Tag Archives: holiday spending

How to Avoid Holiday Scams

Posted on December 25, 2011 by admin

‘Tis the season to be wary.  Unfortunately, not everyone will be thinking about peace on earth, good will towards man but how to take advantage of holiday distractions instead. Scam Online Shopping Sites The biggest complaints the Better Business Bureau get each year involving holiday scams  has to do with fake online shopping sites.  Though nothing but your own research and intuition can keep you safe from these holiday scams, here are a few tips to look for: A contact and about us page with physical name, address and phone number. The BBB Seal of Approval, SSL Certification seals (click or hover mouse over the seals to test they are real). Before entering any information, check for the “https” in the web page address. Click on the padlock on the status bar in the web address to verify information. (Check your browser’s help file or  if you are unsure how to use this function) Install software that warns you against unsafe websites. Phishing: Phishing is posing as a trusted source asking for personal information.  Spammers frequently send fake links to PayPal or eBay during the holidays or pretend to be your bank or credit card trying to get in touch with you. Don’t follow links directly; type the URL into your browser instead and go directly to your banking/credit card or retailer site and look for information there. Do NOT open attachments, click on any links especially holiday e-cards from someone you don’t know. Do not download any executable programs (files ending in .exe) that have been sent to you. Smishing: Smishing is phishing via text message.  Never respond.  If the text says there’s a problem with your bank account, call the bank directly and not the number provided by the text. Pop-Ups and False Ads: As you complete transactions, beware of pop-up windows that offer money back on your next purchase if you join, you could be enrolling in a membership program you did not intend to buy instead of completing your transaction. Disable pop-ups on your computer, and keep anti-virus software up to date.  Don’t leave feedback or sign up to win prizes on a pop-up ad. Gift-card swiping: Thieves scan the gift cards on racks at stores and strip the card of its value.  That’s why you should only buy gift cards kept behind the counter/register. The BBB also warns against buying gift card from online auction sites that are likely to be counterfeit or have no value. Debit Card Skimming: Always be aware of what’s going on about you and keep your wallet or purse in a secure place—particularly when you are struggling with packages out in a mall’s parking lot. When making a purchase, cover your hand at the ATM and on the checkout line so cameras can’t possibly record your PIN. Don’t use an ATM with someone lurking about or if it looks like there has been tampering done on the machine.  Check out that charity Always do your homework before giving money to charities. Beware of sound a likes and requests to support police or firefighters. Contact your local police or fire department to see what percentage of donations, if any, they will receive. The Better Business Bureau Wise (BBB) Giving Alliance offers information about national charities, www.give.org . Make sure everyone in your family is as aware of these holiday traps and know how to be safe on line. Simply put tis the season to be wary of holiday scams so that your holidays are merry.   Continue reading →

Posted in holiday financing, holiday scams, holiday spending, Online Banks, Prime Rate, Smart Spending | Tagged , , , | Leave a comment

The Dangers of Maxing Out Our Your Credit Card For Christmas

Posted on December 24, 2011 by admin

The holidays are here, and it is time to buy presents.  For many people, the need to treat friends and family to great gifts at Christmas time leads to a bad financial decision: piling presents on a credit card.  When you max out your credit cards buying Christmas presents, not only do you end up having to pay off those gifts well into the new year, but you can also do damage to your credit score that can cost you over the long term. Maxing Out your Credit Card Is a Bad Idea Maxing out your credit card at Christmas time- or any time, for that matter- will impact your credit utilization rating.  Credit utilization is one factor that affects your credit score, and it accounts for as much as 30 percent of your score under popular credit scoring formulas pioneered by the Fair Isaac Corporation (FICO scores). Credit utilization refers to the amount of your available credit that you use.  It compares your total debt with the total credit that you have available.  For instance, if you have a credit card that has a $1000 limit on it and you charge $500 on that credit card, you will have a credit utilization ratio of 50 percent ($500/$1000). The higher your credit utilization ratio, the more dangerous of a risk you appear to creditors to be.  High credit utilization indicates an over-reliance on credit and a possible inability to pay your bills, should something happen that causes your income to go down. Most experts recommend that you keep this credit utilization ratio at around 30 percent or less in order to have the best possible credit score.   Maxing out your cards is going to bring your score down since you will exceed this 30 percent limit. What to Do If Your Cards Are Already Maxed Out? If your credit cards are already maxed out or your credit utilization is above your 30 percent limit, you have a few options for what you can do.  The most obvious option is to pay down your debt, but this can be a challenge, especially around the holidays when you have a lot of expenses coming your way. Another option might be to increase the amount of credit you have available to you. You should NOT do this by opening up new credit cards.  Opening up new cards lowers your credit score, both because it reduces the average age of your credit (a longer average age is better) and because it results in an inquiry showing up on your credit report (too many inquiries sends up red flags to lenders). Until you can lower your credit utilization, it can make sense to delay major purchase of a house or a car.  As you get further away from the holidays and you can reduce your credit utilization, these actions could raise your credit score, which can save you money in the long-term on big purchases. Continue reading →

Posted in credit card trends, Credit Cards, Credit Report, holiday spending, Mortgage Rates, Prime Rate | Tagged , , , | Leave a comment

Surviving the Holidays – Planning for Next Year

Posted on December 22, 2011 by admin

Remember what you went through this year and resolve not to put yourself in that position again.  The day after Christmas is the best time of year to get bargains on just about anything Christmas related and the best time of year to start saving money for next year. As close as most people’s budgets are these days, it’s really pretty unrealistic to believe that anyone can manage to buy all they expect to buy for Christmas with one month’s spendable income.  If expectations simply cannot be lowered, then something else has to change: our methods of saving, our methods of buying, or the amount of spendable income.  Continuing to go further into debt each year will soon, if it has not already, simply not be an option. The same wrapping paper, ribbons, lights and decorations that cost twice as much just a few short days before are now on sale.  Christmas sweaters, fleecy pajamas, hooded sweatshirts and toasty mittens will all be half price or more.  If you buy things that never go out of style or vogue, they will be just as popular next Christmas as they were this year.  If you are buying for a child that is still growing, it is a safe bet to buy the next size up unless you expect them to skip a couple of sizes in a year’s time. Some things like crayons, coloring books, trucks, and dolls never go out of style in the toy department.  To a child, having lots and lots of little things is more impressive than having just one big thing. If your budget does not allow it this month, be sure to visit the sales in January when some items are marked down even lower.  Dedicate a space in the closet or in the attic where you can keep all of your Christmas purchases together and hidden from view. Now is the time to start surviving the holidays by splitting up your Christmas purchases to a year round buying plan or a year round savings plan instead of trying to squeeze everything into one month’s budget. Now is the time, while you’re still motivated, to start doing the do-it-yourself projects you didn’t have time to complete for this year’s gift giving. Now is the time to look for a part time job or business that you can do one day a week or month the income from which you can set aside for Christmas. Now is the time to start a Christmas club plan at your bank or credit union that is automatically withdrawn from your account if you really do not have the willpower to set the money aside into an interest-bearing savings account. Now is the time to face the fact that even though you hope that by next year things will get better so you won’t have to worry about Christmas until a month or two before that this plan of action has gotten you nowhere in the past, but deeper in debt. Now is the time to starting planning for a debt free, merry, happy, stress free holiday next year. Continue reading →

Posted in Foreclosure, holiday budget, holiday spending, Loans and lending, Online Banks, Smart Spending, surviving the holidays | Tagged , , , | Leave a comment

Make it a Game to Find Ways to Save Money on your Holiday Budget

Posted on December 16, 2011 by admin

Ever wonder why people go to the trouble of collecting coupons to buy 12 years worth of laundry detergent for $10 on TLC’s Extreme Couponing?  If you’re not familiar with the program, then you haven’t seen the real pleasure the couponers get from gaming the system, even if they end up with a stock room full of stuff they may never use.  It just goes to show: saving money can be fun! Depending on your particular talents and interests, finding ways to save money on your holiday budget may include making your own presents, scanning the internet for the best deals, cooking the best money-saving recipes or crafting your own decorations. Consider a “movie pack” consisting of a classic movie (cheaper than the new), snacks like microwave popcorn and a bottle of a favorite soda all in a basket from a second hand store.  You could also give a “survival” package for college students or a “travel pack” for travelers made of free samples and small portions you’ve either bought or made using inexpensive spill proof containers.  Another idea is to hand stamp or decorate a package of index cards with your favorite recipes tied with a ribbon to an inexpensive kitchen gadget. Better at doing things with your hands? Here are some other ideas to maintain your holiday budget. Find an old classic red wagon, bike or nightstand and spend a little elbow grease sanding and painting.  Make a shabby chic wind chime using old silverware or dinnerware.  Refurbish the insides of an old dollhouse with wallpaper and rug samples.  Make a calendar, stationery or all occasion cards on your computer for the non-technical person on your list.  Scan the internet for other gift making ideas that are more your style. Even if you are not “crafty,” just about anyone can put together mixes of their favorite recipes layered like a sand painting in a mason or decorative jar topped with a cute “hat” or bow.  A mix of Epsom salts and the oil of a favorite essence put together in a “spa” package like those sold in stores at a high price is another welcome inexpensive gift. Don’t have the time or inclination to make it yourself?  Everyone has a friend that’s good at this who may need something you can provide: washing and detailing their car or setting up a web page for their business.  Consider trading out gift certificates or services from a friend who owns a business in exchange for doing their taxes, minding their store or picking up their child at daycare for a certain period of time.  Everyone has a car that needs its oil changed.  You could even give guitar lessons. How many on your list would rather get a hand drawn picture from your child instead of an expensive, taken in August picture of your family and a canned message?  Send letters or postage saving postcards made from the fronts of the cards you received last year. Making it a project for the kids to get them involved. Brainstorm for more creative ways to save money and gain the satisfaction of knowing you beat the system by saving money on your holiday budget this year! Continue reading →

Posted in Credit Report, holiday budget, holiday financing, holiday spending, Smart Spending | Tagged , , , | Leave a comment

Surviving the Holidays – Concentrate on Spending Less and Enjoying More

Posted on December 13, 2011 by admin

One reason the holidays have become so stressful is the emphasis on the one-size fits all mentality we are all expected to live up to.  We are all supposed to love doing the same holiday things – all supposed to have enough money to buy presents for everyone on our list. To relieve some of the stress on you and your budget this year, spend your time doing things you enjoy instead of fighting for bargains at the mall.  If it is baking cookies, making gifts or decorations with the kids, do; if it is not, don’t and, most importantly, don’t stress.  No one is putting as much pressure on you as you are putting upon yourself.  The guilt about “what is expected” that makes busy parents throw money at the problem when they can’t live up to their expectations. If you do not have time or do not enjoy doing some of the expected Christmas activities yet you want your children to experience them, look for an alternative way to accomplish this.  Possibly a grandmother, an aunt or even a babysitter that does this sort of thing all of the time is available. You might be surprised how willing an elderly neighbor or friend from church might be to spend time with you and your children teaching them the basics of baking.  Visits to a nursing home to find someone to teach your child to crochet, knit, or make a birdhouse might end up bringing purpose to a person’s life and giving you the satisfaction of having brought a little holiday cheer to another person’s life. Spend quality time with your children teaching them the importance of giving rather than receiving.  Dedicate an hour to make cards or draw pictures for everyone on their list –especially those not expecting to receive many visitors.  The holidays are one of the worst for people who suffer from depression, and it is surprising how much difference such a small gesture can make. Also, ask yourself: is it really necessary to have every inch of your property covered in lights?  If you find it fun to do, then do it.  If it is eating into your budget or adding to your stress, don’t.  There are plenty of free things to do at Christmas that don’t take as much time or cause as much stress.  Spending one night looking at other people’s lighting is much less stressful – and far less expensive – than spending every weekend leading up to Christmas replacing fuses and strings that burn out. Now back to the spending part.  How many times have you said or heard someone else say that kids end up playing with things that don’t cost a lot leaving the expensive toys on the sideline?  With younger children, this is often too true.  There is absolutely no reason to overspend them. With older children, it’s a little harder but maybe it’s time they start learning one of life’s most important lessons: you don’t always get what you want. As for the adults on your list? They’re adults that feel the same kind of pressures you are. They won’t miss the lame “Forever Lazy” gift of the season this year. It time to own up to the fact that this is something you are doing to yourself.  Take time to enjoy the holidays more this year by spending less money on things that’ll soon be forgotten and spending more time with the important people in your life. Continue reading →

Posted in Foreclosure, holiday spending, holiday spending tips, Prime Rate, Smart Spending, spending less | Tagged , , , | Leave a comment

Christmas Survival Guide – Making a Holiday List and Checking It Twice

Posted on December 3, 2011 by admin

One of the things that make holidays stressful is worrying about getting everything done, forgetting a gift, and spending money we know we don’t have.  It is too easy to go about gift and food buying without a plan and have to backtrack for exchanges because we didn’t know the right size for our impulse buy or we forgot to a certain ingredient in the recipe we planned to make. One key to being more efficient with your time and freeing your mind from worry is to make a holiday list.  Once something makes it on “The List”, the nagging concern of forgetting that particular item is gone forever and will not be a recurring worry churning in your mind and blocking more constructive thoughts, like how to save money on your gift buying.  The List will also give you a great feeling of satisfaction and control as items are checked off and you see the list dwindling down to nothing. In an earlier article, I suggested making a budget and designating how much you could reasonably afford to spend for each of the different categories of gift buying, food, decorating, travel, and parties.  However, as you find out in making out the holiday list—planning is one thing—implementing it is all together different.  The idiom “the devil is in the details” is actually very true. Figuring out exactly how you are going to accomplish buying all of the food and the presents with the money you planned in the first step depends on how well you construct your list.  Without a holiday list, you’ll certainly waste time and money on gasoline, backtracking as you go randomly from store to store. Save time and money by planning out your purchases at home by browsing through store ads, catalogs and even merchants’ websites.  With all of the resources available on the internet – gift guides, money saving recipes and crafting ideas, you’ll get great ideas on how much your purchases will cost along with ideas of ways to cut costs.  You can also do price comparisons and research the pros and cons of particular products so that you don’t end up buying the “dud” of the season that everyone has to exchange.  Before ordering on line or from a catalog, however, be sure to take into consideration the difference in prices in shipping versus the gas it will take to go to the store to pick it up. For many major retailers you can get the best of both worlds by picking your item out on line but saving on shipping by picking your item up at the store. Now is the time to take stock of all the ingredients you will need for the food you plan to make, find out the sizes of those you plan to buy clothing for and map out your shopping route based on the location of each of the stores. Prioritize your list and start buying for the most important people in your life first—your children, your spouse, your parents—before you decide to overspend on a gift for your co-workers. Beware of the kinds of “eye candy” that retailers use to entice you to bust your budget and pull out “ye olde” credit card.  Having a plan and a list (along with a pair of blinders) will go a long way towards making both your holidays and more importantly your credit card balance less stressful in the months to come. Continue reading →

Posted in Credit Report, Foreclosure, holiday list, holiday spending, holiday spending tips, Smart Spending | Tagged , , , | Leave a comment

Controlling Christmas Spending – Budgeting Your Time and Your Money

Posted on December 1, 2011 by admin

We spread ourselves and our pocketbook so thin with our Christmas spending that it leads to a lot of unneeded stress on ourselves and our budget. We do not plan to go over budget; it just happens one last gift and impulse buy at a time. That’s just it. We do not plan. Parties, traveling, gift buying, decorating, baking and cooking—all of these take time and money to achieve. Sit down and realistically plan what Christmas spending is and is not doable before you commit yourself or your money to doing anything else. First determine your overall budget; how much spendable income after paying the bills each month plus anything you managed to put aside for Christmas spending do you have?  Divide this figure by what percentage you plan to spend in each of the major categories: Presents, parties, decorating, travel, charities and food—and then find creative ways to stick to it. Review the list and determine where you can cut back or come up with an alternative strategy.  Determine what is and is not more important: an extra string of lights, having a party or a nice Christmas meal?  Instead of springing for everything on the menu, is there a way you can delegate some of the cost and cooking time to others? Would your favorite charity be just as happy with a gift of your time later in the year as a lump sum you can ill afford during the holidays?  Do you really need yet another Christmas sweater or Christmas tie to add to the growing number hanging in your closet that you only wear once a year? Know that unless you take steps to prevent it now, fully 25 percent of your Christmas spending will be eaten up by non-gift related expenditures for decorating, greeting cards, parties and clothing.  Do you automatically pick up more wrapping paper and ribbon before checking your stash leftover from the year before?  Are you a sucker for this year’s latest Christmas decoration?  Do you go out shopping for gifts or food blindly buying without having a plan or a clue as to how much you can reasonably expect to be able to pay for without bringing out the credit cards? The last thing you want to do is to be paying for your lack of planning next year by paying high interest on credit cards.  Back to the plan: can’t afford to send Christmas cards?  Don’t send them, cut your list or find a cheaper alternative.  Surely, there is someone on your gift-giving list that would welcome the chance to cut back on their own list that you can come to some kind of money saving agreement with.  Is there anyway to get creative with your gift buying by either utilizing your own talents or even a friend’s talents for performing duties you can do in exchange? That is the purpose of having a plan—determining what Christmas spending you realistically are able to afford, what you are willing to pass up in order to be able to spend in areas that are more important to you and then finding a creative way to achieve your goals of a debt and guilt free holiday without stress. In future articles, I will be discussing ways to take the stress out of managing your time and your money by Making a List and Checking it Twice, Concentrate on Spending Less and Enjoying More, Make a Game Out of Finding Ways to Save Money on Holiday Spending and How to Recognize and Avoid Holiday Scams. Continue reading →

Posted in christmas spending, Credit Cards, holiday spending, holiday spending tips, Loans and lending, Prime Rate, Smart Spending | Tagged , , , , | Leave a comment

Surviving the Holidays: How to Limit Holiday Spending and Stress

Posted on November 24, 2011 by admin

For far too many people, the holidays have become a time of stress instead of the Norman Rockwell picture of family togetherness that we like to imagine.  The reasons for this incongruity have to do with the stress on our time, our finances and our inability to wrap our minds around the ideal versus the reality. After constant bombardment with idyllic images of what the media and marketers proclaim the holidays should be, our own limitations in time, money, and energy prevent us from achieving the same heart warming image, no matter how far in debt we go. How do we survive the holidays?  The answer begins with being realistic about our finances and our limitations.  To avoid the land mines of holiday spending, overeating and overexerting yourself, it pays to have a plan. Budget Your Time and Your Money Parties, traveling, gift buying, decorating, baking and cooking—all of these take time and money to achieve.  Sit down and realistically plan what is and is not doable before you commit yourself or your money to doing anything else. Making a List and Checking it Twice! The key to freeing your mind from worrying you will forget someone or something is to make a list.  Once on “The List”, that nagging concern that you will forget that particular thing needing doing is forever gone and will not be a recurring worry that keeps churning repeatedly in your mind. Concentrate on Less Holiday Spending and More Holiday Enjoying Instead of spending what free time you have frantically fighting for bargains at the mall, spend your time doing things you enjoy doing.  If you enjoy baking cookies, making gifts or decorations with the kids, make time to do these activities; avoid those activities you don’t enjoy, it’s ok. Make it a Game to Find Ways to Save Money on Holiday Spending Have fun finding ways to save money on holiday spending.  Depending on your particular talents, this may include making your own Christmas presents or scanning the internet for the best deals, the best money saving recipes or decorations.  Consider trading gift certificates from a friend to buy presents.  Often the best gift that you can give someone is your time.  Giving the gift of babysitting, tax preparation or a car wash is a way to connect with friends and relative after the holidays are long forgotten. Planning for Next Year Remember what you liked and disliked during the holidays and resolve not to put yourself in that position again next year.  The day after the holidays end is the best time of year to get bargains on just about anything holiday related and the best time of year to start saving money for next year.  Now is the time to start splitting up your Christmas purchases to a year round buying plan instead of squeezing everything into one month’s budget. In the next few articles, I will be exploring these Tips on Surviving the Holidays as well as How to Recognize and Avoid Holiday Scams . Continue reading →

Posted in Credit Report, holiday expenses, holiday spending, holiday spending tips, Online Banks, Smart Spending | Tagged , , , | Leave a comment