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On the whole, a low APR is a wonderful thing. Who doesn’t want to pay little to no interest for the money they borrow? But some deals are better than others, depending on your needs.

The problem comes quite simply down to balance transfer caps. You’re generally paying 3% for your balance transfer, and more and more often that amount is not capped. You may be adding an immediate 3% to your entire balance.

What this means is that if your current interest rate is pretty good, and you’re going to be carrying that balance for only a short time, you may lose money. On the other hand, if the 0% APR runs for a year or so, and you’re continuing to carry that balance, you’ll save money.

Just beware of whatever the promised interest rate is after that time, as well as what you’ll be paying on new purchases, assuming you’ll be using the card that way. You need low enough rates on these to be worth your while as well.

Obviously, if your credit card has had its APR raised way up for no good reason, it’s probably time to switch cards. So long as you have a good credit score you should be able to get a 0% APR card that offers better terms than you’re dealing with right now.

You need to read the card terms carefully as you choose one. Is that 0% for 12 months, or 0% for up to 12 months? There’s potentially a big difference between those two, depending on your credit score. How badly are you going to be pounded by late fees and higher interest rates if you are late with a payment?

If this is a card you intend to carry a balance on for a long time, compare the cost of the 0% APR card to that of a low interest rate card that you think you qualify for. It is possible that the low rate, if it stays low rate, may be the better long term deal.

No matter the credit card you apply for, read the terms and conditions carefully. If you have a tendency to be late on payments on occasion, this is more important to you than it is to the average user… who still really needs to know this stuff.

When you get down to it, not every credit card deal is right for every person. Watch out for terms that can make a card cost you more than you’d think at first glance, and think about how you’re going to use it. You should be your own best protection.

Marriage is quite the adventure. Everything you do suddenly impacts someone else, even more so than when you were dating. And this is particularly true of financial matters.

People can go back and forth about whether or not joint bank accounts are the best things for a couple. And there are good points on both sides. Joint accounts take care of the question of whose account pays for which bills, for example. But other people like to keep things separate, either because that’s just how they like to run things or because their spouse doesn’t have the same money spending or saving habits they do.

There are similar issues for credit cards.

A joint account can be a good idea, as either of you can use it and most purchases will probably be for both of you, but it can also have some bad points.

The Good Point

For the one with the lesser credit score, getting a card together is a chance to get better credit. The card will still need to be paid properly. But if you can both keep from making mistakes you can bring the lower score up over time.

The Bad Points

The flip side of someone with a good credit score getting credit with someone who has a lesser credit score is that if they continue to make mistakes your credit score can go down too. Any combined accounts will impact both of your scores.

This also means that if one of you starts having trouble with money or starts abusing credit, it’s going to impact both scores. While most people trust their spouse, things happen. It’s not always about being unreliable. Sometimes it’s just a bit of bad luck.

Many couples will be able to rely upon each other’s credit with no problems whatsoever. Whether or not you combine or get new joint accounts, the most important thing is to keep each person’s credit score in good shape.

Why?

Let’s assume you come to a time where you can buy a home. Odds are both of your names will be going on that mortgage. You’re buying a home together, after all. If one of you has a poor credit score you will both be stuck with a higher interest rate on your mortgage.

Remember that the only way your credit scores interact with each other is on your joint accounts. If you have trouble keeping up with a joint account, it will impact both scores. But if you keep all your credit accounts separate, problems for one will not mean problems for the other. The credit bureaus do not care if you’re married. Their only interest is how you treat your credit.

It seems like everything is getting more expensive right now. That’s no surprise, since the cost of fuel has gone up so much, and anything that has to be transported to you is going to be impacted by that increase.

Sure seems to make it harder to manage your debts, doesn’t it?

When you’re already in debt and prices start spiraling upward your situation can seem just about hopeless. It’s harder to pay extra on your debts when it’s harder to just scrape by. The overall situation just isn’t pretty. You can still work on it, however.

Step 1: Take a good look at the problem

Where do your money troubles come from? They could be a result of medical bills, job loss, poor spending habits or other reasons. You need to understand where your problem comes from and what is keeping it going if you’re going to get anywhere with this.

That’s doubly important, of course, if the issue is ongoing and you can do something about it. You don’t want to trap yourself with guilt about your debts, but you do want to acknowledge how they happened or are continuing to happen.

Step 2: Rethink how you spend your money

Few of us are so good with money that we already know where all of it goes. There are lots of little things that really add up fast that may be a part of your problem. Or it could be regular big things that you decide to treat yourself to. Or it might just be something that you have to deal with no matter what.

Get and keep receipts for all your spending for at least a month. The more detailed the better, as little purchases can hide in some of your more practical shopping. Go over them and see where your habits are going wrong.

This can help you to target the areas that you should be cutting back on. All those trips out for coffee, for example, can really add up when you could be making coffee at home. You can even add flavors at home for far less than you would at the coffee shop.

Don’t forget to consider bigger things too, of course. If you’re really serious about cutting back look at things like your cable and telephone bills to see about monthly bills that could be smaller.

Step 3: Limit yourself to one credit card

But only if you can use that one card wisely. You may need to get rid of them all if that’s the only thing that will keep your spending habits under control.

Credit cards are a highly convenient way to pay for many things. Even some monthly bills may be paid on them, which you need to consider if you’re cancelling accounts. You will want to be sure to change how those are paid.

Your credit card usage should be limited to things you need to buy and will pay off that same billing period. Pick the best credit card you have or get a better one if you need to. Go for low interest, no annual fees and cash back.

If you can’t control yourself with a credit card, use only cash. This is much harder for a lot of purchases, as you have to go to the ATM every time you run out, but if you control how much you withdraw it is much harder to overspend.

Step 4: Pick a debt to target

There are a few theories about which debt to target first. Some say to go for the lowest balance; others the highest interest rate. But whichever you choose, put any extra money you have towards payments on that debt, and do the minimum on the rest. This will allow you to rid yourself of your debts one at a time and make faster progress as you go.

Step 5: Increase your income

In many ways this is the most important step when prices are going up as they have. There’s only so much you can do with the previous steps if you’re stuck at the same income level, especially if it has been barely sufficient for your vital monthly expenses.

There are a few ways to do this. One of the simplest can be to ask for a raise at your current job. You’ll need to show that you deserve it, of course, and depending on your job it may or may not be easy to get one.

You can also consider taking on a second job. Yes, you will lose out on free time. But sometimes that is the only way to earn enough money to get out of a pile of debt. If you’re up for working in a restaurant, tips can add up quite nicely.

Another idea is to freelance or start a home business. There’s some risk in this, as you will need to spend at least a little money for most business models, but it can also be a lot of fun. Make sure that what you do does not conflict with your current employment. Do not risk more than you can afford to lose, and do not expect to get rich quick. That’s how people get scammed and lose their money.

Step 6: Don’t give up

It may take a long time to get your debts paid down if they’ve been a major problem for you. Depending on how you go at it, it could take years. But some people manage to pay down significant debts in a matter of months. It all depends on your own situation.

Weddings, on average, are expensive these days. Hugely so. Some would even say ridiculously so, with the average being somewhere around $28,000. That’s a lot of money for a one-day event.

Of course, to many the wedding is the most important day of their lives. They want the big party. The elegance. The amazing food. All of their friends and family in one place, celebrating their happiness. And there’s nothing wrong with that.

Unless, that is, you really can’t afford it. Going into huge debt for your wedding is a poor way to start a marriage. Driving your parents into debt for your huge wedding also isn’t so hot an idea.

It’s hugely important that you start planning your wedding by figuring out a reasonable budget, taking into consideration what all contributors can reasonably afford to give. This will very much so vary by family. If you keep up with what you can do, you won’t be starting your lives off together arguing about the debts you’re creating.

One of the challenges to this is that so much of the wedding industry is priced higher than regular services. Just ask around about wedding cakes and compare what you can get regular cakes for. The difference can be significant. Wedding cakes are of course more ornate in most cases, and if they’re tiered they must be made to cope with the weight, but even so the prices can be astounding.

Do not sign on for anything for your wedding without comparing prices first. Sure you may have a dream location, a dream dress, etc., but if they make it so that you cannot stay within your budget there may be more options than you thought at first. And you also may discover that you love a cheaper option just as much as one that cost more.

Check your budget regularly as you do spend money. It’s all too easy for things to get out of hand, and suddenly you have to figure out how to fit the remaining items you want into the budget.

It is, of course, very common to put a lot of these expenses onto credit cards. That’s fine, just make sure that you have a plan for paying them back within a reasonable period. Credit cards are often just the easiest way to pay for things. But debt can be such a strain on a marriage, I really don’t recommend starting out with a lot of it.

Or loading a huge debt onto the bride’s parents. Not terribly fair to them, either.

The simple truth of the matter is that you can plan quite a beautiful wedding on a wide range of budgets. There are always places you can cut back on costs, often family members willing to help out with photography and such, and options all over the place. Don’t force yourself to spend more than is reasonable for your budget.

Most people know that a good credit score can help you in many ways, even if you don’t want to be in debt. It gets you better rates on loans for those purchases for which most of us need a loan, such as car loans and mortgages.

But a lot of people assume that you need to owe money for a time in order to get that credit score. How necessary is that?

I’ll start by noting that a good credit score is a necessity, unless you earn so much money that you can pay outright for every purchase you ever need to make, including a home. But just about everyone needs to borrow money for such a purchase. You should assume that you do need something of a credit history. It goes beyond purchases. It impacts your ability to rent an apartment, insurance rates and sometimes even your career.

However, being in debt is not the only way to build your credit history. You can have credit cards and just pay them off monthly. That’s showing the kind of financial responsibility that lenders want to see too.

Now, if you really, really feel you need to carry a debt to improve your credit score, make it small. As insignificant as possible. At the best interest rate possible. Why should you pay more than you have to if you feel a need to do this?

Do note that I’m not really recommending that, but since many people feel that’s the way to build credit I mentioned it.

The biggest trouble with the theory of carrying debt to build a credit history is that it makes being in debt a comfortable thing. It should never be comfortable, especially if it’s credit card debt. It’s far better to build your credit history without carrying debt if you can manage it.

It is smart to have some credit available to you, but focus more on saving money. A solid savings account can help you through those rough times that would otherwise result in an increase of debt, or even out of control debt.

There are a lot of issues right now with people being so far into debt that they can’t get out. If you don’t have a credit history now, take a lesson from this and think about how you want to manage your credit score over the long term. A habit of debt is not the smartest way to go about it.

News reports now are full of the current credit crunch. Foreclosures are way, way up, and housing prices in some areas are dropping significantly. This is having an impact on all kinds of credit.

But for those of us with credit cards, this is a very good reminder of how carefully we should be using our credit. There’s a right and a wrong way to go about it.

If it hasn’t been a priority before or even if it has, do your best to get your debts paid down. This will give you more flexibility and make you look better if you need credit for something later. Falling home prices can mean good deals when things get a bit better, and if you can continue to manage your credit well, you may be in a good position to take advantage.

The short term impact for many has been that they have to cut spending because they don’t even have access to more credit so they can spend more. Many people have relied for years on credit to keep up lifestyles they couldn’t maintain any other way. It becomes important to spend only on essential items.

This is a time to learn about good spending habits, ones you should keep for a lifetime regardless of the economy. There are right and wrong reasons to use credit.

Good reasons include buying a house. Even if home prices drop significantly, most people would not be able to save enough to buy a home out of their savings. It would take an impractical number of years for most. Doesn’t mean you can’t, but most won’t have that kind of control.

Emergencies are another good reason to use credit. Sometimes there’s just no other way you can get through the situation.

And of course, you should use a little credit just to keep your credit score healthy. Using your credit card and paying it off monthly will help to show that you mean to have good credit.

The bad reasons are of course more fun.

There are the lifestyle reasons, such as keeping up on the latest technology. You NEED that big screen plasma or LCD television, right? The new cell phone even though the old one works? The treadmill you’ll use only as a place to hang your clothes?

Buying something fun isn’t necessarily a bad thing, but particularly now with the credit situation so poor, it’s best to not do so unless you can actually afford what you’re buying. A little extra thought can cut out quite a number of purchases.

Depending on who you ask, this may be an economic hiccup or it could be a much deeper downturn. There’s no way to know which it is yet, but it’s better to plan for the worse situation and be surprised by the better, than to assume the best and get slammed by the worst.

Paying 0% APR is a very nice thing when you have debts. Many people get offers for these credit cards regularly. Some even take advantage of them.

Just be careful that they don’t take advantage of you. There are a few tricks you should watch out for.

1. Balance Transfer Fees

These can add up quickly, but they’re the only way to get your balance on a regular credit card over to your new 0% offer. These are often around 3%, and many companies have removed the cap. This means that while once your maximum balance transfer fee would be perhaps $75, now it can be much higher. A $5000 balance transfer at 3% means you’d be paying about $150.

That’s not necessarily a bad thing. You just have to figure out if an immediate 3% is more than you’d be paying in interest over time. If you’re paying it down quickly enough, and your current interest rate is low enough, you may be better off leaving well enough alone.

Do your math before you move your balances around.

2. Time Limits and Regular APR

How long do you pay 0% for? If you’re not going to have the money paid off by then, once again you need to compare with what you would be paying.

If you get 0% APR with a 3% balance transfer fee and a 17% APR after the introductory period, take a look at what you’re paying now. If it’s the same or higher than the 18% of the new card, you definitely have a good deal. But let’s see what happens to $5000 over 2 years for a 10% interest rate versus the 0% going to 18%. Minimum payments, no new charges.

After 2 years at 10%, you would still owe $3,340.29, assuming you paid 2.5% of the outstanding balance each month.

It’s a bit trickier with the 0% card. You have to start by adding the 3% balance transfer fee, or $150 for a $5000 balance. Once again, making minimum payments only, that’s a balance of 3800.69 at the end of the first 12 months. At the end of the 2 year period, you would still owe $3,368.87… nearly $30 more than if you had stayed with the lower APR card you originally had.

Of course, you can greatly improve this situation by making higher payments. Pay $200 a month throughout, and the 0% APR card goes to $679.71 at the end of 2 years… almost paid off. The original card is also in good shape, at $812.54, but you’ve paid significantly more in interest.

So think about your payment habits beforehand.

3. Increasing Your Limit

This is one of those little things credit card companies do to try and get you to spend more money. They know that many people consider their credit card limit to be a part of their available money, and so an increased limit is a license to spend more.

Don’t.

Most 0% APR cards do that for balance transfers only, not purchases. While you’re paying down the transfer amount, the rest is steadily increasing. If this rate is higher than your old credit card had, you’re paying out more.

So just ignore that increased limit and do your best to keep your spending habits under control. This is not an easy thing for most people, but it’s probably the most important financial skill you can pick up.

Times are tough right now. While the economy hasn’t quite hit the definition of a recession yet, it’s close and many families are feeling the pinch.

Even my family is feeling the pinch; my husband was laid off in January. We’re coping, but it is hard going.

Lots of people are being laid off right now and many more are worried about their jobs. Combine that with the mess that many people with mortgages are facing, and it’s looking prime for a really bad economic meltdown. People are worried that it will compare to the Great Depression.

What should you do?

First and foremost, do what you can to secure your own economic position. With layoffs possible in many industries, few jobs are completely secure, but you need to do the best you can. Get your debt levels down.

Take an honest look at how things are going at work for you. Are you a valued employee? Has your career been advancing well? Or have you just been doing the minimum to get by? If things get rough, you want to be someone who has shown the ability to keep pushing ahead. It will give you something to point to should you get laid off despite your best efforts at your current job.

Next work on your debt position. Work hard at getting your debts paid down. The term ‘credit crunch’ is being thrown around a lot right now. It’s getting harder and harder to get credit, and the worse your current profile looks right now, the harder it’s going to be for you.

While it can be difficult to do this if you have a lot of debt, try to build an emergency fund too. Something that will give you some money to work with in case of a layoff. If you can put aside at least a few months’ income, that’s money you can work with while trying to find a new job.

These steps do take time, and it’s important that you act immediately. We all hope to avoid being laid off, but there are no guarantees that we can.

But what about those who are already impacted? In debt and out of work? Is there any hope at all?

That is the time to cut back, obviously. Stop spending money on things you don’t need. Take a lower paying job if that’s what it takes. Cut the cable, cut the cell phone, cut whatever excess you can find.

Even consider moving in with family or friends if that’s what it takes. Moving in with someone can be a painful step to take, but sometimes that is what’s needed. Difficult times often call for painful measures.

Whether this turns out to be a major recession or a minor one, many people and their families will be deeply impacted. Do your best to limit the damage that may be done to yours.

The current credit crunch is a good reminder that too many people these days don’t really know how to handle their money. Even if you’re pretty good with your money the current economy can send you for quite a downward spiral.

It’s a tough time to set a good example.

But that makes it all the more important to set that good example for your kids. If you can teach them that even in bad times there are things they can do to use their credit wisely, they have a better chance of staying ahead of the game as adults.

That’s not to say teaching your kids to use credit wisely guarantees that they will do so, or that their lives won’t take a downward turn that ruins their credit despite careful use. Life is unpredictable. All you can do is give them the best tools you can.

The example should start early. Just talk to your kids about how you spend your money. Tell them why you aren’t going to buy everything they ask for. Help them to develop a general sense of what money is. Make them work for things as appropriate.

Most especially, don’t give them everything they ask for.

As they go into late high school or go to college, consider allowing a credit card. One. With a low limit, and it’s their responsibility to pay off the entire balance every month. Explain why you want them to do this.

Now, you don’t have to let your child have a credit card to help him or her learn about wise money management. You can have them learn to save up for every purchase. But I can tell you from my own college experience that there were times I needed a credit card – especially when it came to buying books.

If your child does have to carry the occasional balance, make sure you know why and encourage it to be paid off as soon as possible. Also have them track how much is being paid in interest; it’s a good education into how much more it makes things cost.

A credit card makes it easier to track spending. Take advantage of this and go over what was spent every month. It’s a great way to see how fast frivolous purchases add up. Saving receipts so that individual items can be reviewed really helps here.

By helping your child learn about money management and credit from early on, you can limit the pitfalls that may be hit later on. Having the knowledge of what credit can do to your finances and knowing the benefits of sticking to a budget are skills that can last a lifetime.

Credit cards are pretty much a way of life in the United States. Many people not only use them for most daily purchases, they carry balances from month to month on them It’s hard for most to picture life without them.

But do you really need them?

Well, no, not really need as such. But most people love having them and the advantages they get from having one or more credit cards.

The Advantages of Credit Cards

Convenience is a big factor for many people. Carrying cash and/or writing checks for purchases just isn’t as easy as swiping your credit card. And if you lose your card, you’re generally not held responsible for the purchases made by someone else. You hardly ever get lost cash returned to you.

They’re also a great way to track your monthly spending. Your credit card statement shows each and every purchase you make with it. That can be pretty handy when you’re wondering where your money is going.

Depending on the card you have, you may get other benefits as well, such as cash back or rewards points. If you’re doing this right these can be a very nice benefit for spending the money you’d be spending anyhow.

If you shop online, a credit card is almost a must. Online shopping without one is considerably less convenient. Many online stores have prices you would have a great deal of trouble beating locally, and often you can only find certain things online to begin with.

A credit card is also one of the simplest ways to maintain an active credit history. If you want to make a major purchase someday, such as a house or a car, having a solid credit history makes a big difference in what loans will cost you.

The Disadvantages of Credit Cards

That’s not to say credit cards are all good. Perhaps the biggest disadvantage is how easy it is to fall into the debt traps. Many people end up paying quite a bit in interest because the money they spend on their credit card just isn’t quite real to them. Overspending quickly becomes debts you will need to pay, and money spent on interest payments.

The interest rate can be quite the disadvantage, especially if you slip up and make a late payment. Not just on your credit card in many cases. If the card issuer finds out you messed up elsewhere you may also be subject to significantly higher interest rates. And of course paying interest means your purchases are costing you more than they appeared to at first.

Even a rewards card can have disadvantages if you aren’t using it right. Many carry higher interest rates, so that those who carry balances really are not getting more for their money. It’s an important factor to consider.

Those who are good with their money in all forms can avoid all these traps, however. If you can keep it paid off and don’t select a card with an annual fee, they’re wonderful tools. But if you tend to have money troubles, carrying a credit card can be little more than a trap.