Balance Transfer Checks

Recently we took notice of balance transfer checks. These offers to add to your credit card debt may appear tempting.
Here are a few items to take note of in the rules.

Interest will accrue on new credit card purchases (that are not at 0%) if your balance is not paid in full by the due date. I had seen a recommendation not to use the credit card at all if you are using the card for a balance transfer.

Minimum payments may go to pay off the lowest interest rate including 0%. Some of the companies may apply the money beyond the minimum payment to the highest interest rates first.

When you transfer a balance to a credit card it may not have the normal air miles and rewards.

I was surprised to learn that you can also deposit these balance transfer checks into the bank rather then just using them to pay off another credit card to get a lower rate. Assuming you were willing to get bogged down with using a credit card at all this could sound appealing. I can see many uses where this could come in very handy. The trick would be not to use the card for anything else until it is paid off.

Do the companies send these offers to you when you have a balance on the card or is it just a tool to draw in new business when you are not charging to the existing credit card anymore?

Good luck with your financial future!

When Uncle Sam Comes A Knocking...

Did you ever get a rude awaking at tax time?  Ever get a bill bigger than you can handle?
What are your options to pay it?  I will cover one.
A Personal Loan
The quotes will vary based on the lending institution, based on your credit, possibly whether you have an existing financial relationship with them and if you will use the automatic debit feature.

The range of interest rates could span a number of percentage points.  It is best to contact a number of different places.  It is also a good idea to do your homework before you make any final decisions.  Can you finance less money and for a shorter amount of time?
Some lending institutions use the same interest rate regardless of whether you take the loan out for one, two or three years.  That is a surprise to me.  I would have expected to be quoted a lower rate for taking out a loan for one year than for three years.

Here are some helpful tools to help you do your homework.  Knowing the terms of the loan before you walk in the door to sign a contract are key.  You don't want to jump on a loan that you are unsure if the terms are what you need.

401K Cost Calculator for early withdrawal
The 401K Cost Calculator is helpful as more companies are shutting their doors and/or offering their employees their retirement savings early.

Personal Loan Calculator

The personal loan calculator will help you determine what your payment will be as well as how long the loan will take to pay off if you make additional payments.


Hopefully you will not be in need of a loan come tax time.

Shred the Credit

In the past we were debt free except for a mortgage.  Now we need to struggle to get back to that comfortable position.  What lead up to the making less than you spend and needing to rely on credit?  Loss of a job, give birth to twins, rely on additional income that is not an annual occurrence, medical plan changes, middle age, children involved in more organized activities, expanding family means larger home, larger grocery bills, more expensive healthcare plans and more expensive utilities.
Our home
1998 we moved to our first home.  In 2008 we moved to our 2nd home. In 2009 we sold our first home.  In 2009 we had twins.  In 2012 my husband changed jobs. In 2013 he was laid off from the new job.  Two months later he had a new job.  During this time we started charging items but not paying off the balance because there was a promotional 0% interest rate.  After the lay off I think we were unsure how long the lay off would last and did not focus on paying down our credit card prior to our interest rate going up.
Now in 2015 we are trying to get back on track.  We did this once before.  In 2005 we had just bought and leased two cars and no other debt.  In 2008 we were on our way to paying off our first house in approximately four years.  Our cars were paid off and we were handling our financial donations very well.
The problem was we were still relying on our credit cards to pay our extra expenses.  Today we shredded our credit cards.  No fan fare just a simple shredding.

My husband asked that we use cash and debit card exclusively so we have no need for a credit card.  I have thought of one instance where it could be a problem.  That would be an unmanned gas station and all that you have is cash.  I guess we will need to get all our gas during daylight hours.

Put Out the Closed Sign

A friend and her husband are starting their own business.  Getting out of the 9 to 5 grind can be appealing but in reality the hours become more than 9 to 5 because you are the owner.  Another family took over a restaurant.  They realize that the business could take over their lives and they closed the business two of the seven days per week, one for family time and one to get ready for the next week.

In our own lives, wouldn't it be good to be able to put up the closed sign once in a while.  Some people make appointments with themselves.  We also need to make time for the financial parts of our lives.  Whether you are a teacher, an architect, or a financial planner; money is important and we need to take the time to manage it. 

Do you have unnecessary atm fees, bank overdrafts or other banking charges?  Do you have time set aside to review your bank statements or do a bank reconciliation?  Try spending some time to plug the holes that are draining your bank accounts and investments.  In my case, my 529 accounts are costing me money because I am not investing currently and fees are being taken out.

Put out the closed sign for your family, friends and work.  Say hello to your financial side.