The Importance of Checking Credit Card Bills

Paying bills is something that no one looks forward to doing. It's one of those things we just want to get out of the way. So we often look at how much is owed, write a check or pay online, and forget about it. But when it comes to credit card bills, that's not such a good strategy.

Credit card statements detail each and every charge we've made since the last statement. That doesn't make for a very exciting read, but it is an important one. If you don't carefully go over the charges on your bill, you could end up paying more than you actually owe.

Here are some of the things to look for on your statements:

* Watch for charges that you didn't authorize. If your card is not with you at all times, someone could have used it without your permission. And even if you haven't lost your card, someone could have fraudulently obtained and used your card number.

* Compare each charge with the corresponding receipt. Mistakes happen, and you could have been charged an incorrect amount.

* Look for double charges. Equipment malfunctions or cashier errors can cause a charge to go through twice. Unscrupulous employees or companies may also make duplicate charges on purpose.

* Review charges imposed by the creditor, such as interest, fees and credit insurance. If you see anything suspicious, check the cardholder agreement to make sure the charge is legitimate.

If You Find a Mistake

When you find an error on your credit card statement, it's important to report it quickly. If it's the result of fraud, notifying the creditor can prevent further misuse. And in any case, cardholders must act within a reasonable amount of time in order to be protected by law.

The Fair Credit Billing Act (FCBA) states that cardholders must report billing errors in writing within 60 days from the date the first statement containing said error was mailed. If they do so, the creditor must either correct the mistake or prove that the charge is legitimate within two billing cycles. If the charges were not authorized by the cardholder, he may be held liable for no more than the first $50.

A phone call to your creditor can be helpful if you have questions about a particular charge. And in the case of unauthorized charges, a customer service representative can tell you if other charges have been made since the statement was prepared. But if there is an error, notifying the card issuer in writing is a must. Otherwise, you may have no legal recourse if they refuse to make a correction.

Checking your credit card bill doesn't take long. If you keep your receipts organized, you can verify the charges in just a few minutes. And those few minutes could potentially save you a great deal of money.

Frugal Living Does Not Equal Depriving Yourself

In today's materialistic society, it seems like everyone tries to outdo everyone else. If Joe buys a 42-inch TV, John goes out and buys a 60-inch model. And the irony of it all is that neither one of them even watches much television!

Because of this way of thinking, those who try to live frugally have often been viewed as stingy. People often think that frugal shoppers are depriving themselves and their families of the finer things in life. What they don't realize is that frugality is not about never buying anything except for the essentials. It's about getting more out of your money so you can have the things you need and some things you want on a smaller budget.

Those who do not subscribe to the frugal school of thought often work long hours and acquire truckloads of debt to support their spending habits. They may have designer clothing, shiny new cars and all the latest electronics, but are they truly happy? Frequently, they're not. If they're working lots of overtime, they don't have the time to truly enjoy those things (much less priceless time with the ones they love). If they're running up lots of debt, they probably spend a lot of time dodging bill collectors and worrying about how they will ever pay it back.

Living frugally affords a more laid back approach to life. When you're not concerned about having the newest thing from the hottest designer straight off the shelves, you can dress fashionably at a minimal investment. Instead of paying a premium for that designer label, you can find a nearly identical item at a discount store or thrift shop for next to nothing. You don't buy the latest gadgets just so you can be the first one on your block to have them, but you purchase electronics that you know you will use while they're on sale.

Frugal shoppers also strive to save money on essentials so there's more left over for savings and wants. They scour the sale papers to find good deals at the grocery stores, and clip coupons to save even more. They turn off the lights when leaving a room and hang clothes out to dry to lower their electric bills. And they run all of their errands in one day to conserve gas. These measures alone can add up to significant savings each month.

Frugality doesn't mean keeping your expenses to a bare minimum. It means stretching your dollar as far as it will go. While frugal shoppers may not have the newest and most expensive things, they can buy much more with a given amount of money than the average consumer. For the price one might pay for the latest cell phone, they can buy groceries, buy the kids school clothes, pay a couple of bills and have enough left over to treat the family to a movie.

Ten Ideas for DIY Savings Around the House

Unless you've just moved into a brand new house, home improvement is a never-ending job. When one project is complete, we always find something else that needs work. The improvements add value to our homes, but they come with a hefty price tag.

Many homeowners feel that they must have a professional come in for each job. But if you're willing to roll up your sleeves and get your hands dirty, you can make many improvements on your own. And since you won't have to pay for labor, you could save hundreds to thousands of dollars on each project.

Here are some common home improvements that we can often do ourselves.

1. Painting - You don't have to be an artist to paint the inside or outside of a house. With the right materials, just about anyone can do it. If you have no idea where to start, enlist the help of a friend or family member who has painted his own home. And if you're really apprehensive, start with one wall to prove to yourself that you can do it.

2. Wallpapering - Wallpapering isn't as simple as pasting paper onto the wall, but it's not terribly difficult, either. You'll need to prepare the wall, do some measuring and cutting and carefully paste it on so that is even and free of bubbles. It takes some time and patience, but the end result is well worth it.

3. Air conditioning - Installing an air conditioner is easy enough that most homeowners do not need outside assistance. If you buy the right size, it will fit right into an existing window. All you'll need to do is install some brackets, slide the unit in, make sure that it can drain to the outside of your house and caulk around it.

4. Flooring - There are many types of flooring available, and some are easier to install than others. Stick-on tile is cheap and can give a room a new look in no time, but it's not very durable. Other types of tile are more durable but take longer to install. Carpeting and hardwood flooring are a bit more complicated. Laminate is a popular choice, because it offers the look of hardwood but is easier to install and care for.

5. Insulation - A properly insulated home offers greater energy efficiency. While insulation of exterior walls is best left to a qualified contractor, homeowners can often successfully insulate attics and crawl spaces on their own. DIY books and websites offer advice on how to properly install insulation.

6. Water heaters - If your water heater has seen better days, you can probably replace it yourself. With the instruction manual and a few tools, installing a water heater is a cinch. Consider an energy-efficient model and save on your electric bill.

7. Plumbing - Plumbers have to go to school to become certified, but there are some simple plumbing tasks that the average Joe can handle. These include installing faucets, taking drain pipes apart to retrieve lost items, and installing toilet kits.

8. Accents - Small details can make a big difference in your home, and you can usually implement them with little guidance. Try changing your cabinet knobs, adding baseboards or changing your crown molding.

9. Siding - Replacing your home's siding can give it a whole new look. Vinyl siding is easy to install with the right tools, and it's very easy to maintain.

10. Decks - Building a deck is no small task. But if you know a little about construction, you can do it on your own. You will, however, need a building permit, and you'll have to adhere to building codes.

Payment Protection Insurance: Pros and Cons!

According to one statistic, payment protection insurance claims have risen to 118% in the US alone. This is due, in large part, to the recession and high unemployment figures. What is payment protection insurance or PPI?

Basically, it provides a buffer for anyone who has become ill or unemployed by protecting loan payments and preventing the possibility of default. PPI can be purchased for car loans, personal loans, credit cards, and mortgages.

Payment protection insurance allows for short-term coverage, usually from one to two years. The standard policy is available to anyone that is employed full time or works part time for at least 16 hours a week, regardless of age, gender or occupation. This policy is usually available at the time a loan is obtained and requires a monthly payment commensurate with the amount of protection you require.

The cost of a PPI policy varies depending upon the state in which you live, the amount of coverage, and the provider you choose. For example, one insurance provider offers a PPI policy up to $70,000. The cost is 5.5 cents per $100 loan balance for a single, and 8.8 cents per $100 for a couple.

However, there is one disadvantage in purchasing a PPI policy from a bank or other lender and that is they may charge higher premiums. In fact, in some cases, lenders may automatically add the cost of the insurance to the loan without your knowledge. This results in your paying interest not only on the PPI but on the loan as well.

In addition, there are certain eligibility requirements. Some providers may not offer a PPI to retirees, those who are self-employed, or to part-time workers. That is why it is recommended that you research many insurance providers to find the most affordable and effective PPI policy that suits your specific needs. One example given is that if you are not working, you can opt to select a PPI policy that only covers illness or accidents.

On the other hand, there is a unique advantage in obtaining a PPI. It does not adversely affect your FICO score because the monthly payments are being made through the insurance provider without interruption.

There are different policies available through providers, and it is recommended that you check the exclusions and peruse the fine print so that you are aware of all aspects of the policy.

Financial Stress = Bad Decisions

Stress can cloud judgment for the best of us. When we're worried or upset, we just can't think as clearly as when we're calm and happy. And when it comes to financial stress, the consequences of bad decisions can be serious.

Anything that adversely affects our income or expenses can cause financial stress. Job loss is an all too common cause. But illness, divorce and legal problems can also put a strain on the budget. Even happy events such as a move or an addition to the family can cause stress when it comes to money.

Logically, we all know that tough financial times call for smarter spending habits. But during a crisis, it can be difficult to keep the budget in check. After cutting back on everything we can, it may still seem hopeless. But instead of looking for other solutions, many people just give up.

Instead of seeking out other sources of income or finding creative ways to reduce expenses or increase income, those suffering from financial stress may go on spending sprees. They feel that they have nothing left to lose, so they spend money impulsively instead of trying to get back on track. They may run up huge credit card balances, but when the time comes to pay, they can't. So in addition to having trouble making ends meet, they have creditors calling daily and bad marks on their credit reports.

What to do if you're experiencing financial stress

If you find yourself in such a downward spiral, it is important to seek help quickly. By doing so, you could save yourself lots of money and heartache. In the vast majority of cases, those with financial difficulties have options that can help prevent things from getting worse.

At the first sign of financial trouble, it's important to contact your creditors. Tell them about your situation before you get behind on your bills. They will most likely work with you, because they want to maximize their chances of getting the full amount that you owe them. They may allow you to skip a payment, reduce your interest rate or lower your payments to help you out.

Talking to a trusted friend or family member can be helpful when you're looking at a bleak financial picture. They may be able to offer some suggestions. Even if they have no advice, just having a shoulder to cry on can help relieve stress.

If you have a lot of credit card debt, a credit counselor might be able to assist you. Credit counselors specialize in helping consumers manage their debts. Your counselor may be able to help you work out a budget, and he can also negotiate with your creditors if necessary. If you follow the plan he sets up, you could be debt-free within a few years.

Financial stress can be a vicious cycle. You become stressed out because you can't make ends meet, and then you make bad decisions that hurt your finances even more, which causes even greater stress. But it doesn't have to work out that way. By taking control of your finances and getting help as needed, you can prevent a complete financial meltdown.

Ten Tips to Surviving Sudden Job Loss

With the ever-changing economic climate and the tendency for manufacturing jobs to go overseas, layoffs have become all too common. One day you might be going in to work as usual, and the next you could be sent packing.

Unexpected job loss can really take the wind out of our sails. Not knowing how we will provide for ourselves and our families is a horrible feeling. It can emotionally and mentally paralyze us, leaving us ill equipped to get back on our feet.

If you lose your job, don't panic. If you keep a clear head, you can keep yourself going until you find another job. Here are ten things to remember.

1. When you find out that you are going to be out of work, talk to your employer about severance benefits. You may or may not be entitled to a severance package, depending on your company's policies and your employment contract. But in the case of a layoff, an employer could decide to provide a severance package anyway. If not, you may be able to negotiate and get one.

2. Apply for unemployment. If you were laid off, you should be eligible as long as you've worked and earned enough in the past year or so. You may also be eligible for unemployment under some other circumstances, except if you were fired for misconduct. As long as you are truthful about what happened, it can't hurt to apply.

3. Consider your health insurance options. You should be able to continue the health coverage provided by your former employer in most situations, but may have to pay the entire premium yourself. If your spouse has group health insurance, signing up with that plan might be a cheaper option.

4. Roll over your 401K. You will have a specified amount of time in which to do this before your employer writes you a check for the balance. After that, you have sixty days to deposit it directly into an IRA before you incur taxes and penalties. Even if you may need to use some of the money, rolling it over first will prevent you from having to pay taxes and penalties on the amount you don't use.

5. Polish your resume and brush up on your interview skills. The job market is more competitive than ever, but if you present yourself well and let potential employers know what you have to offer with confidence, you can increase your chances of finding a good position.

6. Take advantage of any job search help that's available. Your former employer may provide assistance in finding a new job. If not, your local job service offers lots of free services.

7. Find alternative ways to bring in some cash to help tide you over. Have a garage sale, sell stuff on eBay, or clean houses or do yard work part time. You can make some money without forfeiting your unemployment benefits.

8. Re-evaluate your budget. Even if you receive unemployment, you'll be living off of much less money than usual. Eliminate unnecessary bills and expenses, and determine how long you can make it on any income that you have.

9. Utilize your savings with caution. Ideally, you should have some savings put away for situations such as this. If not, you may need to withdraw money from annuities or retirement accounts or sell your stocks. Each of these options can cost you money in one way or another, so use them only if necessary.

10. Talk to your creditors if you're having trouble keeping up with necessary bills. Going to them before you get behind will make it easier to negotiate lower payments or reduced interest.

How does guaranteed income for life sound? Unless you have all the money you could possibly ever need, it probably sounds great. But surprisingly few people know that you can get income for the rest of your life by purchasing an annuity.

Annuities aren't something we hear about every day, but they are widely available. And they offer benefits that make them quite attractive to certain types of investors. They may be used to reduce tax liability, save money while earning interest or receive regular payments upon retirement.

Annuities are contracts between investors and insurance companies. The investor may make one large payment or a series of contributions to the annuity. The insurer then makes periodic payments to the investor. These payments may begin right away, or they might begin at a set date in the future.

Payments from the annuity can be disbursed over a period set forth in the contract, or for the insurer's and/or the insurer's spouse's lifetime. Either way, the annuity earns interest for the investor. But those who purchase lifetime annuities may collect more or less than the full amount, depending on their life span.

Benefits of Annuities

For those who are looking for a way to defer taxes on investment earnings, annuities are a good choice. Interest earned is not taxable until money is withdrawn. Retirement accounts also offer this benefit, but there are limits to how much one can contribute to them each year. With annuities, there are no such limits. And in the case of annuities, there are no penalties for withdrawing money before you reach a certain age.

Investing money in annuities is also inaccessible to creditors. This is because that money technically belongs to the insurance company from which you purchased the annuity. Creditors may, however, be able to take a portion of any payments you are receiving from the annuity.

One thing that concerns many investors about annuities is the fact that they could lose their investments if they die soon after starting a lifetime annuity. This can, however, be prevented. Most insurance companies offer the option to buy a guarantee period with their annuities. If you do, the insurance company will make payments to your designated beneficiary for the duration of the guarantee period if you die. Like life insurance benefits, annuity payments are not governed by wills and do not go through probate.

Annuities are often used to supplement 401K and IRA retirement distributions, but they may also serve a number of other purposes. But no matter how they are used, they offer a number of attractive benefits. If you are interested in an annuity, your insurance company can help you determine whether it is the right investment for your needs.