30 Nov
2010

Credit monitoring services will, for a fee, allow you to access your credit score and your credit reports regularly and will allow you to keep tabs on the accounts in your credit report. There are two cases in which a credit monitoring service can be handy:

1) If you have been the victim of identity theft. If you have been the victim of identity theft, a credit monitoring service can help you keep an eye on all your credit reports from the three different credit bureaus, allowing you to notice any suspicious activity on your reports.

2) If you are trying to improve your credit. If you are working on improving your credit, a credit monitoring service lets you keep track of your progress by letting you check your score regularly. It can be a great motivator to see your credit score improve and this can keep you on track to improve your credit even more.

While a credit monitoring service is never absolutely imperative, it can be a useful tool for keeping an eye on your score and your credit reports. To find the right service for you, look for a service with the lowest fees and access to reports from all three credit bureaus. Also, look for a service that will allow you as many access attempts to your score and reports as you need. If you need to check your reports and credit score once a week, for example, look for a service that lets you check your reports and credit score four times a month or more.

30 Nov
2010

Holidays are busy times for lenders offering payday cash advances. Many people are short on cash during the holidays and resort to payday loans to pay for holiday purchases. As well, financial emergencies are more frequent during the holidays, when everyone is frazzled and rushing about. While it’s nice to know that payday advances are there when you need them, you can also often avoid payday loans by:

1) Budgeting for the holidays. Work with a list and a budget to streamline your purchases. When you work without a plan, it’s far too easy to overspend on basic purchases.

2) Focusing on income. The holidays are the perfect time to make a little extra cash, because everyone is looking for gifts and trying to save time. This is the perfect time to offer pet sitting services or other services and it’s a perfect time to sell products or just that stuff you no longer need. Your employer may be willing to pay extra for some additional help, too, so look into overtime.

3) Focusing on savings. With every retailer asking you to spend, it can be hard to save. However, putting aside even a little bit into a savings account can prepare you in case of any emergency.

30 Nov
2010

At this time of year, seasonal jobs are abundant. They can be a great way to generate extra income for the holidays or your buffer account. They can also be a great way to make some extra money to pay down your debts. Here’s how to get a seasonal job that works for you:

1) Consider overtime first. Overtime work often pays better than a new job, and you don’t have to lose time applying for it, so if your employer has a need for more workers, volunteer.

2) If overtime is not an option, consider what jobs work for you. Think about which jobs would make you miserable and which ones might be fun or at least bearable.

3) Research jobs first. Find out what jobs pay – and pay promptly. You will likely want to be paid before the holidays, so make sure payment is fast. Find out as much as you can about the companies hiring and the positions available. The more you know, the more attractive you will be to employers and the more likely you are to avoid real employment duds.

4) Stay professional. Retailers and employers in need of extra help at this time of year are frazzled. While they realize that seasonal employment is probably not part of your long-term career plan, they are looking for someone very reliable at the most hectic and profitable time of year. Show your professional side by dressing professionally and preparing carefully for your interviews. Show employers that you are reliable and you are far more likely to land a job.

29 Nov
2010

You probably head to your doctor at least once a year for a checkup to make sure that your health is doing well. Running a financial checkup can also help ensure that your financial life is healthy, too. Here’s how:

1) What are your symptoms? One of the first thing that your doctor will ask you is whether you have any symptoms, because symptoms can often indicate a problem that can be fixed. It’s similar with your finances, but here the symptoms may be reliance on payday loans, heavy debt, worry over money, a low credit score, collection calls, and similar problems. All of these indicate that there are some problems you can fix if you take a proactive approach.

2) What are the basic facts of your financial health? Even if you show no symptoms, your doctor will often send you for blood work, check your blood pressure, listen to your heart, and generally check to see how you are doing physically. You can do the same to your finances by reviewing your bills and financial statements, talking to a trusted financial advisor, and reading your credit report at least once a year.

3) Immunize yourself against threats. Even if you are healthy, you may get flu shots, vitamins, and other precautionary measures, just to make sure you stay healthy. There are things you can do to help ensure that your finances stay healthy, too. Checking your finances regularly and getting insurance in case something goes wrong can help protect you. Having a buffer account can also help prevent many financial maladies.

29 Nov
2010

If you want to understand how your health is, there are some numbers you need to know: your BMI, your blood pressure, your glucose levels, and your cholesterol, to start. In the same way, in order to know the health of your finances, there are some numbers you need to know:

1) Your debts and your income. If your debts are more than what you earn in a year, you probably need to work with a debt professional to help get you out of debt. The higher the ratio between your debt and your income, the more financially insecure you are. It’s healthiest when your debts are zero or are a small percent of your income amount.

2) Your credit score. The higher your credit score, the healthier your finances. If your credit score is low, you’re probably going to have a hard time getting affordable financing or a really great job, so get serious about improving your credit.

3) Your net worth. This number offers plenty of room for growth, so if it is low right now, don’t fret – but do get serious about boosting this number. The greater your net worth, the more wealth you have to tap into in case you need it. Focus on getting assets, investments, and savings.

4) Your insurance coverage. Do you have enough to protect you? Are you paying too much for premiums?

29 Nov
2010

Ostriches are known for sticking their head in the sand when danger lurks near. The birds believe that because they can’t see the enemy, they are hidden and safe – when of course they are not. Unfortunately, many people have a similar approach to money: rather than facing money problems head on, they bury their head in the sand and refuse to take a look, even when fiscal danger is close by. Here are some signs you might be doing this:

1) You can’t tell what your credit score is, how much you owe, your net worth, or what you really earn per year. Knowing the basic numbers of what you owe, what you make, and how you are doing financially is important in gauging how well you are doing financially. If you have no idea, it could be because you are scared to take a peek.

2) You underestimate how much you spend or overestimate how much you bring in. Again, if you don’t really know, it could be because you are having trouble facing the numbers. However, not knowing can mean you run out of cash quick and need to rely on high-interest payday loans more often than you should.

3) You’re not opening letters or bills. This is a serious form of denial – one that suggests you are having serious problems facing your bills.

4) You’re getting collection calls and trying to avoid the phone. If you are doing this, it’s time to get some help from a financial professional and start facing your money issues.

28 Nov
2010

Overdraft fees tend to be very high at many banks. In fact, overdraft fees are so high that it often makes sense to take out high-interest payday loans rather than deal with these fees. Luckily, there are things you can do to help avoid these costs:

1) Keep separate bank accounts. Create two bank accounts: a savings account and a checking account. In your checking account, keep only enough cash to cover all your automatic withdrawal bills. In your savings account, keep the rest of your money (such as money for groceries). This way, you won’t inadvertently withdraw too much and leave yourself without enough cash to cover a check.

2) Keep careful records. Note when bills increase, which bills come out when, how much you have left in your accounts, and what still needs to be paid. Working with a budget and keeping an eye on what is coming in and going out can usually help you avoid overdraft costs. If you have a hard time keeping track or tend not to check your accounts too often, avoid paying bills through automatic payments and use your credit card or online banking instead.

3) Get overdraft protection. Many banks will allow you to get this protection, which ensures you don’t get overdraft fees. Some still charge lesser fees, so find out your bank’s policy and the costs.

4) Don’t get automatic withdrawals for fluctuating bills. If you use different amounts of long distance, don’t let your phone company automatically withdraw your bills from your account. It’s too easy to lose track of what is coming out of your account.

5) Use online bill payments or credit cards rather than checks. Avoiding checks lets you avoid check costs as well as the problem of overdraft protection.

28 Nov
2010

There are many reasons why you might want to start over with a new account. Closing an existing bank account can temporarily lower your credit score, but there are some reasons why you might want to close your account. If you discover that you can find an account with lower fees or if you find that your account has been compromised by identity theft, for example, you will likely want to close your current account and open a new account. Here’s how:

1) Choose your new account carefully. Compare ATM fees, online banking features, banking fees, overdraft protection, checking fees, and other costs. Find an account that does not charge you monthly fees and one that does not require you maintain a minimum balance. Look for the lowest fees possible, protection of your money in case the bank goes bankrupt, and good features that allow you to access online accounts, for example.

2) Update anyone using automatic withdrawals and deposits. If you have to close down an account suddenly, you will need to contact creditors, landlords, employers, and anyone else who is either depositing or withdrawing money from your account. You may need to write new checks and cancel old ones. Keep good records, since during this time of transitions, mistakes do get made.

3) Set up your new account. Set up new deposits and withdrawals in your new account and set up bill payments, online banking, and any other features you need.

28 Nov
2010

If you have multiple payday loans, you probably feel the burden of high interest rates. Payday loans are meant to be emergency, short-term loans. When you start carrying loans over and taking out multiple advances, it’s easy to start feeling overwhelmed. The good news is that you may be able to pay off your payday loans before the new year. Here’s how:

1) Consolidate your loans if you have multiple payday loans. If possible, use a secured form of credit or a credit line to pay off your payday loans and then focus on paying off the lower interest loan. By paying off your payday advances with a lower-interest loan, you’re buying yourself some time to pay off the debt and you’re saving money on interest, too, so that you can pay off the balance.

2) Focus on putting extra cash towards the payday loans. Keep all your bills current, but find ways to save money and put that extra cash towards the loans. Maybe you can avoid dinner out for a month, for example, or maybe you can slice your cable bill in half.

3) Focus on bringing in more money. Work overtime, take on a seasonal holiday job, sell some things you no longer need, or rent out your parking spot when you’re not at home. Find ways to make a little extra cash and put that extra cash into your debts.

27 Nov
2010

Many people assume that there is no connection between getting organized and being financially successful, but many financial experts disagree. In fact, many financial experts who work with clients begin by suggesting that their clients tidy up. It’s a small step, but one that is essential. Being tidy and organized has some practical benefits for your finances. When you are organized and tidy, it’s easier to pay bills on time (and find them) and it’s easier to keep track of your finances because everything is in order. When your home is orderly, it’s easier to get organized for tax time and actually get the income tax deductions you deserve (because all your receipts are organized).

Staying tidy and organized has some other, less tangible benefits for your finances, too. When everything around you is tidy, you’re sending a powerful message to yourself about your self-worth. When your home is full of junk and things of little value, that may be sending a message, too – a message that may be reflected in your paycheck. Plus, by getting rid of things you no longer value or need, you may end up making some quick cash which you can put towards savings or debts, too.