8 Smart Resolutions for 2008
Every year, the collective personal finance industry recommends the same set of resolutions to consumers: pay off your debts, improve your credit score, build your savings, blah, blah, blah. This year, we're going to try something new. Read on for eight real resolutions from our experts to help you maximize your money in 2008:
1. Make more money.
An easy way to get out of debt and improve your finances is to get more money. This could mean asking for a raise at work, switching jobs, taking a training class or getting creative. Sites like eBay and Etsy make it easy to set up shop online and earn a little extra income.
2. Earn rewards on your ATM card.
A new service from Capital One allows you to earn credit card-style rewards for everyday purchases from your existing checking account. Called a “decoupled” card, this program is free and doesn't require a credit check. Learn more.
3. Borrow smart.
Personal loans are an easy way to borrow up to $10,000 for any purpose. But these loans work best when you enter into them with a plan. If you're borrowing to consolidate debts, finance a remodel, pay off medical bills or take a vacation, remember that it is a smart financial move to get the loan paid off quickly.
4. Audit your credit cards.
Do you know what rates and fees you're being charged? If not, take 20 minutes to login to your accounts online or gather your recent statements and see where you stand. If you are unhappy with what you see, try calling the creditors to negotiate a lower rate.
5. Become a credit geek.
Learn the ins and outs of the credit scoring system by reading credit industry expert John Ulzheimer's new book: You're Nothing but a Number. Don't settle for basic credit improvement tips. Get the real story and get your credit on track.
6. Make your savings work for you.
Regular bank savings accounts earn you a meager 0.7% APY on average. A high-yield savings account can earn you 4.2% or more with no minimums and no fees. Even if you can only save $25 a month, it makes sense to open one of these accounts.
8. Drive car salesmen nuts.
Who doesn't love getting the better end of the deal on a car purchase? Outsmart an auto dealer by arriving prepared with your own financing. Even if you don't end up using the loan, it can help you negotiate a lower rate and a sweeter price.
7. Consider secured cards.
If you're working to rebuild your credit, don't overlook secured credit cards. These cards require you to deposit money into a savings account in order to open the account. You'll get the deposit back with interest when the account is closed or migrated to an unsecured offer.
What's your resolution for 2008? Send your comments or questions to tidbits@credit.com anytime.
Quote of the Month
"Always bear in mind that your own resolution to succeed is more important than any one thing."
- Abraham Lincoln |
