SavvySugar

Savvy Tip: Achieve Your Goals With Our Savvy Calculators

SavvySugar — Mon, 01 Feb 2010 06:00:01 -0800

Sure, we'd all love to snap our fingers and achieve our financial goals, particularly this time of year when we're riding high on resolutions. But successfully paying down credit card debt and saving money can only happen if you go in with a plan, and a realistic one at that.

Want to be debt free? Use our credit card payment calculator to determine how long it will take while paying a certain amount each month. If saving money is at the top of your list, whether it's for something fun or to build up your rainy day fund, use my savings calculator to figure out how long it will take to reach your goal.

Photo courtesy of The CW

School, Work, Unemployment . . .?!

Savvy Community — Tue, 26 Jan 2010 12:00:16 -0800

This post was submitted by Renees3 in our Ask Savvy group.

I worked for a company for six years. Dec. 21st I found out they decided to downsize my department and a bunch of others to zero. So I've joined the ranks of the unemployed. While I liked my job okay, I've decided I want to go to school. I'm 27 and have never been to college. I want to get my AA in accounting. But I honestly have no idea what to do now. I'm eligible for unemployment, can I get it while I go to school (a local community college)? I have a mortgage and bills to pay, I can't just not have money coming in. I know there are student loans, but I really don't want to get myself into major debt for just a couple years of school. I've thought maybe if I take night courses or online school (like University of Phoenix) I might still be able to collect unemployment. Does anyone know of any other options or ideas? Please help, I'm losing sleep over this.

Do you have a question for Savvy and fellow readers? Create a PopSugar account or log in to your account. Then ask your question in the Ask Savvy group.

Your Two Cents: How Deep Is Your Debt?

SavvySugar — Tue, 26 Jan 2010 06:00:19 -0800

While exploring resolutions that can help save money I learned the average American owes $8,329 in debt, according to a 2009 survey by The Nilson Report. No matter how you look at it, that's a lot of due cash, but still less than the average student loan debt of $10,000. How far in the red are you?

Savvy Tip: Achieve Your Goals With Our Savvy Calculators

SavvySugar — Sun, 10 Jan 2010 09:00:37 -0800

Paying Off Student Loans....a Nightmare!

Savvy Community — Fri, 08 Jan 2010 06:00:44 -0800

This question was submitted by member SexyAndy in our Ask Savvy group.

I am very concerned about starting to pay off my student loans (graduated May 08). It's not a federal loan, it's a private one. It can be seen as four loans since I took one for each school year...I owe an obscene amount of money now and cannot afford to make the minimum payments, which is about $1,200. So far what I've done is applied for a forbearance every three months and postponed payments, but I can't keep accumulating my debt. Please help!

Submit a career or finance question for me to answer while giving other readers the opportunity to weigh in. Create a PopSugar account or log in to your account. Then post your questions in the Ask Savvy group.

Ask Savvy: My Credit Card Rate Is Changing, What Are My Options?

SavvySugar — Mon, 28 Dec 2009 08:00:42 -0800

Dear Savvy,

I have been working hard to pay off my credit card debt. I received a letter in the mail that Citibank is changing my account terms and raising my APR from 8.24 percent to 12.99 percent. According to the letter, I have two options. I can accept the new terms which will automatically take effect on December 29, 2009, or I can opt out of the new terms, pay down my balance and use the card until it expires which is January 31, 2011.

I don't want to opt out because I won't be able to pay off the balance in time, but I don't want my APR raised either. I'm not actually using the credit card for charges, I'm just trying to pay off the existing balance. What are my options?

Savvy says: While your interest rate hasn't risen enormously, especially compared to the rate hikes many other credit card users have been hit with any increase means that it will take you even longer to pay off your balance. See my advice when you read more.

Because you say that it won't be possible to pay down your balance in a year's time, I'm assuming that your balance is on the high side. You've already made the commitment to paying off your bill, but I want to reinforce that you really need to resist using the card in order to reach your goal. It can be tempting to make smaller charges when looking at them in context of your larger existing balance.

That being said, I think you have two options. Continue your positive track of paying down your credit card with Citi, or transfer the balance to another card that comes with a zero percent balance transfer offer. If you do look into the transfer option, make sure you read all fine print and understand the implications of transferring your account. These cards usually charge no interest for the first year, and then raise rates significantly thereafter. If you haven't paid off your balance in full, the rate could be even higher than your Citi rate and take you even longer to pay off.

If you stay with Citi, you'll have to pay monthly interest on the balance you're carrying, but once it's paid off that credit card will be in really good standing on your credit report. It will show that you've had the same card for a long time which is an important part of your credit rating, and if you pay on time every month it will show that you're accountable. Weigh your options wisely, and everything will turn out just fine.

Back to Basics: Achieve Your Goals With These Calculators

SavvySugar — Sun, 22 Nov 2009 06:00:00 -0800

Sure, we'd all love to snap our fingers and achieve our financial goals. But successfully paying down credit card debt and saving money can only happen if you go in with a plan, and a realistic one at that.

Want to be debt free? Use my credit card payment calculator to determine how long it will take while paying a certain amount each month. If saving money is at the top of your list, whether it's for something fun or to build up your rainy day fund, use my savings calculator to figure out how long it will take to reach your goal.

How-To: Prepare For the Worst Monthly

SavvySugar — Sun, 08 Nov 2009 09:00:04 -0800

No one likes a Debbie Downer, but these are trying times and you need a financial backup plan. Whether you feel a strong sense of job security or have a million bucks in the bank, it's crucial that you embrace the motto of the Boy Scouts ("Be Prepared!") so you don't end up in a serious financial and personal conundrum should you draw a short stick. The calendar changes so quickly it's easy to forget your egg's nest and backup scheme amid the momentum, but follow these basic steps and suggestions to keep yourself on track.

View Slideshow ›

Reader Tip: Pick Up a Copy of How to Get Out of Debt

SavvySugar — Tue, 03 Nov 2009 12:00:58 -0800

We each develop a unique saving style over the years, which is why we started the How Do You Save? group for you to divulge your winning tactics. It offers a place for you to dole out your advice to other SavvySugar readers trying to save a little moola and learn from their experiences. PureGrace recommends picking up a copy of How to Get Out of Debt, Stay Out of Debt & Live Prosperously. She says:

The book has been a life changer for me and my finances!!! When I read this book over a year ago I had $16,000 in total debt, a loan with an APR of 16.99 percent and a feeling like I was living in austerity. Since then I have stopped using credit cards completely, paid off $6,000 in debt including paying off my student loan and a store credit card. It recommends simple techniques that have made a huge difference. You write down everything you spend and then put it into categories. Create a spending plan based on the expenses you write down but also set up long term goals. I created a savings account for vacation, clothing, pampering, Christmas, taxes, etc. The most important thing I learned from this book was to pay myself first. My old spending plan had me trying to paying off a bunch of bills and then trying to live off the rest. Now I have flipped that and feel like I'm really enjoying my life and still making progress towards being completely debt free.

Do you have a tip for readers or a book that's changed your outlook on career and finance troubles? Join our How Do You Save? group and share your helpful suggestions. Here's a detailed guide to posting questions or posts to groups if you are new to the PopSugar Community.

Ask Savvy: Should I Reopen My Card After Being Deep in Debt?

SavvySugar — Wed, 21 Oct 2009 12:00:36 -0700

Dear Savvy,

I've just paid off one of my credit cards that was in the Debt Management Program through a credit counseling service, which is something I'm proud of! It's nice to have accomplished that! The only issue is, I got a letter from that company offering to reopen the credit card line since I paid everything off. I'm not 100 percent sure if it'd be a wise thing to do or not, since using credit cards got me into the DMP in the first place!

The upside would be that I'd have more available credit line, which could be a good thing for my credit rating. Since I've already learned my lesson the first time around, I know what not to do this time around, which was to charge without making sure I could pay it off pretty much immediately. The credit limit would be a lot lower than what it was originally, so I wouldn't be able to charge a lot, and it is a store credit card so it'd only work only for that store, and not anywhere else.

The cons would be . . . well, my credit card usage is kind of what got me in my debt situation in the first place, and I'm not so sure if I should be opening up cards so soon. The offer is only for 30 days, as well, so after 30 days, I don't know if I'd qualify for a new credit card due to my history. Should I go ahead and accept the offer to reopen the account and "start" over and be more wise, or should I just let it go?

To see my advice, read more.
Savvy says: Congrats on paying off your credit card! It's great that you made the effort and stuck with it - and that you feel like you've learned the important lesson of spending within your means. Even though you've made great strides in managing your money, I don't think it's in your best interest to reopen the card that triggered your financial troubles.

You say that opening the card will boost the amount of available credit and therefore help your credit score, which tells me that you are the owner of at least one other credit card. Instead of trying to manipulate your score, improve your number by working on paying off other debts and keeping all accounts in good standing by paying on time. Focusing on these habits will help you much more in the long run and keep you from reentering an out-of-control credit situation.

If you need more convincing, consider that you'd be setting yourself for a potentially damaging situation if you end up maxing out your new card, even if the limit is lower than what you had before. Store credit cards are, in general, not the most desirable pieces of plastic to have in your wallet. Aside from their typically astronomical interest rate, they can feed a shopper's rationalization that she's actually saving money by shopping because of whatever points or discounts she gets through using the card.

Get this card out of your head and stay on the right track of building a solid credit score. It takes a bit of self-restraint, but you'll be much better off when you need to borrow money for something that doesn't come in a store . . . like a car or house.

Have a question for me? Ask away by posting your questions in my Ask Savvy group.