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The 5 financial tips for the first week of July 2012 are given below.

Tip no 1 – To save money while traveling, drink tap water.

This is one of the eco-friendly ways to save money. Purchase a re-usable water bottle from a shop. It will be better if you buy a large bottle. This way you can store large quantity water in it. Fill it up with tap water. Drink water from this bottle. You can re-fill it from drinking fountains and taps. If you think that it is not hygienic to drink from tap water, then you can purchase a bottle with built-in filter. This will help to safe guard your wallet and health.

Tip no 2 – The PPACA, if implemented successfully, will make the purchase of health insurance mandatory.

The Patient Protection and Affordable Care Act, better known as Obamacare has made it mandatory for the individuals to have minimum health insurance coverage. If the individuals violate this law, then they’ll have to pay a penalty for this. Individuals without having any health insurance coverage will have to pay a penalty worth $695 or more in a year. Some individuals may be exempted from the tax penalties on the basis of financial crisis and religious obligations. Other than that, American Indians and some immigrants may also be exempted from the penalties.

Tip no 3 – Buy adequate health plan for your parents from before hand so that you do not have to bear the medical costs from your pocket.

If you really love your parents, then buy a health insurance policy for them. If your parents get ill in future, then you won’t have to think about the medical expenses. Your parents’ health care plan provider will take care of the expenses. You won’t have to open your wallet and handover the dollars to the hospitals. You can give your full attention to your parents’ medical treatment.

Make sure you buy adequate health insurance coverage for your parents. Don’t buy only the minimum coverage for your parents. You may be able to save money at present. However, you won’t be able to save money in the long run.

Tip no 4 – Never ignore your debt repayment deadline.

You have to pay credit card bills, utility bills, insurance premiums, etc. every month within a certain date. This date is called the due date. If you fail to make debts payments within the due date, then the lenders will charge additional interests upon you. They will impose penalties upon you. Other than that, they will inform the 3 credit reporting agencies in the country (Experian, Equifax and TransUnion) that you haven’t made payments on time. The credit reporting agencies will update this information on your credit report. This in turn will drop your credit score.

Tip no 5 – Check with your state’s Department of Finance to see if a PDL is licensed before you decide to borrow from them.

Several state governments have banned payday loans due to their excessive high interest rates. Many state governments are working to bring rules to stop payday loan lending business. If you’re planning to take out a payday loan to take care of some urgent financial needs, then visit the official website of your state’s Department of Finance. Browse through the website and find out if payday loans are legal in your state. Check out the list of licensed payday loan companies in your state. If you see that a particular company is not legal in your state, then it is better to not borrow money from it.

Credit cards have become a part of the general personal finance for millions of Americans. It is almost indispensible when it comes to taking care of everyday expenses like grocery and gas. Moreover, it helps people in organizing their finances and keeping all their money safely stowed away in a bank account while the card lets them access it anywhere and anytime. Likewise, credit cards also help consumers extend their spending when they are running short of cash and needs to take care of emergency expenses.

The credit card does have its multitude of advantages but there are times when you sit down to review your monthly statements and find that there are charges which you didn’t know existed and they can certainly add up to a significant amount which you may have a hard time paying. Here is a small list of credit card charges which most consumers unknowingly and unwittingly fall prey to.

Balance transfer fees

Although most of you are familiar with this category, the actual charge on this account can come off as a surprisingly rude shock. Most people resort to transferring balance from a high interest credit card account on to a zero interest card so that they can have an easier time paying off debts. The charges can be staggering and frankly, somewhat disproportionate, especially if you are transferring your balance to save money. The best option available is to look for a card which offers to waive the balance transfer charge.

Foreign transaction fees

You might be on a holiday abroad and you swipe your card when you check out of the hotel you have been staying in. You might even be using your card to make purchases while you are in a foreign country. Visa and Master card affiliated credit cards have made it easy for people to swipe almost anywhere in the world. On reviewing your card statement you will find that you have been charged an extra amount for every transaction which has taken place abroad and the charges might add up to a significant amount. To get around this problem, look for a credit card which doesn’t charge you extra for swiping it abroad. There are many such cards which also offer to waive the annual fees.

Overcharge fees

There are some credit cards which will still be usable and can be swiped successfully even if you have maxed them out previously. These cards carry what is known as an over credit limit fees and the charges can be well beyond $30 if it is swiped after having crossed the credit limit. Try and stay within your credit limit to avoid such an unnecessary charge and look for a card which cannot be used after it has been maxed out.

Cash advance fees

This is more or less a minor credit card trap which most people are not aware of and it can cause quite some financial problems. Using a credit card to withdraw money from an ATM or drawing foreign currency from a money booth will attract a cash advance charge which is well beyond 5 percent and above. Moreover, you will be paying a higher rate of interest on the money you withdrew right from the moment you make the transaction.

Second year annual fees

It a subtle ploy that many credit card companies use and it may come as a surprise to you when you receive your annual statement at the end of the year. Most reward cards usually waive the first annual fees to attract new consumers who generally wouldn’t opt for another credit card. The trick behind the waiver is the idea that you will forget that you need to pay the annual fees at the end of the second year of using the card. Some consumers do overlook this small subtlety and fall for this trick.

As a rule of thumb, try not to use more than 30 percent of your credit card’s maximum limit and avoid transacting wherever you think additional charges may be tacked on. This way you will never have to worry about one of these charges showing up on your monthly or annual statement.

It is the time for vacations. It is the time for having a joyful time with your family. It is also the time to take special care of your credit cards. Criminals are waiting for the time when you take a single wrong step. You can take a wrong step while paying for the dinners, purchasing gift items for your loved ones or while traveling to various places. Thieves will not miss out a single opportunity. They’ll just try their best to steal or snatch your credit cards.

You must be aware of the basic things that can help you take care of your credit cards. For example: keeping the plastics in a safe place, not revealing your PIN number, etc. However, there are some other things which you need to do to safe guard your credit cards during a vacation. Read along to know about 5 tips that can help you safe guard your credit cards.

Tips to protect your credit cards during a vacation

Check out the 5 tips that can help you shield your credit cards during a vacation. Protect your wallet and have a great vacation with your family.

1. Let your credit card issuer know about your vacation.

Credit card scams are rampant in the country. This is why credit card companies are very skeptical nowadays. If you make a trip to Florida and use the credit card for making a purchase, the credit card issuer may think that it is a fraud case. He may immediately cancel your credit card. To avoid this predicament, you should inform your credit card issuer about your upcoming trip.

Inform the credit card issuer about the number of days you’ll be out of town. If you’ll be out of town for 15 days, then inform the credit card issuer that you’ll be at a certain place for around 20 days. If you’re unable to return to your home within 15 days due to some reasons, you can use the card for the extra 5 days.

2. Take only what you need. Be a smart traveler.

Take only what you really need in your wallet. Be careful about what you are keeping in your wallet. There is no need to take all the credit cards with you. Just grab 1 or 2 credit cards and stash them in your wallet. Make sure your cards are acceptable in the place where you’re going. Take one ATM card in your wallet too.

3. Take the phone numbers of the credit card companies.

If the thieves are successful in stealing your credit cards even after taking severe precautions, then what will you possibly do? Well, you probably have to report the matter to the credit card company. In such a situation, you’ll need their number. So, note down the phone numbers of the credit card companies in your pocket diary. Don’’ lose the diary by any chance.

4. Check the security system of the credit card company.

In 2011, around 8% of the credit card scams have happened in the hotel industry. If you want to avoid a scam, then try to use a credit card. It is safer than a debit card. Find out if the computers in the hotel have encryption technology. On the other hand, check your credit card statements. You can just visit a Internet café and check your credit card account online.

5. Divide credit cards amongst yourselves.

It is unsafe to keep all the credit cards in a single wallet. If you lose your wallet by any chance, then you’ll lose all your credit cards at a single go. So, a clever decision will be to distribute the credit cards amongst you and your spouse. You can also keep the plastic cards in different bags. Carry the bags very cautiously. Remember that you can’t afford to lose the bag by any chance.

You may have to use ATMs during the vacation. Make sure you use the machines which seem to be secure. Use the ATMs during the days. It is better to not use the ATMs located at the remote place.

The cost of higher education is pretty heavy. The average domestic student has to spend around $35,000 per year if he has chosen to attend a private 4 year degree school. Its therefore a neat $140,000 just to cover the cost of tuition. Additionally, the cost of living and other daily items of expenditure like transport and insurance would easily drive up the total cost of being in college for 4 years to $200,000 in the very least.

The cost is therefore too great to handle by individual means and most students aiming for a 4 year degree cannot get one without opting for a student loan. Budgeting, working through college, interning and choosing the right course of study are all a part of repaying your student loan without hitting a roadblock. But what about after you have graduated out of college? There are certain jobs which offer different degrees of student loan debt forgiveness.

Armed forces – The US Armed Forces Recruitment Program pays up to 60 of your tuition as per the provisions set under the Montgomery GI Bill. Active and serving personnel in the National Guards are also eligible for a $10,000 student debt relief package. Army associations and veteran’s unions are also known to facilitate scholarships and grants for students in need.

Child care – Some child care providers are eligible for almost 100 percent student loan debt forgiveness. Eligible candidates must hold a bachelor’s degree or an associate’s degree in early childhood education and must render service to low income sections of the society for at least 2 straight years. This program is available to federal student loan borrowers although the program is not accepting new applications at this moment.

Teaching – Teachers can also earn student loan debt forgiveness up to a $17,500. In the harsher areas of the districts. The length of employment at such a school should be at least 5 years. At such a rate, you might see your student load reducing itself significantly in 4 years Most teachers qualifying for a larger debt relief packet in case their academic expertise lie in the fields of mathematics, science or special education.

Social and volunteer work – Working for a non-profit/non-commercial organizations or volunteering for the Peace Corps or AmeriCorps is also a good way to get out of student relief debt. Each of these programs and sectors has their own unique debt forgiveness plans and you just might be lucky enough to get a 70% waiver on your total Federal student loan amount. Social workers will see their student loan debt reducing progressively over the course of 5 years for which they are working for a non-profit company.

Medicine and healthcare – Physicians, doctors and other healthcare professionals like nurses and dentists can take advantage of a number of programs to reduce their student debt load. Servicing low income districts and neighborhoods will defer the loan up to 100 percent. Clinical researchers are also eligible for student debt forgiveness based on certain eligibility criteria.

With the right kind of job, managing your student loan is just a bit easier. These jobs not only provide a healthy remuneration but also carry a significant amount of civil prestige with them.

Check out the 5 financial tips for the 4th week of June 2012.

Tip no 1 – Begin your retirement planning with your first job.

Retirement planning is a long process. You can’t plan your retirement within a fraction of time. You have to start planning for your golden years of life right after getting your first job. You need to participate in the retirement plans. It can be 401 (k), Traditional IRA, Roth IRA, etc. Don’t exhaust all your money every moth. Save a certain amount for your retirement years. You would not want to live rich now and die in poverty. You can consult a financial planner and decide about the retirement plan that will suit you best.

Tip no 2 – Credit repair companies are a widespread scam. Stay away from them.

There is nothing that the credit repair agencies can do to repair your credit within 7-30 days. In fact, if the creditors/debt collectors are reporting correctly, then no one can do anything. The credit repair agencies can only dispute certain items with the credit bureaus. The items will not be there on your credit report until the completion of the investigation. However, if the creditors/collectors have reported correctly, then the items will re-appear on your credit report.

Stay away fro credit repair agencies. Try to repair your credit on your own. This will help you save money and time.

Tip no 3 – Know the importance of using credit cards.

Credit cards are an important part of life. You use credit cards to buy groceries, accessories, apparels, etc. You use credit cards to build credit history. They help you to improve your credit score gradually. You get special rewards for using the cards. You can get air miles and cash back rewards. You can even save money while traveling. What more, you can use credit cards for making online purchases.

There are plenty of benefits of credit cards. Understand the importance of credit cards and use them cautiously. Use them to improve your financial life and not to disrupt it.

Tip no 4 – Sit together with your spouse and formulate a budget that you will be able to follow after meeting your necessities.

Financial planning is an important part of life. You need to do it together with your spouse. Talk about your financial goals, needs and aspirations with your spouse. Know about his/her requirements too. Thereafter, create a budget which both of you can follow after meeting your necessities. This will help you spend money judiciously. Simultaneously, you’ll be able to save money. Reward yourself when you’re able to follow a budget. This will motivate you and your spouse to follow the budget.

Tip no 5 – Payday loans are short term solutions and if used as a long term financial aid can cause undue hardship.

Payday loans give you debt relief only for a certain period of time. You can’t depend upon payday loans in the long run. This is because the lenders charge high interest rates on the loans. Try to pay off the loan within the scheduled date. Calculate the loan payment amount before submitting your application. Check out the interest rate on the loan. If it is not possible for you to pay off the loan, then don’t submit your application.

Don’t roll over your payday loans too. The interest rates will accrue with each passing day. The loan amount will become so huge that you’ll face huge problems in paying it off.