It may be a real challenge to keep away from debt. In reality, debt is not bad. We sometimes get to a point when our financial resources dwindle and our need to spend increases. Getting a loan or borrowing cash from different sources could definitely save us.

However, it often becomes difficult to repay the borrowed amount especially because interest charges and other fees are imposed. In many cases, repaying the amount may be difficult because the regular income of the borrower may not be enough to cover it along with basic and necessary expenses. Thus, here are several recommended resolutions that would help us effectively stay out of debt this year.

Live within your means. Re-assess your financial condition. How much do you earn in a month? How much of your money goes to all your basic and necessary expenses? There is a need to determine just how much we should spend for discretionary purposes. It is not wise to spend beyond our means. This way, you should resist the temptation to use the credit card when purchasing expensive items.

Use your personal savings for buying significantly priced items. It is often difficult to stick to a disciplined way of spending. It is more ideal not to incur a debt just to buy something. It is always better to make purchases using cash. Just make sure you are not spending everything you have in just a single, unnecessary, and discretionary purchase. If you want to buy a costly item, it would be better to save for it.

Refrain from using your credit cards as much as possible. Credit card spending is a logical avenue for overspending and incurring debt. Avoid shopping online as it may only push you to spending using your plastic cards. There may be so many likeable and irresistible items and markdowns available across the Internet that you may have a hard time resisting the urge to spend online.

Be frugal. Try to save anything you could save. If you could lower your expenses, why not do it and add the saved amount, no matter how small, to your regular savings? You could be more conscious of how much you use electricity and water at home, how much you spend on gasoline, or how much you spend buying unnecessary grocery or retail items. Do not indulge in material things that you actually do not need. Thus, you have to learn how to discern your needs from just your wants.

This guest post is contributed by Andrew. Andrew has been helping people with bad credit loans and refinancesolutions

Source: Flickr

Once a student leaves home for college, they have a lot more freedom than what they’ve been used to and even if their parents have tried to prepare them for the outside financial world, it would be impossible for them to prepare them for everything.

Unless they arrive on campus with a scholarship, the college student already starts in the hole with college loans, just so that they can get an education. They are immediately burdened with debt. But this is an expected debt that either they get loans on, parents help pay for, or they work their way through college.

It’s the freedom that they gain after leaving home that generally sets the traps for these wide eyed kids hitting the “real world” on their own. A lot of credit card companies are ready and willing to give the student access to instant credit with credit cards, and this then leads to the student feeling as if they have even more freedom to do as they wish, without thinking about the consequences these cards can bring them.

Some things that are easy to get with credit cards is clothes and stylish clothes especially. A student should stop and think before they go hog wild when it comes to clothes shopping. No one of course expects a student to dress like a bum, but they really need to try and avoid getting themselves in debt over a new wardrobe.

Once a student is on their own, they suddenly want to explore new lifestyles and sometimes this drags them into yet another debt trap. Students have a tendency to try and live unrealistic lifestyles in an attempt to keep up with the “in crowd”. To avoid this they need to make sure that their activities and hobbies don’t over extend their income, if they even have an income.

Students tend to love to go out and party. Of course we know it’s to let off steam, relax and have fun for friends. There’s nothing wrong with this, but a student may forget just how expensive this can be if they begin doing it several times a week. They need to sit down and figure out exactly how often they really can afford to go out so as not to over extend themselves financially. In order to keep from over extending their budgets, a student should probably consider going out once a week to maybe every two weeks.

A big thing that students tend to depend upon is the idea that they will be rich some day and that they can take care of all their debt once they are out of school and have gotten a job. Something they don’t take into consideration is the harsh reality that they may not find a job in their career field right away. In fact in some cases, they may never find that job.

Another debt that is common for a student is their cell phone bill. After leaving home, a student may want to be in contact more with their parents. Along with that, they will be making new friends that they’ll be in contact with on a regular basis. If the cell phone activities go unchecked, the student could find themselves in debt with their cell phone. The wisest thing for a student to do is find a cell phone that offers free minutes with their plan and try not to exceed the free minutes. Another suggestion would be to get a cell phone that has a pay as you go plan to eliminate the possibility of a huge phone debt.

Overall, it is possible to handle debt while in college, but it takes a bit of dedication. As long as a student realizes what money is coming in and going out, he or she should be set for the future. The internet offers a chance to manage money through budget software, like that on Budgetpulse.com. If you feel like you need to manage your costs in college, check into your options.

Photo Source: Flickr

I saved up money for a few months and booked a flight to Florida where I would visit friends and my grandma.  I took a day off from work on Friday 2/26 so I could take the earliest flight in the morning and spend the entire long weekend down in Florida.  I booked a 8:30am flight flying US Airways from Reagan (DCA) to West Palm (PBI) where I was going to spend half the day with my grandma who I haven’t seen in months, and then spend the night with one of my best friends who I haven’t seen in months either.  Then Saturday 2/27 in the morning we were going to drive down to Miami to spend the night with another one of our friends, as well as one of my friends from college was going to drive down from Ft. Lauderdale to spend the day with us as well.  We had this entire weekend planned out something I saved my money for, and was really looking forward to spending the weekend with so many people I haven’t seen in awhile.

Then I got to the airport.

The plane got delayed 45 minutes due to maintenance issues.  When the rest of the Northeast had delays and cancelations due to weather, it’s just my luck that maintenance was the reason for my delay.  We eventually boarded, and began to go down the runway when the generator blew and the plane pulled up before we took off.  We went back to the gate and got off the plane.  All passengers were confused and they had no spare planes to take us.  We were informed that maintenance was going to work on fixing the issues and the flight was temporarily rescheduled to leave at 2pm.  I received a $5 lunch voucher and sat there for a few more hours.

Around 1:00PM-1:10PM it was announced that the plane could not be fixed and that the flight was canceled.  Of course all the passengers were angry, especially when they said there were no available flights to south Florida the rest of the day.  I waited online and tried to book the earliest flight out on Saturday 2/27 to either West Palm or Ft. Lauderdale and they had no flights available.  The earliest flight was at 2:45PM to West Palm which I tentatively booked just in case I decided to still go.  Then I left for the metro to head back to my apartment, annoyed at what transpired.

When I got home I called US Airways customer service to cancel my flights and to ask for a refund.  I felt the entire weekend was ruined at that point and just wanted my money back so I could figure out a weekend in the future I could try to go down and visit everyone.  I spoke with a customer service rep who said they could not handle this situation, and then after waiting for 10 minutes was put on the line with David, their supervisor.

I politely explained my whole situation to David how that morning I had a flight and due to maintenance issues it got delayed and eventually canceled and I tentatively rescheduled for the next day just in case but decided to just cancel everything.  I wanted no additional compensation, and was very polite in explaining the situation, and all I asked for was a full refund.

He said NO!

He said he would gladly refund my flight down to West Palm because of the maintenance issue, but since I booked two one way trips since I was leaving from a different city, and that flight wasn’t technically affected from the maintenance issue, he would not issue me a refund for the flight from Miami back to DC.

Of course I did not understand, especially since my flight back was directly affected by the maintenance issue.  I had no use for the flight back from Miami if I could not get down to Florida in the first place.

He then proceeded to tell me that there was 2:30PM flight on Friday that I was not on and asked why not.  I said you must have been mistaken, the 8:30am flight that had maintenance issues was pushed back till 2PM and was eventually canceled because they could not fix the plane, there was no 2:30PM flight.  He said there was and that my name was recorded as being a no show.  Of course I proceeded as telling him that this was the first time I’m hearing about this flight that must have been put on last minute after I already left the airport after hearing my flight was canceled and that if I knew about it I gladly would have been on it.  But I never new about it and had no idea why my name was recorded as a “no show” like he mentioned since I booked a different flight for Saturday.

At this point I’m beginning to get really agitated and the David began telling me that I’m wrong, and I felt completely insulted and was being attacked by this supervisor when, not me, not the weather, but the US Airways plane was the issue.  I felt like he was handling the situation terribly, make it seem like I was to blame, that it was my fault and refused to give me a refund on my flight back from Miami to DC.

After 45 minutes of dealing with this I had enough and eventually hung up, and called AMEX to dispute the charge and explain what happened.  I had never been treated so poorly from a customer service rep, and could not believe how I was being addressed.  All I wanted was my flight back to be refunded as well so I could look for a future date to try to head down, and instead I felt like this supervisor and US Airways was screwing me over and there was nothing I could do.

I understand stuff happens, and as annoyed as I was about the plane issue and my weekend being ruined, I just wanted my money back and to move on.  What I thought was a simple 5 minute process turned into a 45 minute ordeal with me being screwed over in the end.

I have had many positive experiences with customer service reps from other companies in other industries and was shocked at the level I was treated in this situation.  I hope no other customer had to deal with what I went through, although unfortunately I don’t think that’s the case.  Hopefully if other people were in a similar situation and were screwed they could feel safe to voice their opinions so change can be made.

Video of My Rant about US Airways Poor Customer Service

Click here to view the embedded video.

This is a guest post written by Brenda Davidson. She is a community member of world’s largest insurance community where you have all the choice in the world for insurance and why you should go for them.

Everyone who owns and drives a car needs automobile insurance. There are a lot of car insurance companies out there and all these companies maintain that they offer the best service against the most affordable rates. With so many companies out there, how do you understand which automobile insurance company is suitable for you? If you do some analysis, it can take you a long way and help you choose the best auto insurance company and save some money. If you need your auto coverage to work in your interest and offer protection if an accident takes place, then selecting a company is about more than only getting the most affordable rate.

If you’re searching for a good policy in the market, it is prudent that you collect some details regarding the prospective insurers you’re thinking about. Some of the details you’d need can easily be obtained on the Internet. You can receive quotes from various insurers and get an idea about the coverage, rates and benefits offered by them. For most insurers, you can do this just by filling out an online form.

Besides the rate quotes, you should take the following questions into account:

How are they rated by A.M. Best or J.D. Power?

You would preferably look for an insurer who has a good ranking with the abovementioned independent rating agencies.

What do online consumer surveys have to say?

Go through online consumer surveys and find out what is stated over there. Surveys are useful resources since they frequently let you know about the track record of an insurer along with their services.

Are there any formal complaints to be worried about?

As the auto insurance industry is controlled by certain regulations, your state insurance department would have the data about consumer complaints registered with them. You can access these details through their official website or you can call them up for getting more specific details. You should be suspicious about insurers with a lot of complaints.

What additional services do they provide?

If a company provides various forms of insurance, there are probabilities they provide bundled services with discounted rates. Even though they just provide auto coverage, make sure to ask about discounts like safe driver discounts, multi car and multi line discounts.

Will they be available to pay for your claim?

You should always assess the financial condition of an insurer. You can do this through various sources like the website of the company or online reviews. Financial information and news websites can also offer what you’re looking for. Anyway, you’d have to ensure they are going to be available and can manage to pay your claims.

What do the auto mechanics have to say?

Visit the auto body repair shop in your area and inquire about their functional association with many insurers and who they think is the best. This would help you understand how effortlessly things would come with an insurer if repairs become essential following a road mishap.

Keeping the above points in mind would definitely help you find a reliable auto insurer.

When it comes to buying a new car, many consumers will opt for car finance from the dealer as they are usually quick and readily available. However, for some consumers, it might actually be beneficial to get a personal loan to finance your vehicle instead.

A personal loan is a loan from a lending institution (such as a bank) that you can then use for pretty much anything, unlike a car loan that can only go towards the purchase of the car. A personal loan can be secured against something of value, such as another vehicle or home or you can obtain an unsecured personal loan, which usually incurs higher interest rates because the bank has no “security” if you default on your payments. Meanwhile, a car loan is a secured loan against the car you are looking to purchase, so if you default on your car payments, the lender takes ownership of your car.

Ultimately the choice you make between a car loan and a personal loan will depend on a number of factors, but there are a few situations where a personal loan might be most beneficial.

If you’re looking for an older model…

Generally, car financing doesn’t exist for older vehicles as they are worth less so banks are unwilling to secure loans against them. Vehicles that are older than seven years are much harder to finance with a car loan.

If you can offer other security…

If you have an asset to secure your loan against, you’ll benefit from the lower interest rate of a secured personal loan. The interest rates difference between secured and unsecured loans is usually about 2%, which can make a sizable difference to your repayments.

If you want to own your car outright…

For various reasons, you may not want to encumber your vehicle with debt and would prefer to own it outright. Individuals who rely on their car for their livelihood may not want to risk having a vehicle repossessed so a personal loan can offer some peace of mind.

Better negotiation power?

Some argue that getting a personal loan so you get the “cash” in hand will give you better bargaining power at dealerships. In actuality, car dealers make money through dealer financing arrangements from the lenders, so paying cash means you’ll be taking away that potential income so there’s no incentive for them to haggle. If you do get a personal loan or are looking to pay cash, tell a dealer that you’re undecided about how you’ll be paying until you settle on a price.

For most, paying off your mortgage or car loan instills a sense of relief – the end of an arduous journey that would have taken years to complete. However for some debtors, the end of their term may signal a sizable balloon payment that must be made before they can sufficiently clear the debt.  Learn what a balloon payment is and whether it’s right for you.

What is a car balloon payment?

Car finance with a balloon payment is a type of interest only loan where the principle amount on the loan is due at the end of the term, rather than being gradually paid off throughout the life of the loan. Because this final payment is usually a substantial amount, this phenomenon has been dubbed a “balloon payment”. Car loans in Australia with balloon payments are very similar to car leases in that your monthly payments only cover the interest accrued over the life the loan and not the principle amount, and you are essentially only paying for the use of the car and not for its actual value. The difference of course, is that you still officially own the car during the life of the loan.

Who should get car loan with a balloon payment?

Some of the benefits of a car balloon loan include a lower deposit, lower interest rate and lower monthly payments as the payments and deposit only cover the interest. However, at the end of the loan term, borrowers will need to find the money to make the final lump sum payment or refinance the outstanding amount.

Balloon payments are generally taken out by individuals who are financially strapped and cannot afford to make higher monthly payments or secure more favorable loan terms. Others, in an attempt to take advantage of the balloon payment, try to sell their vehicle privately before the balloon payment is due. The money can then be used to pay off the loan in full.

Balloon Payment Pitfalls

The main risk associated with a balloon payment arrangement is, of course, the size of the final payment. If the borrower is not able to make the balloon payment and is unable to refinance, he or she risks the car being repossessed by the lending institution. Balloon payments will also generally involve slightly higher interest rates than standard car loans.

For most borrowers, a balloon payment will be a loan of last resort, as many will find it difficult to make the final balloon payment in one lump sum. Professional advice from a financial advisor will help you determine the best type of loan for your situation.

Source: Craig’s shelter in solo isolation in the jungle

In the early 2000’s, the housing market was doing well and most people who bought a home during this time believed that their homes would be an investment. They assumed they would have a home that would appreciate. Unfortunately though, that was not and has not been the case. More and more homeowners who bought homes in the early part of this decade are finding that their homes are depreciating. Now they are finding it hard to find buyers for their homes.

With that thought in mind, it might be wise to be on the side of caution when considering buying a home. The first thing you might want to consider is how good your credit is. If you have bad credit, it would be in your favor to consider renting instead of buying, especially during a time with so much economic upheaval.

A lot of those owners who now are finding it difficult to sell their homes are willing to rent a home for a $1,000 a month that was worth over $250,000 when they purchased it. In this day and age, $1,000 a month is a far cry from the house payments and interest you would have to pay if you were to buy a home. Not to mention the large down payment that you would need up front to buy a home. You can get rental deals from homeowners that are finding it a difficult selling market and are at least wanting some income from their property.

These days, there are a lot of different benefits from renting instead of buying. You don’t have to pay interest, you don’t have to pay taxes, and it should give you the ability to be able to save money for the future, should the opportunity come up to buy a home in perhaps a better housing market in the future.

Another advantage to renting in this days market is the fact that you’re not going to run into any unexpected expenses forcing you to dig into any reserve funds that you might have. Remember once the monthly rent is paid, all obligations for repairs and maintenance is the sole responsibility of the owner of the property.

On the other hand, if you have very good credit, there would probably be an advantage to buying a home right now. The reason for this would be the fact that going prices on homes right now are much lower than they were a few years. The major advantage for those with good credit to own a home instead of renting is the fact that their monthly payment is an investment and not being thrown away as it is in renting a home. The homeowner also has the benefit that their monthly payments will not increase over the years, whereas the renter can probably expect an annual increase of 5%.

In the end, whether or not you buy or rent, will mainly depend upon just how good your credit is and whether or not you feel secure that your income, where it stands at the time of purchase, will remain the same for quite some time to come.

Source: Flickr

This is a guest post by Charissa Cowart from eBillme | Secure Cash Payments

This holiday season you’re probably trying to find ways to spend less but still show your family and friends how much you care about them. Well I have a few ideas to help you on the way. Some of these are simple party ideas, some are gift-buying ideas and some are Do-It-Yourself ideas. So here they are, I hope they help… Knock your socks off!

1. Family Secret Santa – If you have a big extended family, like several aunts, uncles, and cousins who will all be with you on Christmas day but you don’t know them well enough to know what to buy… a good idea is to arrange Secret Santa!

Here’s how it works:

Everyone bring a wrapped gift (men bring a man’s gift, women bring a woman’s gift) and have them in two separate piles – decide on the price point ahead of time. One at a time each family member goes to the pile of gifts and picks one gift (don’t open it yet). Then after everyone gets a wrapped gift (you can not pick your own gift), everyone opens the gifts at the same time to see what you got.

This way you only have to spend money on one gift, but everyone in the family gets to go home with a gift.

1. Gift Cards – Gift cards can seem like very impersonal gifts, but there are ways to make them fun! You can attach a gift card to a canvas and paint around it to make it more personal and unique. You can create your own gift basket with small things like inexpensive candles, candy, magazines, etc. and include the Gift Card. Gift Cards are great gifts because it allows the recipient to get whatever he/she wants and it eliminates the need for him/her to have to take back a gift that doesn’t fit or they may already have.

1. Create Your Own Board Game – This is a neat idea! Check out this eHow article on How to Make Your Own Board Game. It could be really fun if you create a game about your family and give it to mom & dad, or grandma & grandpa but explain that it’s a game for everyone to play! They family would love it and might start putting in orders for their own game!

1. Shop Online – Decide to do all your shopping online this year! There are many benefits to shopping online. You don’t have to fight for a parking spot in the holiday traffic for one. eBillme.com is a great site for shopping online and you can pay cash online! The cool thing is, you can even earn 1% cash back on every order you make. You’re practically making money while shopping!

1. Bring out the Cookbooks – Your local Kinko’s can be your best friend when it comes to making things yourself. Gather up old recipes, family recipes, or new recipes from Paula Dean and Rachel Ray then take them to Kinko’s and have them printed in the form of a cookbook! It would make a great gift for any females in your family.

These are just a few ideas to help you give great gifts this year but not have to take out a loan to do it.  Plus, you’ll have fun making your own gifts or playing Secret Santa with the family.

Let us know your money-saving tips for holiday shopping in the comments.

Flickr: Ellievanhoutte

Don’t you just love going to sporting events?  The crowd, seeing your favorite players, being part of the action is all exhilarating and makes for a great day.  Unfortunately, after you pay for you ticket, it seems you can spend a lot more money enjoying yourself at the event.  With consumers being more conscientious about their money, there is still a way to enjoy your seats without breaking your wallet or trying to figure out where the money went at the end of the day.  Here are some ways to save while rooting for your favorite team.

Food

Don’t eat at the game!  Not only is that food incredibly unhealthy for your body, it is extremely unhealthy for your wallet.  Ever notice that after you have spent 2 hours eating at the event you are ready for a meal to celebrate or mourn your team’s outcome?  It is because the food you are consuming is not filling or you are consuming a lot of something else (I’ll get to that in a minute).  Tailgate in the parking lot with food you brought from home.  Also, some venues will let you bring in your own food, especially if you have a doctor’s note saying you have a condition that prevents you from eating anything they offer.  Other venues are simply pleased as punch that you bought a ticket and don’t mind if you choose to save money by not purchasing their food.  An empty seat is worse than someone whose belly is filled with their own food.  If you are set on eating with friends, why not pick a restaurant close by, and if the event is on a weekday, try choosing a place that has a happy hour so you can eat and drink on a saved dollar.

Drink

Beer: the root of all evil at a sporting event.  It makes the crowd rowdier, the stands dirtier, and your wallets emptier.  I went to a concert last month, the beers were $11.00!  Can you believe it?  I could have bought a case of beer, drank it in the parking lot and still had a great time.  So we did, the same goes for sporting events.  Tailgating is allowed at most sporting events, so to keep yourself safe and your wallet a little fuller, do the following.

1.  Designate a driver; they will probably get free soda at the event if they tell the vender and you will have no question in your mind that you are getting home safely.
2.  Get to the game early, and once you are walking into the stadium, drink water.  It will make you feel better and perhaps you will remember the game.
3.  Don’t impress your date by buying her mixed drinks.  I have seen them priced as high as 7.00 for a well-made drink.

Transportation

Paying for parking is a pain.  You can risk it by parking in an unattended lot for $2.00 or feeling secure that your vehicle won’t get vandalized, pay $10.00.  My suggestion, take public transportation.  For 4 dollars, we didn’t have to designate a driver and we took the train downtown and caught a hotel shuttle from our original destination to our event.  Fun was had by all.

You don’t have to break your bank when attending a sporting event.  So, have some fun rooting for your team and your budget!

What tips do you have for saving money at sporting events?

A few weeks ago my wallet of 10 years was stolen.  I remember the day I bought it with my mom at Marshall’s it was my first grown up wallet and it had a lot of sentimental value to me.

Here are steps you should take right away when your wallet is stolen/lost.

1. Cancel all cards
2. Get replacement cards
3. Get a new ID
4. Get a new Wallet

Immediately I canceled all my credit cards and debit cards, and contacted the necessary people to get replacements.  After the initial shock of having my wallet stolen and fear that someone has my id, bank information, and cards, I made sure I took these steps to make sure no identity theft or money would be stolen.  It can be such a hassle but if you step back for a few seconds, you will realize that it’s not the end of the world, and getting things in order can be done fast.  In fact, it helped me save money.

How?  Even though I had $20 and cards stolen, it took a few days for the new cards to come in the mail.  In that time period I did not purchase anything, basically because I had no means.  Not having any cards prevented me from any quick impulse buys that may have happened on small items that could add up over the course of a week.

The place I really saved money was with a lack of an id.  Not having my id restricted the activities I could do.  I didn’t feel comfortable driving without an id, so I saved some money on gas.

I also could not go out to any bars with friends so I instead had more low key movie nights instead of going out in DC.  I was able to save a lot of money on night activities from not having to pay for taxis, covers, drinks, and good.  The more low key movie option may not have been exactly what I wanted to do, but for the short term until I had my id back, it was fine.

With all those activities gone, I was able to save at least $100 in a one week period.  Don’t get me wrong I would rather have not had my wallet stolen, but I managed to put a positive twist on it and in the end actually had more money to put in my now new wallet.

Have you ever had a wallet lost or stolen?