Must-Have Money-Saving Tech Tools for Everyone

Posted on July 19, 2012 by Blog Team

What tech tool can’t you live without? For some, it’s a smartphone. For others, a laptop or tablet. For us, it’s financial software.

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What tech tool can't you live without? Here's a hint; financial software can make every aspect of your money management tasks easier and more accurate.

 Financial software can make every aspect of your money management tasks easier and more accurate. Whether you’re tracking expenses or building a household budget, you can find free software to help with the task. A simple web search for the type of software you want will yield hundreds of free results.

 Here are a few money-saving tech tools that everyone should check out:

  • Budgeting software – You can find plenty of static budgeting worksheets online, but budgeting software takes your money management efforts to the next level. This type of software allows you to create a budget, link bank and credit card accounts, and keep track of how well you’re actually sticking to your budget. Some programs can even make suggestions for how to adjust your budget to better meet your personal financial goals.

 

  • Expense trackers – If you’re running a small business or need to keep track of expenses for an employer, this type of software can be valuable. But it’s also useful for private individuals to keep track of just how they’re spending their money every month. Since some types of personal expenses (like child care or medical costs) may be tax deductible, this software may even help you at tax time.

 

  • Debt calculators – A debt calculator can be useful in several ways. Some programs can help you understand how long it will take you to pay off an existing debt at your current rate of interest and varying monthly payments. Others can help you project the total cost of a new debt you’re considering taking on.

 

  • Investment trackers – While you probably have different ways of accessing your various investments from stocks to CDs, a single tool that helps you keep track of all of them from one point of access can simplify things.

 

  • Retirement savings calculator – If you have a 401(k) or IRA, you probably have some idea of how much each will yield at retirement given your current level of investment. But you can find free online calculators that can help you better understand whether the amount you’re currently saving will be enough to carry you through retirement. These calculators can also help you understand how much you’ll need to sustain the lifestyle you desire based on the number of years you can reasonably expect to live in retirement.

 Isn’t technology great?

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The Truth About ‘Charge-Off’

Posted on July 17, 2012 by Blog Team

If there’s one thing we know for sure about credit, it’s that debt doesn’t just go away. When you’re dealing with high debt, it can be tempting to look for an easy way out. Terms like “debt settlement” and “charge-off” could have you thinking it’s possible to escape debt without repercussions.

Credit scores when in debt

If there is one thing we know about credit, it's that debt doesn't just go away. The only real way to make debt disappear is to pay it.

 Unfortunately, any time you fail to pay what you owe, it will impact your credit score. A “charged-off” debt is no exception.

 A creditor may give up on being repaid under the original terms of a credit agreement—whether it was an auto loan or a credit card. But that doesn’t mean you no longer owe the money.

 Lenders who charge-off a debt typically send it to a collection agency, which will then attempt to recover as much of the remaining amount—plus interest and fees—as they can. The agency may be acting on behalf of the original lender, or may have bought the debt from the company. Either way, you still owe the money to someone.

 Collections appear on your credit report and can negatively impact your credit score. A charged-off account and related collections actions will remain on your credit report for seven years.

 Allowing a debt to go into “charge-off” status, and then collections, is no solution to a debt problem. A better choice would be to try to negotiate with the creditor for repayment terms you can cope with, and that will be less harmful to your credit history.

 The only real way to make debt disappear is to pay it.

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How Having More (or Fewer) Credit Cards Can Affect Your Credit Score

Posted on July 12, 2012 by Blog Team

If you’re monitoring your credit because you believe your credit score could use some work, you may think more credit cards are the last thing you need. Or, you may hope that adding new cards will boost your score.

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As with many aspects of life, moderation and education are the keys to positive credit card use.

 As with many aspects of life, moderation and education are the keys to positive credit card use, especially when you’re managing your credit score. How many cards you have is less important than how wisely you use the ones you do have. Using one card injudiciously can be just as damaging as having 25 cards that you never use.

 If you want to manage your credit score, keep these thoughts in mind about how credit cards play into credit score calculations:

 * Responsible use of credit over a length of time–including paying your credit card bills on time, every time—is a major factor in your credit score.

* Every time you apply for a new credit card (or any type of new credit), you’ll see a “hard inquiry” on your credit report. This means, the lender will access your full report and score. Too many hard inquiries in a short amount of time can negatively impact your score.

 * New accounts don’t have the payment history of older accounts. Good payment history is a top consideration when calculating your credit score.

 * Your debt-to-credit ratio—the amount of credit you’re using compared to the total amount you have available—also factors into your credit score. Consider this scenario—two people both owe $4,500 on credit cards. One person, however, has just a single credit card with a limit of $5,000. The other person’s total credit limit is $25,000 on five different cards. Who’s ratio (and probably credit score) is better? You guessed it: the person who has more unused, available credit.

 It’s never a good idea to apply for a new credit card or cancel an old one solely with the intent of influencing your credit score. Before you make any move to manage your credit, you should research its possible ramifications.

 Some moves, however, are pretty reliable. Avoid carrying a balance on credit cards, or, if you must carry a balance, keep it low. Watch your debt-to-credit ratio, and, most important of all, keep paying your bills on time.

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All About the Credit Bureaus

Posted on July 10, 2012 by Blog Team

You’re probably aware that there are three major credit bureaus, including our parent company, Experian. But do you know what they do—and don’t do? Do you know how they’re the same, and how they differ?

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If you're the victim of fraud and you initiate a fraud alert with one of the major credit bureaus, federal law requires that bureau to share the alert with the other two.

 The most important credit bureau information you should know is that there are many organizations that compile credit information about consumers. None are government affiliated or sponsored. The three largest, however, are the most well known and commonly used by creditors when evaluating a consumer’s creditworthiness.

 The big three often cooperate with each other in ways intended to benefit the consumers. For example, if you’re the victim of fraud and you initiate a fraud alert with one of the major credit bureaus, federal law requires that bureau to share the alert with the other two. The major bureaus also try to maintain consistent practices and use the same basic criteria to calculate credit scores in order to make scoring as easy to understand and consistent as possible.

 Still, the scoring models differ slightly, and so your credit score could differ from bureau to bureau. To get a true picture of your credit status, it’s always a good idea to look at your reports and scores from all three major bureaus. The top companies jointly maintain a website that allows you to access a free annual credit report from each once a year.

 It’s also important to understand that while credit bureaus generate credit scores based on information collected about each individual consumer (including payment history, length of credit history, types of credit used, etc.), they do not actually rate your credit. When a lender or other creditor pays a bureau for your report and score, they have to draw their own conclusions about what that information means in terms of your creditworthiness.

 Of course, there are also differences in products and services offered by all three major credit bureaus, and a visit to the website of each will help you understand those differentiators. Generally, competition is perceived as positive for consumers in any industry because it encourages companies to try to win customers with innovation, quality and service.

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Money-saving Websites Can Cook Up Savings

Posted on July 6, 2012 by Blog Team

For some people, the Internet is a spending extravaganza. You can buy just about anything online. But the ‘net’ is also a great way to save money, especially on things you need every day like food. Credit Cards are Essential

 From coupon sites that allow you to print out online-only offers to use at your local grocery store to recipe sites that offer ideas for stretching ingredients (and dollars), you can find plenty of ways to tighten your belt. Here are a few of our favorite sites for saving money on food:

 Couponmom.com – This site is a veritable buffet of savings, but what makes it a winner for grocery shopping is that you can search for and find deals by state or by chain. The featured coupons are from national chains like Target to regional ones like Publix, which serves several southeastern states.

RetailMeNot.com – Another site that offers a variety of ways to save in a number of categories, RetailMeNot features printable coupons by product category. For added savings, you can enter your zip code and look for deals specific to your region.

 Recipes.com – Yes, recipe websites are a dime a dozen, but what sets this one apart is that every recipe is tied to coupons and specials at supermarkets near you. Find the recipe you want to try and the site will tell you what needed ingredients are on sale at a nearby grocery store. This site can help you confirm that a recipe fits into your food budget for the month.

 AARP.com – What’s that, you say? Isn’t AARP an organization for seniors? Yes, it is, but members can access special deals, coupons and offers online, including grocery coupons. If you’re of age to join, and on a fixed income, the coupon savings are an added bonus to your membership.

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The Money Advice from Dad that Actually Made Sense

Posted on July 5, 2012 by Blog Team

Just like mothers, fathers sometimes offer advice that can leave you shaking your head. Sometimes, however, Dad offers up a gem of wisdom that will shine throughout your lifetime.

Money advice is a gem of wisdom that will shine throughout your lifetime.

 Here are some of our favorite tidbits of financial advice often heard from fathers:

 “Forget the Joneses!” – Spending money on the latest and best of everything just because everyone else has those things can be a road to financial disaster. The Joneses you’re trying to keep up with may be deeply in debt to achieve the lifestyle you seek to imitate. Instead of “keeping up with the Joneses,” you’d be better off to follow this next bit of financial wisdom from Dad …

 “Live below your means” – Living within your means requires you to spend less than you bring in every month. Living below your means implies spending a lot less than you earn. Why should you consider doing this? Because spending far less each month will allow you to build security through important savings accounts like your 401(k), IRA, regular savings, and an emergency fund.

 “Credit cards kill” – OK, this one might be a bit extreme, but the essence of Dad’s message is valid. A credit card can be a valuable financial tool, but like any powerful tool it can harm you if you don’t use it properly and skillfully. Dad’s not saying that using a credit card will ruin you financially; just that misusing it has the potential to cause great harm.

 “Don’t pay interest. Earn it!” – This is another gem from Dad about how to make the best use of your money. Clearly, it’s better to invest your money and earn interest or save it and draw interest, than it is to pay interest on debt.

“Money can’t buy love” – Dad probably borrowed this one from Paul, John, George and Ringo, but the sentiment is certainly valid. Money is a means to an end – to help provide for yourself and your family – making it means nothing if you don’t have people to care about.

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Lessons On Financial Independence From Our Founding Fathers

Posted on July 3, 2012 by Blog Team

Is your financial life fireworks and bombs bursting in air? Or is it more of a steady drumbeat toward victory? The campaign to become financially independent can be a lot like staging a revolution: it takes sacrifice, determination and courage before you achieve success and freedom.

The campaign to become financially independent takes sacrifice, determination and courage.

Here are four of our favorite founding fathers and the lessons their lives can teach us about how to become financially independent:

 George Washington

Who doesn’t know the legend of a young George ‘fessing up to chopping down a cherry tree’ Washington. General Washington is still revered today as much for his honesty as for his role in winning the revolution. It takes that kind of courageous truthfulness to help liberate yourself from the oppressive rule of debt. To pay down debt, you need to be honest with yourself about the mistakes you made that got you into too much debt in the first place.

 Ben Franklin

He’s on the $100 bill and maybe that’s because when it came to money, Ben was one sharp dude. Some of our best-loved axioms about money come from Mr. Franklin, including “a penny saved is a penny earned,” and “rather go to bed without dinner than to rise in debt.” An inventor, businessman and statesman, Franklin was always thinking things through. It takes that kind of advanced planning, introspection and consistent analysis to know what steps you need to take in order to achieve financial independence.

Thomas Jefferson

Best known as the founding father who actually wrote the Declaration of Independence and much of the Constitution, Jefferson was a very verbal critic of overuse of credit and too much debt. He was also a strong proponent of the concepts of individual responsibility, education and action. “Never put off for tomorrow what you can do today” is one of his most famous quotes. To manage your money, you need to accept responsibility for your decisions, educate yourself to make the best possible decision and then take action.

Alexander Hamilton

Our nation’s first Secretary of the Treasury, Hamilton authored much of the economic policies that launched our nation’s financial life. He was instrumental in the creation of a national bank. The takeaway from Hamilton’s life is the importance of establishing savings. Ben’s quote about saving may be more famous, but Hamilton’s guiding hand helped create the system that allows us to save for our dreams as well as for our necessities.

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How to Apply for a Job

Posted on June 29, 2012 by Blog Team

The national unemployment rate held at 8.2 percent in May, according to the Bureau of Labor Statistics. With so many people looking for work, you may be wondering how to apply for a job and have the best chance of landing it.

No matter what type of job you are applying for, professionalism is always appropriate.

 Personal experience — and the combined advice of a number of job-search resources — tells us any successful job application requires four things:

 Honesty – In such a competitive job market, it can be tempting to fudge facts a bit if you think it will give you an edge. Yet honesty consistently makes the list of top qualities employers want most in a job candidate. More than one high-profile professional has very publically been ousted from a job when fabrications on their resumes were discovered. Honesty should also include being candid about your credit, if a potential employer asks because some employers are able to check candidates credit reports.

 Preparation – Do your homework when you’re applying for a job. Research the company and its products or services online so you’ll not only know what the company does, you’ll have a better idea of whether you’re a good fit for the job. Take pertinent materials to the interview, like a copy of your resume (even if you’ve already emailed, faxed or snail mailed a dozen copies) and work samples, if appropriate. Also, don’t forget a pen! Changing jobs requires plenty of planning and preparation. Be diligent in your search and something will come through.

Professionalism – No matter what job you’re applying for – short order cook or director of operations – professionalism is always appropriate throughout every step of the application process. From sending a polished, well-written resume with your initial application to showing up for the interview in appropriate workplace attire, be professional and courteous throughout your interactions.

 Tactful persistence – In today’s job market, it’s not enough to simply land an interview, because chances are the company is interviewing multiple candidates. You’ll need to be persistent to get the answer you want, but be sure to do so tactfully. Follow up the interview with a handwritten thank you note to everyone you spoke to – or an email if you have their addresses. A week after the interview, a polite call should be OK, unless the interviewer specifically told you not to call, or shared a hiring timeline with you that would mean no decision had yet been made.

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The Summer Blockbusters You Don’t Want a Ticket For

Posted on June 27, 2012 by Blog Team

Summer blockbuster season can make or break the year for a movie studio. Just as those big-budget productions have a huge impact on a studio’s financial health, some blockbuster life events can affect your credit for the rest of the year – and beyond.

Woman playing with her daughter

Take the right steps to protect your identity and manage your use of credit.

 Here is our version of some summer blockbusters you wouldn’t want a ticket for:

 “The Spy Who Scammed Me” – Spy films are often filled with exotic cars, scenery and locales, but there’s nothing glamorous about getting scammed by online spies. Spyware that steals your personal or financial information is a favorite tool of identity thieves. To protect yourself from identity theft scams, monitor your credit report and make sure your computer’s anti-virus and anti-malware software stays up to date.

 “House of Credit Cards” – Used wisely, credit cards can be like the perfect bucket of popcorn that makes the movie more enjoyable. But if your financial “house” is built on credit cards, and you use plastic to pay for everything from your morning coffee to a flat-screen TV, you’ll be setting the stage for unwelcome drama.

 “The Budget Terminator” – The special effects needed for a successful summer sci-fi flick can be budget busting. If a studio loses money on one flick, chances are it can make up the cash with a different movie. Bust your own personal budget and it can be a lot harder to get back on track.

 “The Bad Debt Grudge” – The Federal Reserve says total consumer credit outstanding—“debt” to the rest of us—topped $2.5 trillion in March 2012. Carrying too much debt can be like living in a horror movie. Bad debt can haunt your credit for years, making it difficult to achieve your financial happily ever after.

 Taking steps to protect your identity and manage your use of credit can help ensure you don’t end up with a ticket to the kind of show you’d rather miss.

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Five Trips for Sensible Spenders

Posted on June 22, 2012 by Blog Team

Summer is here and you’ve saved sensibly to fund your summer vacation. Now where can you go to get the most bang for your travel buck?

Two chairs on a sandy beach.

If you crave fun in the sun and you live on the eastern seaboard, the Caribbean is a sensible choice.

We’re betting that someone who’s creative and money savvy enough to have a respectable summer vacation budget is looking for the most value possible.

Here are five money-saving travel tips for sensible spenders looking for a summer escape:

1. The closest national park – America’s National Park System is like no other in the world. Chances are you live within a decent day’s drive of one of its 397 sites, which include national parks, historical sites, monuments, battlefields, nature preserves, recreation areas, seashores, lakeshores and parkways. A national park vacation can be one of the cheapest, most educational and entertaining trips to be had for your travel dollars. Log on to www.nps.gov for ideas and to find the national park site nearest you.

2. For East Coasters, the Caribbean – If you crave fun in the sun and you live on the eastern seaboard, the Caribbean is a sensible choice. It’s easy to find plenty of summer travel deals—both by air and by cruise ship—to this tropical playground. Whether you’re traveling alone, with a group or your family, the region has plenty to offer everyone.

3. For West Coasters, Central America – The countries that make up the Central American isthmus offer a variety of experiences for travelers, from the cosmopolitan, in cities like Panama City, to the natural wonders such as the cloud forest of Costa Rica. The U.S. dollar stacks up well against the local currencies in many of these countries, meaning you can get more for your money.

4. Europe for everyone – The European debt crisis has impacted the travel industry, and you may find some great deals to dream locales. Greece may be struggling with debt, but it’s still a beautiful country that offers one-of-a-kind sights like the Acropolis.

5. The neighboring state – Every state in the union has something unique to offer, whether it’s an unusual natural landscape, like the Grand Canyon in Arizona, a world-class city such as Illinois’ Chicago, or a rich historical heritage such as Savannah in Georgia. Yet you may never have thought about what the state next door has to offer travelers. Check it out! Chances are you’ll waste less time getting to your destination, spend less on lodging, and learn something new, interesting and fun about your neighboring state.

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