Just Say No to Credit Card Checks

The credit card companies have figured you out.  They know that you can increase your balance and bring them more fees with a simple piece of paper.  It's called a balance transfer check.  Read the fine print and you'll discover that these checks come with transfer fees, usually around 3.0%.  It's just enough to generate a nice fee, but not enough to scare you away.  The real money maker is from debts that are too large to pay off before the end of the term.  And then of course, if you miss a payment, the original contract will be voided and you'll get stuck with a normal APR closer to 20%.  If you use the credit card for normal purchases, you'll end up building a high interest balance on top of the large balance you are paying down.

Just say no to these checks.  Resist temptation and destroy them as soon as they arrive.  If you simply throw them out, some thief could get a copy, endorse it and make it out to cash.  So, make sure it is clear that they cannot be used.

Here's a great video about credit card balance transfers.

Video: Cutting Up Those Credit Cards

Cutting Up Those Credit Cards by CBS During these tough financial times, many Americans are feeling the weight of the credit crunch and look to using only cash for their purchases. Randall Pinkston reports.

Cut up those credit cards and save on interest charges.  Live frugally so that you can live well.

Pay Off Debt, Save Interest

Saving money is one of those tasks that's so much easier said than done. There's more to it than spending less money (although that part alone can be challenging). How much money will you save, where will we put it, and how can we make sure it stays there? Here's how to set realistic goals, keep your spending in check, and get the most for our money.

Simply calculating how much we spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. Once the money is freed from debt payment, it can easily be re-purposed to savings. Plus, the sooner we pay off debt, the less interest you'll pay, and that money can be saved instead.

How much interest are you paying?

It could be a good idea to review your statements to total up the amount of interest your paying each month or year.  It should clearly state your annual percentage rate (APR) and the amount of interest paid each period.  If this debt was paid in full, this would be the amount of money saved by not borrowing.   If you were to make an extra $100 in payments, do you know how much money you would save per year?  This is also a simple calculation.  Multiply the annual borrowing rate, or the APR, by $100 and you will see that a credit card with an 18% rate will cost you $18 for every $100 borrowed.

Video: Frugal Living, practical tips for saving money - Lynnae McCoy

Frugal Living, practical tips for saving money - Lynnae McCoy - theDove.us by theDoveTV Frugalista and freelance writer Lynnae McCoy offers practical tips for saving money, from clipping coupons to saving on your food bill. Recorded 16 August 2011

Like many people, Lynnae McCoy went to college and got her first credit card. Making minimum payments seemed to be the thing to do.  Of course, a real life and career doesn't always fit with a spending lifestyle.  Like many people, Lynnae froze her debts by sticking the credit cards in the freezer.  After freezing spending, this family looked at every item in their budget and tried to find ways to save money.

Video: Mrs. Frugal's saving tips

Mrs Frugal's saving tips by TodayTonight For most of us, the cost of living is rising by about three percent a year, but one savvy Australian is bringing her costs down instead.

You don't have to be an Australian to appreciate the wisdom of frugality.  There are 5 Tips from Mrs. Frugal and they are:

• Change your attitude.  Slow down and enjoy life.  Why work yourself to death to make a little more money, when you aren't any happier?
• Reduce your debt.  Add a little more money to pay down your mortgage, credit cards, and other debts.
• Grow your own food.  The typical return on investment for an organic garden is twenty to one. So, spend a dollar on plant seeds and reep twenty dollars in rewards.  Plus, you can rest assured that the produce is free from harmful chemicals.
• Stockpile things that are affordable.  If boxes of spaghetti noodles go on sale, maybe you should buy as many as you can.  Load up when prices are low.
• Make due with what you have.  Look around your home and appreciate the things you have. Use them. You've paid for them. You should use them before buying something new.

Cut Up Your Credit Cards

We all know credit cards are the enemy, giving you the opportunity to spend money you don't have. However, having the ability to charge things instead of paying in cash is highly useful and in some cases (checking into a hotel, for example) a necessity. Using a debit card, which can be used like a credit card but forces you only to spend the money you have in your bank account, allows you to do pretty much anything that a credit card except putting yourself into even more debt!

Pitfalls to Avoid with Credit Cards
1. Using Credit Card Checks
Those little convenience checks that come with your credit card statement can be a trap, if you don't read the fine print.  Often they offer a 0% rate or some other alluring gimmick to grab your attention.  Sometimes, taking a balance by cashing one of these checks could cost you an initial fee of 3.5%.  So, even the first payout isn't free.  Then, if you continue making purchases on your card, the 0% rate doesn't apply and you start building up a high interest balance on top of the cheap rate.  Just keep in mind, it's not free money and they wouldn't offer it to you if it didn't make them a profit.

2.  Missing Payment Due Dates
Credit card companies love it when you miss the payment due date. Why? Because it gives them an excuse to raise your APR and charge you fees.  Remember those balance transfer checks with the 0% APR. When you miss your payment due date, they can jack up your rates because you have nullified the original contract.  Then, they'll charge you a late fee as well.

3. Craving Credit Card Rewards 
Don't ever use a card with the mindset that you are rewarding yourself with points or cash back. You are spending money, not saving it. Marketing programs are geared towards unlocking the vault inside your wallet.  They've studied human behavior and found a way to make you feel something positive when you should feel something negative.