Did you blow the budget on those too-good-to-pass-up holiday sales? It’s January, and the credit card bills are due.

While transferring balances from credit card to credit card may prolong the pain, the piper is asking to be paid — now.

Five management tips

1. look for ways of saving money on expenses and eliminating non-essential expenses (entertainment, cable, cigarettes, shopping).

2. Deposit part of your income into a savings account to meet emergency expenses.

3. Make your spending habits consistent. Large expenses should be pro-rated over a period of time.

4. Make the budget a family project. Everyone must be involved in order for it to work.

5. Spending limits must be realistic.

You’re not the only one with a shopping hangover. Holiday shoppers chose to use credit cards roughly 7 percent more, according to First Data, which tracks consumer payment data.

The bad news is the average annual percentage rate, or APR, is 14.95 percent. The good news for consumers is that this is the sixth straight week without an increase in the national average since the average hit a record high of 15.22 percent in mid-December.

If you are considering transferring your balance to another credit card with a lower interest rate, check out www.creditcards.com/balance-transfer. You will be able to look at list balance transfer credit cards designed to help people consolidate their credit card debt onto one card, thus saving money on interest charges.

Each card offered has a detailed explanation of rates, fees, rewards, limitations and other important information, making it easy to compare cards.

What to do

Consumers can do a few things to eke some extra money from their usual spending to help pay off the bills, said Carole Bachman, a certified financial counselor in the Stroudsburg office of Credit Counseling Services of Northeast Pennsylvania.

“Stop buying lunch out every day and pack lunch, don’t stop off for that expensive latte, and think before you spend,” she said.

Sean Adams, a certified public accountant who owns new Beginnings Financial Consultant in Stroudsburg, said there definitely are things you can do to find money that you are wasting each day. “For instance, think about the leftover food you throw out every week,” he said.

That’s like throwing money in the garbage can. You need to cook less food or buy less food, because it is being wasted. Adams suggested that people put the money saved by buying fewer groceries into paying a bill.

Consumers can start by paying off the card with the highest interest rate first, which will help reduce the bills faster.

And how about cashing in all those reward points and converting them into a statement credit?

Then, take back those unwanted gifts. You may need a store receipt if you want the cash.

What you should have done

“The ideal situation would be to have opened a Christmas club account or a savings account last year to save up for the holidays,” said Bachman, who has been a counselor for more than 14 years.

She counsels a fair number of people who don’t budget for the holidays and then get in a fix when it is time to pay the bills.

If you didn’t do what you should have last year, planning a budget for not only Christmas but all spending will make 2012 a better year, and January 2013 even more so.

Realistic spending

“I tell them they need to be realistic about holiday spending. if they exchange gifts with family members and one family has 10 children, I suggest instead of buying everyone in the family a gift, that they give one family gift,” Bachman said.

You can always give non-money gifts, such as volunteering to clean their house one time or make a meal for them once a month, she said. “I think people appreciate the gift of your time, especially if they work,” Bachman said.

Adams agreed, “Before you buy anything, you need to establish a budget for holiday spending, and you should have contributed to it throughout the year, not just before the holidays.”

Another important thing to keep in mind when budgeting is to make sure you include all your extra expenses, not only the cost of gifts.

“I tell them if they are traveling to relatives, they need to include the cost to travel, the cost of the extra food they prepare, a hotel if they need one and to allow extra for any other holiday expense that might come up, like buying a tree or going out to eat,” she said.

In addition, if mailing any gifts out of town, the cost of packaging and mailing needs to be included in the holiday budget, Bachman said.

If possible, instead of mailing gifts, she suggested getting the person a gift card — something that is much cheaper to mail.

If you must buy something, purchase the gift online and ship directly to the recipient.

If you have children, you also need to talk to them ahead of time about what they want for Christmas, Adams said.

“That way, if what they want is more than you will be able to spend, you can tell them they will need to save some money to put toward what you are able to spend,” he said.

It takes some work to get on a budget and stay on it, but Bachman said the sooner you do, the sooner your finances — and life — will be in order.

<a href="http://www.poconorecord.com/apps/pbcs.dll/article?AID=/20120131/FEATURES/201310308/-1/NEWSMAPtag:news.google.com,2005:cluster=http://www.poconorecord.com/apps/pbcs.dll/article?AID=/20120131/FEATURES/201310308/-1/NEWSMAPTue, 31 Jan 2012 05:16:26 GMT”>No time like the present

ATTEMPTS by financial planners to block the federal government’s “opt-in” proposals could mean consumers paying up to 17 times more for advice.

A study released yesterday by Rice Warner Actuaries, commissioned by the Industry Super Network, found consumers were in front paying a set or hourly fee, as opposed to the asset-based fees favoured by financial planners.

The opt-in proposal is part of the Gillard government’s financial advice reforms, which will require advisers to contact clients every two years for permission to change their fees. Financial advisers oppose this, claiming it will add costs.

Start of sidebar. Skip to end of sidebar.

End of sidebar. Return to start of sidebar.

<a href="http://www.theaustralian.com.au/national-affairs/financial-planner-fee-warning/story-fn59niix-1226066017693tag:news.google.com,2005:cluster=http://www.theaustralian.com.au/national-affairs/financial-planner-fee-warning/story-fn59niix-1226066017693Mon, 30 May 2011 14:03:55 GMT 00:00″>Financial planner fee warning

You’ve heard iPhone users gripe about their mammoth monthly charges — but it’s not just those with the fanciest smart phones who are paying a bundle. “The average consumer overspends by $300 a year,” says Schwark Satyavolu of BillShrink.com, which helps consumers save on expenses. Knocking that much off your tab isn’t hard, experts say: you can do it by changing your plan, your carrier, or the way you use your phone.

Cell phones: Make talk cheaper

American Airlines? fight with online travel-booking websites could lead to changes in how consumers purchase their airline tickets, and it may mean higher fares ? and bigger headaches ? for consumers.

Jennifer Waters’s Consumer Confidential: American Airlines feud bad news for travelers

Numerous consumers are seeking credit card debt assistance from both credit counseling agencies and other organizations, as well as, assistance which may be available directly from their creditors. Obviously, the new year often brings many resolutions for consumers to reduce their credit card debt or erase their debt entirely, and for this reason, many…
Read more »

<a href="http://www.rwbpress.com/2011/01/05/investing-in-a-roth-ira-for-retirement-contribution-limits-may-call-for-alternative-retirement-planning/tag:news.google.com,2005:cluster=http://www.rwbpress.com/2011/01/05/investing-in-a-roth-ira-for-retirement-contribution-limits-may-call-for-alternative-retirement-planning/Wed, 05 Jan 2011 14:14:19 GMT 00:00″>Investing In A Roth IRA For Retirement–Contribution Limits May Call For …

You’ve heard iPhone users gripe about their mammoth monthly charges — but it’s not just those with the fanciest smart phones who are paying a bundle. “The average consumer overspends by $300 a year,” says Schwark Satyavolu of BillShrink.com, which helps consumers save on expenses. Knocking that much off your tab isn’t hard, experts say: you can do it by changing your plan, your carrier, or the way you use your phone.

Cell phones: Make talk cheaper

You’ve heard iPhone users gripe about their mammoth monthly charges — but it’s not just those with the fanciest smart phones who are paying a bundle. “The average consumer overspends by $300 a year,” says Schwark Satyavolu of BillShrink.com, which helps consumers save on expenses. Knocking that much off your tab isn’t hard, experts say: you can do it by changing your plan, your carrier, or the way you use your phone.

Cell phones: Make talk cheaper

Why people want independent financial advisors

A new perception has taken hold: “independent” is better.

Times have changed – and so have financial advisors. Today, people don’t want financial advice from a salesman. Instead, they want a relationship with a financial professional who is candid, trustworthy and thoroughly educated, who provides personalized financial consulting for each client.

That search often leads them to a fee-based or fee-only financial advisor or a Registered Investment Advisor.

A pleasant alternative to Wall Street. a paradigm shift is happening, and the traditional brokerage houses are lagging. while old-school “stock brokers” have gone the way of the wooly mammoth, you still have a sales-first mentality in place at big banks and Wall Street brokerages. if you’re employed by one of them, the mantra is simple: make a sale, earn a commission.

As they try to serve their clients, these “wirehouse” brokers regularly contend with sales quotas and the inherent potential for conflicts of interest. it wears on them: a 2010 survey revealed that only 15% were “very satisfied” at their firms, and another 20% wanted to leave within two years.

Given the tarnished reputations of so many giant banks and brokerages, it isn’t surprising that consumers are turning elsewhere for financial advice. Here are three popular destinations.

A fee-based financial advisor has structured his or her practice to promote earning income from fees instead of commissions. The emphasis is on advice. An independent, fee-based financial advisor also has freedom – freedom to choose the most appropriate products and services for your risk tolerance and investment goals. (More about that in a moment.)

Fee-only financial advisors earn no commissions at all. they derive 100% of their income from client fees – annual management fees or hourly or per-project consulting fees. with this compensation arrangement, you know that a fee-only advisor is available to help you address myriad issues in your financial life, not simply those that could lead to a commission.

A Registered Investment Advisor (RIA) usually works to manage the assets of high net worth investors. An RIA receives management fees and does not receive commissions. The management fees usually represent a percentage of the assets a client has invested. RIAs have to register with the Securities and Exchange Commission and any states in which they operate.2 Individuals, couples, families and institutions with sizable wealth management concerns often turn toward RIAs.

Even as the market has struggled since the end of 2007, independent Registered Investment Advisors have gained a greater share of assets under management in the U.S.

People need unbiased advice. That’s probably the #1 reason why people seek an independent financial advisor. they know that the advice they receive is not influenced by sales incentives or directives. there is often a candor to the discussion that may not always be present at a bank or a brokerage.

People want more investment choices. An independent financial advisor is free to offer investments from dozens, maybe hundreds of companies, rather the investments of a single company. in addition, that independent advisor can unhesitatingly tell you if an investment is or isn’t appropriate for your financial situation.

This is the age of independence. when it comes to the financial future, no one wants to be “sold” – just advised. That’s why we’ve seen the rise of a new kind of financial advisor who puts the client relationship first.

Jay Peroni – Faith Based Investing » Blog Archive » Should You …

Ed Slott’s Retirement Decisions Guide is a 47-page compact guide that is a perfect read for both consumers and financial advisors.

This week, The Slott Report will be providing a sneak peak at some of the material in the guide. The guide is broken up into “86 Ways to Save & Stretch your Wealth.” Over the next four days, we will showcase 4 of those ways.

CLICK HERE to purchase the guide (bulk options available). The guide is also available on Amazon Kindle eBook.

12. Does a Roth IRA conversion pay?

In many cases, the answer is a resounding yes. Income restrictions for converting to a Roth IRA have been waived starting in 2010. If you can pay the income tax due on the portfolio’s market value at the time of conversion, the move is a powerful one.

Here’s why: Historically, today’s income-tax rates are relatively low. A conversion allows you to pay income tax at the current rate and get rid of Uncle Sam for life. So, for example, if a $500,000 portfolio in a Roth IRA grows to $1 million in 15 years, all of those dollars are yours. And you get to enjoy all of the benefits of a Roth IRA, including no mandatory withdrawals.

The Slott Report: Ed Slott's Retirement Decisions Guide: #12

By Teresa Dixon Murray, The Plain DealerJune 04, 2010, 5:30PMTeresa Dixon Murray writes this column in The Plain Dealer on Saturdays.
To reach her: moneymatters@plaind.com or 216-999-5263. she cannot assist everyone who contacts her.
Read previous columns online

The Question: I have about $7,800 in credit card debt and have never, ever been late on a payment. I just got my credit score and was astounded that it’s barely over 700 (actually 710). I don’t understand how $7,800 in debt could be considered risky when my husband and I earn about $160,000 a year.

– R.P., Mayfield

The Answer: fair Isaac Corp., whose formula is used for the majority of credit score tabulations, says it doesn’t consider income (or debt compared to income). I say two things to that:

First, I’m not sure whether I believe it. The folks at fair Isaac and the three credit bureaus are a secretive bunch. They guard their information very closely, and I’m not talking about people’s private information, which obviously should be protected.

Remember, it was only in the last decade that fair Isaac — under threat of federal litigation — started allowing consumers to buy access to their own credit score for about $7. And it was only five years ago that the bureaus started offering consumers a copy of their report once a year at no charge after Congress mandated it.

Fair Isaac and the bureaus say income isn’t part of your score, but your reports do include the name of your employer and your occupation. might they estimate average salaries based on your occupation? it sure would be easy to do. Maybe they don’t want to expose themselves to accusations of discrimination if they disclosed exactly how scores are synthesized.

Second, if income isn’t considered, why not? it would make sense that $7,800 in credit card debt would be more risky for an entry-level cashier at a fast-food restaurant than it would be for a specialty surgeon with an income pushing seven figures.

In your case, it appears your problem is that your total credit limit on your two cards is $11,000. You’re using more than 70 percent of your available credit, and that’s considered risky.

The Question: I am over 70 1/2 but still working. Can I continue to purchase an annual Roth IRA, like I’ve been doing for the last 10 years, even though I’m over 70 1/2?

– M.O., Bay Village

The Answer: yes, you can. there is no age limit for contributing to a Roth IRA. however, people cannot contribute to a traditional, tax-deferred IRA after age 70 1/2.

There’s only one age issue that has affected you: For people 50 or older, the maximum contribution that can be made to a traditional or a Roth IRA is the smaller of $6,000 or the amount of your taxable compensation for 2010, according to the IRS. that amount can still be limited depending on your modified adjusted gross income.

For 2010, Roth IRA contributions aren’t allowed for people who are married filing jointly with MAGIs of $177,000 or more. The MAGI limit for single filers is $105,000. For more information, see IRS Publication 590.

Why isn't income considered in credit score calculation? Money Matters