In your Christmas planning, you need to set boundaries. Remember, you can’t buy everything for everyone. Yes, Christmas is a time to show certain people your concerns, feelings and gratifications about them. It’s fairly easy to use price tags to express sentiment, but it’s important to set a realistic budget ahead of time.
Know exactly how much you can spend in total on gifts, events, and other holiday expenses before you start swiping a credit card and STICK TO IT!

Make a list of all the things you will need in advance:

Try to assign limits based on your previously created budget. Stick to your list and avoid impulse purchases

Think about buying certain gifts in volume. From a retail perspective that could mean utilizing offers such as “2 for 1” promotions. Consider teaming up with friends to increase buying power when buying bulk items. Buying in volume can reduce prices considerably, and you don’t need to be stocking a warehouse to get a deal.

There are several “Green Ideas” that make sense for the environment but also make a lot of sense for your bank account.

Doing all of your Christmas shopping on Christmas Eve won’t work out too well. There is no point in waiting until the last minute to get your gifts it will never work. You can definitely survive the holiday shopping season financially with effective planning. The smartest Christmas shoppers will be buying Next year’s gifts in January.

Shop prices before committing to a purchase. Don’t buy from the first store, take your time and really look around. Utilizing the internet and other various comparison shopping engines via your phone or other mobile devices will help you to find the best deals. Keep an eye on brochures and discount coupons. This will help you save on everything you need for a great Christmas.

Separate your budgeted Christmas fund and avoid over extending yourself financially. Over spending via your credit cards will mean interest payments on top of the holiday spend. Be smart, stick to your budget, and manage your allocated funds carefully.

If you intend to celebrate Christmas away, then you need to think about travel expenses. If the trip is unavoidable, you can save on expenses by choosing the least expensive mode of transportation, early bookings, etc. Travelling in any holiday peak period, particularly, Christmas, is generally stressful, crowded and expensive too. It is better if you plan the Christmas visit for a week or two after or before the holiday. Last minute deals may also pop up if you have the brass to hold out.

Don’t go through all of the trouble of creating a budget, making a list, researching prices, and shopping around, only to lose track of your progress. Be diligent about tracking your progress by recording all of your shopping and holiday related costs. Being informed about your financial situation is the key to being financially healthy. With small amounts being spent here and there, your overall budget can really run away from you if you are not aware of the bigger picture at all times. Keeping a record in your smart phone or in a small book and keeping it with you will help ensure that you stay on track.

By following all of the tips listed here you should be able to survive the holiday financially. If your budget has already run away from you, consider the advice for next year. It’s important to not give up, improve your financial health and of course enjoy the holidays.
Wishing everyone a happy holiday!

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Article Provided by Scott Hersh, business blogger for BCA Blog, the official blog of BusinessCashAdvance.com, leaders in merchant financing.

Okay, so the marketing is well done…the song is easy to remember…and so is the website.

But what about the product?

Is their free credit report really free?

Sadly, free doesn’t always mean free these days. Sometimes it does mean free. But sometimes it means “free but…”. Like “free but…you have to pay for shipping.” Or “free but you must buy something else first.” Or in this case “free but you need to sign up for a monthly service.” I don’t know about you, but to me free should mean “free.”

And when it comes to credit reports or credit repair, there is even more to this story. The average consumer is bombarded with credit card offers. Even if they are not in a good financial position and will only get deeper into debt. Most people have no idea what their credit score is or what it really means. Of course, that doesn’t make the advertisers the bad guys. But it’s hard for some people to weed through the “fluff” to find the answers they need.

On that note, here are some interesting points that the free credit report TV commercials don’t tell you:

1) Like I said earlier, in order to get the free credit report you must sign up for paid credit monitoring service, that is billed monthly. Sure, they say you can cancel at any time. And that is a nice option. But how many people forget to do this? Or think that they actually need to the service? Is monthly credit monitoring a rip-off? No, it can be meaningful, especially if you’ve have trouble with other people stealing your credit cards. But for most people it is simply a service you don’t need.

2) You can get free credit report – for free! The credit bureaus have set up a service at annualcreditreport.com that allows consumers to get one copy of their credit report from each of the 3 credit bureaus each year – for free, with no catches. They have done this to comply with the Fair Credit Reporting Act, and this is the only authorized site. You can get all 3 at once, or spread them out and request a different one every 3-4 months (and in a way, do your own credit monitoring). Also, if you are ever turned down for credit or a loan, you can request a free copy of your credit report to get an idea of why you were turned down.

3) what to do once you get credit report. If you’ve never looked at your credit report, it’s kind of interesting – it shows your payment history, open accounts, closed accounts, balances. It’s a strange feeling seeing your financial life broken down into a bunch of numbers. But once you get past the “cool factor” you need to decide what to do with this information. Frame it? Stick it in a drawer? Toss it in the trash? Nope, none of the above. First, you need to look carefully for errors. Check out your name, account histories and balances, open/closed accounts. And if you find any errors you need to either fill out the dispute form or write a letter requesting that the errors be corrected. Then…

4) You CAN get bad credit removed. I know, the “experts” tell you that you have to wait 7 years for bad credit to fall off your report. Technically, that’s correct. But you can do a little more to speed up the process. And you can do it legally and ethically. What is this strategy? Ask the creditors to provide you with written verification that the item is correct. And if they can’t, then they must delete it. Don’t lie. Don’t give any excuses. Just ask for written verification. In most cases, they won’t do this and they’ll remove the bad credit. Again, there’s nothing unethical about this, you are just asking for proof.

5) How to avoid future credit problems. A colleague of mine used to say “credit cards don’t come with instructions on how to use them responsibly”. How true! All you need to do is apply for a card, and if your numbers fit you’ll get credit. For many people this is not a problem. But some people use credit cards as if they were cash. And figure they’ll pay off the charge when the bill comes … and then don’t. And you know what happens next – you carry a balance, get charged interest, and the balance grows. And the same happens next month, and before you know it your debt gets out of control. Then you miss a payment here, miss another payment there, and your credit score falls like a rock falling off a cliff!

That’s not to say that you shouldn’t use this product. For some people, it just might be the right solution. But the takeaway point to remember is that a catchy song, a flashy ad, or a memorable marketing campaign don’t always mean that the product is right for you. And it doesn’t always tell the entire story.

So, next time you hear the catchy free credit report song, realize that “free” isn’t always as good as it sounds.

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Kris Bickell shares the financial tips he learned the hard way at Debt-Tips.com. Whether you need help getting out of debt, fixing your credit problems, or saving money, you’ll get honest answers to hep you become debt free.

Take for instance the story of Mary Rose. Her husband died young when their children were just 5 and 3. His life insurance policy (provided by his workplace) was just enough to cover funeral expenses. But Mary learnt an important lesson as she re-joined the workforce and began earning in order to provide for herself and her two kids. She decided to buy the maximum amount of life insurance coverage she could afford. Two years later, Mary contracted cancer. She used her accelerated death benefits to pay off her mortgage and put aside a college fund for both her children. Today, Mary’s children live securely with their grandmother in the house that Mary paid for. Both the children have passed out of college in flying colors and enjoy well-paid jobs.

There are certain stages in your life which should remind you to buy life insurance or make sure you have enough coverage

Right now. Death is uncertain and there’s no telling when it may strike and to whom, which is why most life insurance experts will tell you that the best time to buy life insurance is now—the present. It’s not something you want to procrastinate on since your loved ones are depending on you to make this crucial decision.

Getting married. Being married means that you now share financial obligations together. Discuss a financial plan with your spouse and make sure you each buy life insurance to cover the economical loss that would be incurred if either spouse were to die unexpectedly.

Arrival of a baby. Each addition to the family, increases your financial burdens. It means more educational expenses, more living expenses to provide for your entire family, and if it’s a girl you’ll want to save up for her wedding. This are future expenses you should include in your coverage.

Remember, too that getting life insurance when you’re pregnant might mean you have to pay a more expensive premium. For the best life insurance rates, get a policy before you are pregnant.

Buying your own home comes with a hefty mortgage. If you or your spouse were to die, how would the surviving spouse manage paying off the mortgage? If you plan your coverage well, life insurance death benefits could help to cover your entire mortgage or at least a significant portion. Remember Mary’s case and how her family could live securely in the home she bought for them.

Raise in salary. With hike in salary, there are lifestyle changes. You might want to move to a better neighborhood or put your kids in a private school. The fact is that as your income rises, so do your spending habits. Your coverage should allow your family to live in the kind of lifestyle they are used to.

After you retire. Many people still need to be insured even after their retirement. Their kids may be out of the house, living independent lives, but they may have aging parents living with them who are dependent on their care. Death benefits would help them live a comfortable life and afford them the kind of assisted living services they need either at home or in a nursing facility.

You might also want to use your life insurance policy to augment your retirement funds. Money dwindles in value over time and the amount you saved for retirement may not suffice the needs of a surviving spouse. Death benefits from a life insurance policy would make a meaningful contribution to a retirement fund allowing your spouse to live comfortably without having to worry about finances.

Re-Marriage. If you’ve re-married you will either want to purchase a new life insurance policy with our new spouse as the beneficiary or you may consider reviewing your existing life insurance policy and make the necessary changes. If there are children involved make sure you consider their needs before cutting them off from your beneficiary list.

Getting the best life insurance policy

Remember, online life insurance quote providers are a convenient way to get yourself a cheap life insurance policy that meets your specific needs. If you’ve missed out on buying life insurance when you’re young and healthy, you should definitely consider life insurance at various stages of your life when buying a life insurance policy would still mean a lot to your family. In fact, there’s no better way of saying you love them.

There are sites that offer personalized customer services. You can talk to licensed life insurance professionals through online chats or over their customer call lines. They’ll answer all your queries and meaningful recommendations to help you make the right life insurance decisions, at the right time.

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Denise Mancini-Blonda is manager of public relations and marketing communications for AccuQuote(Leader in Providing Term Life Quotes). In addition to overseeing all corporate media relations, internal executive and employee communications, she plays a key role in the overall content development of the company’s online and offline marketing campaigns.

According to the recent United Sates Department of Agriculture report, raising a family is more expensive than ever. These results strive to raise important questions and issues about the respect paid to the financial cost of raising a child to adulthood. There is a good deal of ignorance in the American economy, and by deliberately targeting middle-income families, the annual report has opened up a dialogue that is quite useful.

The United States has always had a culture with a high regard for those able to raise a healthy and thriving family. It has strong family ethics and in turn has attracted ambitious generations of child-rearing citizens, many of whom are drawn by the novelty of miniature look-a-likes and the natural instinct to repopulate.

Considering the tangible costs of children makes many people uncomfortable, but to get an accurate gauge of the true cost is to save potential headaches later on.

Housing

From homeowner’s insurance to paying the mortgage, housing expenses associated with raising a child have climbed significantly over the past decade. The battered economy has also taken a toll on smaller household items, notable price increases ranging from cost of bedding, to children furniture, and other miscellaneous furnishings. While you know that buying or maintaining a home will likely amount to the largest purchase you will make in your life, it is easy to forget about the additional expenses that accompany a child’s needs. In the 2009 annual USDA report, the cost of housing for a middle-income family throughout 18 years was estimated to be $70,020. Though this number has since slightly decreased, it’d be best to first focus on home expenses when searching for ways to save.

Food

Food prices, in particular, have weighed on parents’ budgets as rising demand and higher prices for goods like corn and wheat have made even a container of oatmeal a luxury purchase. In a child’s first year alone, think $100 for baby formula per month for the first six months, replaced by $50 monthly solid food expenses for the next six. Over the next 17 years, the cost of food will likely find itself in the $35,000 or above range. From these projections alone, one can see its these immediate needs that are often the most underestimated. Food is the main expense that increasingly changes as children age themselves.

Transportation

From school to soccer practice to ballet before dinner, many parents find themselves playing chaffier to their busy little one. But at what degree are these constructive activities burning a hole in your expense tank? According to the AAA, 85% more per gallon than past decades. Rising gas prices matched with unfavorable gas mileage have parents spending more than $30,000 on child transportation. Given this amount, trimming vehicle costs can pay off with big savings.

Child care & Education

According to the USDA, child care and education are two of the most significant costs for average families. With student debt and college enrollment rising every year, education costs now stem much broader than the local daycare fee required in the first few years. In an effort to sacrifice elsewhere to promote academic excellence, parents spend an average of $40,000 on education costs alone- excluding costs of private or advanced schooling. Early child care can initially seem even more overwhelming. The cheapest public day care ranging in the $300s, personal nannies require staggering salaries reaching into the $3000s. Fewer behavioral problems- faster school acclimation- a brighter academic future- are all promising advantages of the educational variety. But the financial ramifications make them widely debated.

Clothing and Miscellaneous Costs

Shopping can be an emotional release for many people. Lots of individuals shop to reduce stress or just to pass the time with a little fun. But for those with a family in tow, big sprees will likely be replaced with bargain bins. On average, $13,000 is spent on clothing throughout a person’s first 18 years – not to mention the $19,000 for other miscellaneous items. There are many social and cultural factors that tend to determine the rate of shopping and spending. Children are among the most influential.

If one doesn’t have a child – and if they don’t have to provide for them in the present while preparing for the future – mortgage debt or credit card payments wouldn’t seem like such heavy burdens. Forget about kitchen renovations and elaborate vacations, just providing a child with the basic essentials has become more than many families can afford – over $200,000 more (according to the recent USDA poll). These kind of financial ramifications are something one needs to think about before deciding to raise a family. While the price of welcoming a new life into the world is intangible, the realistic expenses are quite concrete.

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George Gallagher is a writer for all things finance and family related. He also works with private student loan consolidation credit unions.

I know a lot of us are going to be spending a lot of money holiday shopping over the next two months, so here’s a great way to get $150 back. You just need to spend $1,000 in the first 90 days using the Discover® More® Card (I know a lot of you would do that even if it wasn’t the holidays).

With a great bonus like this, the 5% cashback in rotating categories, and the extended warranties that buying with a credit card provides, I feel like you’re missing out if you don’t take advantage of a rewards card this holiday season.

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But what can the movement learn form the past? How has previous financial turmoil responded in the face of protesters and action movements? With a historical reference is the Occupy Wall Street movement one in a long line of successful economic protest movements or are the sign holders wasting their time?

The Labor Movement

The Labor Movement in the United States started in the late 1800s and continued through the early 20th century. The movement is a name that covers many different protests, strikes, and sit-ins with the aim of increasing the rights and treatment of workers.

The Industrial Revolution gave business owners the opportunity to make products on a much larger scale than before. There was ample opportunity for business owners to expand their companies on the backs of low-wage earning workers. Much like the “we are the 99%” rallying cry of the Occupy Movement, this earning disparity caused much distress within the bottom portion of the arrangement.

The workers in this case were in a much desperate situation than modern workers with their lives literally on the line in some circumstances. Protests during these times often led to police action without much government sympathy for the protesters.

In the end, it was more the impact of a handful of horrible accidents that finally got legislators to create policies to help the workers. But the protests certainly impacted the business owners themselves, albeit on a much smaller scale.

Great Depression Protests

The Great Depression was caused by a similar situation we find ourselves in today; the economy appeared a little better than it actually was and people over-committed their finances in reaction. And much like today’s post-bubble US fingers were pointed at different directions and the ultimate culprit seemed to be a collective negligence.

Either way the Great Depression was the result. And this period of American history was marked with a huge lack of employment. And it was this lack of jobs that got people out of their houses (or Hoovervilles) and onto the streets to protest.

And much like Occupy Wall Street the disdain of the protesters was focused on the government. The collective conscious had decided that President Hoover, the Congress, and their fiscal policies were to blame for the economic stagnation.

The good news here is that their movement did in fact result in a drastic change in the political landscape. The next presidential election brought in Franklin Roosevelt, the Democrats, and the New Deal. From 1928 to 1932 the Democratic party seats in the House of Representatives went from 37% to 71% and the Great Depression was on its way out.

Anti-globalization Movement

The Anti-globalization Movement was created to take a stance against multi-national corporations and their poor business practices. Global companies were seen by this group as a real problem as they pushed out local businesses and often relied on cheap labor in poor countries to keep their competitive edge.

The movement culminated in a 40,000 person strong protest that took place at the Washington State Convention & Trade Center where the World Trade Organization was holding its biannual meeting in 1999.

The protesters closed down streets and even chained themselves together. The police were dispatched and hundreds of people were arrested. The group decided to be a little less than peaceful and a bit of destruction of local businesses gave the movement a bit of a negative opinion on the news.

In the end the protest brought a bit of light to an issue that was already picking up steam. A handful of organizations used this protest to enlist more members in their cause, but at the end of the day the protest was short lived and made little impact in slowing down the global corporations.

Occupy Wall Street

Occupy Wall Street maintains that their aim is to stop the greed and corruption of the people who control the top 1% of the money in the US. Their protests are occurring in almost every major city and are continuous with some even creating tent-based sleeping quarters.

As with other protests throughout history they have been met with police action. But with a nod to historical knowledge they have done their best to maintain a peaceful movement. The public opinion of the group varies and the tipping point when the beliefs of the group will become the beliefs of the masses is uncertain.

They do appear to be the largest and most publicized protest movement in recent US history though. However, of all the things the movement is doing right the one way they differ from previous movements is their lack of a tangible goal. In order the three previous movements wanted workers’ rights, jobs, and action to curb globalization. But if OWS would be content with new tax legislation, new business regulations, or wall street reprimanding is unclear. Where will Occupy Wall Street Movement find themselves in history books only time will tell.

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George Gallagher is a economic and education writer. He also works with graduates of college to figure out what student loan consolidation plan is right for them.

The fact that people can access their funds at any given time without harsh penalties makes rewards checking accounts all the more attractive. When one uses a CD, that individual is required to keep the money in this particular account for a period of years. Drawing out the money will cause this person to incur harsh penalties, such as a large chunk of money being taken out of the balance. Reward checking accounts, on the other hand, does not have any restrictions on spending. As a matter of fact, these types of accounts encourage it. One of the rules to having a high interest checking accounts is that the account holder is required to use his or her bank card anywhere up to ten to fifteen times a statement cycle, meaning within a month period. So, while the user is accruing high interest on the funds that are in the account, he or she can still spend freely.

People who possess these accounts are also rewarded for everyday activities, such as spending, paying bills, and getting paid. Another rule to having one of these accounts is often to have at least one direct deposit made to the account every single month. This direct deposit has to occur on schedule. It cannot be a transaction that the user makes, it has to be automatic, like a paycheck or social security check. Other potential rules include making a certain number of transactions with a bank card, which is where the spending comes in, and having one or more automatic payments each month, an option people will typically use for paying bills. The rules that the banks set for these accounts are not unreasonable because people’s living habits will often exceed the requirements. For instance, many will use their bank cards to make purchases far more than what is required to keep the account, and several people will pay more than one bill with automatic payments because they do not want too much to worry about. Because these are all normal everyday activities, keeping these accounts will not require much effort on the part of the account holders, and account holders are rewarded by being able to keep the account and receive high yields on their account balances.

Finally, account holders can enjoy flexibility that CDs do not offer. The rules that CD holders must follow are strict and do not offer a whole lot of flexibility. CD holders cannot take their money out under any circumstances. Furthermore, having a CD requires a certain balance to remain in the account at all times. Unlike CDs, reward checking accounts do not require that a certain balance be maintained, since spending with a check card is encouraged, and money can be taken out at the account holder’s leisure.

The benefits that rewards checking accounts offer makes them great options. As people find out about them, they are going online and looking for the best checking account deals for themselves. With rates as low as they are, more people are making it more of a priority to get their hands the available high interest checking accounts.

The fees are a result of the diminished profit of banks from the Durbin Amendment which forces a cap on processing debit cards. The hit on the consumer’s wallet will be anywhere from $3 to $5, depending on the bank, charged monthly. Some banks, including Wells Fargo and JP Morgan Chase have already rolled out pilot programs in select US states. Other banks, like Bank of America, will roll out the debit card fees across the country starting in 2012.

The real issue for consumers is all the “other” news that comes with the debit card fee announcement. For example, consumers who maintain a large sum of money in their savings/checking account, or in other words, are more affluent, will be exempt from the fees entirely. This means that families who can’t afford to save money will be penalized and forced to pay the fees. Furthermore, during the time when Senator Durbin was trying to control the fees associated to debit card processing, the actual fees for swiping a debit card went public. Consumers found out that the actual cost is only a few cents per transaction. This makes the proposed debit card fees of $3 to $5 even harder to accept.

An Increase in Credit Card Use

A recent consumer spending survey has shown that debit cards are the most popular method of payment other than cash. The reason for this popularity is the low costs for the consumer traditionally associated with using a debit card. From an economic standpoint, debit cards are elastic and consumers respond negatively to price changes. The higher the price of using a debit card, the less people will use. However, now that the banks have decided to add a debit card fee, the likelihood that debit card use will grow among consumers is slim.

This is where the increase in credit card usage will come from. Since there are no associated fees for the consumer when using a credit card, it is an alternative sure to increase in popularity if these debit card fees are implemented for the long term.

The study explains that credit cards are the primary substitute for debit cards because consumers who use cash are unlikely to change their payment method regardless of the options presented to them on the market. This involves young children and older adults. Consumers who use debit cards rarely use cash and are more likely to substitute their spending with another card option.

A Shift to Small Banks, Online Banks and Credit Unions

It is no surprise that the implementation of debit card fees has upset the general public. However, with all the outrage, what options do consumers truly have to get back at banks?

One of the options is switching to a credit union which offers similar services to a bank but at lower rates. Credit unions are also owned by its customers and therefore, do not need to report to shareholders like banks do; they are not profit driven. Furthermore, credit unions are non-for-profit organizations that return any profits back to its customers with lower rates.

Consumers also have the option of banking with an online bank like ING Direct. Online banks provide consumers with lower rates and no minimum account balance requirements but have very few physical locations. Since online banks keep operational costs low, savings account interest rates are typically higher when compared to large banks. Online banks also boast 24/7 customer support to all their clients regardless of their time zone or geographical location.

A third avenue consumers can take to avoid debit card fees is switching to a local, community bank. These banks typically offer lower rates on credit cards and loans and are more involved in the community they serve. If you are a consumer that prefers credit/debit cards compared to cash, a community bank would be a great option.

The only obvious issue that arises with community banks is the accessibility. Most of these banks focus on counties or states but have little coverage outside their territory. If a community bank consumer travels a lot, they will end up paying ATM banking fees at other banks to access their savings.

Looking Ahead with Debit Card Fees

It is not clear what will happen with the large banks adding debit card transaction fees. The entire initiative is only a few months old and is currently only being tested in specific markets. The final decision on the side of the banks has yet to be made. With the backlash from the general public, primarily the middle and lower class population of the United States, it would be difficult for banks to allow these fees to continue. However, with banks claiming that the Durbin Amendment will cost them $250 million per quarter, they may be looking to call the consumer bluff and see if the fees are enough to make consumers jump ship and change banks. Whatever the outcome may be, consumers have options at their disposal and should take advantage of them.

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Michael Smigs is a social media consultant for the financial industry, specializing in debit card processing, credit card processing and e-commerce solutions. To get in touch with Michael, he can be contact at MichealSmigs [at] gmail [dot] com.

Do:

Figure out how it will affect your credit score first
Sometimes closing a credit card account will have a positive effect on your credit score, but this isn’t always true. It’s actually good for your credit score if you have one or two revolving credit accounts open, especially if you are great about keeping the balances on those accounts low. However, if you have too much credit available, you will be considered a higher credit risk, and your score will suffer accordingly. Before you decide to close any of your credit cards, do some research about which accounts you should close and which you should leave open.

Clear the balance
The best way to clear the balance on an account is to simply pay it off. However, if you really need to close an account and can’t pay off the balance right away, you could consider doing a balance transfer with one of your other credit card accounts. Just make sure the balance is at $0 before you call to cancel the account.

Find out about possible penalties
Some credit card companies have early closure penalties or other penalties that can affect the closure process. Read the fine print in your credit card agreement to find out about these before you close the account.

Make sure you have collected all your rewards
Don’t forget to collect airline miles and other rewards you might have racked up on your card. Even if you think you don’t have any rewards to collect, it’s best to double check! Once the account is closed, those rewards may automatically be lost to you forever.

Be firm
Credit card companies want your business, so representatives can be a little pushy when you call to cancel a card. If you have done the research and are positive that closing a certain account is in your best financial interest, though, be firm with the representatives. You don’t owe them an explanation or apology. Remember, you are the customer, and you are in charge of your own credit card accounts!

Cancel automatic payments that come off of the card or go to the card
If you have an account that automatically makes payments to a credit card company, cancel those payments before you cancel the card, just in case. Sometimes you need to give the bank a week or two’s notice before you can be guaranteed that the next payment won’t be sent automatically, since it can take time for the bank top process the cancelation paperwork.

Besides this, if you have payments that are paid by the credit card company automatically, make sure you get those canceled, as well. Transfer the automatic payments to your debit card or checking account, or at least write them on your calendar so you don’t forget about them once your card is no longer automatically paying them for you.

Destroy canceled credit cards
Once you have canceled a card, make sure you destroy it. At least put it through a shredder, but you can always get a little more creative and blow the card up or something. The goal is to make sure that the information isn’t available, as it could still be used by identity thieves to hack your accounts.

Don’t:

Forget to get written confirmation and keep it on file
It’s absolutely essential that you get written confirmation that your card is canceled and has no balance. When you’re on the phone with the representative, get a number that will let the company access the information about your call later on if your confirmation doesn’t get to you in the mail. Most customer service departments these days with automatically give you such a reference number, but if not, ask for one.

Once you get the written confirmation of your cancelation in the mail or by email, keep a copy of it in your files. Sometimes mistakes will happen, and credit card companies may try to come after you for charges on an account that you’ve already closed. Having the written, dated confirmation on file is your protection in such a situation.

Close your longest-standing credit cards
When you’re choosing between which accounts to close, you should definitely opt for leaving your one or two longest-standing credit cards on file open. Not sure which cards these are? Pull a copy of your credit report, and compare the opening dates for various credit card accounts.

Because a large percentage of your credit score is based on how long you have maintained a credit history, leaving your oldest accounts open is a good idea. Even if these accounts have a slightly higher APR, you can just use them minimally while paying off the balance each month to benefit from the earlier opening date on your credit score.

Leave it to chance
Don’t assume that a credit card account will be canceled for you when you pay the balance down to zero. Even if you never use a card once you get it, you could still owe some maintenance fees on the card. Besides, a credit card company won’t close the account for you automatically! You have to be proactive about closing the accounts that you want to get rid of.

Assume it’s off your credit report
After you close a credit card account, it’s a good idea to pull a copy of your credit report two or three months later to make sure that the account is marked closed on your report. If not, call the credit reporting company and the credit card company to get the information up to date as soon as possible.

Using these easy do’s and don’ts, you can close your credit card accounts properly. Just make sure you’re using the credit you do have wisely, and you’ll build a better financial future for yourself.

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This guest post is contributed by Daniela Baker, who blogs on CreditDonkey about credit card applications and deals. She welcomes your comment and looks forward to you visiting her blog.

Whether you plan to tuck money away in savings accounts, IRAs or even fixed rate bonds you may be having second thoughts and for good reason. The way people are spending is completely changing because of this situation. You aren’t alone in wondering what this downgraded credit rating given to the United States means to you.

What does a downgraded credit rating means? Lending money is a risk. There are some consumers that pay back everything that they borrow with interest. There are some that end up defaulting on the loan. In this case, the lender ends up losing money and isn’t always able to the recoup the funds. It helps to know in advance whether a person or business is a risk worth taking.

When the United States’ credit rating was downgraded, it made many lenders a little wary. People already feeling the insecurity of a struggling economy have become even more worried. No one knows what the future holds, but most people believe that there is more bad news to come. Insecurity ran from the top of the financial world all the way to the bottom. Now it isn’t just the US that seems like more of a risk. It is also the United States consumer that has been downgraded as well.

Many families will find themselves paying more when their credit card bill comes in the mail. One of the major effects of credit rating downgrade is that interest rates are going to rise. If your credit isn’t great, you may have noticed that the interest rate for a home or a car is more. Now the US consumer, being considered a higher risk, is going to have to pay more interest on their credit cards.

More of the family’s budget will go to paying the minimum balance on the credit cards. Some who were working towards paying them off and adding to the principal may need to stop in order to just make the monthly minimums. For a family living paycheck to paycheck, this can be huge. It might mean cutting other parts of the budget in order to try to meet these payments and not lose out on their own credit rating.

One of the first things that families and individuals tend to cut in a family budget is savings. Who has the money to purchase fixed rate bonds when you can’t even make the payments for things like your credit card, your electricity or your car?

People tend to look at all the things that they spend in a month and start cutting things considered to be luxuries. In this case, savings accounts don’t put food on the table and don’t require a deposit, so they are one of the first things to go.

Unfortunately, unsure times are one of the best times to save. If you don’t know what is around the corner, you want to have enough cash set aside in case things get worse, or you notice that there is less money coming in or more money going out. If you just keep money at home or stop saving all together, you miss out on the opportunity for your money to work for you.

Savings accounts, IRAs and fixed rate bonds let your money work for you. When you place money in these accounts, you earn interest without really needing to do anything. When times are unsure, this is one way that you can give your money a limited amount of security and expect that it will be able to do good things for your overall financial situation.

While times may come which force you to cut back on your savings and investing, don’t give it up all together. Even if you can only deposit in small amounts, keep making those deposits.

There is a way to keep moving in the right direction in spite of the credit rating drop in the United States. Take the time to tighten the belt and make cuts in your spending where you can. Figure out where your money goes every month.

If there are places that you can make cuts or reduce the amount of money that leaves your home, you will be in better shape. Instead of giving up on savings accounts and fixed rate bonds, consider skipping eating out or some forms of entertainment that could be costly.

Your minimum payment and interest rates on credit cards are going to go up. Because of this, use it as a motivation to get the balances paid off as quickly as possible. If you don’t already have a plan, come up with a way to get the balance paid down so that you no longer own money to the credit card companies. Then you can work to learn how to manage your credit responsibly.

Things will turn around eventually. Over time, credit ratings will realign and economies will once again feel an upturn. When that comes, you will have learned so many valuable lessons that will help you to be a better consumer and a person who continues to strive despite a down turn in the economy.

As you look around, you probably can see that there is a lot of worry and uncertainty in the future. Now, more than ever, it is more important for you to take a look at the way that you spend and save. Look at your investments and make sure that you have made the best decisions possible for your money. Things may get a little worse before they get better, but things almost always rebound. There is just no guarantee of when, or how, it will happen.

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Article provided by moneysupermarket.com, the UK’s number one comparison website where you can compare a range of savings products from stocks and shares to fixed rate bonds.