Thursday, December 14, 2006

Managing Your Money During The Holidays

Managing anything well is simple once you know the pro's and con's involved.
The financial stress that comes from poor credit management skills can
create a multitude of problems in your life. This is why it is good to use
common sense in handling your own personal finances.

Credit card use, if used wisely, can be one of the greatest tools in
building good solid credit. It can also be one of the quickest indicators to
a potential lender that a person is not a responsible money manager.

Good money management skills also mean taking the time to search for the
best interest rates available on a credit card. Finding a low interest
credit card can allow you to use a cash advance to pay off the debt on other
credit cards that you have. Having paid down the debt of the other credit
cards puts you in a better position to keep tabs over your credit finances
across the board and handle any financial emergencies such as illness,
accident or a sudden mechanical problem on your car.

Make A List And Check It Twice!

Reevaluating how you shop during the holiday seasons is also a part of
sensible money management. The urge to splurge and incur debt in buying
gifts will create a financial hangover that can be repeated year after year.
Many people pay for their holiday shopping for the following 12 months.
Institute a personal rule to not use your credit cards for anything you can
afford to pay cash for. It's not really a bargain if you buy it using a
credit card that charges 18% interest.

After the holidays when all your friends and relatives are fresh in your
mind, make a list of everyone you want to purchase a gift for and keep the
list in an easy to reach place like a purse or wallet, as you find good
deals and sales throughout the year, pick up that person's gift and put it
up until the holiday season. In December, you'll have the majority of your
shopping done and you won't feel the sting of holiday shopping as most
people do.

Set Spending Limits

Setting spending limits where your credit is concerned is always the best
bet. Take the time to really get in touch with your own spending needs and
habits - make a budget and stick to it. Cut corners wherever you can and
eliminate unnecessary expenses. Eat as many meals at or from home as you
can. Curbing eating out expenses will save most people between $20 to $50
dollars a week on the average.

Shop During The Slow Seasons

Deciding where to shop is a highly overlooked skill as well. Retailers are
seasonal and will often run sales during a slow season. These are ideal
times to stock up on the things you need at a fair price and avoid using
credit cards for these purchases. A little time and effort will allow you to
find the best bargains year round.

Lastly, check your personal credit report once a year.
Mistakes can happen and you can be denied a credit card, personal loan or
even a job due to an error in reporting.
Once caught, most credit report errors are easily fixed; but the
responsibility of catching and correcting those errors is solely up to you.
Make these habits a part of your credit and money management skills and you
will save yourself a lot of money and interest in the long run.


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Liz Roberts is a loan consultant with NewHorizon Finance and has been
providing consumers and business owners with financing since 1989. Bad
Credit? Join our mailing list for tips on building and repairing your credit
yourself without hiring a credit repair. Vist our site for a list of bad
credit credit cards http://www.newhorizon.org/Info/unsecured.htm

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