9 smart personal finance moves in 2009

Nice article on Bankrate on what could be a tough year financially.

1. Know yourself. 

2. Know where the money goes.

3. Know when to say no.

4. Know when to say yes.

5. Know when and who to ask for help.

6. Know your risk tolerance.

7. Know your portfolio.

8. Know your mortgage.

9. Know your credit.

Bankrate.com

10 ways to guard against cybercriminals

Identity theft is probably the biggest fear in the world of personal finance these days. Criminals using your information to rack up thousands of dollars in credit card expenses. That’s a scary scary thought. (Shudder)

Bankrate.com has a list of 10 ways you can protect your information when you are online. Follow these, and you should be in a better shape to fend off any theft.

1. Regard all unsolicited calls, e-mails and instant messages as potential scams.
2. Don't follow links in suspicious e-mails.
3. Make sure you have Internet security software.
4. Run updates.
5. Scan your computer daily.
6. Block instant messages from anyone not on your buddy list.
7. Don't download software from a Web 2.0 site.
8. Scan files with your anti-virus software.
9. Don't rely on toolbars.
10. Two is not better than one.

Read more details on the 10 ways to guard against cybercriminals.

Most bills still getting paid on time.

CNN’s Money.com is reporting that even though Americans are missing payments on their home loans, they are still managing to pay their credit card bills on time, which means that the pressures of the housing market are not having as big as an effect as people might think.

NEW YORK (Reuters) -- Americans are missing more payments on home equity loans, but credit card delinquencies are holding steady, suggesting that housing pressures have yet to make it tougher for people in general to pay their bills.

In its quarterly study of U.S. consumer borrowing, the American Bankers Association said late payments on home equity loans rose to 1.92 percent from 1.79 percent in the third quarter, and were the highest since the first quarter of 2006. Late payments on some auto loans have hit a 5-1/2-year high.

The rate of credit card delinquencies edged down to 4.56 percent from the third quarter's 4.57 percent. That rate was the highest since the spring of 2005.

"We're certainly concerned to see the rise in home equity loan (delinquencies)," ABA Chief Economist James Chessen said in an interview. "The increase raises a caution flag, but the rate had been lower in 2006 than in the prior three years."

The ABA surveys more than 300 banks nationwide. It considers payments late if they are 30 or more days past due.

Read the full story after the jump

Most bills still getting paid on time.

10 bad money habits to kick

We are all guilty of having one or more of these. I am still living without a budget, and have not investigated disability insurance. Which ones are you guilty of?

MSN money lists 10 habits that we should get rid of, to improve our financial situation.

• Spending without a budget.
• Carrying a balance on credit cards.
• Ignoring interest rates.
• Not investigating disability insurance.
• Failing to see how little purchases add up.
• Not matching employer's contribution to retirement.
• Waiting until the last minute to fund IRA.
• Paying everyone else, saving "what's left."
• Not managing your investments.
• Getting emotional about your investments.

Continue reading here.

Wanna raise your credit score?

You credit score. I am not sure if there is any other number that has a bigger effect on our lives. It can get you a 5% loan instead of 8%. It can make you eligible for that 2 year-no interest loan. Anything over 700 should be good enough for most loans.

Money.com has some tips on how you can bump it up and help yourself in the long run.

1: Pay off your debt: ‘…the best way to improve your credit score in the short term is to pay off the high balances on your credit card - that can raise your FICO score 60 to 70 points overnight, …’

2: Minimize your balances: …If you're within three months from applying for credit, make sure you don't charge a lot on your cards, or split the purchases between a few cards, so you keep the balances down. …

3: Hang onto older cards: ‘…the longer you've managed your credit wisely, the better your score…’

4: Don't sweat the little things: We've already told you what impacts your score. But here are some things that don't matter to your score at all. Your score won't be affected if you request your own credit record, or if you go for credit counseling.

More here.

Is a 'rewards card' right for you?

I have a Starwood Preferred Guest Card from American Express which I use for pretty much everything I buy, from a quick meal at McDonald’s to my recent cruise vacation in the Bahamas. I pay it off every month in full and rack up some hotel points to use towards my next vacation.

A rewards card is not for everyone though. Most of them have an associated yearly fee, which could be anywhere from $25 to $100.

The Christian Science Monitor has published an informative article on the subject.

What's your rewards pleasure? Cash back? Discounted airfare? Free earphones? Whatever your fancy, there's a credit card out there designed for you. But before jumping on the rewards bandwagon, ask yourself: Will getting the reward cost me more than it's worth? Which rewards make the most sense for me?

1. Do the math. Along with the temptation to buy more comes the risk of carrying a monthly balance and losing rewards to interest or – worse – late fees. …

2. Be realistic. Think twice about getting a rewards card if you're enticed by MasterCard's American Dream card (where you accumulate points to enter a monthly sweepstakes), or Visa's World Series of Poker card (which offers reward points toward such things as buy-ins to World Series of Poker events).

3. Beware hidden costs.

4. Shop around. If you decide rewards are right for you, you have thousands of cards from which to choose. …

5. Consider going the debit rewards route.

6. Take the "merchandise or cash back" test. If you're considering merchandise rewards cards, get the card's catalog, find a cash-back card with similar terms, and see if you can get a better deal with cash back, says Arnold. There's a good chance you can. …

…

More here.

6 steps to credit card serenity

USA is a country that is swimming in credit card debt. A quick Google search shows that the average US household debt is around $10,000. I was buried under a five figure credit card debt until a few years ago as well. For those of you who are trying to cope with it and working towards a place where you are debt-free, Bankrate.com has some tips on how to get there.

1. Know where you stand – …make a list of exactly how much you owe and
what rate of interest you're paying on each card. Then list your cards in order
of highest rate to lowest.
2. Pay highest-interest cards first – …
These cards are the ones that are costing you the most over the long run so you
need to make every effort to pay more than the minimum payment each month on
these bills first.
3. Get a better deal – Call the toll-free
number for your highest rate cards and ask the customer service representative
if she can give you a better deal.
4. Consider using a different card –
Hang on to all those zero percent and other low-interest credit card offers
you've been getting in the mail. Done well, transferring your high interest
balance to one of these cards can save you an enormous amount in interest and
put you on a solid track to paying down debt.
5. Beef up your credit score –
If you make all your payments on time over the next six months and aggressively
pay down your biggest balances first, you could improve your score as much as 50
points
6. Avoid penalties and fees – Interest rate hikes and hefty monthly
fees can ruin even the best-laid pay-back plans. Avoid: Late payment penalties.
Penalties for late payments on any card. Credit Limit Fees

More here.

What Credit Card Companies Don't Want You to Know

The author of one of my favorite personal finance books, David Bach, has an article up on yahoo.com about the stuff that is in your credit card agreement's fine print. Most of us don't bother reading it, thinking it is the usual legal blah-blah, but as he lists in his article, some of this stuff can really hurt you.

Of all the games the credit card companies play that end up costing you thousands of dollars (late fees, over-limit fees, transfer fees, and so on), it's always been the interest rate game that hurt the most -- until now.

There's a new, completely legal game they're playing, and it can literally wipe you out financially if you're not careful.

More here.

10 Reasons NOT to get a credit card

After yesterday's post about why you should get a credit card and what benefits it could provide, here are 10 reasons NOT to get one and how it can harm you in the long, and sometimes even the short run.

1. They can damage your credit score
2. They can come with universal default
3. They charge huge interest rates
4. They come with numerous fees
5. Many cards have a hidden rule in the fine print
6. They have deceiving minimum payments
7. They encourage impulse purchases
8. They increase your spending
9. They encourage you to spend more money than you have
10. Credit cards will bait and switch

Details here.

10 Reasons You Need a Credit Card

Jeffrey Strain has written a nice article on TheStreet.com about why you need to have a credit card.

"10 reasons:

1. Boost Your Credit History and Score
2. Internet Purchases
3. Emergency Money
4. Rewards
5. History of Purchases
6. No Fear of Loss or Theft
7. Interest-Free Money
8. Merchant Protection
9. Insurance on Purchases
10. Convenience When Traveling

For those that have the discipline to pay off their credit cards each month, they are a great financial tool that can save and earn you quite a bit of money."

Link