The Credit Card Act of 2009 takes effect in February of 2010. Do you understand how these changes may affect you and your family? Take a look at the video below from Mike Sullivan, Director of Education at Take Charge America, for an explanation of the changes and some advice moving into the new year.

Did you trade in your clunker for a new ride?

Many Americans are now driving new vehicles. Cash for Clunkers is over, and the dust has now settled on this government funded program. We would love to hear from you on your experience trading in your clunker. Are you happy with your new purchase? Did you get a smoking hot deal on a new car?

Most importantly, we would like to know how does this new purchase change your family’s budget? Have you noticed that you are now spending less money for gas? Is this newer and higher payment putting more strain on your budget?

The government had a goal to put more efficient vehicles on the road, but we would like to know if the temptation of a great new car deal is putting a long term strain on your wallet.

Our Youtube channel is where we will be updating our “Credit to the Family” financial comedy video series. Episode 1 is up now.

This series is sponsored by Take Charge America, Inc. and features Ed Helms from “The Office” and “The Hangover”. We will periodically be updating our Youtube channel, and Talkaboutdebt.com with new episodes that take you through the comedic adventures of the Bonderman family.

Tough Times

We would love to hear from you about how you are handling the current economic climate.  It is understandably difficult out there right now, and we would love to hear from individuals who may need some help and guidance.  Any questions or comments will be kept confidential.

Have you had any luck cutting down on your current debt or do you find yourself accruing more debt every month?  Do you feel like you may be starting to see the light at the end of the tunnel, or do you predict things may get worse for you and your family?

Please feel free to use this site as a sounding board for your current financial problems.  You will find that talking about your struggles can offer some relief, and help to make solutions seem slightly more in focus.

If the current economic stimulus plan continues its slow run through congress, and is signed by President Obama, it is being reported that the average American will receive an additional $8 in their paycheck per week.  This probably will not change your financial situation, but if used properly this can add some relief to your household.  It is important to think about where you need the most relief in your budget and apply this money accordingly.

The extra $36 a month can add some help making a car payment, buy some summer clothing for your kids, or bolster your rainy day fund (that you may be guilty of dipping into lately).  However you find fit to spend this extra money, make sure you are applying it to your area of most financial pain.

Using the stimulus plan to dine at more expensive dinners may not be the best idea in such a turbulent economy.  I don’t think that is what President Obama had in mind when he started his political campaign for a stimulus plan.  A better idea would be using the money to pay off your monthly electric bills, cell phone bill, or help make your minimum payment on your credit card.

This plan will hopefully add some relief to the average American family.  Unlike the last stimulus package 1 year ago that gave you several hundreds of dollars in one large check.  Didn’t it felt great to receive such a big check for doing nothing but paying your taxes?  Do you remember how you spent that check?  I know plenty of people that ran out to Best Buy and bought a brand new Plasma TV or used it towards a summer vacation.  Of course that does help the American economy by putting money back into businesses, but it does nothing to help the American family get out of this rut and learn how to budget.

Break it down to the basics of budgeting. When you want to help teach kids to budget, do you give them a months worth of allowance at once?  Probably not.  Most likely you will give them small chunks each week so that they can learn the value of each dollar.  That is what the government is hoping to do, and I think it has a better chance for success.

Stay tuned to the news to find out if this bill will pass.  If you really need more help with budgeting and getting out of debt there are some links on this blog that can help.

If you must travel by air, here are several tips that you can follow while booking your trip in order to best maximize your money, while still getting to where you need to go.

1) Know your home Airport- If you are aware of the airlines that fly in and out of your hometown airport, it will help you better understand where to look first for cheap rates. You will usually get the best rates from an airline that has declared your city a hub. For example Southwest considers Phoenix, Houston, Dallas, and Baltimore/Washington DC a hub. Travels between theses cities is usually the most affordable. Here’s a map that can help you determine if your airport is a national hub http://www.eskyguide.com/reference/hub.html. If your home airport is not a hub, you may need to consider making connecting flights in order to make your trip cheaper.

2) Always Check Multiple Websites for Airfare Rates- Do not settle for the first quoted airfare rate. Websites are competing for your business, so some of them are able to quote a slightly lower rate than their competition. A good rule of thumb is to check websites such as www.orbitz.com, www.expedia.com, www.travelocity.com first. These websites pull airfare rates from multiple air carriers and are usually pretty competitive with each other. These sites will give you a baseline rate for what you can expect to pay for a flight. After checking these sites, check the actual airline website to see if they have any special pricing for that exact flight. If the prices are about the same, book through the actual airline site. This will cut out the need for a middle man if you need to make changes or cancel your flight.

3) Research Hidden Fees- One of the ways that airlines are making up for lost profit during the recession is by charging you hidden fees. Examples of these fees are charging for baggage, food, drinks, and even for prime seating locations. It may be budget conscious to buy a slightly higher airfare ticket, if you can be certain that they do not charge fees a la carte. Here is a website that shows hidden fees for most major airlines http://www.kayak.com/airline-fees

4) Upgrading Your Rental Car is not Necessary- If you must rent a car to get from the airport to your destination, plan to rent the smallest car possible. The general rule of thumb is that the smaller the car, the less expensive it is to rent and fuel. Before you drop off the car at the end of your trip, you will need to pay to replenish the gas tank. By renting a fuel efficient car you can save almost $10-$20 from the end cost. Another great tip for renting cars is to resist add-ons such as a gps unit. This can add on another $12-$15 per day. Plan in advance and print out all your directions from one of the following sites. http://maps.google.com/, www.mapquest.com, http://maps.yahoo.com. The old fashioned way of asking a nice stranger for directions is still the cheapest and may be the most efficient in the end.

5) Economy Hotels can be Quite Nice- If you cannot stay at a relatives or friends house during your trip, plan to find the cheapest hotel possible. A great tip for finding an affordable and clean hotel is to find hotel properties near business parks. If you can find a hotel geared towards meeting the needs of overnight business travelers, you can usually expect to find an affordable and clean room. Another great aspect of business orientated properties is that they sometimes are able to lower their rates on the weekends. This is because their prime customer arrives anytime between Mon and Friday for business matters. Always check with online sites to read customer reviews on your hotel. This will give you quality information about previous patron’s experiences. Some great review sites are www.tripadvisor.com, www.hotels.com, www.travel.yahoo.com, www.epionions.com.

6) Eat as if you are at Home- Just because you are on the road does not mean you need to eat expensive meals at restaurants. You also do not have to compromise the quality of food you eat by frequenting all the local fast food chains. Ask the hotel staff where the nearest grocery store is and shop for premade meals that you can bring back to your room. You may be surprised that you are able to get a quality hot meal for the same price as a combo meal at a fast food location.

Take these tips into consideration when you must travel during this recession. Remember that anything you spend while traveling must fit into your preplanned budget. If you need to make changes in your future budget in order to be able to take this trip, try to do so in advance. Do not try to rationalize splurging just because you are away from home. Remember that when you arrive back home your financial concerns will still be waiting for you. If you consider some of these tips, you will find that your trip can be somewhat inexpensive and just as enjoyable.

Like many things in life, the holidays should be approached with a plan. The first thing that should be done is to start saving money early on. It is very difficult to find a large chunk of money that can be spent on presents in November and December. If you start to carefully plan in January, you can estimate how much money you will be spending on presents. Once you have established an amount, you can then start saving a little each month in order to have the money available when you do your holiday shopping. As an example, if you plan to spend $1,000 total, you can save $100 a month from January to October. This will give you the $1,000 dollars by November.

We have all been bombarded by media ads on gifts for the holidays. This will often start in the summer months when retailers advertise “Christmas in July” sales. Although this may be extreme, we can learn some things from it. Shopping throughout the year can allow you to take advantage of sales. This can also help relieve a lot of stress by having to rush and shop as the days fly by. As an added bonus, you also get to avoid the malls and the crowdsthat go with them. I try and have all of my shopping done by the end of October so I do not have to visit a store other than for groceries.

Most importantly, it is always a good to remember that the Holiday’s are not about spending money, it is about quality time spent with the ones you love. This does not mean that you do not have to give out presents, but you can create something that means more than anything you can buy. The best part is that you can do it at almost no cost.

Choose a family member name this Christmas. That way you will have an entire year to complete your gift. Start by writing a letter, which can include fond memories you have ofthem, something that they taught you, how you have benefited from that or how you have been able to pass it along, a funny story they told, or just why you are so happy that they are in your life. Wrap your gift in a simple piece of aluminum foil and put a bow on it.

This may seem like a simple gift idea but it can truly touch the individual that receives it. That is the meaning of the Holiday spirit.

First, take care of you and your families’ personal well-being. To do this, be sure to have an emergency kit available. The kit should contain the following items:

¨ a three day supply of water, which equates to one gallon of water per person per day

¨ food that will not spoil and can be eaten without having to be cooked or heated

¨ at least one change of clothing and shoes per person

¨ a first aid kit that includes any prescriptions that family members need

¨ a small tool kit

¨ a battery powered radio and flashlight along with a supply of spare batteries

¨ an extra set of car keys

¨ cash, at least $50.00 in tens, fives, and ones, as well as a roll of quarters

¨ personal grooming and hygiene supplies for each family member

¨ an extra pair of eyeglasses

¨ important documents such as insurance policies, wills, and birth certificates

¨ also, create a smaller version that can be stored in your car

Now that you are physically safe, what do you do with your finances? This is an area where many people are under-prepared, but it is almost as important as your physical safety. You may be thinking that your finances are not your most important concern at this time, but it is necessary for you to think about it before it is too late. Start by keeping all of your important paperwork and phone numbers together in one convenient location. The ability to access this information can help prevent additional stress when dealing with a disaster. In addition, you should have a duplicate copy of the information stored in a safety deposit box or some other location that is accessible. You may not be at home when a disaster strikes.

Now that you are safe, you should start by calling your insurance companies about policy coverage and specific filing requirements. Keep in mind you may have claims on your homeowners/renters policy as well as your automotive policy. You will need a list of items covered under your policy to start the process. If you lost the policies, ask your insurer for copies. If you do not have a list, call anyway.

If you do not have insurance, or if your insurance does not cover the cause of the damage, call FEMA at 1-800-621-3362 to inquire about federal disaster assistance. Typically, FEMA will help with emergency shelter and other immediate needs. Later, there may be federal grants and loans provided to some victims.

If you have a mortgage, call your mortgage company immediately. Your lender is likely to offer some concessions to assist you, but you must initiate the contact.

If you have other debt obligations, such as, personal loans and credit card debt, contact those companies as well. In many situations, they are willing to offer assistance due to the circumstances.

Natural disasters are a frightening experience to live through. Since you cannot prevent
them your only alternative is to be as prepared as possible if they do occur. These simple
tips can help you if you ever find yourself in this situation.

Variable Interest Rates

It is common for credit card companies to give individuals different rates. If you have a high credit score when applying for an account, you will generally receive a lower interest rate when approved. There is nothing wrong with this. People who have worked hard to maintain a high credit rating should be rewarded. The problem is that consumers will often not know what rate they will get until they receive the actual card in the mail. They are not told up front what the rate will be so they do not have the option to decline the account if they do not find the rate to be satisfactory. The only option they have is to close the account, which can lower their credit score.

Raising Rates

Most credit card companies can raise your rate whenever they want. Having a fixed rate does not mean that it can never change. If you miss a payment on your credit card, the first thing that happens is the rate will go up. This is a justifiable move by the credit card companies since the agreed upon payments were not made. However, is it justifiable to raise the rate if the payment was late? If it was three weeks late, maybe. However, what if the payment was two hours late? In the credit card company’s eyes, late is late, regardless of how late it is. Once the rate goes up you may not be able to have it lowered, even if you have never been late in the past and are not late again in the future.

Fees

We have all heard the horror stories of over limit and late fees. You probably know someone who went over their credit limit by a dollar and was then charged $40 dollars for making that mistake. People should be responsible for keeping track of their debts. They should know if they are nearing their credit limit and they should know when there payment is due. However, if a sale takes a person over their credit limit, shouldn’t the sale be declined? In many cases, it isn’t, and the account will then accrue extra fees that take it farther past the credit limit. The cardholder may then have trouble getting the balance back under the limit, which can cause the balance to continue to grow even if you are making payments each month.

Credit Bureau Reporting

If you miss a payment on your credit card or go over your credit limit, credit card companies are quick to report the information to the credit reporting agencies. This will cause your score to fall. However, do all creditors report the good things that you do? It’s not uncommon for creditors to skip the reporting of credit limits, which can make it look like you have maxed out accounts. They also will not always report that you have paid items in full or that you have made your payments as agreed. Even though this may not hurt your credit score, it is not going to do it any favors. The good news is that you as a consumer have the ability to dispute information with the credit reporting agencies. They are required to investigate any dispute free of charge. Be sure to read the Fair Credit Reporting Act (FCRA) to review all of your rights.