Random Legal Articles

Random Legal Articles http://www.articletrader.com/ Articles at ArticleTrader en-us wills http://www.articletrader.com/legal/wills.html http://www.articletrader.com/legal/wills.html Sun, 23 Oct 2005 00:00:00 -0500 Searching for the most up-to-date assistance in relation to wills.
Sometimes when you're trying to find excellent information about wills, it will be easier said than done separating quality information from ill-equiped wills suggestions and support so it is important to recognize ways of moderating the information offered to you.

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Here's several guidelineswhich we recommend you think of using when you're searching for information regarding wills. It is important to remember that any recommendation we present to you is only applicable to internet based information regarding wills.We do not offer you any tips or guidance when you are also conducting research in books or magazines.

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A good hint to track when you are presented with help and advice regarding a wills web is to research who is behind the website. This may show you who owns the site wills credibility The easiest way to reveal who owns the wills web site is to find the sites 'about' page.

Any reputable website providing information regarding wills, will almost always provide an 'about' or 'contact' page which will provide you with the owner's details. The info should make known some advice about the owner's necessary expertise. This enables you to make an assessment about the webmaster's training and understanding, to offer assistance with wills.

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jeff webster has is the webmaster for He offfers this information to enhance the search capability of those seeking information on wills

Source: http://www.articletrader.com ]]> Feeling FICA http://www.articletrader.com/legal/feeling-fica.html http://www.articletrader.com/legal/feeling-fica.html Sun, 23 Oct 2005 00:00:00 -0500 What does FICA stand for?

FICA stands for the Federal Insurance Contributions Act. The history of the act reverts back to the year 1935, when the government implemented the social security program. A provision to include social security taxes was included in this act. However, due to concerns over the constitutionality of the 1935 act, there were amendments made and the provision for collecting social security taxes was moved to the Internal Revenue Code in 1939. At this time it was renamed the Federal Insurance Contributions Act.

What is FICA exactly?

The Federal Insurance Contributions Act authorizes the IRS to collect taxes for the benefit of the social security program. Intuitively, we might think of these taxes as social security taxes, but more commonly they are referred to as FICA taxes. These FICA taxes serve as deposits into the federal social insurance program we think of today as Social Security.

According to FICA, you must contribute 12.4 percent of your earned income up to the predetermined limit of contributions, and another 2.9 percent must be contributed to Medicare. It is important to note that there is no earnings limit on the Medicare portion of the tax, and thus in practice one is taxed 2.9 percent of all earned income, regardless of your total income level.

For those working for hourly wages the tax levels are different. Hourly employees contribute 6.2 percent for Social Security and 1.45 percent for Medicare. Hopefully you noticed that this is just half of the standard rates. There is good reason for this as your employer is required to pay the other half of the rate for Social Security and Medicare contributions. In other words, for those working at hourly wages, the employer must match the employee contributions.

How would you spend your FICA?

Let’s imagine we live in a perfect world, and we don’t have to pay taxes. That means no more contributions to FICA. Now, after the excitement settles down we must decide what to do with our extra income. Let’s pretend we work a part time job, because we are still studying to get our degree in economics. Fortunately, we have a decent job paying $11 bucks an hour assisting an up and coming lawyer. Typically, we put in a 25 hour work week, meaning we make about $275 a week. That is exactly $1100 dollars every month. If we made $1100 every month, the FICA taxes we would normally contribute would break down like this:

Social Security: $1100 X 6.2% = $68.20

Medicare: $1100 X 1.45% = $15.95

$84.15

So by not having to pay taxes, particularly FICA, we would increase our cash flow by $84.15 each month. Now the fun begins. What are the ways we could spend our hard earned cash. I know what I would do. I would begin by signing a lease agreement with TiVO for one of their popular digital video recording options. With this contract, I allocate $12.95 of my savings each month to the TiVO service. To complement my new DVR, I would go ahead and splurge on the best cable TV service in the area. I estimate the cost would come in around $50 a month. As a college student I would likely be coerced into filling the music void in my life by signing up for an all you can consume digital music subscription service, running approximately $9.95 a month. Just like that I am only left with about $10 a month, which could easily be spent seeing a one or two movies every month.

Snap Back to Reality

Well, unfortunately life is not that easy. We do have to pay FICA, and the contributions we make go a long way in improving the living conditions of others. So for now, plan on paying those FICA taxes, or should I say contributions.

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Adam Smith is a client account specialist with – More Visitors. More Buyers. More Revenue. For more regarding FICA, please visit

Source: http://www.articletrader.com ]]> Repairing Credit http://www.articletrader.com/legal/repairing-credit.html http://www.articletrader.com/legal/repairing-credit.html Sun, 23 Oct 2005 00:00:00 -0500 One of the reasons it is a good idea to check your credit is to see if the information is correct. Attorneys charge a great deal of money to remove negative information from your credit report. It is also possible to repair your credit even if the facts are correct. Creditors can damage your credit but there are ways around this, and improve your credit score.

A) The creditor must re-verify their information in a timely manor to the credit bureau. If they do not, which is often the case, their report can then be deleted from your credit report.

B) Anything negative on your credit record can be removed by you at any time. If you ask the credit bureau to reinvestigate and the item cannot be verified within a certain period of time it must be removed from your Credit Report.

C) Sometimes challenged credit reports are removed by mistake or they don’t have the time and simple remove them if your evidence is logical.

D) A bad credit report must be verified by the credit bureau, and if this is not possible it must be removed from your record changing your credit score, even if the information was correct.

E) Often old credit records cannot be substantiated and information is no longer available after a few years.

F) All this can be done by anyone that is willing to spend the time and effort to do so. It will depend on your economics and if it is cost effective to do it yourself, or have an Attorney handle it.

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Jeffrey Broobin is a free-lance writer on family and finance issues; his main goal is to help people during their complicated period of life. Website: Email: jeffreyb@legalhelper.ws

Source: http://www.articletrader.com ]]> The Abortion Debate http://www.articletrader.com/legal/the-abortion-debate.html http://www.articletrader.com/legal/the-abortion-debate.html Sun, 23 Oct 2005 00:00:00 -0500 One of today’s most controversial topics, the abortion debate pits the rights of a mother against the rights of a fetus. The most common, clear-cut stances on the issue are “pro-choice” and “pro-life,” which hinge on legal and moral considerations. Another common viewpoint is a more blended pragmatist view, which states that abortion should be prohibited except for specific cases.

"Pro-choice" advocates stress a woman's right to choose whether and when to terminate her pregnancy. In their view, a woman should have absolute control over her own body and, by extension, over the survival of the fetus within her. The "pro-life" camp argues that life begins at conception and any termination of pregnancy after the formation of the embryo is equivalent to murder.

One may deem abortion immoral, but does that necessarily mean it should be illegal? As with many moral debates, there is an underlying and perhaps more significant legal debate raging, especially in the United States. Roe v. Wade was a landmark 1973 Supreme Court ruling that is still relevant today. The Court voted 7-2 to overturn all state laws banning abortion. The Justices concluded that such laws violate a woman's constitutional right to privacy. Since then, the moral debate has taken on political significance.

Alternatively, if abortion is morally permissible, does that mean it should be legal in all cases? In response to this question, there exist other viewpoints in addition to the clear cut “pro choice” and “pro life” positions. Indeed, proponents of each argument vary by degree.

For example, some pro-choice advocates believe abortion is no longer morally permissible after the second trimester. Similarly, some pro-lifers allow abortion in extreme cases, such as rape or incest. Roughly two percent of pregnancies occur under these conditions.

The abortion debate lends itself to a larger, overriding question: when must the government intervene in citizens' personal lives, and when must it avoid doing so?

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OpineTree is a blog website that encourages debate on today’s most controversial political topics, including abortion, affirmative action, cloning, the death penalty, euthanasia, gay marriage, gun control, health care, social security, stem cells, as well as other debate topics. Visit to join the abortion debate.

Source: http://www.articletrader.com ]]> Mate Seekers http://www.articletrader.com/legal/mate-seekers.html http://www.articletrader.com/legal/mate-seekers.html Sun, 23 Oct 2005 00:00:00 -0500 Single Americans want to marry someone who shares their Innermost Thoughts and Feelings rather than someone rich or of the same religion, a survey said on Wednesday.

Today's young Americans are on a quest to find their "Soul Mate," compared with past generations that sought spouses with similar religious and social backgrounds, said a new survey from Rutgers University's National Marriage Project.

"Seeking a compatible mate who shares similar values is not new, but what is new and surprising is that the soul mate ideal has become the most desired marital partner characteristic for this age group - Surpassing Religion, economics and even the ability to be a good mother or father," said David Popenoe, co-director of the National Marriage Project.

Among Americans in their 20s who have never been married, they wanted a soul-mate spouse "first and foremost," said the survey, which was called "Who Wants to Marry a Soul Mate?".

They were very confident of success. Of those surveyed, 88 percent agreed there was a "Special Person, a soul mate, waiting for you somewhere out there", and 87 percent thought they would find that person when they were ready to get married.

For 80 percent of the women polled, a husband who could articulate his deepest feelings was a better catch than one who earned a good living. Only 42 percent of single Americans in their 20s thought it was important for their spouses to have the Same Religious Beliefs, the survey showed.

The survey is part of the project's wider "The State of Our Unions" report on marriage trends in the United States. It was based on telephone interviews with married and single men and women. "There's an awful lot about soul mates in popular culture", Popenoe told Reuters. "It's the term of the hour. ... It's a big change from times past when you maybe hoped a spouse would be a soul mate by the end of life but you didn't start out looking for such a person. You were looking for someone responsible and reliable who would be a helpmate for the tasks of life.

The term Soul Mate is in vogue, cropping up in popular U.S. television shows as marriage continues to lose appeal in the country, Popenoe said.

The marriage rate hasn't started to go up; the out-of-wedlock birthrate hasn't started to go down; single-parent families are still going up slightly and there has been a tremendous increase in non marital cohabitation", he said.

According to a recent report from the Centers for Disease Control and Prevention, 43 percent of marriages end in separation or divorce within 6 years.

Nor does the soul mate quest necessarily produce a happy marriage, experts said. The belief that there is only one Perfect Mate for a person sets unrealistic expectations for marriages and often can lead to divorce, they said.

They are still romantic and idealistic, still want to find their soul mate and have the marriage of their dreams, so that's very good", said Diane Sollee, the founder and director of the Washington, D.C.-based Coalition for Marriage, Family and Couples Education. "The bad news is if we keep operating on that premise, we will keep repeating the current trend of a very high divorce rate."

The Fear of Divorce and the hunt for a soul mate could explain the high rate of young Americans who live together before getting married, the survey said. Among those polled, 44 percent had lived together, at some time, with a partner of the opposite sex while not married.

Marriage was no longer associated with having children the way it once was, the survey said. Only 10 percent of young Americans saw having children as the main purpose of marriage, while 62 percent believed it was acceptable - although not ideal - for a woman to have a child on her own if she had not found the Right Man to Marry.

The soul-mate relationship also created tension when a couple had children, marriage experts said. "The soul-mate ideal intensifies the natural tension between adult desires and children's needs," the survey said.

In the 1960s, the singers "Sonny and Cher" had a popular song, "I've Got You, Babe," whose main message was that money wasn't as important as love. Several years later, after Sonny and Cher had become very famous, had a T.V. show and all that, they split up. Musicians are always singing about love as if it were absolutely the most important thing in the world. But there are other people who act like money is the only thing that matters; sometimes they sacrifice friendship and romance in their quest for it. Even though some people say that money is more important than love, I believe the opposite is true.

Introduce one legitimate reason which could be given in support of the other opinion, explain this reasoning and then proceed to disprove it with examples, evidence and logic. The Goal of this paragraph is to sow doubt in the reader's mind concerning the view which is different from yours.

Rhetorically, this leaves the reader in a state of open-mindedness regarding what he/she is about to encounter--your argument for your thesis.

The main reason people often give to support their opinion that money is more important than love is because the basic necessities of life-food and shelter, for example - carry a real cost. Love won't do you much good at the supermarket counter when you need potatoes, rice, vegetables and fruit. If you send a little love note instead of your check for rent one month, you will see it doesn't do any good. But why do we eat and why do we care about having a roof over our heads? Think about sitting at the kitchen table eating alone, just looking at the walls or, if you're lucky, out the window. Is that really living? Aren't human beings created to share something together, learn from each other, communicate and express their feelings? Money means nothing without love.

First Proof

The first reason why I believe love trumps money is that love will get you through times of no money better than money will get you through times of no love. Imagine a situation in which you and another person are deeply in love. One of you or both of you lose your jobs, a few months go by and soon your savings are gone. But every day, you greet each other with expressions of your love.

As the amount of food in the refrigerator decreases, your love for each other grows. It feeds you, spiritually and physically. When you make yourself a cup of coffee or tea, you naturally make another for the person you love.

You encourage each other every moment of every day, and because of this mutual support you are able to survive until the next paycheck comes.

Second Proof

The second reason why love is more important than money is that love can sustain and heal the human spirit. Imagine a very, very rich person who is slowly dying of some disease. Can a Busy Doctor heal him or her? Not completely. It always requires some form of love, too.

Nurses often supply this crucial ingredient of basic human love when they gently speak to the patient, clean him or her, administer medicine and simply show they care. Family members also are very important in the healing process for someone who is recovering from, for example, cancer.

Love is the Best Medicine in the world. It gives everyone a reason to live, a reason to work, a reason to keep going.

Without Love, there is nothing. We need to remember this as we go through our lives. We should never take love for granted. We should always nurture the feeling, so that it grows forever. Maybe this means smiling a little more often, or offering a helping hand when we see a need.

Maybe we ought to get more involved in our communities, working together with fellow human beings to improve the environment, our schools and the overall quality of life for everyone. If we look at the world through Eyes of Love, then our actions will be less selfish and the results will be more satisfying. Money is part of life, but love has the power to change our lives.

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Jeffrey Broobin is a free-lance writer on family and finance issues; his main goal is to help people during their complicated period of life. Website: Email: jeffreyb@legalhelper.ws

Source: http://www.articletrader.com ]]> Don’t be a Sucker http://www.articletrader.com/legal/don%92t-be-a-sucker.html http://www.articletrader.com/legal/don%92t-be-a-sucker.html Sun, 23 Oct 2005 00:00:00 -0500 Knowledge of the law gives you the edge to exercise and protect your rights and to restrict yourself from any act or omission prohibited by the laws of the land. Ignorance of the law excuses no one. However, how will you know that you are already abused or defrauded if you do not know the boundaries of your protection?

These days, most of the claimants are unaware of what they should do to pursue a claim. They still entertain a lot of misconception at the back of their minds. Winning a claim does not depend on the age of the claimant. It does not follow that social security claim where the claimants are children are easily approved than those pursued by adults. It does not also mean that if you are not disabled you are not deserving of the claim and it will likely be denied. It does not also follow that if a physician has given his statement in support to your case you can automatically earn merit to your claim.

In order to act accurately on the matter, we should first free our minds from misconceptions because misconceptions make as an easy target of fraud and falsehood.

Frequently, social disability and SSI claimants are simply given the wrong information. If your friend contacted the Social Security before his application for a claim and then he was told he could not file a disability claim because he was working, then, your friend has been misinformed. Individuals are permitted to work provided that their monthly gross earnings are less than the SGA or substantial gainful activity amount which is $830.00 per month.

Giving of wrong information may be made deliberately or otherwise. Why do this mistake and other related mistakes occur? If the misinformation was a deliberate act, then the personnel must be held liable for the deception. If it is on the negative, several reasons may have caused it. In many cases, it is caused by the incompetence of the person answering the phone at the local Social Security field office. Usually, he is referred to as service representative, he is not someone who actually works on cases called claim representatives. He may also lack knowledge about claims. That places you both in equal footing.

Often times also, mistake is due to human error – either on the part of the social security office or claimant. Social security disability and SSI are complex and technically hard division of the law. Its complexity can tend to confuse or mislead especially if the social security disability process was not clearly explained to the applicants.

Regardless of the reason why, information dispensed by the Social Security Office should never be taken totally at face-value, consultation of the same to an experienced lawyer in connection with the matter is highly recommended. Also, if you are in doubt, you must ask questions to another person in authority of your claim. Know your rights. Defend your stand, for you to be able to gain a favorable aftermath.

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Source: http://www.articletrader.com ]]> A Living Will and Understanding It http://www.articletrader.com/legal/a-living-will-and-understanding-it.html http://www.articletrader.com/legal/a-living-will-and-understanding-it.html Mon, 02 Jan 2006 00:00:00 -0600 "Artificial nutrition and hydration" means the provision of nutrients or fluids by a tube inserted in a vein, under the skin in the subcutaneous tissues, or in the stomach (gastrointestinal tract).

Irreversible condition means a condition, injury, or illness:

1. That may be treated, but is Never Cured or eliminated;

2. That leaves a person Unable to Care for Oneself, or make decisions

3. That, without life-sustaining treatment provided in accordance with the Prevailing Standard of Medical Care, is fatal.

Many serious illnesses such as cancer, failure of major organs (kidney, heart, liver, or lung), and Serious Brain Disease such as Alzheimer's dementia may be considered irreversible early on.

There is no cure, but the patient may be kept alive for prolonged periods of time if the patient receives life-sustaining treatments. Late in the course of the same illness, the disease may be Considered Terminal when, even with treatment, the patient is expected to die. You may wish to consider which burdens of treatment you would be willing to accept in an effort to achieve a particular outcome. This is a very personal decision that you may wish to discuss with your physician, family, or other important persons in your life. "Understanding Living Will: Irreversible condition, Artificial nutrition and hydration.

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Jeffrey Broobin is a free-lance writer on family and finance issues; his main goal is to help people during their complicated period of life. Website: Email: jeffreyb@legalhelpmate.com

Source: http://www.articletrader.com ]]> Choosing between Power of Attorney for Health Care and A Living Will http://www.articletrader.com/legal/choosing-between-power-of-attorney-for-health-care-and-a-living-will.html http://www.articletrader.com/legal/choosing-between-power-of-attorney-for-health-care-and-a-living-will.html Mon, 02 Jan 2006 00:00:00 -0600
On the other hand, people use a to appoint someone to make all healthcare decisions, limited by certain elections regarding deathbed issues.

The client must be at least 18 years old and mentally competent at the time he/she executes either document but incompetent to participate in the decision-making process when either is implemented. It is important to remember that both documents are only applicable if the client is incompetent.

Under the a Living Will, a client declares that if he/she is certified to have an incurable, terminal injury/illness and/or to be permanently unconscious by two examining physicians (including the client's attending physician), that artificial life-support systems be withheld or disconnected. The client may also elect to discontinue artificial nutrition and hydration (intravenous feeding) by so designating on the form. (Find more information at: Legal Helpmate's Website.

Under the Health Care Power of Attorney, the client makes three separate and independent elections authorizing the agent:

1. To direct disconnection of artificial life-support systems in the event of terminal illness;

2. To direct disconnection of artificial life-support systems in the event of irreversible coma.

3. To direct discontinuation of artificial nutrition and hydration.

In addition, the Health Care Power of Attorney form provides a space for the client to set forth any specific medical, religious or other desires concerning his/her health care. The client may also use this section as a backup source for organ donation. (Find more information at: Legal Helpmate's website.

Both documents are signed in front of two witnesses and a notary public or a justice of the peace who acknowledges the client's signature. The witnesses to a Living Will are sworn by the notary public/justice of the peace and indicate that the client is at least 18 years of age and signed the instrument as a free and voluntary act.

The Living Will witnesses may not be the client's spouse, attending physician, heirs-at-law or person with claims against the client's estate.

The Health Care Power of Attorney witnesses may not be the designated agent, the client, spouse or heir or person entitled to any portion of the client's estate upon death under Will, Trust or operation of law.

People are frequently confused as to why both a Living Will and Health Care Power of Attorney are necessary or appropriate. The Living Will is helpful as a backup document: In the event that the client enters an irreversible coma and the health care agents designated in the Health Care Power of Attorney are deceased or unloadable, the Living Will sets forth the desires of the client concerning his/her death-bed treatment which may be followed by attending physicians. The law provides that to the extent that a Health Care Power of Attorney conflicts with a Living Will, the Health Care Power of Attorney controls. Copies of both the Power of Attorney for Health Care and the Living Will are forwarded to the client's primary care physician for inclusion in medical records.

Both documents are revocable through normal revocation procedures.

Note that Legal Helpmate Corp provides an easy-to-use, quick, and economical online method for creating completed power of attorney for any occasions.

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Jeffrey Broobin is a free-lance writer on family and finance issues; his main goal is to help people during their complicated period of life. Website: Email: jeffreyb@legalhelpmate.com

Source: http://www.articletrader.com ]]> Credit Information – Part 1 http://www.articletrader.com/legal/credit-information-%96-part-1.html http://www.articletrader.com/legal/credit-information-%96-part-1.html Mon, 02 Jan 2006 00:00:00 -0600 buying on credit or taking out a loan. These disclosures can help you shop around for the best deal.

Consumer lending disclosures can help you compare the cost and terms of one lease with another and with the cost and terms of buying for cash or on credit. Credit costs vary. By remembering two terms, you can compare credit prices from different sources. Under Truth in Lending, the creditor must tell you (in writing and before you sign any agreement) the finance charge and the annual percentage rate.

The finance charge is the total dollar amount you pay to use credit. It includes interest costs, and other costs, such as service charges and some credit-related insurance premiums.

Balance Transfer

The process of moving one outstanding balance from one credit card issuer to another.

Balance Transfer Fee

A balance transfer fee is a transaction fee that is charged to the cardholder's account when transferring an outstanding balance from one credit card to another.

Cash Cards

Like a pre-paid phone card, cash cards have a set cash amount value and are debited for each use. Therefore, similar to that of losing cash, if the cash card is lost or stolen, it can be used by anyone. Neither can it be cancelled, as can a lost, or stolen credit card.

Merchant

A retailer, corporation, firm, or any type of business, or person that has agreed to accept a payment in form of a credit card and/or debit card.

Co-Branded Card

A credit card is one issued by a merchant and merchant bank. Both brands are displayed on the card.

Authorized User

An authorized user is an individual, or group of individuals who have access to a credit card account, other than the primary cardholder. However, the authorized user usually does not have full access to a credit card account as would the primary cardholder.

Credit Available

Your credit available is the amount of your limit minus your current balance. This determines the amount of credit that may be used. The amount changes as your balance changes.

Corporate Card

A credit card is issued and billed to companies for use by their employees.

Credit Insurance

A policy usually offered by a third party that covers at least the minimum payment (often for a limited period of time) in the event the cardholder loses his, or her job, dies, or becomes disabled.

EFT (Electronic Funds Transfer)

A paperless transfer of funds authorized and/or initiated from a computer, telephone, or magnetic strip. An example of an EFT - a cardholder authorizing a direct deposit over the phone with his, or her credit card.

Daily Periodic Rate

Simply the annual percentage rate divided by the number of days in a year (often referred to as the 'daily interest rate').

Debit Card

A type of ATM card that withdraws funds directly from your checking account for each purchase that is made with the card. There are no finance charges, and your limit is represented by the amount of money in your checking account.

Fixed Interest Rate

If the cardholder uses the credit card outside of the United States, a fee (usually between 1% to 2%) is imposed by the credit card issuer, based on the cost of the purchase made.

Finance Charge

A finance charge is a type of interest rate that is fixed and will not change in relation to other fluctuations in other indexes. For example, if the fixed interest rate is 9.5%, it will not change for the time period agreed between the cardholder and the account issuer.

Minimum Payment

Represents the minimum amount of money you are obligated to pay each month against your credit card balance. The figure is determined by the size of the balance and the formula the lender chooses to use in determining the minimum amount due.

Monthly Periodic Rate

The annual percentage rate divided by the number of months in a year.

Payment Due Date

The date in which the credit card issuer must receive at least your minimum payment.

Secured Credit Card

A type of credit card in which one must maintain a savings account to secure the line of credit for the card. The savings account generally equals 50%-100% of the actual line of credit.

Secured Debt

A type of debt that is secured by collateral such as a house (a mortgage or a home equity loan) or a car.

Transaction Date

The transaction date is that on which the cardholder used his or her credit card for a purchase or cash advance.

Transaction Fees

Charges that are applied to your credit card balance by the credit card issuer (cash advance fees, late payment fees, returned payment fees, stopped payment fees, and over-the-credit-limit charges).

Two-Cycle Billing

Though rarely used, the two cycle billing determines the average daily balance based on two billing cycles. This method is more costly to the cardholder who does not pay in full and carries a balance, as interest is charged back to the date in which the purchase was originally made, initially wiping out the cardholder's grace period.

Affinity card

A card offered by two organizations, one a lending institution, the other a non-financial group. Schools, non-profit groups, pro wrestlers, popular singers and airlines are among those featured on affinity cards. Usually, use of the card entitles holders to special discounts or deals from the non-financial group. See also co-branded cards.

Air miles

One of the most popular rewards issued by airline-affiliated co-branded cards. Air miles are earned with every use of the card and are then transferred monthly to the card holder's account with that airline.

Annual Percentage Rate (APR)

The APR is the interest rate reflecting the total yearly cost of the interest on a loan, expressed as a percentage rate. Under the federal Truth in Lending Act, it must be calculated in a standard way to allow consumers to make 'apples to apples' comparisons of lending terms.

Bankruptcy

Bankruptcy is the last resort for a borrower. If the borrower has difficulty meeting rent or mortgage payments and is completely extended beyond the credit limit, and the collection agencies are uncooperative, the borrower may need to file for protection. There are two basic ways of filing for personal bankruptcy. A Chapter 7 bankruptcy declaration gets rid of all debts (except some taxes and maybe alimony payments); Chapter 13 allows a borrower with a steady income to pay off bills over a 36- to 60-month period. It's a serious step for a borrower because it severely limits access to credit for years to come.

Billing statement

The billing statement is the monthly bill sent by a credit card issuer to the customer. It gives a summary of activity on an account, including balance, purchases, payments, credits and finance charges. Important changes to a credit card account are often included in small-print fliers that are sent with the statement.

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Jeffrey Broobin is a free-lance writer on family and finance issues; his main goal is to help people during their complicated period of life. Website: http://www.legalhelpmate.com Email: jeffreyb@legalhelpmate.com

Source: http://www.articletrader.com ]]> Credit Information – Part 2 http://www.articletrader.com/legal/credit-information-%96-part-2.html http://www.articletrader.com/legal/credit-information-%96-part-2.html Mon, 02 Jan 2006 00:00:00 -0600 Consumer Credit Counseling Service (CCCS)

CCCS is a service that offers counseling about how to work out a realistic budget and debt repayment plan and work with creditors. The goal is to ensure that debts are paid back over time.

Interest rate

The interest rate is the fee charged form money lent. Under the Truth in Lending Act, it must be disclosed as an APR to credit card users on the card application form.

Joint credit

Issued to a couple based on both of their assets, incomes and credit reports. It generally results in a higher credit limit, but makes both parties responsible for repaying the debt.

National Foundation for Consumer Credit (NFCC)

NFCC is a non-profit organization that educates consumers about using credit wisely. The NFCC is the parent group for Consumer Credit Counseling Service.

MasterCard

MasterCard, a product of MasterCard International, is distributed by issuing financial institutions around the world. Card holders borrow money against a credit line and pay it back with interest if the balance is carried over from month to month. Its products are issued by 23,000 financial institutions in 220 countries and territories. In 1998, it had almost 700 million cards in circulation, whose users spent $650 billion in more than 16.2 million locations.

Late payment fee

Charge to customer whose monthly payment has not been received as of the due date or stated deadline for payment as shown on the billing statement. This fee can be stated in terms of a flat per-transaction fee or a percentage of the amount of the cash advance.

Over-the-limit fee

A fee charged for exceeding the credit limit on the card.

Pay-down program

Steps for paying down a credit card balance. First, stop charging on the card and make the normal monthly minimum payment by the due date. Then, two weeks later, send half the amount again, and two weeks later, half again. Repeat the half payments on the two-week schedule until the balance is paid.

Penalty rate

Rate Several percentage points higher than a card's current annual percentage rate, which goes into effect after two late payments. On some cards, a single late payment triggers a penalty rate.

Prime rate

Prime is the interest rate a bank charges to its best or "prime" customers. Each bank will quote a prime lending rate. Many institutions quote prime rates established by large money center commercial banks such as Citibank or Chase Manhattan. There is also a prime rate average listed in the Wall Street Journal that is an average of the largest commercial banks. The rate given to consumers on their credit cards is often based as the prime rate plus a certain percentage that represents the lender's assessment of the risk in lending plus its profit margin.

Revolving line of credit

This is an agreement to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid. Most credit cards offer revolving credit.

Titanium card

A titanium card has an even higher limit than a platinum card.

VISA

VISA cards, a product of VISA USA, are distributed by financial institutions around the world. A VISA card holder borrows money against a credit line and repays those funds with interest if the balance is carried over from month to month in a revolving line of credit. Nearly 600 million cards carry one of the Visa brands, and more than 14 million locations accept Visa cards.

Zero balance

A zero balance shows on a credit card customer's bill when the outstanding balance has been paid and no new charges have been incurred during the billing cycle.

Warning signs

These are the signals that credit bureaus look for in credit card customers' credit reports. They include frequent late payments, over-the-limit fees, and frequent balance transfers.

Liability

Liability refers to the responsibility of the borrower for charges to an account. Generally, a cardholder agrees to be liable for any charges to his or her account, including purchases, fees and finance charges. If the cardholder allows someone else to make charges to his or her account (through, for example, an additional card), the cardholder is still responsible for paying the bill. Two people who apply for a card together may both be responsible for the entire balance. Your liability is described in the cardholder agreement you receive from the issuer.

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Jeffrey Broobin is a free-lance writer on family and finance issues; his main goal is to help people during their complicated period of life. Website: http://www.legalhelpmate.com Email: jeffreyb@legalhelpmate.com

Source: http://www.articletrader.com ]]>