Cheap Living Tips

Let’s face, no matter how much we claim we don’t care what others think, we really do want others to think well of us.  That applies doubly when it comes to their opinions about whether or not we are a good parent.  No one wants to be listed in the “Mommy Dearest Top Ten.”  So how do we dress our infant girl or buy toddler boys clothing and not break the bank?

Yes, fortunately with young babies we are sometimes blessed with an abundance of hand-me-downs but as the our infant girl or toddler boy grows that supply also dwindles. So when we are setting up our budget, our baby’s wardrobe needs to be addressed.

There are many numbers that are critical in out life that we want to keep as low as possible like our bad cholesterol count and golf score but our credit score is more like our bowling average, the higher the better.  In fact, ideally both are closest to perfect if they get in the 800 range.  Your bowling score is base on a total score for three games.  You credit score on the other hand is calculated from the data collected on your payment history from all your creditors, banks and credit card companies.  This number is used when you apply for a loan or credit card to determine your likelihood of being able to pay it back.  If you have been turned down for a loan or credit card it is most likely that you have a low credit score. If you have been slow in paying your bills or failed to pay off an old loan this will affect your credit score and your chances of getting a loan or favorable interest rates are weakened.  A high credit score will qualify you for the best interest rates and deals.  When money is tight, a low credit score may keep you from getting a loan or credit card or if you do get a loan it will be at a much higher interest than someone with a high credit score and remember A low credit score may even keep you from getting a phone or cable service installed.

You can however take several steps to improve a low credit score.

So it is easy to see why improving your credit score is important.ickly.

1. The first step to improving your credit score is to know what it is.  You are entitled to a free copy of your credit report and all three of the main credit reporting agencies that re primarily used in the US will provide you a copy once a year if you request it in writing.  There are a number places you can obtain a free credit report online.  Get a copy from each of these credit reporting agencies and compare each report.  You are looking for mistakes or errors on the report  that may be damaging your credit score.   Mistakes do happen and you may find that they show a bill as unpaid when in reality you did pay it off.  If this is the case you can get the error corrected by providing the credit agency proof that the bill was paid.  Credit reporting agencies are legally responsible for crediting errors when you bring them to their attention and supply them with proof of payment.
2. The next thing you can do to improve your credit score is pay down the amount of debt you have.  You should strive to never owe more than half of what they call your available credit at any time.  These means if you have credit cards with a total available balance limit of $10,000 you should not have a balance owed of more than $5,000.  In fact, if you have credit cards that you are not using but they have a large available balance this may count against you when looking to borrow money elsewhere.  You can request that these cards be closed out or the limits be lowered.
3. The last and most important thing you can do to improve your credit scor is to pay your bills on time. Timely payments weigh heavily in your favor when your credit score is calculated and developing a habit of paying your bills before the pay due date is. the quickest way to improve your credit score.



Withalmost everyone having access to the internet, the day of calling atravel agent to book a flight are nearly gone. However, there aresome pitfalls the consumer needs to avoid when booking their ownairline reservations. Many discounted airfares are notrefundable or carry stiff penalties if you need to change or cancelyou flight. Keep in mind that the cheapest airline tickets couldend up costing more if you have a change in plans.  

Ipersonally experience this recently when I was booking a trip toTexas for my husband.  We were a bit indecisive about our travelplans, first thinking we were both going to drive to a gathering ofhis family but I decided to not make the trip so I booked him aflight on Orbitz from El Central to Houston.  About a weeklater, I discovered that other family members were running intoissues with getting to and from the airport so we decided to stay inSacramento and my husband would fly out of Sacramento.  Changinghis flight with Orbitz turned out to be a nightmare.  I fullyexpected to pay the $150 penalty noted in the terms on their sightbut what I didn't expect was that they would want this amount paid upfront even if my new tickets were less money and the credit from hiscancelled flight would cover the new ticket and the penalty.

Ifyou do book through Orbitz (or any other discount travel service) and find you need to change yourreservation or cancel a flight and want to reuse the credit, godirectly to the airlines to rebook your new flight.  You willstill get tagged with the penalty but the airline will take that feefrom your credit and apply the balance to a new flight and send youvoucher if you still have a credit balance.  When we attemptedto book the new flight through Orbitz we were told we forfeit thebalance and have to pay the penalty up front.  So in our case,with a $479 credit pending we would still need to pay $180 (Orbitztacks on their own $30 fee)  for a $232 ticket.  Bygoing directly to United to rebook we did not have to pay anythingout of our pocket on the second ticket.  United deductedthe $150, issued a new ticket for $232 and sent us a voucher for the$97.

Sobe prepared to lose money if you need to cancel or change your flightif you book through Orbitz.

Running behind your auto loan can bring on major hassles in a variety of venues. As most of us rely on our vehicle to get us to work which makes it necessary to make sure you have enough money set aside to make the payments and if your budget shows that this is placing too much of a strain on your finances then it may be time to look for a less costly vehicle.

A lender is well within their legal rights if they take possession of your vehicle when you have missed payments and they do not need to get a judgement before doing this. When this happens the repossession will be noted on your credit records and will remain there for the next seven and a half years so this is one area of your spending where you will need to make the appropriate decisions in advance of anything happening.

Finance companies auction off your car after taking possession of it in order to get back part of what is owed.

However, they often can’t recover the full balance. If the vehicle is sold for less than the amount still owing on it, plus the costs involved in repossession and selling the vehicle, then you will be liable to repay that deficit to the finance company.

In the end you not only lose you means of transportation but get added debts piled upon you.

If you are struggling to make the payments it is better to contact the finance company in advance of any action to see whether you can refinance the vehicle over a longer period where the repayments will be a little less and more manageable. They might also give you the opportunity to pay off any outstanding debt by coming to a suitable arrangement. This could give you enough time to sell the vehicle paying off the loan and finding something that is more suitable for your current financial position.

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Should you consider debt counseling, debt settlement, or self-help credit report books? There are advantages and disadvantages to all of these options and the best way to decide which one would be best is to evaluate yourself and your total debt situation. By being totally and completely honest about your situation and whether you are ready to take a self directed or directed approach, you can make the best decision for you.

Your first step is to sit down and evaluate all of your current, past due, and delinquent accounts, how much percent and penalties you are paying for each, etc. Then, understand what each option entails and figure out which option is best.

Debt Counseling

Debt counseling is when you work with someone who is knowledgeable about finance (specifically budgeting and debt reduction). They may have even experienced debt problems in the past and gotten themselves out of debt. His or her expertise will give some invaluable insight on how to settle or pay down your outstanding bills with various payoff methods. This process will not erase your debt but will teach you how to budget your money so you can afford to pay off your debts over a period of time. This method is best for someone that doesn’t have much confidence in the self-directed approach and needs accountability and guidance.

Debt Settlement

Debt settlement or debt negotiation is when you or someone you hire, works with your existing creditors to settle your debt for less than you owe. This option is typically only available for individuals who are already delinquent on their payments as their creditors are more likely to settle the debts so that they can recoup some of their losses. Keep in mind that the fees collected from debt settlement attorneys can be extremely high – as much as 15%.  In addition, your credit rating will likely receive a ding as a result of debt settlement. Plus, not all states allow for debt settlement, and you cannot use this option for secured debts like auto loans. This method is best for someone that doesn’t care as much about a lower credit rating but just needs help paying down debt. Although one could take the self-directed approach, it may be better to work with a professional that is versed in negotiation to receive the real benefits. If you do, just be prepared to pay extra.

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Self-Help Credit Report Books

Self-help credit report repair books are guide books purchased to teach yourself how to get out of debt. The cool thing is that there are quite a lot of self-help credit books that are available for a small one-time fee. Popular authors include Suze Orman and Dave Ramsey. In these books, they teach you step-by-step how to get out of debt. However, you will have to input the ideas and really take action if you want to get out of debt using self-help credit reports and books. This method is really good for someone who is drowning in despair, debt, and constant hounding of creditors. Someone with commitment and someone that can take action all by themselves.In conclusion, determining which method is best for you, is really a personal decision. By carefully evaluating your options and then taking immediate action – you too can get yourself out of debt, whether alone or with the help of a specialist. Good luck to you!