Watch your credit card rates
December 10, 2008
Many people are suddenly discovering that the terms on their credit cards are changing, and you shouldn’t assume it’s only happening to “bad” consumers.
More and more credit card companies are increasing their interest rates, upping the amount of the minimum monthly payment due and increasing fees. This is being done rather arbitrarily. Customers who have always made their payments on time and in full are seeing these increases too.
Unfortunately there’s nothing you can do to stop the increases, but you can take steps to make sure you aren’t blindsided by the changes that could be coming your way.
First and foremost, open every piece of mail you get from your creditors. Your credit card company will send a notice informing you of the increase. However, many people see mail other than their monthly statement, assume it’s junk mail and toss it in the trash. Read everything.
Second, find out if there is an “opt out” clause for the higher rates. For instance, Citibank gives consumers the option to keep their card and take the higher rate, or opt out of the higher rate and use the card at the current interest rate until the card’s expiration date. At that time the card will be canceled.
Finally, pay down your credit card balances and try not to add any new charges.
In the current economic climate, a good offense is the best defense!
Beware of e-mail scams promising money
December 8, 2008
This is simply a warning about an e-mail scam that is going around. It has popped up in my inbox several times in the past week, so it’s got to be making its way into other inboxes as well.
The e-mails I have been receiving come from someone claiming to be the “Senior Foreign Remittance Director” of a bank. Of course he’s promising if I help him to claim the money of dead industrialist who just happened to be a multimillionaire, he will give me 45 percent of the take. The e-mail even includes a link to what he claims is a CNN article about the death of this very rich man.
If you happen to get an e-mail like this, please do not respond. Do not click on any of the links. Delete it immediately.
Every day trusting people end up caught in these scams. The scams can wreak financial, and possibly legal, havoc on your life.
If you or anyone you know has already gotten involved with one of these scams, please contact your local police department and your state attorney general’s office immediately. If you have given any personal information out to one of these scammers, monitor all of your accounts closely, put fraud alerts on your accounts and review your credit reports by going to www.annualcreditreport.com.
A tip for the holidays?
December 5, 2008
If you spend any time reading personal finance blogs you’ll find that few topics get people’s dander up as much as the topic of tipping.
Who to tip, when to tip and how much to tip are often points of contention among people. And in the midst of the holiday season, the talk of tipping has shifted from the everyday stuff to special tips for Christmas.
Liz Pulliam Weston offered a guide to holiday tipping yesterday in an MSN Money post. What followed was a storm of comments to the web site’s message board with varying opinions about tipping.
There are some people who tip everyone regularly and extra at the holidays. Then there are people who are really anti-tipping on the grounds that no one tips them, so why should they tip anyone else.
Some people seemed frustrated that the topic of tipping was back in the spotlight … again.
If you are someone who wants to tip the people who regularly provide services to you throughout the year (hair stylists, cleaning person, newspaper carrier), Liz offers a guide as to what the average tip should be.
Do you tip? When? Share your thoughts.
Holiday shopping tips
December 3, 2008
I love a good deal as much as the next person. As a matter of fact, I pride myself on being able to find some of the best shopping deals out there. That being said, I don’t go near the stores on the day after Thanksgiving. As a matter of fact, I try to avoid the stores as much as possible during the holidays.
First of all, I get very claustrophobic in crowds. I get easily agitated when I’m trying to shop in a crowded store. Studies have shown that people spend more money when they are shopping in crowded stores and/or are in a hurry.
Tip: During the holidays try to shop during a week day when stores are less likely to be crowded. If you’re stressed you could make impulse purchases that cost you more than any savings on good sales.
Second of all, yes there are some great Black Friday deals, but most retailers offer good sales throughout the holiday season. My sanity is worth more than any amount of money I could potentially save.
Tip: Do lots of price comparisons before you head out to the stores, including price-checking reputable online retailers. Know exactly where you want to go and for what before you head out the door.
I think organization is key in terms of who you and buying gifts for and how much you plan to spend. I have always spent more money during holiday seasons where I didn’t make a plan and set a budget.
Tip: Make a list of every person you intend to buy a gift for and how much you plan to spend on each person. Before you hit the stores write down a few gift ideas for each person, so you have some direction once you get into the store.
Finally, it’s always easier to spend more if you’re using plastic versus cash.
Tip: Once you know how much you plan to spend put that amount of cash into an envelope and use that to do your shopping. Make sure to keep your cash in a secure location and never leave your purse or wallet unattended!
Stay warm and keep heating bills reasonable
December 1, 2008
Now that the cold weather is here, many of us are looking for ways to save money when it comes to our heating bills.
Here are some tips to help you keep your home warmer for less:
· If a playing card fits in the crack of an outside door or window, you need to caulk or weather strip around the door or window to stop air leaks. The same goes for exhaust fans and any other place where wires or pipes pass through walls.
· Use draft guards at the bottom of outside doors, and close radiators in rooms you don’t use.
· Lower your thermostat at night or when no one is home.
· Turn off your water heater or set it to “pilot” when you’ll be away from home for a vacation or other long period of time.
· Make your own storm windows by stretching thick plastic sheets as tightly as you can over the window.
· Remove window air conditioners or cover them tightly on the inside with thick plastic or special air conditioner covers.
· Keep your fireplace damper closed when there’s no fire. But, make sure to reopen the damper before you light a fire!
· Keep your radiators and vents clear of furniture or curtains.
· Set your water heater thermostat to 120 degrees Fahrenheit or below.
· Run your garbage disposal with cold water.
· Cook several dishes in the oven at one time, and prepare double recipes that you can freeze for future use and reheat in the microwave.
· Wash full loads of clothing only. Use warm or cold water for washing, and always use cold water to rinse clothing.
· Clean your lint screen after drying each load of clothes.
Space heaters can also be a good way to lower your gas bills. If you’re going to be using one room, you can lower your thermostat and use the space heater to warm the room you are using.
However, it is very important to use extreme caution with space heaters. Make sure the space heater isn’t placed too close to curtains, furniture or anything else that can catch fire. Also make sure to keep pets and small children away from space heaters.
Make sure any space heaters that are fueled by natural gas are properly ventilated.
There are a variety of space heaters out there. Here’s an article from The Dollar Stretcher that can help you select a space heater that will work best for you.
Remember, if you are having difficulty paying your gas bills, you may qualify for help from LIHEAP (the Low-Income Home Energy Assistance Program). You can apply for LIHEAP assistance online at www.compass.state.pa.us or by calling (866) 857-7095 or for the hearing impaired (800) 451-5886. You can also visit your local county assistance office for an application.
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