Over the last 4000 years, bankers have had quite a bit of time to improve their trade. Now the financial services companies such as banks and investment firms are some of the most profitable businesses in the United States. Of course there’s a lot of competition for your business, so banks have to give out a number of perks and high interest bank rates to get new whatever new account you are looking for, whether it be a checking account, 6 month CD, or a savings account, but they have to make up that money from somewhere. Quite often banks will make use of some less than honest business practices in order to separate you from your money. Be sure to know what they are so that you don’t get trapped by them and have to write a check to the school of life.

Many banks have begun using what’s called a two-cycle billing process for credit cards. Here’s how it works. Let’s say you borrow $100 on a credit card. You pay $50 on it the first month, and $50 on it the second month, and pay it off. On the third month, you have a zero balance, but the bank still charges you a finance charge! This is because with two-cycle billing, they use the average balance of the last two cycles to calculate the amount of interest you pay. So in this case, you would still be paying interest on $25, even though your account was wholly paid off. Discover’s credit card line is perhaps the most notorious making use of this shady business practice.

When you are banking online, more often than not your bank will show you what’s called an available balance. Allegedly, this is the most accurate picture of how much money the bank thinks you have today. This is all well and good, but sometimes that number is a bit less than honest. Many online banks add the amount of overdraft protection you have on top of the available balance. So if you had $500 in your checking account, and $500 in overdraft protection, you would see an “available balance” of $1000. This will cause people to think that they have more money than they actually do. They spend the money they think they have and end up pay un-necessary overdraft protection fees

When banks offer Visa debit cards, they often claim to offer the exact same protection as your Visa credit card. This is not the case. If someone were to steal your Visa credit card, you can easily have all of the money refunded. When someone steals your Visa debit card, you can have all of the money that was in the account refunded, but there’s a catch. If they steal your debit card, chances are they are going to cause several overdrafts giving you hundreds of dollars in NSF fees. Visa isn’t under any obligation to pay for these things if your card is stolen. If your bank doesn’t want to cooperate and waive them, you’ll get stuck paying them.

It doesn’t end there. Quite often your bank will send you a check in the mail for ten dollars or so and on the back of the check, there’s a little note that says if you sign this check and deposit it, you are automatically enrolled into some sort of credit protection or other optional program. If you don’t pay close attention, and a lot of people don’t, you could find yourself paying $10 a month for some service you probably don’t need.

These are just a few examples of the many things that banks will do to separate you from your money. They are completely legal, but very deceptive. Watch out, and always read the fine print.

Late this year or early next, you will be able to upgrade your home appliances, furnaces and air conditioners and receive a generous rebate for doing so. Like Cash for Clunkers, this program is being established to help both consumers and an economy which continues to struggle through a recovery period. In addition, the program will also improve our environment by offering rebates only on energy efficient appliances. Consumers can get ready to go green and stimulate the economy at the same time.

Retailers and makers of appliances, heating systems and cooling systems have been struggling over the last few years. Sales have seen double digit drops two years in a row, the worst in industry history. The government is hopeful that this program will increase sales for these retailers and appliance makers and boost the economy at the same time.

Cash for Appliances, while federal government funded, will be controlled by each individual state. Three hundred million dollars have been set aside for this stimulus program, and the money will be distributed to each state sometime near the end of November. Each state will get an allotment of money for their individual program based on their population. This will average out to about $1.00 per person.

Right now, your state is coming up with its own plan on how the rebates will work. Each individual state will determine what will qualify for a rebate and what that rebate might be. Once a plan is in place it then has to be approved before moving forward. All state plans must stipulate that rebates can only be given out for appliances that are Energy Star Sealed. The general thought, at this time, is that consumers will most likely see rebates between $50 and $200 per item.

Consumers who take advantage of this program will also benefit with lower energy bills. Energy efficient appliances are said to use up to 30% less energy than their counterparts. Over a year’s time this can add up to a significant amount of savings for homeowners and renters alike. It is the government’s hope that consumers will put that savings back into the economy.

As we near the end of the year, be on the lookout for your state’s Cash for Appliance Plan. If you are interested in taking advantage of this stimulus offering, you will want to be ready. Once the money in your state is gone- so will the rebates available to you.

Make a Plan. Look at your budget and determine where you can cut expenses and increase income so that you can become debt free.  This is a mandatory first step in dealing with the problem.  Even the smallest of changes can help you get some real debt relief solutions.  Get everyone in your immediate family involved so that they know what the stakes are and how they can help.  Once you have this plan in hand, call your creditors and inform them of your intentions.

Work the Plan. The best laid plans sometimes go awry and that is to be expected.  However, do not allow that to deter you from sticking as closely to your plan as possible.  Make sure that you are doing the best you can to follow the guidelines that you establish.  Do not allow anyone or any creditor to change the rules in the middle of executing your plan even if it means reducing credit card debt faster.  Once you have an agreement, stick to it.  If you find that you need to make changes or depart from it, communicate those intentions.

Pool Your Money. Get your family together after everyone has been paid and pool your money.  Have an envelope or multiple envelopes in which you place money that you will be using to make payments.  You will be amazed at how this will draw you closer as a family and give a sense of camaraderie.  Relationships improve when working towards a common goal.

Keep Going. Do not stop until you have completed your plan and you are in a better position financially than you were before.  Look for ways to continue to restrict your expenses so that you do not find yourself in the same position.  Reduce or eliminate credit cards.  Pay cash for as many things as you possibly can.  Save money for emergencies.

Doing all of this is a sure way to get out of trouble and on the road to financial stability.  Start today!

The question of whether to buy a new or used vehicle has gone on and on for as long as cars have been around.  Purchasing a new vehicle generally affords a certain amount of peace of mind and trouble-free driving.  Obviously you pay a higher price for a new vehicle and you’ll pay a higher price in the amount of interest that you will pay over the term of your loan.  But at the same time there are many incentives that are being offered on new vehicles right now which makes them more affordable than ever.

Used vehicles are also available in higher numbers than ever before.  The opportunity to find a good quality clean used car is definitely in your favor.  The things to watch out here for are excessive mileage and wear on a used vehicle.  Look for the cream of the crop, top of the list, most well-cared for vehicle on the dealer’s lot.  Not only are they willing to deal on new vehicles but also on used as well.  If you choose to buy from an owner be sure to have a mechanic look over the vehicle before you make a purchase agreement.  And, get your purchase agreement in writing and signed by both the buyer and seller.  Even if it means that you sit down together and write it out by hand.

While the recent financial crisis has put an enormous amount of strain on the credit market you can obtain a loan.  Be sure to ask the dealer for the best options that they have for you.  Or better yet take some time and search on the Internet for good financing deals for used or new vehicles.  You might try visiting some of your local banks as well.  The best advice is to move slowly and check around to make sure you get the best deal possible on financing for your vehicle.

Do not panic.  Losing a job is not only about the money it’s about emotional issues that accompany it.  The questions that come to mind most often are “how will we eat, where will we live?”  People who focus on the negatives will be the ones who find it most difficult to dig out from this situation.  The best advice that one can offer is to stay calm.  You are not the first person in this position and you will not be the last.  As matter of fact it might be a good idea to try to get together with others who have recently lost their jobs as well.  But don’t let it degrade into a pity party.  Band together for the express purpose of trying to help each other find a way through this difficult time.

Cut expenses.  With the loss of income comes a responsibility to act in a mature manner in order to help your situation.  You need to take some actions and take them now in order to help you until you get on your feet again with a regular paying job.  At the top of your priority list should be the task of cutting expenses that are not mandatory for living.  For example, that extra cell phone or extra channels on your cable TV or satellite box.  These are expenses that can be cut without affecting your way of life.  You need to focus on the essentials for survival for your family as opposed to the extras that make your life comfortable.

Look for income and work.  Just because the economy is bad and jobs are being lost all over this should not preclude you from trying to find another job.  It’s true that you might have to settle for a job that pays less.  You may not even be able to find a job in the same field that you were before.  Do not allow that to throw you off of your priority of finding a job that pays.  You need money for expenses so that your family can live and have a small amount of normalcy to their lives.  It is mandatory that you begin your search immediately.

If you take these steps they will help you to dig out and survive over the long haul from the loss of a job. It may not be pretty and it may not be fun, but you will get through it.

Here’s a tip that you can use in order to save money on your automobile insurance:  take a defensive driving course.  The first reaction to this suggestion is often “I went through driving school during my high school years, why take another course now?”  Simple:  save money.  Besides, what’s wrong with a brush-up class on road skills that could save a life – yours! 

Upside.  Not only could this help you avoid accidents, but you can also get points cut from your license or save money on a moving violation and insurance rates.  And now, you might be able to take the coursework on the Internet or on a DVD package.

Downside.  The length of classes (six to eight total hours) is a stout commitment for most people.  And, boring is often the term used to describe the subject matter.  But, some of the companies that develop the coursework have re-written it to add more color and graphics, and interactivity.  One online course even calls itself a comedy which uses animated characters.

Where to take them.  First, your state needs to sanction the program, and then you need to check with your insurance company to find out if they approve and recognize the course and offer discounts after completion.  There are probably classes in your area, but you can take the Internet based and DVD courses in the comfort of your own home.

How much can you save?  You might be able to save around 3% on your auto insurance which could net you about $50.00 per year.  While not a lot, every little bit helps.

Also, note that most insurance companies have programs for students and new drivers which can help lower your rates for them as well.

It is worth looking into from a safety standpoint and could save you some money as well.

Is there a silver lining?  Will there be anything left to celebrate once the crisis has past?

Near-term Woes.  Negative attitudes prevail at every turn.  No matter what data is examined, it points downward.  The predisposition of market forces appear to be bent on plumbing the depths of this economic morass.  The best advice appears to be to hang on and to survive any way possible.  For some it may be too late, for others, there might be some hope in finding sources of income that will act as a lifeline to the other side.  In fact, that should be the overarching attitude.  The survival instinct has helped get people through the worst of times in the past and will do so now.

Long-term Recovery.  The cyclical nature of economics points to a recovery and a strong rebound in the future.  The best case in point is the years after the great depression in the late 1920s.  The roaring comeback was not due necessarily to government action, but the action of gearing up for World War II.  From that point on, the national economy began a strong upward run that continued for decades.  When we finally do begin the upswing from this mess, we can only hope for another such catalyst to help pull us out, albeit not another world war.  These recoveries usually prove to be greater in intensity after a challenging time.

Out of the Ashes.  What can we look forward to that will stoke the fires of our financial dreams?  Our hopes are laid at the feet of a burgeoning economy urged on by free market forces.  That means jobs created by a private sector that is growing and enjoying the demands for products and services that are needed on a global level.  The best way for this to happen is for governing bodies to step aside and grease the wheels of capitalism with a healthy dose of freedom and lower taxation.

Personal advice to bring this all together is to do what it takes to survive, look for opportunities to save money for important things, and watch for economic conditions to change so that you can make changes to better yourself and your family.

Inaction.  Some might not do anything with the extra money that comes to them in the form of this tax cut.  The fact that it is only about $13.00 per paycheck might cause some recipients to consider it to be too miniscule to plan for, let alone even notice that it is there.  It does take initiative and planning to make use of this money, no matter how small and insignificant it might appear.  Inaction on the part of these people is almost predictable, but it does not have to be that way.

Savings.  Some might choose to place this money into a savings account.  Over a years time this money adds up to be $676.00.  When you figure interest on the top of this you can have a nice beginning to a solid savings account which will grow as long as you do not make any withdrawals.  You can choose better returns by choosing different vehicles in which to place the money.  Most CDs have minimums, but if you deposit it into an already existing account, you can add to the accumulation of money.  Or, you can start an IRA with it and add monthly to that account for retirement.

Retire Debt.  Taking this small amount to pay off debt might seem like a waste since it is so little.  Yet, if you add it to payments that you are already making, it can help you reduce your principal balances quicker and that is worth a lot since your interest amounts will reduce as well.

Make sure you have a plan for this money.  Do not let the opportunity to use it for the betterment of your financial situation slip by unattended.

Pay Off Debts.  This is probably the least favorite thing to do with the money but it has the potential to help get you on your way to keeping more of your money every month.  Especially when it comes to paying off high-interest credit card debt.  The sooner you pay these off, the sooner you will be able to start saving money that otherwise would be going to maintain that credit card debt.  You can accumulate hundreds of dollars in just a few months (depending on what you owe) which will help give you a return of a better kind – no or lower debt payments.

Pay for a Needed Item.  Some choose to use this money to purchase a needed item.  For some it is a car, others still, buy major appliances.  The urge that you need to avoid here is using the money for something that is considered frivolous.  Things like iPods, big screen TVs and other such items are among the items that should be deemed as unnecessary.  The idea to keep in mind is to be ‘practical.’

Put it into an Account for Savings.  Watch your tax refund money actually do something besides sit in your wallet for a few days – get a long-term savings account and allow it to accumulate interest.  Your local bank offers Certificates of Deposit which can grow your refund with a healthy interest rate.  Or, better yet, put the money into an IRA for retirement purposes.

While you are thinking about taxes, you might want to consider getting out of the tax refund business all together.  You give your money to the Federal government throughout the year and allow them to use it interest-free.  Better it is to keep that money for yourself and put it to work every time you get a paycheck.  Think about the amount that you could accumulate with interest over the course of a year.  In fact, if your employer offers an automatic payroll deduction/deposit program in which you can directly deposit your money into a savings account, you will automatically save money without even seeing it.  Which is what you are doing now, except that you do not get to see it until it comes back to you in the form of a refund.  Think about it and then make 2009 a different kind of tax year for you.

Tax Relief.  President Obama’s promise during his campaign to give a tax cut to workers has been included in this bill.  You can expect an increase of $13.00 each week in your paycheck beginning in June.  While it is not a huge amount, the point is that it is better than nothing.  The total amount of tax relief included in this bill is $298 billion dollars.  That seems like a lot of money for the small cuts extended to workers.

Economy Stimulating Items.  The following are supposed to jump-start the economy.  By that, lawmakers are hoping that the following items create jobs and puts money back into the hands of people so that they will begin buying again.  Highways, bridges, rail and other transit projects will be funded which will create jobs for those who have work or are looking for work in these sectors.

The Bottom Line.  While it is admirable that the Obama administration and lawmakers in Congress appear to have the best interests of the American worker at heart, personal responsibility and taking ownership of your own financial situation are paramount.  You are the one who controls your destiny as far as your money is concerned.  Apart from becoming a completely socialist nation, there are still ways for you to make and keep income for your immediate needs as well as your future.  It is incumbent on you, then to make changes in your lifestyle to lessen the impact of negative economic times and profit from the good times to come.