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Welcome to the Credit.com newsletter!
This free newsletter delivers easy-to-read tidbits about credit
directly from personal finance experts. In this issue, we're planning for summer expenses. We'd love
to hear from you! Send us an
email
with your credit questions or comments
anytime! |
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Quick Tip
Summer brings with it higher gas prices. Most areas are now charging well over $3 a gallon.
You can cut costs by driving the speed limit, taking your car in for a tune-up and using cruise control. And you can locate the cheapest gas in your area online here.
Read more tips for saving on gas |
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Ask John
Gas, electricity, water, garbage, phone service, cable TV...utility bills can add up to a pretty significant total each month. However, paying these bills on time won't help boost your credit scores.
Learn why utility accounts don't appear on your credit report and why you need to pay them on time anyway in this month's Ask John article.
See what John says about utility accounts |
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On the Blog
Think twice before jumping on the debt settlement bandwagon. Debt settlement can be a good solution for very specific cases but it can also cause a lot of credit score damage if you're not careful.
Learn more about debt settlement |
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Graduations, weddings, vacations, holiday weekends, barbeques…there are a lot of really good reasons to spend a little extra during the summer. But these fun events can bust your budget if you're not careful. Here's our guide to smart summer spending:
1. Predict the Future
Take a quick look at your calendar and come up with a list of upcoming events that might require extra spending. Do you have any of the following on the horizon?
2. Make a Spending Plan
Don't get caught off guard when these summer events approach. With summer expenses easily adding up to over $5,000, you might end up having to cover the costs with a credit card or a loan if you are not prepared. You can use our estimated expenses to help put together your budget.
- Attending weddings - Costs start at $500 for travel, hotel rooms, and gifts. Expect to dole out more if you are close relative or member of the wedding party.
- Graduations - A $20 to $50 gift is usually appropriate for a recent graduate.
- Vacations - Around $1,000 to $3,000 depending on your vacation plans and family size.
- Fourth of July and Labor Day parties - $200 will cover food and decorations for 30 people.
- Summer activities for kids - Overnight camps can cost as much as $2,000 a week. Day camps run about $100 a week.
- Family reunions - $200 for travel and hotel rooms.
3. Get Creative
Early preparation helps you find ways to finance these expenses and also ways to reduce the costs. For events requiring travel, see if you can share a rental house with friends or relatives instead of getting your own hotel room. For wedding and graduation gifts, monitor sales or consider making something nice to give instead. Summer camps for kids often offer scholarships for those who qualify.
4. Make Some Decisions
If you know that you are not going to be able to afford upcoming costs during the summer, start looking for alternatives now. Don't wait until you're in a financial crisis to compare credit card offers online. You might be able to find a rewards card that will at least earn you miles, points or cash back for your summer expenses. It will take a few weeks to receive your new credit card in the mail after your application.
5. Follow Up
Keep close track of your spending after big summer events. High credit card balances can have a negative impact on your credit scores as well as your bank account. Be sure to pay off credit card balances or loans as quickly as possible.
What big events are you budgeting for the next few months? We'd love to hear about it! Send us an email at tibits@credit.com. Have a great summer!
Quote of the Month
"Summer afternoon - Summer afternoon... the two most beautiful words in the English language."
- Henry James
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