New Year's Resolutions for Your Finances
(Originally Published In December 2005)
It is time for New Year's resolutions. While skeptics may view this as a silly superstition for people who make promises they can't keep, it is actually a good time to charge up your willpower and make lifestyle improvements for the next year. One of the most important resolutions is getting serious about your financial shape. Monthly expenses are increasing and bankruptcy is now much more difficult, so many households will be in trouble if they don't take control of their finances.
· Create a plan to pay your bills and eliminate the chance of forgetfulness or a late payment. Late payments, especially for credit cards, can be costly and result in fees and an increase in your interest rate. Plan on posting your payment to take 3 days after it is received. An easy way to keep payments in order is to use online bill payment, even with credit cards.
· If your credit card bill now comes after your paycheck has already been spent, adjust the due date on your credit card. By paying your credit card bill first, you may have a chance to pay more than the minimum balance and start paying off your credit cards.
· Credit card interest rates are increasing and it is harder to get a low interest rate. If your balances are reasonably low, transfer them to a card with 0% intro for 12 months on balance transfers. If you don't add to your balance with new charges, this gives you a chance to pay off your card by next year’s holiday season.
· If you are one of the millions who recently declared bankruptcy, don't get a new credit card. Your interest rate will be high (20-25%) and if you run into debt trouble again, it will be more difficult to get a new discharge. "If credit cards helped get you into trouble the first time, they probably won't do you any favors the second time around," says Bill Hardekopf, CEO of LowCards.com. "If you must have a card for purchases, consider a pre-paid card. The fees are high, but you will not have the risk of running up a balance and paying the high interest rates that you will have with an unsecured credit card."
· Plan for higher minimum payments. If your minimum payment percentage hasn't already doubled, it probably will in 2006. While this takes more money out of your pocket now, it actually saves you money by reducing the amount of interest you will pay. If you have a little cash left over at the end of each month, pay even more on your balance.
LowCards.com ( http://www.lowcards.com ) is a website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over five years.
For more information, contact Bill Hardekopf at 1-800-388-1910 or billh@LowCards.com.
It is time for New Year's resolutions. While skeptics may view this as a silly superstition for people who make promises they can't keep, it is actually a good time to charge up your willpower and make lifestyle improvements for the next year. One of the most important resolutions is getting serious about your financial shape. Monthly expenses are increasing and bankruptcy is now much more difficult, so many households will be in trouble if they don't take control of their finances.
· Create a plan to pay your bills and eliminate the chance of forgetfulness or a late payment. Late payments, especially for credit cards, can be costly and result in fees and an increase in your interest rate. Plan on posting your payment to take 3 days after it is received. An easy way to keep payments in order is to use online bill payment, even with credit cards.
· If your credit card bill now comes after your paycheck has already been spent, adjust the due date on your credit card. By paying your credit card bill first, you may have a chance to pay more than the minimum balance and start paying off your credit cards.
· Credit card interest rates are increasing and it is harder to get a low interest rate. If your balances are reasonably low, transfer them to a card with 0% intro for 12 months on balance transfers. If you don't add to your balance with new charges, this gives you a chance to pay off your card by next year’s holiday season.
· If you are one of the millions who recently declared bankruptcy, don't get a new credit card. Your interest rate will be high (20-25%) and if you run into debt trouble again, it will be more difficult to get a new discharge. "If credit cards helped get you into trouble the first time, they probably won't do you any favors the second time around," says Bill Hardekopf, CEO of LowCards.com. "If you must have a card for purchases, consider a pre-paid card. The fees are high, but you will not have the risk of running up a balance and paying the high interest rates that you will have with an unsecured credit card."
· Plan for higher minimum payments. If your minimum payment percentage hasn't already doubled, it probably will in 2006. While this takes more money out of your pocket now, it actually saves you money by reducing the amount of interest you will pay. If you have a little cash left over at the end of each month, pay even more on your balance.
LowCards.com ( http://www.lowcards.com ) is a website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over five years.
For more information, contact Bill Hardekopf at 1-800-388-1910 or billh@LowCards.com.
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