A primary advantage of whole life insurance is that it is an investment that secures the futures of both the insured as well as the insured’s beneficiaries at the time of death. With whole life insurance, ones finances accumulate which can then assist in case of trouble in the future. Another convenience of whole life insurance is the death benefit and this type of insurance guarantees that the value of this death benefit will not ever reduce. Another core advantage of whole life insurance is that it is free of federal income tax.

The consistency of premium payment is another advantage of whole life insurance as there is no increase in the premium as long as you continue to pay the planned payment. The premium of whole life insurance remains unchanged throughout the policy life and this is unlike other forms of life insurance where premiums keep changing.

Another advantage of whole life insurance is in the form of ‘cash value’ in which the life policy accumulates useable cash reserves. Whole life insurance affords you the right to withdraw from the policy during your lifetime and this cash is also available in the form of monthly income or lump sum remuneration.

When you take out a whole life insurance policy, you are able to acquire dividends which are an additional advantage of this kind of life insurance. These dividends can be paid out in the form of cash that can be used to make purchases for paid up additions, used to reduce premiums or even used to get interest by keeping it within the policy.

As you can see, there are many conveniences of whole life insurance that are quite exclusive, and which makes taking out this type of life insurance beneficial. There are many brokers that can provide advice on how best to go about purchasing a whole life insurance policy. It is important to understand the advantages of this type of life insurance and it is important that it best suits your needs.

Life insurance is an essentiality and will give you and your family peace of mind so purchase a whole life insurance policy now and reap the many benefits that will help you in the future.

There are many ways that you can save money and reduce costs in your life. Here are a few tips and hints to saving money. If you have any other suggestions, we would love to hear from you.

1. Pay yourself first – Savings should be your priority and so it is vital that you put money aside for saving and not just say that you will save whatever money is left over at the end of the month. As soon as you are paid, simply deposit 10% of every check into a savings account. So for example, if you get a check or sum of cash of $820.15, move the decimal point one place to the left and deposit that amount: $82.01. This method is effective and simple and it requires little thought. You can also set up an automatic transfer from your checking account to your savings account. Many employers allow you to deduct savings from your paycheck and the money is directly deposited in your savings account so you never even see it on your paycheck. You can also have investments for retirement taken directly out of your pay, and the taxes may be deferred with this option.

2. Set savings goals & establish a time-frame – Set both short-term as well as long-term saving goals. Plan carefully how you will save money and also look at how investments will help you achieve your goals. Also, set a particular date for accomplishing your saving goals and make sure that the goal is attainable within that time period. You need to establish exactly how much you will have to save per month or per paycheck to attain each of your savings goals. For most savings goals, it is best to save the same amount each period. For example, if you want to buy a $20,000 car in 36 months (three years), you will need to save about $550 per month, every month. However, if your paycheck is $1000, it might not be a realistic goal, so adjust your time-frame until you come up with a practical amount.

3. Pay off your debt first – If you calculate how much you spend each month on your debts you will realize that by eliminating your debt, you will have extra money available. Once your money is freed from debt payment, it can easily be set aside as savings. Some debt in your life may be essential such as, you may need a mortgage to purchase a home or you may need to use your credit card to make purchases until pay-day, but your aim to save money should be to have as little debt as possible. One of the golden rules of financial planning is to clear your most expensive debts first, in other words your credit cards. Credit cards may offer a convenient way to pay for goods and services but if you cannot clear the balance every month, consider a low-cost loan as an alternative as this will save you money. For example, a credit card debt (APR 15%) of $2,200 over three years will cost $545 in interest whereas a loan at 6% will only cost $209 – a saving of $336!

4. Keep a record of your expenses – Saving is the difference between two activities – how much you make and how much you spend. In order to have more control over how much you spend, it is vital to take a critical look at your expenses. Keep a small notebook with you at all times and write down everything you spend your money on for a month. Be as detailed as possible, and try not to leave out small purchases. Assign each purchase or expenditure a category such as, rent, car insurance, gas, food, entertainment, etc. After a month or two, take a good, hard look at your spending records. You will probably be surprised at some of your expenses – $200 on coffee, $300 on entertainment etc. You are likely to see some obvious cuts you can make and depending on how much you need to save, you may need to make some difficult decisions. Think about your priorities, and make cuts you can live with. Calculate how much those cuts will save you per year, and you will be much more motivated to pinch pennies.

5. Trim your expenses & Spend less – We live in a consumer society where waste is a huge problem. Take a good look at your expenses and way of life and establish if there are ways that you can trim your expenses. For example, can you move to a less expensive apartment or house? Can you consolidate your debts so that you are not paying as much interest? Can you save money on gas, or give up a car altogether? Can you get a better price on insurance? There are many ways you can trim your expenses today – stop purchasing your expensive coffee house latte – avoiding that $4 per day can save you $1000 a year. Also, skip the salon and do your own hair and nails for a fraction of the price and even consider making telephone calls only at off-peak times. Consider using less shampoo when you wash your hair – this does not mean washing your hair less effectively but it does mean not flushing the excess shampoo and your money down the drain. Turn off lights, the TV and the computer when they are not in use. Consider renting out a room in your house. Consider the library for books, music and movies. Every little bit counts so assess each area of your life to establish where you can cut costs. This will help you make more of the money you already have, and make saving money every day easier.

6. Make a personal budget – Budgeting your money and controlling your spending is the first step towards saving more money. Know what you earn and know what it takes to live. Educate yourself. Write down a budget so that you will know how much you can spend each month. With a budget, you will instantly see your incomings and outgoings. You will not be able to save money unless you know how much money you have coming in, and how much money you have going out. Once you have prepared a budget of incoming money and outgoing money, you will be able to identify areas where you can save. If you have expenses which you know you are going to have a particularly hard time restricting such as, spending on chocolates, movies, cigarettes etc., then ensure this is included in the budget and give yourself a fixed amount to spend on these activities. Treat managing your money like you would any other household task and allot enough time for it every month.

7. Stop using credit cards – Credit cards should be used as a cash-management tool and not as a borrowing tool. Credit cards are not bad but there are all about self control. If you use them responsibly such as, completely pay them off every month, then you can benefit from them. Credit card companies make money because people end up spending money that they do not have. Pay for everything with cash or money orders and also do not use checks. If you have cash, you can see your supply running low as opposed to a credit card where your spending can be unlimited. You can even create a jar for each expense and place the required cash into each jar (For example, a jar for gas, a jar for food etc.) and as you take money out and spend it, you will see how much remains and you will be reminded of your limit. Also, you should build an emergency fund to handle most unexpected expenses and this will enable you to become your own lending agency instead of using your credit card. If you must have a credit card, then also ensure that you are not being charged an annual fee.

8. Open an interest-bearing savings account – It is a lot easier to keep track of your savings if you have them separate from your spending money. You can also usually get better interest on savings accounts than on checking accounts.

9. Know where your money is and how much you have – It is vital to know about your financial reality. If you accidentally overdraw on your bank account, you will incur hefty bank fees and also, the place you paid with that check may slap a bounced check fee on top of that, and send the check in again, resulting in a second overdraft fee from the bank. With just a few cents missing to cover a check, it could result in over $100 in fees. To avoid that, you should always know how much money you have got in your account.

10. Bulk is good – Think about shopping and buying in bulk. You can save money grocery shopping by planning meals in advance and bulk-buying. You can also save money by cooking in bulk and this gives you the opportunity to plan ahead and be more accurate in your budget. It is important to be aware when buying in bulk, that the products need to get used before they go bad – you will not save money if you have to throw stuff away. Buying in bulk is not only a good way to save money, it is also a good strategy for coping with and surviving emergencies.

11. Smart buying – Always look for a sale and ensure that you do your price research before you commit to making an expensive purchase. Marketing strategies such as ‘Buy One Get One Free’ or ‘Get 50% Off’, will only help you save money if the actual price you pay is lower than you would pay somewhere else for exactly the same product. Also, a great way to saving money is buying used. Typically cars lose one-third of their value in the first 24 months from a new car so why not buy a car 24 months old? Other items you may consider buying used in order to save money include, electrical goods, garden items, tools, and furniture. Also, consider shopping at markets, superstores, farmer’s markets and local shops, marts and stores. Look also at purchasing second hand goods – you can pick up great deals if you are prepared to spend the time searching. Avoid small stores because friendly, personal service comes with a price tag and often more expensive good so try to shop at cheaper larger stores. Impulse buying often leads to buyers regret and smaller bank balances so contain your impulses and shop wisely. When shopping online be very strategic and thorough to find the best deals. Look for minimal postage costs and weigh up the convenience-cost factors. From time to time you can find online gift vouchers for sale at a fraction of the cost. Some vouchers may be redeemable at the supermarket which means if you manage to find a $50 voucher for $25 you can save $25 of your groceries.

12. Be a homebody and Eat in rather than out – By eating at home instead of out at restaurants, you can save a huge amount of money. A cup of coffee taken out could easily cost you twenty times what it would cost you to make it at home. Fast food restaurants are also counting on you eating food that you perhaps do not really need at that time but buy just because it is quick. Wait until you get home to eat and save your money. Also, prepare lunch at home and take it to work with you. If both the husband and wife work, cooking everyday may be difficult. Start out with the habit of cooking at home once a week and slowly increase the frequency until you find a balance between saving money and getting stressed out.

13. Hold a garage sale – Collect all the things you do not use or wear anymore – the things that lie in your closet and basement that you can do without. Depending on how much junk you have, you could easily make a few hundred dollars selling your unwanted goods. Also, consider selling your clutter on eBay. Ebay, the online auction house, has opened individual sellers to a world of buyers and you can sell anything for the cost of a small commission.

14. Quit Smoking – By giving up this bad habit, you could easily save at least $5 a day or about $1800 a year – not to mention that quitting will also save you on insurance and health care.

15. Spare the Car – Carpool or use public transportation – this saves money on gas, insurance and maintenance costs. For an even more drastic approach, consider getting rid of your car if you live in the city. Some cities are now implementing progressive programs that allow you to have access to a car without the ownership hassles and most areas offer reliable public transport. To save money, trade down your car. If you are a true money saver, consider an ex-rental model which you can pick up for a fraction of the cost of a new one. If you must use your car, then drive wisely. Speeding burns more fuel so be a smarter driver and reduce over accelerating and braking to maximize efficient driving. Also, maintain your vehicle and pump up your tires and clean your air filter to increase fuel efficiency. If it is possible, leave the car at home and bike to work – you will fatten your bank balance while you shrink your waistline. Monitor fuel prices because some towns/cities have fuel updates on the radio and some even have websites dedicated to highlighting the cheapest fuel at gas stations. Keep an eye out for the cheapest fuel near you. Also, turn off the air conditioner in the car – Roll down your windows and let the air cool your car.

16. Free Stuff – Enter rewards programs to get free stuff but make sure that the schemes are not offering things you do not need or that you have to have to spend too much in order to receive a reward. Go with the ones that give you points for spending on what you normally would purchase. Free stuff doesn’t just include things – if the best things in life are free then you can look forward to a world of possibilities. Parks, beaches, mountains and country sides offer a variety of locations to enjoy the great outdoors – not only are most of these places free to use, but they are good for your physical health too. Also, if you can handle the temptation then look through your advertising mail for specials and coupons that can save you money. Use the internet to find coupons online and you will save money, but be careful to only purchase products that you would otherwise buy regardless of the discount.

17. Banks – Do your research and check banks for the different interest rates for both savings and loans. Get the best rates possible and do not just go with any bank. Also, speak to your bank about existing loans and see if you can negotiate a better deal. Be sure to draw money out of your bank’s branded A.T.M to avoid paying excess fees and always count withdrawn money before you walk away from the machine so the camera can see if there is a case of you receiving the wrong amount.

18. Repair Things – Repair your goods before they become very expensive to replace. If you wait too long, it may cost you dearly. Find instructions off the internet and make as many repairs by yourself as you possibly can in order to avoid having to hire costly experts. Also, try and see if a friend or a family member can assist you in repairing your goods before you take it in to be repaired.

19. Look but don’t touch – Leave your money at home when you go window shopping. Maybe take a few dollars with you but leave your credit card at home. This way you won’t be tempted to make that impulsive buy.

20. Buy Generic – Often generic brands are equal in quality to their higher priced competition so buy generic and save.

21. Food glorious food – Evaluate your grocery shopping list – are the items you buy cost effective and necessary? Do not buy products out of habit and learn how to make educated product and price comparisons. Find out when your supermarket reduces perishable items and be sure to visit during these ‘cheaper’ times to purchase your milk and bread. Stores try to boost their midweek sales by offering great deals, so be vigilant in finding them but also be discerning. When shopping look low for the cheapest deals as the eye level products are always the most expensive. Bring your calculator to the store so that you can figure out the best deal. Keep an ongoing grocery/shopping list where everyone in the family knows where it is and is responsible for writing down items that are about used up so a replacement can be purchased without a special trip. Never shop when you are hungry – people who shop on an empty stomach buy more than they need and they also buy excess junk food. Another great way to save money is to make large meals and to freeze leftovers. In this way, you don’t waste food and also you save on extra electricity costs. Another great way to save money is to buy a slow cooker. In this way, you can use cheaper cuts of meat and still have tender and delicious meals. Fresh produce markets are a great way to find seasonable goods at wholesale prices. Also, if you can grow your own fruit and vegetables then you should give it a try because you can benefit from delicious organic produce and save money. Learn to bake and start baking your own bread, cakes and cookies – you can save money and they will probably taste better too. Also, avoid readymade meals – they may be more convenient, but preparing your own food saves money.

22. Save Electricity – Cutting down on waste and excess around your home is one of the easiest ways to save money. Are you one of those people who leaves lights on all around the house? With three TVs running at the same time? This is all a waste of money. Keep your electricity bills down by using energy saving appliances. Appliances can use electricity even when you’re not using them so turn them off at the wall to save on your energy bill. Also, use energy saving light bulbs. Never boil a full kettle as it is a waste of electricity – boil only the water you need. Keep your home well insulated to save money on both heating and cooling costs. Also, take shorter showers or shower with someone else to reduce heating costs. Change your air filters because a clogged or dirty air filter reduces airflow to the heating or AC unit, causing it to work harder and use more energy. Change your filters once a month. Also, hang your clothes out to dry because a dryer uses a lot of energy. It takes a lot to run, plus it can also heat up your house, causing your air conditioner to have to work harder. Accomplish that fresh, dried-on-the-line smell in your own backyard. Also, get an energy audit – your electric or gas companies can send someone to your home to tell you specifically what you can do to make your home more energy efficient. And finally, open a window. Take advantage of Mother Nature – if the weather is nice, turn off the air or heat and open the windows.

23. D.I.Y. – Find instruction websites and use this free information to do things yourself – from handy work to sewing. Also, have you ever thought about making your own beer? It’s fun and you will save a lot of money. Wash your own car and save $15 on a 10 minute drive-thru car wash. Change your own oil filter in your car – it is easy to do and you will save at least $25. Easy to follow instructions can be found on the internet. Also, clean your own carpet – you can hire a machine which will help you save money. Mow your own lawn – get some exercise and save money at the same time. Save money on printing costs and refill your own ink – buy an ink cartridge kit to save replacing them at a premium cost. Why not also try and make your own ice cream? It is a great money saving tip and easy to do. The best part is you can create your own delicious flavors.

25. Stay healthy – Exercise and eat right because healthier people have lower medical expenses. Look at buying a home gym as this will help you save money on gym fees. Also, by regularly brushing and flossing your teeth, you severely decrease your risk of getting cavities or worse, requiring a root canal. These are expensive procedures whether or not you have insurance. Preventative care really is priceless. Exercise regularly – when you exercise it strengthens your immune system as well as your muscles and joints and helps prevent sickness and injury, meaning less trips to the doctor, less medicines to buy, and less time off work. Drink water because it helps cleanse and purify your body. It can help flush out viruses and it keeps your skin moisturized and your body running at optimum performance, thus saving on the medical expenses. Also, eat healthy foods – when you eat foods such as vegetables, fruits, whole grains, dairy etc., you are not only full for longer periods of time, thus requiring you to buy less food, but your body also runs better on healthier fuel. This will give you more energy to do all the things you need to do. And most importantly, get enough sleep. When you don’t get enough sleep your body runs poorly and so you often turn to sugary foods and caffeine to wake yourself up which cost a lot. You are more likely to overspend and overeat when you are tired.

26. Use A Cheaper Razor – Expensive razors don’t necessarily do a better job than the far less expensive kind. Also, you will save money on replacing the blades.

27. Barter/Bargain/Haggle – If you try to bargain down every single purchase you make then you may be able to save some money. You won’t believe how successful a little haggling can be. Also, one of the most effective means of shaving money off your monthly costs sometimes involves just asking for a discount or information on deals that you are not aware of.

28. Pack A Drink & Food Pack – Whenever you intend to go somewhere, take liquids with you in order to avoid having to pay the excessive prices for water or cool drinks from a convenience store. Also, take your own sweet treats to the movie theaters and you will save a lot on the price of movie theater candy. If you are going to drink, then drink during happy hour to avoid the high prices.

29. Vacation Time – Vacations are usually a necessary part of saving one’s sanity in the busy lives that we lead. Go camping for your next vacation and you will save money on those exorbitant hotel fees and get in touch with nature at the same time. Camping makes for a great family vacation. If you want to stay in a hotel then try to go in off peak times to save money on costs. Also, book your vacation early – Low-cost airlines have created a market in holidays for people prepared to fly to any destination provided it is cheap. You can benefit from this too. Just remember, only a few seats on each flight are sold at bargain-basement prices and once they are sold, the prices rise, so book early. Also, have you ever considered a house swapping vacation? Don’t pay for a hotel in another city when you can swap houses with someone else and have a super cheap vacation away without the hefty price tag. It is a win-win situation for both parties. Also, look online and put together your own package. There is also no need to buy travel books – You probably can find all the information online and print out anything of value.

30. Have A Loose Change Jar – Make it a rule never to spend your coins and put all your loose change into a jar. At the end of each month, deposit this money into your account as savings.

31. Maximize Your Tax – Educate yourself and ensure that you maximize your tax benefits. Seeking professional help is always a good step to find out the information you need to keep as much of you hard earned money as you can.

32. Use Your Computer – Make birthday cards, photos and anything you can to utilize your computer’s money saving functions. Instead of the post or SMS or phone, use email – it is free and convenient. Also, pay your bills online – Why drive to the store to pay bills when you can save fuel and pay online.

33. Telephone Communication – Check to see if you can get a good deal and bundle your land line, mobile phone and your internet connection to save money. Drop call waiting – you do not need this service if it costs you money, so drop it unless it’s free. Also, try A VOIP type service as these services enable you to make cheap phone calls using your internet connection. With regards to your mobile phone, why not consider a pay-as-you go mobile? If your mobile phone is a necessity, then evaluate if you really need all those minutes and texts that come as part of your package. If you hand over $50 a month to your mobile phone company, that’s $600 a year. However, you can buy a pay-as-you-go phone for as little as $30 and only pay for the odd call as and when you need to.

34. Washing, Cleaning & More Washing – Clean the filter in your clothes dryer and your dryer will be more energy efficient. Change your washing machine settings because heating water uses energy and costs money and so it is better to wash your clothes in warm or cold water instead of hot. Also, only wash large loads – this goes for both clothes washing and dish washing as this will increase your energy efficiency and save you money. If you need to use a dryer to dry your clothes, then use a gas dryer as they use less energy than their electric counterparts. Cider vinegar is also a cheap alternative to cleaning products as it has multiple uses and is effective so why not give it a try.

35. Insurance – Speak to a life insurance consultant to see if there are any good deals which enable you to bundle your collective insurances with one company to receive maximum savings. This may include your car insurance, life insurance, medical insurance, house insurance etc. Household insurance is advisable. Can you afford to foot the bill if your house burns down? Probably not. The internet has made finding cheaper insurance easy and you can compare hundreds of policies in minutes. Also, do not automatically renew annual travel insurance. If your annual holiday insurance policy is about to expire and you do not have a holiday booked, do not renew the policy. Simply restart the cover again the next time you book a trip. If you own a car then also ensure you have done your homework and have a good policy and ensure that you choose cheaper breakdown insurance. Being towed home if your car breaks down is just another form of insurance like any other and there are scores of cheaper alternatives. With regards to your life insurance, the reality is we are all living longer. As a result, the cost of insuring the unthinkable is getting cheaper all the time. If you were sold a policy when you took out or mortgage you may have been under too much stress to shop around. You could be missing a good deal so do your homework and find the right deal.

36. Entertainment – Board games are a cheap and entertaining alternative to expensive video games and an excellent way to get your family and friends together. Record television movies during the week so that you have a good supply for the weekend. This way you can save money on DVD rentals. Also, why buy magazines? The internet has all the gossip and pictures of celebrities that you could ever hope for. Evaluate your need for Cable TV – At the very least cancel the channels that you do not watch. Listen to songs for free – there are many public domain songs on social sites and many new bands have free downloads of their music to gain a following, take advantage of these legal free gifts. If you do go out to eat, then check to see if the restaurant will allow you to bring in your own beverages. This way you will avoid the high drink prices. Also, limit yourself and avoid making restaurant visits an everyday event. Treat yourself once a week or once a month. Look for new restaurants as many of them offer discounts and specials to attract customers. The best time to go out to eat is lunch time instead of dinner because most restaurants are cheaper at lunchtime. Everybody also likes to go out to eat on the weekends. Restaurants may limit specials and coupons during this time. For the best deals, visit during the week. Bring leftovers home -restaurant portions are huge, generally twice the size of a recommended serving. Ask for a doggy bag and bring the leftovers home. If you like watching movies at the theater, go before 6:00 pm. The ticket prices are usually cheaper then. Create your own entertainment with your friends – Go through old books or movies that you have lying around and propose a trade with one of your friends for something that you haven’t read or seen yet. Or how about hosting a potluck – invite people over for dinner and have each person bring a separate dish. It’s fun and much cheaper than going out.

37. Free Newspaper – Save a dollar a day and visit the library to read the newspapers.

38. Make Use Of Birthdays – Many restaurants offer free meals to the birthday recipient, so be sure to cash in on these type of offers.

39. Change Money At A Bank – When converting foreign currency do it at a bank as the kiosks usually have worse rates.

40. Sweet Tooth – If you are a chocolate lover then the time to purchase a yearly supply is directly after Easter and Valentine’s Day when shops have a chocolate surplus.

41. Pay Bills On time – Late fees are a pointless expense especially if you have just procrastinated and left it too late. Ensure that you always pay your bills on time and avoid penalties. Get organized about your regular bills and if possible, automate the payments. Most utilities and other recurring bills can be set to be charged to a credit card or deducted from a checking account these days. Also, many banks offer free bill pay programs. So there really is no excuse for forgetting to pay a bill on time and forking out the late fees. Say, by chance you do forget a bill, if you are a first time offender, call the company and request politely to waive the late fees, and more likely than not, they will oblige.

42. Extended Warranties – All good products should have a reasonable warranty, but many stores will try and sell you an expensive extended warranty. Assess the value of this warranty as the replacement value will drop every year and may be cheaper than a warranty. For example, if you purchase a microwave for $600 and they offer you an extended 5 year warranty for an additional $120 then the total cost is $720. In 5 years time, a replacement might only cost $300 and you may receive $100 for your second-hand microwave, so the $120 was a pointless expense. These things need to weighed up and they are unique to each individual situation.

43. Mortgage – The most expensive item you are ever likely to buy is probably your home. If you are not in the privileged position to pay cash, make sure the loan you use to finance it is the best available. There are thousands of deals to choose from and it is vital to check the small print for hidden catches. If you can afford to make overpayments on your mortgage, you will clear your debt several years early and make massive savings. For example, if you borrow $100,000 at 6% over 25 years, you will pay it back at $643 a month. The total charge for credit will be $93,000. However, if you can overpay by $100 a month, you will clear the loan in less than 19 years, giving you 6 years of mortgage-free living and a saving of $25,000 in interest.

44. Don’t buy designer labels- Spending large amounts of money is a waste and let’s face it you may only wear the outfit once. Can you justify paying hundreds of dollars on clothes because a top designer has had his or her name sewn on the label? And can you honestly say you can tell the difference at a distance between a $700 designer bag and a $10 one from the market? Think about it. Also, wear clothes that don’t need to be dry-cleaned. This saves money and cuts down on toxic chemical use.

45. Use your talent to earn extra cash –Can you play the piano or drums? Can you bake? Can you scrapbook? Use your talents to teach others and earn some extra cash. It is not unreasonable to charge $20 an hour so it is a good opportunity to earn cash with your talents.

46. Learn to say ‘no’- It is easy to give in to the demands of your screaming children at the store but don’t do it. Similarly, how often does a ‘quick drink with the girls’ after work turn into a $50 drinking session? Saying ‘no’ a few times a year will do wonders for your bank account.

47. Stop trying to keep up with the Joneses – Trying to keep up appearances is little more than a costly illness. Remember, you cannot judge someone by what they have because at the end of the day, you do not know how they got it. Chances are they are in more debt than you are. Focus on yourself and your life. If you have lavish friends who buy a new car every other year, have large screen TVs and every other conceivable electronics gadget, eat out at fancy restaurants every other night and just live way beyond their means, keep the distance. They may be nice people and mean you no harm, but hanging out with such people often can lead to a lot of unnecessary desires and discontent. What is more important? Your friends ,or your peace of mind?

48. Cancel your gym membership – If you pay your $50 a month by direct debit and you use the gym three times a week, great. If not, cancel your membership immediately. You will soon save enough to buy your own bike and maybe even a rowing machine or treadmill. Consider running home from work three times a week. It’s free.

49. Buy clothes and presents in the sales – So you need a new suit and the one you like comes in at a cool $400. Wait! The chances are that you can pick it up in a sale for half the price and there’s always a sale just around the corner. The same applies for birthday and Christmas presents. Buy in bulk in the sales and you will not only save money, but you will enjoy stress-free pre-Christmases and no last-minute birthday worries.

50. Ask yourself – Do I really need this? – Imagine the scenario – it is lunchtime and you have got an hour to kill. You find yourself in a department store and there is a sale on. You pick up a beautifully packaged selection of candles and incense and it is half price. Now, stop! Ask yourself – Do I really need this? Exactly. Now, put it down and walk away.

51. The National Lottery – it won’t be you! – The odds of winning the Lotto Jackpot are stacked at least 14 million to 1 against each ticket. The difference to the odds between buying, say, 10 tickets and one is so insignificant that you should limit yourself to the one and save the extra money.

52. Use grocery store bags to line trash cans – This may not work if you use a massive trash can but if you use a small sized one, then grocery bags are a perfect fit. This will not only help you save some money, but it will reduce your environmental foot print and avoids the kitchen from stinking from a huge overflowing trash can.

53. Bottle your own water – Drinking water is good for your health. That said, buy bottled water only once in a while, and then reuse that bottle to fill your own water. If you are not happy with tap water, invest in a Brita Filter – in the long run it can save a lot of money.

54. Avoid the vending machines - Almost everything that is dispensed via vending machines has a huge markup and is rarely healthy. However, if you suffer from snack attacks at work, consider creating a secret stash of snacks. If you like drinking soda and have a fridge at the workplace, save a refrigerator pack in the fridge with a post-it with your name on it. If you have a long commute, consider a stash for the car as well and avoid a quick drive-thru visit.

55. Adjust your thermostat - Turn your thermostat up a couple of degrees in the summer and down a few in the winter. Every degree saves approximately 3% in energy costs. If your home is empty during the day, consider buying a programmable thermostat to avoid heating and cooling your home when no one’s there. Set the thermostat to turn the air or heat on about 30 minutes before you get home.

56. Use cloth napkins, towels and diapers - Paper napkins, paper towels and disposable diapers are easy and convenient, but cloth can be washed and used again. Use these to save money and the environment.

57. Do the dishes - Use reusable dishes for your meals instead of paper plates and cups.

58. Be organized – Clutter and disorganization can cost you. Have you ever needed something but couldn’t find it and had to go buy a new one? Ever buy something at the grocery store that you already had in the pantry but didn’t know because it was behind other stuff? Being organized not only saves you money by not having to buy extra things, it also saves you time by not having to search for things for hours.

There are many ways to save money and if you closely evaluate your lifestyle and the way you live, you will probably find many areas in which you can trim the excess expenditure and save money. Never make careless purchases and do your utmost to become an educated-consumer. By saving some money you can build wealth for the future.

Saving money is important but it is a challenging task to achieve. Saving money requires your commitment and hard work and it takes time to develop, needs to be learnt, and brings benefits that will endure for the rest of your life. There is more to saving money than to spending less and it is important to also set realistic goals, keep your spending in check, and get the most for your money.

We are not able to predict the future and so we are not able to know how much money we will need. Understanding the importance of saving money is vital and it is also a key component to your success in saving. Here are a few reasons to consider on your journey to saving your money:

Retirement

If you are young, you may not see or understand the need to save for your retirement however, starting early is the smartest and easiest way to go about it. Over time, your savings will add up and earn more interest from the bank. Having a retirement fund in place will give you peace of mind and as it grows, you may even be able to consider retiring earlier than you might have planned.

The example below illustrates why it is important to start saving early. The sooner you start to save, the greater the benefits of compound interest. Compound interest is the interest earned on reinvested interest, in addition to the original amount invested.

Example: Two students, John and Alice, are both 22 years old. They each have an extra $2,000 a year to invest or to spend as they choose. John opens an Individual Retirement Account (IRA) to start saving while Alice chooses to spend her $2,000. John’s IRA earns 12% per year and he saves $2,000 per year for six years and then never puts another cent into his IRA. Alice spends her $2,000 per year for six years. After that time, she invests $2,000 per year until she is 65 years old. Alice earns the same 12% interest per year that John does.

The chart below shows the value of John’s and Alice’s respective IRAs, from the time they are 22 years old all the way to 65. Keep in mind that John’s total investment is $12,000 ($2,000 per year for the first six years), while Alice’s is $74,000 ($2,000 per year for the last 37 years).

The above chart clearly illustrates the benefits of starting to save early. Instead of spending your extra cash at a young age, put it into saving and reap the benefits later in your life. It is never too late to start – so plan for your future today and SAVE!

Emergencies

Emergency funds allow you to pay for unforeseen problems without going into massive debt from loans or credit card bills. These emergencies may include both small and big events such as, replacing a household appliance, car repairs, medical bills, home repairs, recession and job loss. You may have insurance to cover some of the emergencies however in many cases there may be a delay or an issue getting the money from the insurance company in time to deal with the emergency.

Experts agree that you should set aside enough money to cover your cost of living for at least three months, but preferably up to six months. In this way, you will have sufficient time and money to deal with the emergency.

Average Life Expectancy & Social Security

With more advances in medicine and public health today, people are now living longer. This means that you may need more money to get by. It is important to have money saved and to ensure that you are not relying on Social Security as a form of income. Social Security should be treated as a supplement to your income. By saving money you will ensure that you have money until the end of your life.

Children

For many parents, contributing to their children’s lives is very important and rewarding. You may want to pay for their education and other defining moments in their lives, such as buying their first car or contributing to their wedding. By providing for your children, you are also providing them with other advantages. For example, by paying for your child’s education, they will be able to attend college and have better opportunities for employment and also they will not need to worry about paying off college fees. The costs for private and public education are rising every year, and it is getting tougher to meet these demands and so saving in advance for education, will make it easier for you to make the necessary payments and provide for your children.

Luxuries

Everyone wants to splurge on things sometimes, but this is tough to do when there is little money available. Saving up now for that new kitchen, family vacation, or even a romantic getaway for two means that you will have the funds for these non-essential yet important expenses.

So start saving now and also educate your children from a young age about saving and the benefits. Instead of taking out a loan or putting large expenses on your credit cards, put some money aside every week or every month until you reach your goal and can pay cash for what you may want or need. How much you save has little to do with your income but has a lot to do with whether you want to save and if you are willing to make the necessary adjustments to boost your savings. Saving money is about spending less than you earn and the time to start saving is now…

What is Auto Insurance?

Auto insurance, also known as vehicle insurance, car insurance, or motor insurance, is insurance that you purchase for cars in order to protect you against financial loss if you have an accident as well as against liability that could be incurred in an accident.

Auto insurance is a contract between you and the insurance company whereby you agree to pay a premium and the insurance company agrees to pay your losses as defined in your policy. An auto insurance policy is comprised of various different kinds of coverage including property, liability and medical coverage as follows:

• Property Coverage – Pays for damage to or theft of your car
• Liability Coverage – Pays for your legal responsibility to others for bodily injury or property damage
• Medical Coverage – Pays for the cost of treating injuries, rehabilitation and sometimes loss of wages and funeral expenses

Why Do You Need Auto Insurance?

Auto insurance is really about smart planning which can offer valuable protection from expensive and unexpected financial losses associated with traffic accidents, vehicle damages from things such as vandalism, fire, theft and more.

Auto insurance should be incorporated into your total financial plan and can benefit you as follows:

• Pay for medical bills after an accident if necessary
• Protect you from the costly damages of an accident-related lawsuit
• Safeguard the financial investment you have made in your car
• Protect you from uninsured or under-insured motorists
• Pay for damage repairs due to theft, vandalism, fire or natural disasters
• Give you peace of mind, every time you take to the road

It is important to understand that not all auto insurance policies are alike and so it is vital that you understand the details of your requirements including what you need to protect, and how each auto insurance coverage option applies.

Excess is a compulsory payment you must pay each time your insured car is repaired through the auto insurance policy. An excess payment, also known as a deductible, is a fixed amount and the payment is normally made directly to the establishment which is servicing or repairing your vehicle.

If your car is involved in an accident and it is then declared to be a ‘write off’ or ‘total loss’, then this means that the vehicle’s worth is less than the cost of the repair. In these cases, the insurance company will deduct the excess amount agreed on the policy from the settlement payment it makes to you. If the accident was the other driver’s fault, and this is accepted by the third party’s insurer, then you will be able to reclaim your excess payment from the other person’s insurance company.

There are two main types of excess:

• Compulsory Excess – This is the minimum excess payment that the insurer will accept on the insurance policy and the insured will be liable to pay this amount should the car be repaired through the insurance policy. This amount will vary according to the driver’s personal details, driving record and the insurance company.
• Voluntary Excess – In order to reduce the insurance premium, the insured may offer to pay a higher excess than the compulsory excess demanded by the insurance company. This means that you will pay the extra amount over and above the compulsory excess in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by the insurance company, they are able to then offer you a significantly lower premium.

How is your Auto Insurance premium determined?

Insurance premiums are either mandated by the government or they are determined by the insurance company in accordance to a framework of regulations set by the government. Insurance companies usually derived the premium from calculations based on statistical data taking into account a wide variety of factors including:

• Profile of the driver including, age, gender and driving history
• Car Make and Characteristics
• Type of insurance coverage selected – Comprehensive, 3^rd party
• Usage of the car including, commute to work or not and predicted annual distance driven

Profile of the Driver

• Age

Teenage drivers who have no driving record will pay higher car insurance premiums. However, some insurance companies offer young drivers discounts if they undertake further driver training on recognized courses. Also, in the U.S. many insurers offer a ‘good grade’ discount to students with a good academic record and ‘resident student’ discounts to those who live away from home. Generally insurance premiums tend to become lower at the age of 25. Senior drivers are often eligible for retirement discounts as this age group has a record of driving less miles.

• Gender

Men average more miles driven per year than women do, and consequently have a proportionally higher accident involvement at all ages. Insurance rates are generally lower for adult female drivers and most insurance companies offer a lower youth surcharge for young women drivers than for their male counterparts.

• Driving History

In most countries and states, a driver’s driving record is based on a point system. That is, moving violations, such as running red lights and speeding, results in the driver getting points allocated to their driving record. Since more points indicate an increased risk of future violations, insurance companies may review drivers’ records, and then raise the premiums accordingly. Accidents can also affect insurance premiums similarly.

• Marital status

Drivers who are married often receive lower premiums than a single person. The reason for this is that marriage is regarded as an indication of stronger financial stability within the household.

Car Characteristics

• Vehicle classification

Insurance companies look at the performance capability and the retail cost of the car. Vehicles that are considered luxury automobiles usually carry more expensive physical damage premiums because they are more expensive to repair or replace. Also, vehicles that can be classified as high performance will carry higher premiums because there is greater opportunity for risky driving behavior. Risk classification on cars also takes into account statistical analysis of reported theft, accidents, and mechanical malfunction on every given year, make, and model of that car.

Usage of the Car

• Distance & Use

Some insurance companies determine the premium based on how much the car is used such as, is the car used daily to and from work or only on weekends. The annual mileage of the car is sometimes recorded and these regular odometer readings aid the insurance company in verifying the risk – the more you drive your car, the more likely you are to get into an accident.

Typically, cars are classified based on whether they are used for driving to work, business, pleasure or farming. Cars used primarily for pleasure tend to have the lowest premiums, while cars used for business generally have higher premiums. Insurance companies determine classifications by the number of miles driven per year. Also, due to higher rates of vandalism, theft, and accidents, urban drivers pay more for auto insurance than those in small towns or rural areas.

Since so many factors affect your premiums it is important to take this into consideration when purchasing a car. Generally, the more expensive the car, the more you pay. Ask your insurance company about discounts for insuring more than one vehicle, accident-free driving, and others. Bottom line – drive carefully because drivers who are involved in accidents generally pay more than those who are accident-free for several years.

Credit is a valuable and necessary financial tool. Getting a credit card is a huge step in your financial life and it can either be a great tool to help you establish a positive credit history, or it can be an easy way to get yourself into serious debt.

A credit card is a flexible payment tool accepted at over 30 million locations worldwide, and if the card balance is paid off every month, then no interest is charged on purchases made. Essentially, a credit card is short-term credit that is granted without the consumer paying any interest.

Here are some important things you should know before you get a credit card:

1. Credit Card = Real Money

Although a credit card is a piece of plastic, the reality is it represents real money and so you should treat it in the same way you treat cash. It is important to know that you will be expected to pay the credit card company at least a minimum amount for the purchases you make by a specific monthly date. If you do not pay or you do not pay on time, then your credit card company may choose to charge you a late payment fee which will ultimately make your purchases cost a lot more.

Late payments, or not paying the minimum balance, can also negatively affect your credit score. Lenders look at your credit score to determine your creditworthiness and lower credit scores and unfavorable credit reports can cause them to charge you higher interest rates and can make it more difficult for you to secure other lines of credit or loans.

2. Take Control = Set your own credit card limit

Credit card companies may approve you for a certain spending limit but it is important that you set your own limit based on what you can afford to spend and stick to it so that you can manage your payments each month. You might even want to restrict what you allow yourself to buy with a credit card. For example, you might allow yourself to use credit for clothes and appliances but pay cash in restaurants and grocery stores.

3. Know the Market = It pays to shop around

It is important that you find a credit card that is best suited for your needs. This means that you should comparison shop for a card that offers you the best interest rate, rewards and annual fees and also a low or no-fee credit card in order to save on the annual fee that some companies charge. Finding the right credit card for your needs can mean extra perks and less hassle when paying your bills.

4. Be in Control = Budget

It is important to budget – that is, you need to organize and manage your finances so that you have an overall picture of where your money is coming from, when it is coming in and how it is being spent. A budget should be flexible and changing according to your circumstances. By budgeting, you are able to achieve short-term goals like paying the monthly bills on time and also to achieve longer-term financial goals like buying a home, a car, paying for a wedding or a holiday.

A budget is key to financial control and it is vital that you are in complete control of what you are spending on your credit card. Only charge to your credit cards what you can pay off in full when the bill comes. If you make only the minimum monthly repayment you may never get out of debt. You might not use your credit card as much if you start believing that you have to pay off your entire balance at the end of each month.

Also, it is important to remember that when you take a cash advance on your credit card, the interest starts accumulating immediately and not on the due date of your credit card bill. It is therefore vital to budget and manage your finances as the over-use of credit cards can leave you with a debt that is very difficult to pay back.

5. Knowledge = Know the facts

Before you get a credit card, it is important that you understand the terms and conditions of the card as well as any hidden charges that may be payable. For example, some credit card companies offer an ‘introductory’ rate. It is important to know that this rate is only temporary and so you must establish what the rate will be after the introductory rate ends. After the first year, most terms and conditions, such as, interest rates, annual fees, cash advance fees and late fees, can change if your card company gives you 45-days notice. Changes are usually sent to you by mail so ensure that you read everything your issuer sends. If you have any questions about a credit card offer, check the company’s website for more information or call the company before you apply.

In summary, owning and making purchases on a credit card can be a great way to start building for your financial future however it can also be an easy way to be overwhelmed by debt. It is important to understand how you can use your credit card so it works to your advantage and not against you and so – start small, plan and know your financial limits.

A credit card can be an asset to your lifestyle but if it is not handled carefully then it can easily become a liability and you could get yourself into some serious debt.

Before you get a credit card, it is important to carefully consider and understand the many advantages and disadvantages of this financial tool:

Advantages of having a credit card:

1. Helps you to establish a good credit history – People with good credit generally receive better rates and terms on mortgages and auto loans
2. Provides a convenient payment method for purchases made on the Internet and over the telephone without having to send cash or a check. Also, some companies do not accept cash or checks purchases – For example, most airlines, hotels, and car rental agencies
3. Is more convenient and safer than carrying cash
4. Offers free use of funds and delayed paying for purchases for about 20 days, provided you always pay your balance in full, on time
5. Gives you incentives, such as reward points, that you can redeem
6. 24/7 access
7. Offers interest-free payment from time of purchase to the end of the billing period
8. Allows for the instant payment of purchases, allowing for instant receipt of goods and services
9. Offers fraud protection
10. Allows access to unsecured credit which means that no collateral will be required against amounts charged
11. Take advantage of laws that protect you from defective goods or services not provided that you paid for with a credit card. Credit cards may also offer you additional protection if something you have bought is lost, damaged, or stolen. Your credit card statement can vouch for the fact that you have made a purchase if the original receipt is lost or stolen. In addition, some credit card companies offer insurance on large purchases
12. With credit cards you have more benefits such as, insurance cover when buying an item, cash back, air miles and you can also save on holidays when booking online
13. Credit cards can also be useful in times of emergency. While you should avoid spending outside your budget, sometimes emergencies such as, your car being involved in an accident, may lead to a large purchase like the need for a rental car

Disadvantages of having a credit card:

1. May damage your credit rating if your payments are late. If a credit card payment is not made or is made late it will result in increased interest rates, penalty fees, a decline in your credit score and denials of future credit
2. Allows you to build up more debt than you can handle – it is easy for you to lose control of your spending. Most credit cards do not require you to pay off your balance each month, so even if you only have $200, you may be able to spend up to $500 or $1,000 on your credit card. This money spent will have to be paid off and the longer you wait, the more money you will owe since credit card companies charge you interest each month on the money you have borrowed
3. Costs much more than other forms of credit, such as a line of credit or a personal loan, if you do not pay on time
4. May have complicated terms and conditions. For example, a credit card offer may state that there is no annual fee for the credit card yet in the fine print it may state that the ‘no annual fee’ offer may require you to make a minimum number of purchases using the card or you will be charged an ‘inactivity fee’ which is similar to an annual fee
5. Credit cards charge higher rates when withdrawing cash – If you withdraw money out the cash point, it can be much more cost effective
6. Credit Cards have a credit limit which means you are limited to a specific credit limit
7. Easier to be a victim of fraud – When using your credit card remotely, you have a higher chance to be a victim of fraud as your credit card details may be taken and used by a third party. Also, like cash, you credit card can be stolen so ensure that you report it to the credit card company as soon as possible.

• Annual Percentage Rate (APR) – A credit card’s interest rate, expressed as a yearly rate.

• Arbitration – A form of dispute resolution that is often binding with no right to appeal that may prevent you from suing the company or joining class action lawsuits. Many credit card companies require that cardholders settle disputes using an alternative to the courts called arbitration in which an independent third party hears both sides of the case and reaches a decision on how to settle the issue. It is often binding, with no right of appeal – this is then referred to as binding mandatory arbitration. You should look closely for arbitration provisions and fully understand that you are giving up your right to go to court by accepting the terms of most arbitration provisions. Also, most arbitration clauses require that cardholders who bring disputes pay their own arbitration fees, however, some card companies may pay for cardholders who cannot afford to pay the upfront costs.

• Balance Transfers – The ability to transfer the balance from one credit card to another. If applicable, interest on balance transfers begins to accrue immediately.

• Cardholder Agreement – A legal contract between you and the card issuer that spells out terms and conditions relating to your credit card account. If you misplace the agreement, log on to your issuer’s website or call customer service to get a copy. By accepting and using the card, you agree to comply with the terms of the agreement. Credit card agreements are standardized contracts and as a card applicant, you may accept or reject the contract, but you cannot modify its terms.

• Cash Advance APR – The interest rate you pay when you use your card to get cash. Most cards charge a higher interest rate for cash advances than for purchases.

• Convenience Checks – Checks linked to your credit card account. They can be used to transfer a balance from another card or to make purchases or payments.

• Credit Score – This is a number that reflects your creditworthiness and it is based on the information in your credit report. Scores generally range from 300 to 850 and usually, the higher your score, the lower the interest rates you will pay for credit.

• Daily Periodic Rate – Your APR divided by 365 days.

• Default or Penalty Rate – A higher interest rate charged if you pay late, bounce a check or your credit gets worse. Unless you are 60 days late, the new rate cannot be applied to your balance—only on new transactions.

• Fixed Interest Rates – A set or non-variable APR, which can change only when you receive 45 days notice.

• Grace Period – Period in which finance charges do not accrue if you are not carrying a balance.

• Minimum Monthly Payment – The lowest amount that you are required to pay the credit card company each month.

• Payment Due Date – The last day that payment can be accepted without penalty. Each month, your due date will be the same date or day of the month.

• Prime Rate – This is the interest rate that serves as a benchmark for most loans and as such is often used as the ‘index’ to set the interest rate on variable-rate credit. The Prime Rate moves up or down with interest changes by the Federal Reserve Board. When the Federal Reserve raises its target for the short-term federal funds rate, banks almost immediately increase their prime rates. When prime rate goes up, the variable credit card rates follow.

• Revolving Credit – This is the type of credit agreement used by most credit cards. It allows consumers to pay all or part of the outstanding balance in each billing cycle. As credit is paid off, it becomes available again to use for another purchase or cash advance.

• Secured Credit Card – Secured credit cards are an option for people who have no credit history or have a poor one. This is a special credit card that you can obtain only after you have deposited money in a savings account to guarantee that you will pay for your credit card charges. Secured cards look like and are used just like unsecured cards. Often, people who have been denied conventional credit cards can get a secured credit card instead.

• Security Deposit – This is the money you provide to a financial institution to guarantee payment of your secured credit card. Your deposit is frozen while you have the card. If you fail to pay your credit card debts, the funds in the account may be used to cover your obligations.

• Subprime Card – This is a credit card that is marketed to people with poor or damaged credit and is usually offered at a high interest rate.

• Variable Rates – Interest rates that change whenever interest rates go up or down according to a set formula, such as Prime Rate + 3%. If your card has a variable rate, the APR changes when interest rates change. Variable rates change automatically and so your credit card company does not have to notify you each time the rate changes. To check your interest rate, add the current Prime Rate (or other index) to your card’s margin rate to find your APR. Example: The Prime Rate is 5% and your margin in 8.99%: 5% + 8.99% = 13.

Read More About:

• Credit Cards
• Advantages & Disadvantages of Credit Cards
• Credit Card Fees & Tips
• Credit Card Offers
• The Credit CARD Act of 2009
• Types of Credit Cards

When applying for a credit card, it is important to fully understand the fees that you will be charged and how you can avoid these fees by carefully managing your account.
Here are some common credit card fees and tips on how to avoid them:

Annual or Monthly Fee

This fee is common on charge cards, rewards and airline miles credit cards and on secured and subprime cards. The fee is sometimes applied if you do not use your card at least a few times during the year.
TIP – If you are thinking about getting a rewards or airlines miles card, make sure that the card’s benefits are worth the cost of an annual fee. Consider the overall value when comparing fee and no-fee cards.

Application Processing Fee

This fee is charged on many subprime cards and some secured cards when an account is opened.
TIP - Required fees in the first year cannot total more than 25% of the credit limit. For example, if your initial credit limit is $300 then the fees for the first year cannot be more than $75.

Balance Transfer Fee

Charged for transferring a balance from one card to another, this fee is commonly assessed as a percentage of the balance transferred.
TIP - When you apply for a new card, ask about balance transfer fees. Most companies do not charge these fees to new cardholders for the first month or two.

Bounced Check or Returned Item Fee

This fee is charged if your check bounces.
TIP – Make sure you have sufficient funds in your bank account to cover your checks.

Cash Advance Fee

This fee is charged as a percentage of the cash advance, with minimum charges.
TIP – Cash advances are an expensive way to get cash. Not only do you pay a fee, but the interest on the cash advance balance begins to accrue immediately. To avoid this fee, use your ATM or debit card to withdraw cash from your checking or savings account at ATMs.

Foreign Transaction Fee

Charged when you make purchases overseas that are cleared through a non-U.S.-based bank and the charges have to be converted to U.S. dollars.
TIP – If you plan to use a credit card while traveling outside of the U.S., shop around to find a card with a currency conversion method that is favorable.

Inactivity Fee

This fee is charged when you do not use your credit card for extended periods of time.
TIP – Use your card a few times per year to avoid this fee. Pay these transactions in full when you get your bill, so you do not accumulate a balance.

Late Fee

Charged if your payment is late, sometimes even if it is received on the due date after a certain hour. In addition to charging a late fee, the interest rate on your existing balance may be raised substantially if you make a payment that is more than 60 days late. New regulations (February 2010) require that due dates now fall on the same day every month and payments received before 5 p.m. on the due date cannot be considered late. If the due date falls on a non-business day, such as a Sunday or a holiday, and your issuer does not accept and process payments on that day, you have until 5 p.m. the following business day to make your payment without penalty. Many issuers process payments on weekends and holidays.
TIP – Always pay your bill on time. If you send your payment by mail, allow at least seven days for the payment to reach your issuer. Consider other methods of payment, such as online bill pay, pay-by-phone or automatic payments. Set up an email reminder to ensure you pay your fees on time.

Over-The-Credit-Limit Fee

You can be charged an over limit fee only if you give your issuer permission to allow you to exceed your credit limit.
TIP – Manage your credit limit carefully and call your card issuer in advance if you need an increase. Also, ask your issuer if it has free email service that will alert you when you are approaching your credit limit.

Payment Fees

Charged by some companies to pay your bill at the last minute with the help of a customer service representative.
TIP – Avoid last minute, fee-based payment methods. Look for online bill pay, pay-by-phone or automatic payments that do not carry a fee.

Statement Copy Fee

This fee is charged for extra copies of monthly bank statements.
TIP -File statements for the past three years in a secure location for income tax purposes. If you sign up for online access to your accounts, you can download also your statements and keep them saved on your computer.

Stop Payment Fee

Charged when you stop payment on a credit card convenience check.
TIP – Be cautious about using convenience checks. If you write one and it is lost, you may not be able to avoid this fee.

Wire Transfer Fee

This fee is charged when you use your card to transfer money or when you buy money orders, lottery tickets or casino gaming chips.
TIP -Pay for these services with a personal check or cash.