Debt problems don’t happen overnight. They are the cumulative result of habits that build up over time. Often times, when people find themselves overwhelmed with debt they wish that they could just turn back the clock and change their ways. Instead of lamenting over past mistakes, why not identify problem-causing habits now and stop them in their tracks? Here are five bad habits that you can stop now and save yourself trouble later on.

Bad Habit #1- Trying to Manage Money without a Budget

Budgeting is one of those terms, like dieting, that makes people cringe. But establishing and working with a budget is one of the best ways to keep yourself out of debt. When you have a budget, you know exactly how much money you’ll be spending and where that spending is going. If you see a great sale or want to splurge on something extra, you’ll either know that you can’t or you’ll spend from an allotted amount. When you work without a budget, you may end up spending money that you should have used to buy groceries, get a hair transplant, or buy that new grandfather clock for your home you have been eyeing.  In turn, you end up using a credit card and building up your debt.

Bad Habit #2- Relying on Credit Cards for Daily Expenses

When you use your credit card to buy gas or groceries, like in the above example, you’re actually paying more than you should for those daily expenses. Most people run up their credit cards and then only pay the minimum balance each month. Instead of only paying what you spent, you’ll end up paying up to twice as much.

Bad Habit #3- Making Late Payments on Your Credit Cards

If you’ve found a credit card with a low interest rate, you may be out of luck when you make a late payment. Most credit card companies switch to a penalty APR if you happen to be late on your payment. The penalty APR makes it more difficult to pay off your debts quickly, which can cause you to pay more on your credit cards than you actually owe. In addition, many credit card companies charge a late fee of $29 or more meaning that every time you are late you are digging yourself deeper into debt. (more…)

Spring Break is when families get to spend some quality time together, but vacation can sometimes come with a high price tag. A lot of common Spring Break activities, like a visit to an amusement park or a skiing trip, are very expensive. Fortunately, there are a lot of ways to have fun with your family during Spring Break without breaking the bank. Here are four easy ways that you can enjoy the sights, sounds and activities of the season without spending a whole lot of dough.

1. Keep your Travel Plans Local - There are probably a dozen different local attractions that you and your family haven’t explored. Staying in your town or traveling no more than an hour away is a great way to save one on gas and other travel related expenses. Taking a day trip means that you can pack sack lunches and keep your other expenses to a minimum. There are probably plenty of activities within driving distance of your hometown, or even within the city itself. Most towns have museums, parks and other destinations that are worth exploring or re-discovering. Pretend you’re a tourist to your area and hit all of the local attractions. It can be fun to introduce your children to places you visited when you first moved to the area, or have always wanted to visit but never have.

2. Spend a Day in the Garden - There’s no better time than this vacation to get the kids outside for a work day in the yard. You can spend a day or two working outside as a family. Have the children select special flowers they want to plant, or create a vegetable garden together that you can enjoy all year long. Other inexpensive outdoor activities can include building a birdhouse or making personalized paving stones. You’ll be able to appreciate and admire the work you and your kids do for months to come. Make sure to reward your children with a special treat after the family work day.

3. At-Home Crafts Camp - Kids of all ages love making crafts and fortunately craft supplies aren’t all that expensive. You can get ideas from websites or books from the library and then purchase your supplies at a dollar store or discount store. With a little planning, you could provide your kids with five to ten projects that will last them all week. At the end of the week, have them display their creations in an art show.

4. Organize a Rotating Group Activity - This idea works best when you have a group of local friends with children the same age as yours. You can all split the week up and each plan a low-cost activity per day. One parent can organize a craft day, another can do a garden day and another host a make your own pizza party. The possibilities are only limited by your creativity and your budget.

With these simple ideas, you and your family can have an enjoyable, and low-cost, Spring Break that won’t break the bank and leave you with cherished family memories for years to come.  In the end, isn’t that what is most important?

According to the Federal Reserve, Americans are drowning in debt with a record revolving credit balance of $975.2 million as of the end of 2007.  This works out to around $11,000 to $12,000 in credit card debt for the average household in the United States, a pretty staggering total.  Are you one of the millions of Americans struggling with debt on a monthly basis? Are you hiding it from a loved one or spouse scared of what he or she may say or just plain embarrassed?  You’re not alone.

As many as one in five American households are either behind on credit card payments or possess at least one account in which they are over their limit.  Living in this “penalty rate zone” of credit cards isn’t easy.  But there are options available to the average consumer that can alleviate the stress of continued monthly credit delinquency.  Consider the following five tips and start your journey on the road to financial security today:

Tip #1 - Consider a Budget:  Do you know how much you spend each month?  What is your average current credit card obligation?  How many ‘essential expenses’ do you have? A car, rent or a mortgage payment, food, and loans, are considered essentials. Eating out, the new Disney movie and your local gym membership, are not essential.  Track your spending and eliminate the fat, you may be shocked at your monthly savings.

Tip #2 - Cut up your Credit Cards:  If you have a credit card with a balance that is more then your regular monthly salary, that’s a problem.  Consider cutting up the card completely or putting it completely out of reach for the time being.  Are you making the minimum payment?  If so, that goes completely to interest and won’t move your outstanding balance much at all.  Make sure you check out our free credit card calculator and see what increasing your monthly payment will mean to your future financial security.

Tip #3 - Debt Management Plans:  It’s not easy to ask for help from any debt management or credit counseling company.  But it may be the smartest decision you ever make.  If you are over $3000 in credit card debt and need that debt paid off faster and cheaper then you ever thought possible, this may be the option for you. Read our detailed information on what is debt management and see if it may be right for you. (more…)

If you need to develop a savings account but don’t know how you’ll find the spare money, then you may need to look at your household budget. With a proper budget established, you’ll have enough money for your fixed monthly expenses and for your savings account. It’s very important to have a savings account. It’s recommended that you build up at least 3 months of your monthly income in your savings. That way if you have a financial emergency or lose your income, you won’t be too put out.

If you don’t have a budget or a savings account, there is a little bit of preparation that you need to do in order to get things in line. In three easy steps, you can create a workable budget for your home that will allow you to build a savings account and better prepare yourself and your family for unforeseen future financial hurdles as they arise.

1.  Find out how much you are really spending - In order to create a workable budget, you need to be accurate with your figures. Many people spend more money then they think that they do, so when it comes time to stick to a budget, they find it difficult.

There are two kinds of expenses that go into your budget: fixed expenses and flexible expenses. Your fixed expenses are the monthly payments that you make like your mortgage payment and your car payment. Your flexible expenses fluctuate from month to month. This can be money spent on groceries, gas, entertainment or other expenses that you don’t have a fixed payment for.

The biggest problem people have in setting a budget is not knowing how much they are realistically spending on their flexible expenses. The best thing to do if you are unsure of how much you are spending is to track your spending for a few months. Write down all of your expenses for a two to three month period. Then you can get an average of your flexible expenses that you can work into your budget. (more…)

What would it mean to your financial picture to have an extra $100 each month in your bank account? You could pay down your high interest credit cards, start a savings account or begin investing. If you saved just $100 per month, that’s an extra $1200 each year. It’s like giving yourself a $1200 raise, without having to negotiate with your boss!

Here are three simple ways that you can start saving $100 or more per month. What are you going to spend all that extra cash on?

1.  Brown Bag it!

If you work outside the home, you’ve got a major money drain in the form of your daily lunch. Eating out everyday, even if you try to go the “cheap” route, adds up quickly. For example, if you go to a fast food joint and pay $6 for a value meal, you’re spending $30 per week minimum. Over the course of a month, you’ve thrown away $120 on food that isn’t good for you to begin with. The costs are even higher if you go to a real restaurant for lunch. You could be looking at a savings of $300 or more.

Plan your meals ahead of time and bring your lunch with you to work. You can make extra servings when you prepare dinner the night before, and then you can take the leftovers to work the next day. This way you won’t have to take any extra time to prepare your lunch, and you won’t get tired of eating the same type of lunch each day.

The same goes for coffee or soft drinks. Paying $4 for a latte when a whole gallon of milk only costs $3.50 doesn’t make any sense at all. Bypass the trendy coffee shops and make your own fancy brews at home. If you are used to paying $4 a day on a drink, you’ll save $120 each month by making your own. The same goes for soft drinks. A six pack of most drinks costs $4 at most, or .60 per can. When you purchase a soft drink from a vending machine or restaurant, you’re spending almost twice as much if not more. Bring your own drinks and you’ll save.

2.  Read the Fine Print

Do you know exactly how much you are being charged to use your bank’s debit card? How long has it been since you read your phone bill in detail? There are a lot of hidden charges that may drive up the cost of your monthly necessities. Pull out your cellphone bill or bank statement and see if there is anyway to reduce your charges.

Do the same with your credit card companies. Get on the phone and haggle with them if you need to. Many credit card companies will reduce your interest rate if you’ve been a customer with them for a long time. It never hurts to ask, and you may be able to save $100 or more in interest payments.

3.  Share a Ride

It’s no secret that gas prices are higher than they’ve ever been, and things don’t look like they’ll be getting better any time soon. If it’s possible, try to arrange a carpool with some of your coworkers who live close by. Take turns riding to work together and you’ll all save on gas costs and car maintenance. For example, if you normally spend $30 per week on gas, you’ll eliminate $90 from your gas budget if you share a carpool with three friends and each of you drives for one week per month.