In the news recently have been several reports of rising or altering terms from credit card companies.  Many banks have changed their policies, raising rates by as much as 30 percent in the last 12 months or have increased minimum payments dramatically and decreased the number of days in a billing cycle- all of which can cause late or additional fees for customers who are unaware of these shifts.

Why is this? New customer protection laws are beginning February 2010, which prevent banks from charging over-limit fees. Also, under the new legislation, banks will not be allowed to increase interest rates unless a customer is more than 60 days late on payments.  These last few months pre-legislation changes are causing banks to move quickly with increases and charges that won’t be allowed later.

What can you do if your bank suddenly raises rates or you’re hit with charges?

1. Negotiate. Call your bank and try to work out reducing or eliminating charges or fees. While not always successful, an attempt to negotiate is always worthwhile. Some banks, rather than lose a customer will work with you.
2. Pay off or Reduce Debt: Credit cards can be beneficial tools for building your credit, but they are like an albatross hanging on your neck if there is a balance- especially now in light of these sudden increases. Make every effort to pay these down or off.
3. Switch: If you can’t pay them off, try changing to a card that offers an interest free period or lower interest rate for transfer. However, you must read the fine print to be sure you are later charged a higher amount than you are currently.
4. Read Each Statement Carefully: Keep on track of cards changes by reading every bit of information sent to you. Missing an increase of fees or a shortened billing period can cost you heavily in fees and affect your credit. Stay on top of these.
5. Contact Congressmen: Report your concerns to your local congressman and to the Better Business Bureau if you feel you’ve been treated unfairly.
6. Keep Your Credit Good: You’ll be prevented from obtaining the best rates and cards if your credit fails in other ways. Make every attempt to pay all bills on time and elect for auto-payments if possible to avoid late payments and fees.

One woman, Ann Minch, who went national with her complaints against Bank of America, did so in a large way, and obtained her reduction in fees. However, she just recently posted a video showing her response to another credit card company (Chase Bank) who raised her rates after the introductory period. If you need to, close your account and freeze the interest at a lower rate, as she elected to do.

Remember, credit is still your friend if you play the “pay-it-off-monthly” game and swap reward points for purchases. It’s when you carry a balance or miss payments that issues turn largely ugly.  Get rid of department store cards and cards with hefty fees and use a card that offers you decent rates and points to keep credit your friend.

Cheap Ways to Celebrate Halloween: Fright for Free

As a skinflint, I look at holidays as another source of draining my bank account. I do enjoy the celebration of these events. I just like to do it on the free or nearly free.

Why do I want to spend a ton of cash on candy only to hand my hard earned money out to unknown little monsters and ghouls- most of whom never haunt my house at other times? My own kids could use this money in a variety of ways and so could I. I’m not opening the door and tossing cash out, in the way of dental bills for other children, regardless of the cultural norms.  That to me would truly be a frightful event.

Some suggestions for a budget conscious Halloween that won’t scare away your cash:

1. Pick a dollar amount via looking at your budget. Don’t overspend, which is tempting as Halloween is for retailers a big holiday cash maker and a deadly blow to your money if you’re not careful.
2. Throw a Halloween party with another parent instead of trick or treating the neighborhood.  You’ll spend less and have more bang for your buck. Combine your decorations, pick a house and split the cost. Enlist children to help create ghastly effects.
3. Shop the Dollar Tree (or similar store) for candy. You’ll be amazed at what $5.00 buys in the way of candy at these one dollar stores. I bought three bags of 100 pieces of off brand Jolly Ranchers and two bags of Hershey Kisses for $5.00.
4. Yard sales. The nicest thing about Halloween, from a fiscal standpoint, is the more destroyed, tattered or old something is, the better it fits into the theme. Use an old yard sale table or destroyed rocking chair; toss a white sheet over it with spattered “blood” made of corn syrup and red food coloring.  Fill large glass jars or bowls with brains (cauliflower) or bloody “eyeballs” (peeled green grapes soaked in red food coloring and water overnight. Rinse and put in the jar). Or fill a glass bowl with dirt, position a white latex glove filled with sand so it appears to be crawling out of the bowl. Toss some plastic spiders or “cobwebs” made from stretched out cotton balls. (DON’T buy fake cobwebs when these look remarkably realistic). You can either put this on your porch to welcome ghastly visitors or use it for your Halloween party indoors.  (BTW-Picking up a destroyed piece of furniture could even be free if you haggle). Total cost? Nearly free for the whole thing. You can find jars, bowls and discarded furniture at yard sales. I spent three dollars for this decoration ensemble here at my home.
5.  Goodwill or Salvation Army Costumes: There’s no end to the possibilities at these stores in the way of costumes, from pirates to current events, you’ll find your pick.  A few years ago, when the movie, Matrix was at its height of popularity, I found a long black plastic rain coat that was way too big at Goodwill. I stapled it inside to make form fitting, added cheap black sunglasses and my own knee high boots, a pair of skinny black pants and a huge plastic squirt gun, which I spray painted black. Tossing it off by slicking my hair back, I went to a costume party as Trinity, the female lead from Matrix- and won for best costume. Total cost $4.45. Go and peruse those two stores with an eye for the creative or take an innovative soul with you to help with ideas.
6. Break out the sewing machine: Even the worst seamstress on the planet can sew items for Halloween.  Unlike clothing, which needs great seams or finishing touches, Halloween is all about looking tattered.  You can also sew some quick placemats or throw pillows on the cheap.

As soon as Halloween is over, go shopping for deals and store these away for next year. Most decorations drop down to 75% off, to make way for Christmas. If there is something you’d really like, and do want to spend money on, pick it up that way. You can even buy candy on clearance and store it in your freezer for next year. Little ghosts and ghouls won’t know or care the date you bought it.

H1N1, coupled with the early onset of the seasonal flu, make this a very unwell time period. If you are watching pennies, getting the flu can make your budget sick, too. Over the counter medication, doctor’s visits, prescriptions and lost time from work all add up to a queasy checkbook.

Keep the sniffles out of your budget by following these tips:

Plan on Being Sick. Yeah, you heard me. Even if you only end up with the common cold, it’s still likely the average person will be sick with something this Fall-Spring. Hence, you must make a plan. Spending money last minute will kill your budget quickly, even long after you’re on the mend.

Call Insurance Today: If you get the flu and have insurance, your physician may prescribe Tami-Flu, which is an anti-viral medication that shortens the duration of influenza. There is no generic version of this drug-an important fact to know as insurance companies vary WIDELY on the co-pay amounts of non-generic drugs. Currently, my son at Ball State University has H1N1 and filled his script of Tami-Flu (with insurance) for $50.00. (Normal co-pay on most medications is $10 or $20.) Contact your insurance company and ask them, “If I become ill with influenza, what is my co-pay on a prescription for Tami-Flu?”Then try to bank the money needed for EACH family member if they need to be treated. For a struggling family of four, to be hit with a sudden out of pocket expense of $200.00 is HUGE on a limited budget.

Pick up Supplies Weekly: Start buying a few OTC medicines each pay period. Use coupons and bargain hunt. Shop Walgreens or CVS for deals, as they have Register Rewards or CVS bucks, which you can use like cash on other purchases.If you play your cards right, buying on weeks when Sunday paper coupons match items offered with reward money, your purchases pay for themselves. Often you can get a product free (or nearly free) by stacking these coupons and daisy chaining the reward money to buy the next purchases. This saved me personally, $88.93 on OTC’s- I spent $38.96 over four weeks and purchased over $126 dollars of medication, thermometers, tissues, Gatorade, cough drops and disinfectants. (I buy not only for myself, but send care packages to college kids).

Save Coupons: Collect any and all coupons needed for flu or cold care. You never know if a kiddo will need a different cough medicine than you’ve bought or a doctor suggests another choice. Most coupons are good for a month. This means you’ll need to stay on top of this process.

Talk to Your Employer: Find out in advance what your employer’s policy is on coming to work if ill. Technically speaking, under the Occupational Safety and Health Administration’s (OSHA) guidelines, your employer must keep not only you, but those around you in a workplace that is “safe and healthy and free of known hazards.” That’s good news for you, as it allows you to stay home when sick, without fear of reprisal. Your sickness could jeopardize other’s health if you come to work coughing and hacking. However it’s been my experience, employers all regard illness differently. With some employers, a phone call- “I’ve got H1N1” does the trick for staying home when ill. Others want proof of illness (possibly from a company doctor). Still other employers will expect you to come back to work the next day, where you’ll be spreading germs and feeling horrible.Don’t be shy about pulling the “OSHA safe and healthy workplace” card if you need to. An employee who knows their rights is less likely to lose them. According to the Centers for Disease Control, (CDC) you should stay home until fever free for 24 hours – WITHOUT fever reducing medications. The current strains of influenza can cause fever for up to a week in adults and longer in children. You are contagious during the time you are running a fever.Know this now and don’t try rallying and dragging yourself (or forcing your sick kids to school so you can go back to work) if your legal rights protect you, as they do. If you don’t want to talk to an employer, review company handbooks, consult the OSHA website or speak to a union steward. Working when sick, instead of resting, can hit you in the wallet harder later if you develop a serious complication.

FMLA: If you have paid sick time or vacation time you can use these, of course, for yourself or taking care of sick family. However, if you get sick for a week and then your kids get sick for two more weeks, you easily can exhaust paid time and permissible unpaid days away. What do you do then?Under the Family Medical Leave Act (FMLA), you are allowed time off work to tend to ailing family members-again without fear of reprisal. There’s a few catches though, you must tell your employer that you are using FMLA time in advance or as soon as you are aware of the situation-(i.e. don’t come sauntering back to work a week later and attempt claiming post FMLA time).Some employers will have protocol about how to ask for FMLA, such as your doctor might have to state in writing your children need care or you might have to produce documentation showing you have a sick family member. You will need to discuss this in advance. Learning you’ve got to produce documentation, while tending to ill relatives is very stressful.If you are claiming time for yourself, above allowed sick time, it’s better to know in advance what’s allowed and the steps needed to do so. Some companies require their own doctor to examine you to claim additional sick days. Worst case scenario, if you develop a complication, such as pneumonia, which can cause hospitalization and extended sick time at home, you may need many days to recover fully. You also can ask for Flex Time, which allows for doctor visits or partial days at home and work for medical reasons.Remember, FMLA time is unpaid time away from work. You need to use your sick days first to enter into FMLA territory. Spend time investigating the “what if’s” ahead of time. In the competitive job market and stressful financial times currently, the last thing you need is added worry about losing a job due to being sick or taking care of family.Learn about your legal rights and options while you are well. And also, know you won’t get paid if a major crisis occurs. Watch your spending in the present and try to save money for a flu-related, “just in case” event.

Online Bill Payments: Establish as many online bill payment service accounts as you can. Being sick or tending to family, may make you housebound. The last thing you’ll need is additional expense of late fees or dings on credit.

 To summarize: Have a plan, stockpile “sick” supplies, keep coupons handy, and know your workers rights and employer requirements. Save money for prescription and doctor bills, as well as possible unpaid time away from work. Be aware of prescribed medicine costs. No one likes to think about the prospect of being sick for a week, and the financial ramifications, but preparation is the key for beating many stresses and fiscal woes of flu season 2009-2010.

Wasting money makes me sick. Like many recovering addicts, I’m super excitable about others falling prey to similar evils. I used to toss money by the handfuls away in big juicy stacks, never mindful of prices I paid or late fees or the actual cost of anything. Really it was horrifying.

That’s why the newest report on bank overdraft fee profits released this week turns my stomach. Literally. Been there, done that. Once, when our family business was in the throes of fiscal ruin, we were overdrawn more than our monthly total income. Yeah. I’ve paid my dues to banks.  This process didn’t cease until I gained a nest egg in savings. I suspect I could have bought a good used car in what I’ve personally paid in overdrafts in my life time.

Here’s what the report according to MSN Money said:

 Banks made 35% more money off overdraft fees in 2008 than they did just two years earlier, according to a report released Tuesday by the Center for Responsible Lending.

That’s no accident, the watchdog group says.

“Banks and credit unions have become so sophisticated in driving up overdrafts that Americans now pay more in overdraft fees every year than they do for books, cereal, or fresh vegetables,” said CRL senior researcher Leslie Parrish.

Banks raked in $23.7 billion last year just from overdraft-protection fees, the report found, and an additional $10 billion from nonsufficient-funds fees.

Overdraft fees differ from old-fashioned bounced-check fees. Banks used to reject a check or debit transaction if the account had insufficient funds, then hit the account owner with a fee.

But now most bank customers are enrolled in overdraft-protection plans — automatically, CRL says — in which overdrafts are paid and the owner is assessed a fee, which it said averages $34 for each overdraft.

What’s worse, the Center for Responsible Lending says, the most common trigger (44%) is a debit-card transaction of just a few dollars that virtually all bank customers would prefer be rejected.

In response, many banks are reducing the amount of daily overdraft fees and restructuring this area for consumers. It is up to banks to limit fees and be fiscally cautious with their members. You should do your own safeguarding of your money, though. It’s really not up to banks to watch our spending.

Here are some tips to avoid paying banks your hard earned money:

1. Nix overdraft protection. Tell your bank you want out of overdraft protection. If they won’t let you out of the program- shop around, my friends. In this economy, the consumer does still hold a few cards. Find another bank or threaten to close your account as a means of negotiating.
2. Establish your own cushion. Some experts say a hundred bucks will suffice. In my world, that wasn’t enough. I like a $200 surplus, because there is virtually no emergency that will be more. That might be a stretch for a lot of folks. It has been on my budget for many years. However you can, achieve and maintain additional funds in your checking account.
3. Balance your account: It may sound awfully anal, but I call my bank every morning to get a balance. I make a ton of transactions. I shop online, pay bills via debit transactions and have income coming in via auto-transfers. I catch mistakes this way on a 30 second call. Recently, a medical bill I’m on the slow boat to China route of paying off monthly, made not one, but TWO withdrawals out of my account a week apart. It didn’t over draw me then. Had I not caught it, the results might not have been so pleasant later in the month. If you don’t want to call every day, at the least balance once a week.
4. Shop around: Five years ago, I made the switch to a credit union. I’ve never looked back at traditional banks since then. Credit Union rates, even according to MSN’s report, are usually lower.
5. Dispute, negotiate, or beg: If you do become over drawn, throw yourself on the mercy of the court and try to negotiate the fees. Sometimes you’ll find a bank that will work with you. (This is more likely with smaller banks where the policies do not outnumber the employees). I’ve shaved off a few dollars this way.
6. Pay overdraft fees ASAP: When you become overdrawn, your account may have added fees. In most cases, these will keep on accruing and gaining charges even if you don’t have any other transactions.  If you have to temporarily borrow interest free money from a friend or a family member to stick in your account to bring it current, it’s typically worth it.
7. Check bounced? If a check does get returned, immediately contact the payee or ask your bank for advice.  In some instances, banks automatically send back the check twice. This means you’ll need to know how to pay that check off. Keep the money in the bank and wait for it to be re-deposited a second time? Withdraw it and take cash or money order to the business originally presented? Doing some follow up, however embarrassing, can save you ugly consequences later. Writing a bad check is illegal, after all. You can face prosecutor’s fees and additional issues if you are not pro-active.

As responsible parents who love our children, it’s a given we want to provide all the opportunities possible for them.  At times it’s hard though to know where to draw the line. How much is too much? What’s really expected?

At the time of this writing, it’s Sunday afternoon. My cell phone just chimed to inform me of an incoming text from a child. Here it is, “Can we upgrade my phone?” This was followed by another voice, also in text, “Can I invite a few more friends to my birthday party?” (Note: Said birthday festivities are taking place at the bowling alley, cost per person $5).  Earlier, I’d talked to my son, regarding paying for flu shots if the campus didn’t offer them for free. Two other children’s voices are as yet unaccounted for. However, at 3:00 p.m., there’s still time to ask for new tires, a $100 hair cut, a trip to Disney World, etc.

Hmm.  A parent, if not careful, can drop a tidy bundle on these DNA sharing creatures known as children.

Single parents often struggle with guilt in regards to children. It is harder, for the most part, to take care of your kids on one income. And kids are costly, especially in today’s economy and culture. It helps to keep your emotional and fiscal perspective when you consider this list.

Reality Check Time: Items We Lived Without but Feel Forced to Provide Today.

1. Cell phones -Which are either monthly bills or prepaid deals, plus cost of phones. $$$$$
2. Cable- Remember rabbit ears and tin foil for better reception?
3. Internet- Did not even exist in most homes till a scant decade ago.
4. Car – I didn’t own a car till I was married.
5. Tech toys- Pricey Nintendo, Wii, Guitar Hero, etc. and gadgets and games.
6. iPod -With songs we buy.
7. Computers -Plus, of course, software, printers, paper, ink.
8. Designer clothes-Remember when Chic jeans were expensive at $20?
9. Premium Shoes-Would your mom have coughed up the equivalent of the grocery budget for footwear?
10. Salon Haircuts/Nails-Don’t even think of sending your daughter to the prom unless she’s got a pro-job updo, and salon French tips. I don’t recall anyone in my 80’s generation going to such lengths as a norm, do you?
11. Orthodontic Expenses- I’m not opposed to this, because it is wonderful to give those babies of ours a beautiful smile. But do consider, when we were kids, braces were considered a luxury, not a right.

This is of course on top of school photos, medical and sports expenses, food, birthday parties, music or dance lessons, YMCA memberships, childcare, school books, field trips and school lunches.

According to the media, we’ve not seen the worst of the unemployment rates.  Job markets are expected to shrink and home foreclosures are expected to increase into 2010. It’s still time to tighten the belt for most folks.

There’s nothing wrong with being unpopular with your kids, by saying “No” to a few requests.

It’s a little easier to text back to my phone upgrade query earlier, “Use your birthday money” or “Work for the extra” with no guilt when I have perspective. Parenting has enough guilt and worries. Don’t let financial fluff add to it.

Only you can decide what’s too much or where to draw the line in regard to spending for kids. However you work through this territory, stick to a budget. Be open with children about finances. Offer kids opportunites to achieve their financial goals through work. Use this as a teaching moment. 

If you’re really struggling with producing the bare essentials alone, (without the above frills listed)- relax.  A few hundred generations lived without this stuff. The most important items we provide for our kids can’t be bought. Teach your kids respect, honesty and work ethic and show them plenty of love- those items are far more valuable than a cell phone upgrade- and far more lasting.