There was a good post on the Wisebread blog
recently about the author's preference for things that wear out rather than fall out of fashion, break, or become technologically obsolete. He noted that people's primary reason for replacing something used to be that it wore out, whereas today the main reason is more likely due to planned obsolescence.
Matt's View
A low price is not always synonymous with the best deal, especially if a more expensive item will last much longer. I have a pair of Timberland boots that I've had for well over 10 years with no sign of wearing out. My wife and I have also had good experiences with Honda and Toyota vehicles. I drove a Honda until it had over 180,000 miles on it and we kept a Toyota until had over 160,000 miles.
I will say, though, that a potential danger in keeping vehicles a long time is safety. We kept up with all the regular maintenance on the Toyota, and even used a Toyota dealer for all repairs. Still, the reason we had to part with the car is that a spring broke in the front suspension while I was driving through a parking lot, which then led to other cost prohibitive front-end damage. A mechanic told me that had it happened on the highway I probably would have lost control of the car. So, if you're going to hang on to an old car, be extra vigilant about having mechanics check for safety-related issues.
What products have you discovered that stand the test of time? Please let me know
.
It wasn't long ago that banks would not allow debit card transactions to go through if you didn't have enough money in your checking account. But then they discovered how profitable it could be to allow such transactions and then hit you with an overdraft fee. Such fees will total an estimated $38.5 billion this year, according to the Washington Post. And that figure could rise as banks have recently hiked fees on everything from out-of-network ATM transactions to bounced checks. This year Bank of America even increased the number of times per day that a person could be hit with an overdraft fee from five to ten.
Matt's View
Online banking has made it easy to keep tabs on account balances, so if there's any doubt as to whether you have enough money in your account, check your balance before using a debit card. Also, if you have a savings account at the same bank or credit union where you have a checking account, consider setting it up to be tapped in case of a checking account overdraft. You may be charged a fee if and when it's used to cover a shortfall in your checking account, but it'll probably be less than a traditional overdraft fee.
For other money-saving ideas, check out my list of recommended links
.
For those struggling under the weight of too much student loan debt, some new forms of relief are now available. Those working in low-income fields may be eligible for an Income-Based Repayment Plan
, which became available the first of this month. An article on Kiplinger.com
used an example of someone making $20,000 per year with $30,000 of Stafford loans charging 6.8 percent interest. This person could see their payments drop from $345 per month to just $50 per month. And any remaining balance after 25 years would be forgiven. This calculator
will help you determine if you qualify and how the plan would change your payments. To apply, contact your lender.
Another new student loan program
is for people working in public service such as government workers, non-profit organization employees, teachers, nurses, and more. Such workers may qualify for loan forgiveness after making 10 years' worth of payments.
Matt's View
I meet lots of people in workshops who are buried in student loan debt, so these new programs should come as good news.
These days, everyone from prospective employers to cell phone service providers are looking at your credit report. But not all credit report inquiries are created equal. As reported on Mainstreet.com
, a "soft inquiry" is made when you request your free credit report
or a company where you've applied for a job pulls your report. Such inquiries typically have little or no impact on your credit score. Usually, they don't even show up on your credit report. A "hard inquiry" is made when you apply for credit or open a bank account. Such inquiries do show up on your credit report for two years. The main watch-out with hard inquiries is the frequency with which they are made. The occasional hard inquiry should not impact your credit score but frequent hard inquiries can have a negative effect. Overindulging on those retailer offers where you get 10 percent off your purchase if you apply for their credit card may end up costing you more than you save.
Matt's View
It's important that we all know our credit score (the least expensive way to obtain it is to buy it from Equifax for $7.95 during the process of requesting your free credit report) and understand what impacts the score. The most important thing you can do to keep your score strong is to pay your bills on time. The second most important thing is to make sure you don't use too much of your available credit. The ideal is to use less than 10 percent. So, if you have a credit card with a $10,000 limit, try to keep your charges to $1,000 or less each month. And of course, always pay your balance in full. One of the most common myths I hear is that you have to carry a balance on your cards in order to have a good credit score. That's not true. You have to use credit, but you do not have to carry a balance from month to month.
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