Reader Poll: Cash or Credit?

Do you prefer to pay with cash, or with your credit or debit card? Does it depend on the purchase?

Lately I’ve become a lot more keen on being frugal and guarding against spending my money. Because I tend to spend more when I’m paying with my credit or bank cards, I’ve decided to simply withdraw the money I “allow” myself to spend on discretionary things so that I can monitor more closely how I’m spending my cash. Bank fees have also grown quite ridiculous so I may be using my bank card a lot less from now on! For online purchases, there’s always PayPal.

PS - No need to worry about identity theft, either, if you enroll with life lock.

Savvy Spending: How to Compare Credit Offers

When you are trying to build credit for yourself or are already in debt, it’s easy to want to take the first credit or loan offers that come addressed to you in the mail. These lenders boast low APRs, high credit limits for low credit scores, etc. If these offers sound too good to be true, they usually are. If you have a credit score lower than 600, it is generally not wise to apply for any credit or loan offers until you clean up your past mistakes and improve your credit score. Because, as mentioned in a previous post, merely applying for credit offers or loans dings points off your score.

If you have decided to start perusing the lending market for sensible, safer credit and loan offers, the Bad Credit Offers website can help. This site allows you to compare and contrast offers such as home, auto, and personal loans as well as credit card offers. If you have a credit score around 600 and need to consolidate, Bad Credit Offers offers bad credit loans to those in such a predicament. Have a look at the site to see if this service may be of some help to you.

Savvy Spending: How to Use a Credit Card

I suppose that at this time of year, it’s hard not to abuse our lines of credit when we’re trying to spoil family members and friends with lavish Christmas gifts. Ideally we’ve been saving our paychecks instead to avoid using credit, or even handmaking our gifts for more special and cost-effective gift-giving (try BuyNothingChristmas.org for more cool ideas).

Being an ex-”credit card abuser”, I’ve compiled some tips to help climb out of debt, stay out of debt, and protect our credit score. Feel free to chime in with your own smart borrowing habits.

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How To Save Money

With the holiday season fast approaching, it is more than ever necessary to save and use our money wisely.

Tips To Save Money

• Open a savings account with a high interest rate. Forget about opening a savings account at banks like Chase or Huntington Bank unless they offer excellent perks (usually not). Online savings accounts are where it’s at. HSBC currently offers a 4.5% APY on online savings accounts. I don’t know about you, but I’d like to see my $1,000 savings yield $50 in interest rather than $2.
• This is probably one of the hardest things to do, but quit spending on fast food and cappuccinos everyday. At least tell yourself you’re not going to, and try to stick to it. Even limiting yourself to three Starbucks treats a week can save up to $10. That’s money to be saved for a rainy day, or put toward something more worthy! (…Like a bill).
• Shop around for deals. Amazon and even EBay for example are amazing when it comes to scoring awesome deals.
• Buy off-season. Don’t shop for fashions right when they hit stores, when prices are highest. New spring/summer styles may appear in March, but don’t buy until May when a lot of it goes on sale.
• Buy in bulk. If you drink a lot of diet soda, buy six packs or cases rather than buying individual bottles.

See! You can be frugal and remain fabulous.