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Your Guide To Personal Finance Responsibility

February 23, 2012

Although you may not want to think about the state of your finances, there is no getting away from the fact that money is an essential part of everyday life. This article is full of tips that will help you get your finances under control.

Be sure to include your post tax income. For starters, include all after-tax money that you get each month from your salary, alimony, child support, rental income, or other sources. Make sure your expenses are less than your income on a monthly basis. A great way to consolidate many bills into a smaller payment is by getting personal loans and these loans are typically desired because they offer a much lower rate of interest. You can imagine how much money you will save by consolidating higher interest loans into a personal loan with a lower rate.

To make this process effective, you should compose a detailed listing of your expenditures. You need to also include quarterly and yearly payments. Some of these expenses may be home improvement and repair costs, or car maintenance and registration payments. You need to also write down other, smaller things that you pay for daily or weekly, such as child care or grocery shopping. You should make sure that your list is as comprehensive as possible to ensure you have a true picture of what you spend.

There are always things you can eliminate from any budget. One easy thing you can do is bring coffee from home instead of stopping for expensive lattes on the way to work. Seek out anything similar to this that you can get rid of without difficulty prior to putting together a lasting financial plan.

See what improvements you can make to help you lower your utility bills. Windows can be a weak link in your homes armor by letting out heat in the winter and cool air in the summer. Make sure your windows are properly insulated. An on-demand hot water tank is a good way to reduce spending. Have a plumber come out and fix any leaky pipes you have to help lower your monthly water bill. Be sure to run your dishwasher only when it is full, so you can make the best use of it. If you can, purchase new energy efficient appliances. These energy-saving appliances help you save on your utilities. Also, when you are not using something, unplug it. You can save both money and energy by doing this.

Some home improvements pay for themselves over time with the reduction in utility expenses. For example, replacing your roof and installing new insulation prevents you from losing energy for both heating and cooling because of insufficient structural materials.

Try to save money by being careful with appliances. Even though you are spending money to repair or replace items, you will see a savings in the long run.

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Fistfuls of Credit Cards: How Many Is Too Many?

February 4, 2011

About 14 percent of US consumers have more than 10 credit cards, and one in seven use at least half of their available credit, according to a recent Experian National Score Index study.

Overall, the study found that US consumers have an average of four credit cards, and just over half–51 percent–have at least two credit cards. New Hampshire and New Jersey have the highest percentage of consumers with fistfuls of cards, with one in five consumers in these states having at least 10 credit card accounts, according to the credit-reporting bureau.

Credit Card Use Most Critical

More critical than the number of cards is how theyre used. About 14 percent of US card holders use at least half of their available credit, which, experts say, is too much credit usage. These consumers have credit scores of 645, compared to the overall national average of 674, according to Experian.

Credit Cards: How Many Should You Have?

There is no precise answer, but the guideline is to maintain only the number of cards that you can handle responsibly. Before you fill out another credit card application, evaluate whether you can keep track of purchases and payments.

Two Credit Cards Better Than One

Its not a bad idea to have more than one credit card as a matter of safety. A VISA card can serve as a backup in case your Discover card isnt accepted at an establishment when youre traveling, for instance. Some experts recommend keeping a card with a zero balance stashed away in a safe place in case your wallet or purse is stolen. That way youll have some credit while youre waiting for the stolen cards to be replaced. Beware, though, that some card issuers cancel cards automatically if theyre unused for a certain period of time. If thats the case, make sure you use the card periodically to keep the account active.

Credit Card Debt: Avoid Maxing Out Accounts

Regardless of the number of cards, avoid maxing them out, which can hurt your credit score. Lenders like to see that you can manage credit accounts by paying off debt in reasonable periods and paying bills on time, but they see red flags when you use a large percentage of your credit. Experts recommend keeping your balances under 30 percent of your credit limits.

Fistfuls of Credit Cards: How Many Is Too Many? was written by Barbara Marquand, a writer for IndexCreditCards.com, a website where you can learn about secured credit cards for building credit and can compare cards with the lowest rates.

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