bank card, so a prepaid debit card would fit right in with the options available to you.

You also have no need to fear a credit check to obtain a prepaid debit card, as approval isn’t based upon that criteria, and you can find out immediately if you qualify in a quick online application process.

As with any financial product, there are some fees associated with using a debit card from MetaBank, and below I’ve included several debit cards the financial institution offers that would best meet your needs. Review each one carefully as they have different fee points which could affect the monthly cost of the card.

Don’t be put off by some fees, as the fact that there are fees prove it’s a legitimate business you can trust in. If someone were to offer you anything for free, you would know there is something wrong, as no one can offer something for free and remain in business. If they could, it would have to be a scam of some sort.

What a prepaid debit card in the end offers someone is flexibility, and that’s what you’re really paying for.

Like anything else, know why you want a prepaid debit card and read all the information associated with using it, as there can be terms and conditions which may cost you unexpected fees if you use it in a particular way.

With that in mind, here are three debit cards offered by MetaBank.
AccountNow Vantage Prepaid MasterCard
With the AccountNow Vantage Prepaid MasterCard from MetaBank, you can have any type of credit rating and still qualify for the card. There are also no security deposits required and there is instant, guaranteed approval. There are also no activation fees or costs upfront. For zero activation fees that applies if you load the card via direct deposit.

What is a very desirable and beneficial feature of the card is it can be used to help rebuild your credit if you have that as a goal, as all transactions you use to pay bills with are reported to PRBC.

The card is also reloadable up to a limit of $10,000.

Where you could be hit with fees is if you use the card to withdraw funds from an ATM. If you do it domestically it would cost you $2.00 for each transaction, while internationally it will cost you $4.95 per transaction. You are also provided with a monthly paper statement which you’re charged $2.95 for. If you cancel the card it will cost you $15.95, and if you lose it and need to replace it you will pay $10.00. Overall it’s almost free if you stay away from the ATMs.

You do have a limit of $500 a day for withdrawing from the card, while deposits have limits of $950 daily.

The company claims the monthly mainenance fee is low, but I wasn’t able to find out what it was with this particular debit card.

SilverCard Prepaid MasterCard

with direct deposit loading of the card doesn’t include any fees, and you also have the added advantage of not needing to pay any more check cashing fees. You are guaranteed to be approved with the SilverCard just like you are with the AccountNow mentioned above.

The difference between the SilverCard and AccountNow seems to be additional options to transact your business with. For example, you can get email and SMS text message alerts with the SilverCard, while also being empowered to pay bills by using your phone or with a automated billing payment service.

Fee differences with the SilverCard versus the AccountNow debit card are the monthly fee of the SilverCard is revealed as $3.95, and there is also an activation fee of $9.95, something the AccountNow card doesn’t have.

Domestic ATM withdrawals are slightly less with the SilverCard, costing $1.95 per transaction. International ATM costs remain the same at $4.95 a transaction. To cancel the SilverCard costs you $14.95 and card replacement is much less at $4.95.

Cash withdrawal limits on a daily basis are $500, while daily deposit limits stand at $1,000.

 Facecard Prepaid MasterCard 

The primary differences between the Facecard Prepaid MasterCard and the SilverCard and AccountNow are you can receive what they call prewards on the card, which are automatically put on the card and operate similar to coupons. You can also transfer money for free using the card, if you’re sending it to other Facecard members.

There are no activation fees associated with the Facecard Prepaid MasterCard, and domestic ATM withdrawals cost you $1.50 per transaction.

Paper statements cost you $2.95 a month and if you cancel the card you’ll pay $9.95, and you’ll pay the same if you must have the debit card replaced.

Limits on the card are $100 on a daily basis, while you can deposit up to $2,500 a day on the card.
These are several of the many debit cards offered by MetaBank, and keep in mind things can change on a consistent basis, so use the figures included above as a guide to what is offered, and not necessarily the exact fee.

The point is a prepaid debit card isn’t just a prepaid debit card any longer, and they can target exact purposes and needs you have to take best advantage of them. Keep it in mind when checking out any type of prepaid debit card when you’re in the market for one.

Obtaining life insurance is not a pleasant experience, but it is necessary. Keep in mind that it is not for you, but for those you love. Looking at it in that light helps you stay motivated to get it done.

Here are six steps in shopping for life insurance that will hopefully make it less of a chore.

Buy what you need. It is easy to buy too much or too little insurance. You need buy only what you need. The task of finding out how much you need is determined by a thorough review of your shopping-for-insurance circumstances. That is why a good, local insurance agent is much better than those who do not have offices in your area.

Term over whole. The debate between term life insurance and whole life or cash value insurance is settled: term life insurance is the way to go. Paying more via a whole life policy in order to build up cash value is not a wise use of your investment money. You can find much better returns on your money by placing it into conservative municipal bonds and other stocks.

Check Internet quotes. Even though you are better off buying insurance locally, it never hurts to get price quotes from Internet insurance providers. This way, you can compare prices and challenge your local agent for a better deal. After all, it is your money and you deserve the lowest premium you can get.

Get healthy. Before you apply for affordable life insurance, take time to get healthy. If you are not, you will pay a higher amount for your life insurance. Now more than ever your health plays a huge role in the amount of your monthly premiums.

Stay with major providers. There is nothing like staying with the major life insurance providers for stability. Do not compromise your coverage by obtaining insurance from a carrier that may or may not be around long term.

Evaluate life changes. Once you have your life insurance in place, make sure that you perform a checkup every 18 to 24 months in order to make changes to your policies that affect your insurance. Life insurance is not a ’set and forget’ proposition.

Using these steps, you can find a policy that is right for you and provides for those you love when you are gone. Keep in mind that now is a good time to look for life insurance because rates are very good at this point.

If you live in the United Kingdom and are looking for a life insurance, get a Liverpool Victoria life assurance quote from LV.com

As the current mortgage meltdown and economic crisis has taught us, how you’re paying for you home is as important as having a home. This will be very important going forward, as inflation is an surety after the huge spending of the U.S. government, and we need to keep this in mind with the financial decisions we make.

Inflation is already here, as you can tell from food and fuel prices, but what hides the actual figures are things like light trucks for example, which are included in the inflation numbers, but very few people are buying at this time. That means the price of a light truck, or another product which most people wouldn’t be buying at this time, could drop in price in a big way, but because it has no impact on most people, makes the inflation numbers look tame, but in reality the everyday cost of items we actually use are going up.

There is no doubt interest rates will eventually rise, and that will also put inflationary pressure on the products and services we all use.

So how does this apply to how you own your home? Simple: own it with a long-term fixed-rate mortgage. The reason this is so wise is as inflation rises and the government continues to print money to pay for its trillions in debt, the value of the U.S. dollar will continue to fall.

What that means is the money you pay off your mortgage with will be worth less in the future, and so cheaper from your standpoint to use for that purpose. In other words, you have a built-in inflation hedge when you pay for your home in this responsible and conservative manner.

To help you understand this a little better, think of the fact that no matter what the U.S. dollar is worth, you’re going to be paying the same amount of monthly payment for your mortgage over the 30 years you took out your loan. So as the U.S. dollar plunges in value, you continue to pay the same amount of dollars, even if they aren’t worth near the amount they were when you took on the mortgage. That’s a hedge against inflation, and a very strong and real one.

Don’t misunderstand, ignore or be caught off guard by inflation. It’s coming, and we need to protect our buying power through taking a number of steps to keep ahead of the inflationary pressures. Buying a home and mortgaging it with a 30-year fixed rate is one of the better steps to take to ensure this happens.

Most states require their drivers to own some form of automobile insurance, even if it’s just basic liability insurance to take care of other individuals when you get in an accident with them and it’s your fault. Since almost everyone has car insurance there are a lot of different companies that would like to sell it to you. The massive amount of competition in insurance sales has driven the price down rather significantly across the board in the last couple of decades. By comparing dozens of different companies online, such as cheapestautoinsurance.net, you can save a significant amount of money on your monthly automobile insurance costs.

If you haven’t shopped around your car insurance, or any other type of insurance that you own for that matter, in the last few years, it’s time to do it again. The difference in price between companies that you will pay is dramatic. You could be paying upwards of $500 a year too much if you’re buying insurance from the wrong company.

In order to begin the process of shopping for insurance, you’ll need to gather the relevant financial documents, such as your driver’s license, vehicle information, and the like and then head online. There are a number of different sites you can browse such as InsWeb.com, and CarInsurance.com that will shop a number of different sites. You can also get quotes from each company individually online, such as Progressive, Geico, State Farm, Esurance, Safeco, and the like. Collect quotes from about 10 different companies before making any firm decisions.

Many consumers have found that a quality independent agent have been able to get them better prices than they might find online, so it’s always a good idea to find an independent insurance agent in your local area and have them compare prices for you in addition to shopping online. Independent insurance agents have special software which allows them to research dozens of different companies at once. Visiting an independent agent could potentially save you hundreds of dollars per year compared to what you might be able to find online. They often know about special rates and deals you might not know about when shopping online.

You should re-shop your automobile and other insurances every two years so that you can take advantage of any price drops that occur. For example, the price of life insurance has dropped substantially in the last five years but many people are pay far too much because they have out of date policies. Take the time to re-shop your insurance online and with an independent agent to make sure you are getting the best insurance deals around.

Prepaid debit cards are becoming a booming business as consumers tired of the high banking fees associated with checking accounts flock to the increasingly popular alternative to having bank accounts.

One great feature of a prepaid debit card is you can recharge when it when it runs out of money, so you don’t have to go through any type of process over and over again, other than that one.

The strength checking accounts in banks for some is a weakness for others; the reason the use of prepaid debit cards is growing so quickly.

For example, many banking customers like overdraft protection, because they have a handle on their finances, and they don’t want to go through the bother of being sure they’re covered to the penny if they do some spontaneous spending. So they understand they’ll have to pay for that privilege, and so don’t mind doing it.

On the other hand, those that don’t want to be hit with these fees can opt out of overdraft checking programs if they want, but then they have the issue of stopped payments if they run out of money. So they have to deal with taking care of that on the other side of the issue.

Depending on the lifestyle of consumers and the terms related to using an ATM, that can be an additional expense and headache, driving more people to go the prepaid debit card as their financial tool of choice. There are other elements connected to this, but you get the idea.

In a recent report titled “Prepaid Debit Cards: A Credible Alternative to Checking Accounts,” author Gwenn Bézard revealed that approximately 14 percent of those that now use checking accounts could save from $350 to over $1,800 by switching to a prepaid debit card.

Another interesting practice is people are moving from store cards to prepaid debit cards as well, saving more money because of no interest.

In another report, the savings aren’t near as significant as stated by the first report, as a Britton Woods prepaid debit card study found that savings for replacing a checking account with a prepaid credit card is between $96 and $146 annually.

The reason the figures are so far apart is the Britton Woods study only included basic debit card and checking account use, and didn’t include the numerous services which could add a lot of cost do using a bank checking account. That’s also the case with a prepaid debit card, which could have costs increase depending on what you used it for.

If you’re a good manager of your money and use basic banking checking account services, it’s probably not worth the time and effort to change. If you use a lot of bank checking services which generate a lot of costs and fees, then it could definitely be a good choice for you.

Some people even use both, designating certain types of spending on their prepaid debit card, ensuring they’re saving money by managing their checking account better through using it for specific items and bills.

I’m going to get a lot more into prepaid debit cards, but one nice feature to consider, is an answer to probably the first question in your mind, and that is how troublesome is it to get the card and get your money on it. The answer is it’s very simple, and all you have to do is have your pay check direct deposited into your prepaid debit card account. That will avoid any type of activation fees, while also being able to use them to make online transactions and other business.

While it’s not too difficult to understand a checking account as far as its purpose goes, many consumers fail to understand that a checking account is a product, and banks and credit unions can offer similar services with very different costs.

The first thing to consider is the the lifestyle you live. Are you a traveler? Do you travel internationally? These can be among the largest fees connected to a checking account when using a debit card or ATM to access your account.

If the answer to those questions are you don’t travel much and your decision for a checking account would largely be based on local use, then you can look at costs from that point of view. If you do travel a lot, the question then becomes what type of fees would be accessed if you were making overseas transactions with your account. It’s well worth the time spent to find these things out, as the cost differences between bank checking accounts can be huge.

Another major factor in determining which bank to have a checking account with is what types of fees are associated with using an ATM. Some banks will pay you back usage fees, while others charge for their use. Again, it can make a big difference in the costs connected to your checking account, so understanding those fees, if any, are important too.

One of the more important parts of checking today, as far as I’m concerned, is whether it offers online banking transactions. I’ve been doing online banking for years, and would have difficulty doing it any other way at this time. Large banks will have this, but possibly not all small, local banks. So it’s definitely worth asking the question and not assuming its part of the bank’s services offered.

What’s particularly effective and valuable about online banking is you can keep up to date on where your account stands far better than simply waiting for a monthly statement to arrive in the mail. If there is anything that doesn’t seem right, you can check it far quicker online than you can once a month.

Finally, be aware of overdraft protection and charges. Most banks offer overdraft protection, which has recently become a negative practice for them based on people claiming they had no idea they were covered for overdrafts.

The consequences of not knowing is a large number of fees which can add up quickly. You should ask if you’re covered by overdraft protection, and what the price of that service is if you overdraw your account. Each overdraft can cost a lot of money, so it can quickly rise to over $100 if you don’t pay attention to your account.

One thing you can do to protect yourself from these fees is to simply opt out of the program if you’re not careful in monitoring your account. If you do that though, you have to understand you’ll end up doing a transaction somewhere where it won’t be allowed to go through.

As you can see, opening and using a checking account can be a little more complex than you think, but it’s not rocket science. Just ask the right questions and be aware of fee structures and guidelines the banks offer.

From there take account of your own behavior patterns and make decisions based upon that. If you’re good at managing your affairs, then using the features available for a checking account is the best option. If you’re not, then utilizing the basic features of the account would be best for you, as it would save you a lot of money in the long run.