While I’m sure mentioning this topic is going to bring some eye rolls and heavy sighs, we can’t deny that Christmas will be here soon.  So rather than avoiding the issue, let’s take it on and discuss some ways to plan and stay out of debt.  As Dave Ramsey says, “Children do what feels good.  Adults make a plan and follow it.”  I propose that we make a plan to stay out of debt this Christmas.

1)  Audit your spending.  See if there is anything that you’re willing to cut out.  I’m thinking things like lunch out with coworkers, movie rentals, …read more

Illinois Governor Pat Quinn just created a law (that was recently signed in) that’s set up to protect college students from racking up credit card issues early on. The law’s goal is to place more responsibility on credit card issuers when it comes to handing out freebies and extras to college kids.

Even with the new law, the Illinois CPA Society notes that college kids still need to practice smart and responsible credit card ownership, such as…

Do shop around before choosing a card. Look at and compare monthly rates, grace periods, transaction fees, rewards, and penalty charges.
Don’t pay late which will …read more

Thrifty Mommy is all about not having enough bills at the end of the month since you saved so much money during the month. Oh, wait. That is my dream. Thrifty Mommy is really about saving time and money since we have too many bills and activities at the end of the month. My life’s motto on credit cards is simple. Use them as you wish. Just make sure you can pay them off at the end of the month. This way, you build up credit and have a sense of accomplishment when …read more

So excited! I just got a notice from my Credit Union that they are going to lower my rate from 12.99% to a fixed 9.99% rate for the life of my card. Let me tell you. I am excited! And I will also keep that letter in case they ever try to raise it again. I will keep them accountable for their word. I will not pay more than that.
You should try to call your credit card companies and tel them you want a rate decrease.  It usually works for me and it can’t …read more

 When I used to use credit cards to build my credit, I had a built in way to keep myself out of trouble.  I would put each charge in my check book in parentheses and subtract that charge out of my balance.  That way I knew I had already allocated the money for the end of the month.  When I got my credit card statement, I would make sure all the charges were accurate by checking my check book.  This way, I knew all the charges were correct and matched what I had accounted for.  Then I would make sure …read more

I received the nicest letter today from our credit card company.  We haven’t used this account in over two years, but it’s nice of them to think so fondly of us.  Here’s what the letter had to say: 
The holidays mean time away from work.  So, devote time to relax, visit with family and friends or indulge yourself with a vacation.  It is a special time of year – use your money wisely.
We would like to help you stretch your holiday dollars without putting a strain on your checking account.  Because you are a preferred cardholder, your good credit deserves to be rewarded.  …read more

If you want to improve your credit score by piggy-backing on a relative’s credit card account, then you’ll need to start looking for Plan B.  Fair Isaac Corporation has announced a change in its FICO credit scoring system that will no longer consider authorized user accounts when calculating credit scores.  (Fair Isaac Corporation is the pioneer of the FICO credit score used by most lenders to evaluate consumer credit risk.)
Adding a family member or friend as an authorized user on an existing credit card account has often been used as a way to establish credit.  But some credit repair organizations have recently …read more

You will never hear me recommend credit cards.  I truly believe that if you don’t have cash for it, you don’t need it with the exception of a home.  You can even save enough for a nice car.  Just make the car payment to yourself over the years and put the payment away.  That way, you have enough money to pay for a car with cash, not to mention that you can usually get a better deal when you pay cash.
But on the subject of credit cards, if you are going to use them, use them wisely.  Pay them off …read more

The 4th edition of Carnival of Credit Card is up at Credit Card Lowdown.  The carnival has some articles on reducing credit card debt, getting free money from Bank of America, learning how credit cards work, how to protect your personal information, and more.  My article The Thrifty Smart Cookies is also included. 
The next carnival will be hosted here at Thrifty Mommy.  Deadline for submissions is Saturday, February 24 at 3 pm (EST).  Click here to submit your article.

I love getting newsletters from 1 frugal friend 2 another.  Recently, I received a great tip on credit card management that I wanted to share with you.  If you like it, feel free to go over to Leslie at a heart for home.  She has so many pearls of frugal wisdom that you will get lost before you know it.  Hope you enjoy.
Credit Card Management
Keep this in mind next time you’re tempted to “put the pizza on plastic”.The following information is based on an interest rate of 16.99% to 18.99%:
If your balance is $1000.00 and your minimum required payment …read more