Follow The Bouncing Check

Contributed by Elaine Landau

I read somewhere that there are a record number of bankruptcies in the United States this year. More people have bigger credit card debt. Grown children are moving back in with their parents because they can't make ends meet.

It was right about then I stopped reading. It was all too depressing. Money doesn't need to be a mystery. Managing your funds is key to keeping the Wolf away from your door. If you feel the big guy nipping at your heels, maybe you should consider some of the following ideas.

Avoid Finance Charges
So easy to say, and easier to ignore. Gee, which check do you want to write? The one for $13.45 (the minimum payment) or the full $452 for the couch? If you pay the finance charge, you can take your extra bucks and go to the amusement park. Then again, by only paying finance charges month after month, that couch could cost you about $9000 when you are done paying for it over time. Maybe my math is off, but you get the idea. If you can, pay off your credit card every month. You will be pleased that you did.

But I still have checks. How can I be overdrawn?
Keep accurate records. Don't round off when adding and subtracting in your checkbook. When writing a check, don't wait to put the check amount in your register. You may forget. If you use a debit card, record the action in your check register immediately. Bounced checks cost you time, money, and sometimes some real embarrassment.

Do you know your Credit Score?
You may not, but everybody else seems to. Request your credit report at least once a year from reporting agencies. Those credit card solicitations you receive everyday in the mail and those ads on the television wanting you to refinance your house, may be tempting, but Debtor Beware. There are always terms and conditions that you have to understand before signing any contract. Sure, the initial interest rate of the new credit card is really low, but what happens after six months? You could find yourself in a finance-charge nightmare. Your home is your greatest asset. Sometimes refinancing makes sense to pay off high-interest bills. Sometimes refinancing makes no sense, especially if you are digging yourself further into debt. If you have a good credit score, protect it. If it is poor, improve it.

Is that You?
Review all credit card statements, telephone bills, and bank statements to be sure nobody is borrowing your good name and credit score. Identity theft is real. The more you know; the least likely you will become a victim.

Ask the Experts
Don't be afraid to visit a bank officer at your local branch. By providing them with a complete picture of your financial situation, they can alert you to different programs that are offered to help reduce payments. Some credit counselors that are advertised on television may be very helpful, but understand that many work for a fee. You are responsible for that fee.

Computer Help
Learn how to use the Internet and make it a valuable resource for financial information. If you keep all your financial records in a shoe box, you may want to explore free online computer tutorials, online Excel courses, training and help. With an Excel spreadsheet you can view your financial situation at a glance to find the weak aspects of your overall financial picture.

No Fees, Please
Late fees. Bank fees. Administration fees. Avoid fees if at all possible. Be on time with payments and keep balances above the required amount and you won't have any little surprises when your statement arrives.

Bank on This
Always read your bank statement when it arrives. Banks can make mistakes and will reverse any errors that they have made. If you don't alert them to errors, they most likely will not be aware of them. Many times those errors are not in your favor.

Old News
Nobody is getting any younger. Make sure you have a retirement plan and a will. It never seems to be the right time to work on either one, but the time is NOW if you want to be prepared for whatever is around the corner.

Don't Play it Too Close
Establish a family emergency fund in case the washing machine explodes and the car stops running. Rude surprises happen. That's why they call them rude.

Are you making Uncle Sam your Rich Uncle?
When was the last time you reviewed the number of deductions on your W-4? You may be paying too much to the government and that money could be in your paycheck to help establish a college fund, emergency fund, or even a cruise fund.

Remember, it's your money. Money may not buy love, but it can buy freedom to do the things you love and provide security for those people we love. You can bank on that.

About the Author:
Elaine Landau is a freelance writer, publicist, web site editor, and television writer with more than 15 years of experience in marketing, advertising, and publicity.