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, coffee stops, etc.  Or you could find ways to save on everyday purchases such as groceries.  Decide on how much spending you can eliminate.  Put that money aside into a savings account.

2)  Set a budget and stick to it.  Make a list of everyone you would like to shop for and decide on a dollar amount for gifts.  If necessary, you might have to eliminate a few relatives and friends that you don’t talk to much.  Due to the current economy, I think people are going to be more understanding this year.  That’s just my thought.

3)  Shop smart.  Look for clearance sales, coupon codes, and other ways to spend less.  Consider making homemade gifts.  Shop at discounted stores such as Marshalls, Ross, and T-Maxx.  There are many ways to save.

Other helpful tips:

• How to Cut Down Your Christmas Gift List
• Cutting Back on Your Christmas Expenses
• Plan for Your Holiday Budget Now!

Have you planned for Christmas?

image on file

Post from: Thrifty Mommy

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 incur costly fees.
• Do protect your card. Don’t give out pin numbers, account numbers, or ever loan your card to anyone.
• Don’t fall for low teaser credit card rates. These are rates that seem amazing, but actually only last the first few months.
• Do review your monthly statements. Credit card companies make mistakes or charge you fees they shouldn’t have. Plus it’s smart to check for any suspicious charges.
• Don’t toss statements for about a year – it’s wise to have them on hand for any potential charge disputes.
• Do check your credit history annually. Check out your credit history by obtaining a free credit report.

[image via stock.xchng]

Post from: Thrifty Mommy

But minthegap has a great article on credit cards and how they can work for you instead of against you. You chould check them out. It’s a great site and I plan on putting them in my daily reads.

Here are a few other articles you can check out:

• How to reduce your interest rates
• How to pay off your credit cards each month
• 10 tips for handling credit card debt

Talk at ya later,

Post from: Thrifty Mommy

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 hurt.  Don’t ask them, TELL them.  If you haven’t been late on payments and are in good standing, give it a shot.

Post from: Thrifty Mommy

Post from: Thrifty Mommy

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.  We have attached these Holiday LetterChecks for your convenience and holiday use.

These Holiday LetterChecks are our gift to you.  They can be used to make purchases, pay bills, and ease holiday gift giving.  Use them like regular checks.  But instead of draining your checking account, your purchases will be reflected on your next monthly credit card statement.  Your only limit is your imagination!

Make your Holiday LetterChecks work for you:

• Decrease holiday spending worries
• Give as a gift for those hard-to-buy-for people on your list
• Jumpstart the New Year with a newly remodeled home
• Consolidate your debt
• Travel to a snow-blanketed or sand-covered destination – the decision is all yours!

We wish you and yours the very best for a wonderful holiday season and New Year.

Ok, before I chime in with my thoughts, I want to hear what YOU think of this letter.

Post from: Thrifty Mommy

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 used this system (called “credit renting”) as a way to sell authorized user account access to consumers with credit problems.  –Fair Isaac’s Craig Watts 

The loophole will close beginning in September with one of the three major credit reporting agencies.  The other two agencies will change in 2008.

Source – USA Weekend

Post from: Thrifty Mommy

But on the subject of credit cards, if you are going to use them, use them wisely.  Pay them off each month.  I went to pay on our credit card today.  I don’t use it.  My husband does.  So the lady looked at me crazy when I told her I didn’t have the card with me to give her the account number.  Using a credit card wisely can increase your credit score.

So what is a good card to use?  There are so many out there that you can get lost in the sea of cards out there. 

I recently found a great article from Parents Magazine that lays most of the credit cards and the rewards you can get from them.  It got me to thinking so let’s take a look at what you should let credit cards do for you.

• Fidelity 529 College Rewards Mastercard – gives you 2% back on all purchases up to $1500 a year.
• Citi Upromise Card – gives you 1% back on all purchases up to $300 annually, additional rebates at certain retailers such as 5% at onestepahead.com and 2% at dell.com
• Fidelity Investment Rewards Visa – gives you 1.5% back on all purchases up to $1500 a year
• Citi Home Rebate Platinum Select MasterCard –  gives you 1% back on all purchases plus 6% back for every dollar spent on cable and utility bills for the first 12 months
• GM Card – gives you 5% on all purchases towards the cost of most GM vehicles
• Citi Driver’s Edge Platinum Select Card – gives you 6% back for the first 12 months and then 3% after that on purchases from supermarkets, drugstores, and gas stations and 1% on all other purchases up to $1000 a year
• Citi Dividend Platinum Select MasterCard – gives you up to 5% back at certain places and 1% on all other purchases up to $300 annually
• American Express Blue Cash – gives you 5% back at certain supermarkets, gas stations, and drugstores and 1.5% back every where else after you charge $6,500 each year.  Before that, you get .5% – 1% on all purchases
• MBNA World Points Visa Signature – gives you 1 point for every dollar spent to be used to trade for airline tickets
• Citi PremierPass Card – gives you 1 point for every for every dollar up to $100,000 per year plus 5,000 points upon sign on.
• Discover Platinum Card – gives you a rotating 5% back in different categories, and then .25% back when you spend up to $1,500, .5% back when you spend $1,500 and $3000, and 1% back when you spend more than $3,000

Be careful to only select credit cards that will give you the rewards you will use and don’t go hog wild with your spending.  So be smart with your spending and choose wisely which credit card you decide on.

Here are some related links you might want to check out when choosing your credit card reward program.

Things to think about when choosing a rewards program

Credit Card rewards program review

Cash in on Credit Cards

Credit Card types and rewards

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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.

Post from: Thrifty Mommy

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 is $20.00, then $15.00 of the payment goes to interest and only a small portion pays down the principal. If during the next month you charge $15.00 or $20.00 on that card the same thing happens again.Here’s a common scenario for many credit card users…

With a $1000.00 balance on your card and a $20.00 minimum payment due ($15.00 will be for interest. Only $5.00 will be for the principal to actually pay down the balance. Your new balance is $995.00.Yep! You paid $20.00, but it was only worth $5.00

By only paying the minimum due, you’ll not be able to get off this merry-go-round for years!! You must work hard to get the balance down and here are just a few ideas:

Double the payment. This way your $40 will count for $25 on the principal rather than only $10 if done separately.

Avoid using the credit cards and thereby raising the balance.

Use cash for those little expenses that REALLY will multiply when charged to your credit card.

Pay the bill on time! One of my credit cards charges a $29.00 late fee. Yikes!

Watch that credit limit. Some cards charge a fee if you go over you credit limit–mine charges $29.00 for that privilege!

Learn to be more frugal!  Wait a little longer to buy new items, another week on the next haircut, bring your lunch from home, and so on.

Some reasons to avoid credit card debt:

It robs you of your time and money because of the effort needed to get it paid back.

It robs you of your peace of mind because it’s nagging at you each month

Sadly, it’s much more fun charging it up than paying down the balance.

Copyright 2000 by Leslie Sausage

Post from: Thrifty Mommy