If you have an account with Zappos, the popular online shoe and clothing retailer, you were one of 24 million people exposed in last week’s hacker attack on the site. If you were a victim, it is important for you to take steps to protect yourself right away. If you were not, this should act as a reminder to stay vigilant and work to protect yourself against identity theft online.

It is important to note that only partial credit card numbers and encrypted passwords were accessed, not full passwords or credit cards. However, full names, addresses, phone numbers, and emails were access in the attack.

Unique Passwords

I have a unique password for almost every single website I use. Each password is a randomized alpha-numeric 15 character password. If I don’t know them, they are nearly impossible to guess and a brute force attack would be a waste of time. In other words, I am secure.

I have a level of security in the range of 96 bit to 128 bit security. What is important, though, is that I use a different password for each site. If one gets hacked, I am still safe on every other website.

Remembering these passwords is impossible. There is no way to remember one of them, let alone all of them. So how do I do it? I use Lastpass to manage my passwords. That password is the last one I ever had to remember.

Lastpass is a password security application that can generate, remember, and fill in your passwords for virtually any site you use. It is incredibly secure and is free and easy to use with Chrome, Firefox, Internet Explorer, Safari, and Opera. It works on Windows, Mac, and Linux. For an extra fee ($12 per year), you can also use it on your Android, iOS, Blackberry, or Windows Phone mobile device.

Not having different passwords across sites is plain stupid. Not having secure passwords is pretty dumb too. You might as well take advantage of this free option and have unique and secure passwords. It could save you a huge hassle and a ton of money if someone tries to steal your identity in the future.

Shop with Credit Cards

If you use a debit card or bank ACH payments to pay online, you are exposing yourself to a big risk. If someone steals those numbers and make a fraudulent purchase, you lose access to that money until the problem is fixed, if ever.

If you use a credit card, you are automatically protected from fraudulent purchases. Check your account rules for details, but I know that my Starwood Preferred Guest® Credit Card from American Express, British Airways Visa, and other cards all protect me from fraud.

Do It Today

Do not wait until you have a problem to fix your online security. Secure your passwords with Lastpass today and make sure to only shop secure in the future. Be smart, not a victim.

What strategies do you use to protect yourself online? Have you ever been a victim of online fraud? Please share in the comments.

Image by Don Hankins.

Secure Your Online Life is a post from: Narrow Bridge

Related posts:

1. Protect Yourself from Everyone
2. Pay Online or Pay by Check
3. Getting Started in Online Banking

In high school, I worked after school and on weekends as a cashier at a large retail chain. Despite my working less than half the hours of my full time counterparts, I consistently managed to reach the top of our weekly credit card signups contests.

Store Credit Cards Are Bad

Most people knowledgeable about credit scores and credit cards would advise you against signing up for a store credit card. I am one of those people.

Store credit cards are bad for many reasons. Here are some of the biggest:

• Credit score goes down from a new inquiry and average age of open credit lines decreasing, which can cost you money when applying for loans in the future
• The new credit card gives you an outlet to spend more
• If you do not pay it off right away, you will pay interest on a purchase that you might not have otherwise
• Store credit cards generally have higher interest rates than other credit cards

How I Got People to Sign Up

I was 16 when I started working in the retail store. By the time I left when I was 18, I had learned a lot about selling credit cards, but knew little about credit. I just knew that if I signed people up, I would get a free DVD or be entered into a contest for something bigger.

My store offered a 10% discount to new credit card customers if they charged the purchase to the card. I didn’t waste my time offering a store card to someone making a $12 purchase, but I always offered it to someone making a purchase over $100.

I had logic in that decision. I was scored by my company on transaction time, so it was never worth wasting time unless you had a good prospect in front of you. Because of a basic understanding of marketing psychology, I knew that people in Greenwood Village, Colorado did not care about saving $3 when picking up a few things. However, when someone was buying all new bedroom decorations or filling the cupboards of a new kitchen, I could easily talk them into saving $10, $20, or $120 dollars (that was my biggest).

I did not ask people if they were interested in saving 10%, as most cashiers did and continue to do at that store. Most people don’t care about 10%. However, people do care about $34 on a $340 purchase. I always quickly moved the decimal and told them exactly how much money they could save. It almost always worked like a charm. My great performance either had something to do with that technique or my stunning good looks; I don’t think we will ever know for sure…

This Was a Huge Benefit for My Company

If you saved 10% on a $100 purchase and paid the card off right away and never used it again, you were a rare customer that cost the company $10 with no long term gain. However, many new credit card customers would only pay the minimum. If you took one year to pay off that purchase at our rate (currently 22.9% APY), we would turn that 10% savings for you into a 12.9% profit for us. In that case, the $10 savings for you turned into a $12.90 cost. That is not huge, but if you use the card regularly, it adds up over time.

Late fees, interest, and the loyalty gained from holders of the store card made the 10% discount more than worth it.

What You Need to Know

Retail stores don’t do anything to help you, they do things to make money. The 10% off at the Target register, the mail coupons from Kohl’s to credit card customers, and the free drinks and candy at Walmart are all temptations to get you in the door, get you to spend more money, and make more money.

When you are offered a store credit card, do the real math. Will you pay it off right away or will you pay interest? Are you planning on a new car or home loan in the near future? Are you trying to build your credit score? Do you care if it falls?

Store credit cards are not a cut and dry “yes” or “no” for everyone, it depends on your situation. In most situations, you should not get the card. However, if you own a home, have a good card, have a large savings account, and don’t care if your credit score falls a few points to save some money on a large purchase, it might be a good idea for you.

Your Stories and Questions

Have you ever taken a store credit card and regretted it? Do you have a store card that you love? Do you have any questions about store credit cards (or credit in general)? Please share and ask in the comments.

Image by stevendepolo

How I Ripped People Off With Store Credit Cards is a post from: Narrow Bridge

Related posts:

1. Why To Skip Store Credit Cards
2. Three Ways the Credit Card Companies Trick People Into Using Their Cards
3. First Step To Getting Rich: Stop Using Credit Cards

As more Americans have become frustrated with their large, corporate banks, many have been moving their business to credit unions. Credit unions offer some amazing benefits and could be a great resource for many people.

What is a Credit Union?

A credit union is a financial institution that is owned by its customers as a co-op. Each member votes on board members and major changes to the institution. They are not for profit companies and are generally consumer focused, with little or no business offerings.

Because they are cooperative owned financial institutions, they generally charge low fees and have competitive interest rates for loan and credit accounts. I joined my first credit union when I purchased my first car because it had better auto loan rates.

How to Find a Credit Union

Most credit unions have restricted membership requirements. My credit union started as an organization for public employees. I was able to join because my father had an account and worked at the local Chamber of Commerce. It is now open to all Colorado residents.

Some credit unions only take employees of certain companies. Some only take residents of a defined geographic area. Others are open to anyone.

To find a credit union, start by talking to your company’s HR department. If they do not have any ideas, there are a few good resources to find a good fit for your needs:

CU Lookup – Maintained by the National Association of Federal Credit Unions, the CU Lookup tool allows you to search by location or affiliation.

NCUA – The National Credit Union Administration is the FDIC for credit unions. It has tools to help you research credit unions before you join.

How to Choose

If you find more than one credit union that you are eligible to join, take a look at their offerings. Some credit unions offer a short list of account types while others are full service institutions with options for loans and investments.

I wanted a credit union with competitive loan rates, which is why I joined my credit union. If you are looking to use a credit union for your banking needs, make sure you it has a location near home and good ATM access.

Bank or Credit Union?

This is a decision that you have to make for yourself. If you are happy with your bank and are not charged fees for your activity there, there is no reason to go through the hassle of moving. If you are upset with your bank, and large banks in general, and want to make the move, a credit union could be a great fit for you.

Please share your thoughts and experiences with credit unions in the comments.

Image by The Consumerist.

How to Choose a Credit Union is a post from: Narrow Bridge

Related posts:

1. I Picked a Credit Card
2. Credit Card Rule Changes: Mixed Bag for Consumers

As Christmas is over and Chanukah is slowly waning away, people around the world are enjoying new video games, toys, electronics, jewelry, and other presents from their friends and family. They are taking their gift cards to the store, but most people have not received their holiday credit card statements yet. I will give you a warning, they are on the way.

Overspending Sucks

While I often write about spending less than you earn, everyone screws up sometimes. If you did not have a good savings cushion for your holiday shopping, you have hit the dreaded holiday spending hangover.

Like the morning after you visit the bars, sometimes you have to deal with a hangover. You spent too much and can’t go back and fix it, so you have to press forward and tackle the problem head on.

Asses Your Problem

Now that you have overspent, it is time to assess the damages. If you used multiple credit cards, gather your balances (which is easy if you use a site like Mint, Adaptu, or PageOnce). If you only used one card, pull up your balance online and see where you stand.

Look at your monthly budget and find places you can cut and put extra into your debt. The faster you are paid off, the less you spend on interest. Why throw money away to the credit card company when you can be debt free?

If you have a regular savings contribution, it is a good idea to divert some of that money to your credit cards. Make sure that is only temporary, however, and don’t get in the habit of stopping your saving.

Let the Debt Snowball Begin

Now that you know your situation and you have come up with an extra funding source, put every available dollar into your debt (while keeping your emergency fund intact just in case) to clear your holiday debt.

Don’t Do It Again Next Year

Dealing with debt is a pain in the ass. While we may have family and societal pressure to give expensive gifts, plan out your holidays to stay debt free. Limit your gift exchanges and focus on experiential gifts to save money. Take a friend to coffee or for a happy hour to focus on relationships over material possessions.

Your Experiences and Tips

Ever been in the holiday hangover? Have ideas for those dealing with it today? Please share your thoughts and experiences in the comments.

Image by Staccabees.

Also, thanks to 20s Finances for including me in the recent Yakezie Carnival.

Holiday Spending Hangover is a post from: Narrow Bridge

Related posts:

1. Avoiding the Holiday Spending Hangover
2. Limit Holiday Spending With Tiers
3. Happy New Years Hangover

Last week, I got a new credit card. I know that all of the anti-credit card bloggers would have a vein popping out of their forehead for this one, but it makes sense for me. It might also make sense for you.

I really like to travel. I like to travel a lot. I just got back from two weeks in Europe. I am planning trips to Arkansas, Omaha, Washington DC (I hope), and Texas (if I can work it out) for next year in addition to a family vacation to Costa Rica. Traveling and exploring the world is one of my favorite things, so I try to optimize my finances to allow that freedom and mobility I desire.

I am always on the lookout for the best credit card for my needs, and the Starwood Preferred Guest® Credit Card from American Express is constantly rated one of the top travel rewards cards. Here is why I picked this card and why now was a good time:

• 25,000 point signup bonus – 10,000 at first purchase and 15,000 if I spend $5,000 in the first 6 months
• Points can be used for free nights at 1,000+ hotels or converted to miles at 350+ airlines. Some convert at 1 point to 1.25 miles
• Bonus points for spending at Starwood hotels
• Free upgrades at Starwood hotels when available
• Late 4:00pm checkout time at Starwood hotels
• Amex benefits including travel and entertainment reservations, travel insurance, fraud and purchase protection,

For me, that is a winner. I am using this to replace my British Airways Visa as my primary card. Because Amex is not accepted everywhere, I am still using the BA Visa as a backup. (My flight for my recent trip to Europe was purchased with BA miles from that card)

The only downside that scares many people away is the annual fee. For me, however, I get a lot more value than $65 from the miles and benefits of the card. The first year’s fee is waived and I am happy to pay for great service and rewards.

I am not the only blogger that likes this card. You can see other reviews too:

I Will Teach You to Be Rich

My Money Blog

Free From Broke

I have several travel hacker friends that carry this card, and last week I gave in and signed up. I have been happy so far. Who knows where it will take me?

What is your favorite credit card? Do you use it for cash back, travel, or other rewards? Please share your thoughts in the comments.

If you decide to apply for this card, you can use this link to get the Starwood Preferred Guest® Credit Card from American Express and support Narrow Bridge Finance.

American Express Starwood Rewards – My New Credit Card is a post from: Narrow Bridge

Related posts:

1. Credit Card Rewards Are Good Unless…
2. Lower Credit Card Limit Can Hurt Your Credit Score
3. Why You Need To Get a Credit Card

I listen to the radio on the way to work every day. At least once every morning, I hear a commercial talking about debt consolidation services. Some of them are good companies trying to help you and some are predatory and are just trying to make a buck. It is important to know how debt consolidation works so you can make good, informed decisions.

Credit Cards

The most common reason to consolidate is to get a lower interest rate. While it is also nice to have fewer payments, the lower interest rate savings can be significant. To consolidate debt with credit cards, start by making a list of your cards, interest rates, and outstanding balances.

Most cards will let you do a balance transfer. Make sure that there is no fee or that the fee is low enough that it is still worth the transfer first. Work with the bank that has a lower interest rate to move the balance to the lower interest account.

Student Loans

You are only allowed to consolidate student loans once, so make sure it is worth it when you make the move. The government currently subsidizes Stafford loans to 6.8% interest. Other loans have varying rates. If you can get them to a lower rate, by all means jump at the opportunity.

The only time I would warn against consolidating student loans to a lower interest rate is if the higher interest balance is very small. If you can come up with a way to make extra payments that would eliminate that loan all together rather than consolidating over a longer period, it may be better for you to pay the higher rate for a short period of time than a lower rate for up to ten years.

Equity Backed Consolidation

If you are a homeowner, you have likely built up home equity. While I would never suggest taking out a home equity loan for spending, it could be a good idea for consolidation.

Secured (equity) loans usually have a much lower interest rate due to the collateral attached to the debt. Because you are responsible and would not miss payments, you have no risk of losing your collateral. (You are responsible, right?) Under that circumstance, you could refinance your credit cards into one home equity loan at a rate that can easily save you 15% per year.

What Should You Do?

You have to decide whether the circumstances are right for you to undergo a debt consolidation. If you decide to do so, make sure you work with a reputable bank or company that has your best interests in mind.

As always, post your questions and thoughts in the comment section below.

Disclaimer: Consideration received for some post content, but all opinions are my own

How to Consolidate Debt is a post from: Narrow Bridge

Related posts:

1. How Debt Consolidation Loans Work
2. How to use Debt Consolidation to Save
3. Good Debt and Bad Debt

Welcome to the newest installment of the Yakezie interview series. Today, we have questions answered by Jason at Live Real Now. Jason has been making major strides cutting his debt and has chronicled the journey at his site.

How did you get started in personal finance blogging? What was your inspiration?

In April 2009, my wife and I were on the verge of bankruptcy.  We weren’t behind on anything, but we were in over our heads.  While researching bankruptcy attorneys, I discovered Dave Ramsey and decided to give that a shot, first.   For the next 6 months, I wouldn’t shut up about money and decided I should share my journey with the world and stop annoying my friends and family with it.

What changed in your financial life after you were married and had kids that was a surprise? If you could instill one financial value in your children, what would it be and why?

I was shocked by how much nickel and dime crap there was to pay for with our house.   Everything from getting the sewer main snaked to replacing the screen in the window to buying gas for the snowblower to having to own a snowblower.  It all costs money and adds up, but nobody ever thinks about that before they get a house.    The one financial value I am trying to drill into my kids is a pure loathing for debt, specifically interest payments.    Kids, don’t carry debt.  If you can’t control yourself, don’t get credit cards!

On your site, you mentioned that you are trying to change your lifestyle. You are trying to get in shape and downsize your stuff. Have those efforts made a financial impact in your life? If you could start those efforts again today, what would you do differently?

I managed to cut my finances down pretty severely before I picked up my other projects, so I don’t think weight loss or downsizing has had much of an impact financially.    The one thing I would do differently is to remind myself not to cheat.  I can’t cheat just a little.   Guaranteed, if I eat one cookie, there will be 3 more following it.   I need to follow a strict set of rules, or I will definitely fail.

What is the biggest personal finance lesson you learned the hard way?

This one’s tough.  I’ve always had a compulsion to learn every possible lesson the hard way.   The biggest?  Get your husband/wife/partner/lover/leprechaun on board before you dive headfirst into any life-changing project, be it debt repayment, massive weight loss, or self-employment.   Life is so much easier when you’ve got their support to fall back on and so much happier when you aren’t fighting over who bought what.

Outside of blogging, what has been the biggest change you made to your financial life that made a difference? (i.e. making more money, frugal changes, budgeting, investing)

Credit.  Rather the shunning of.   Over the past 27 months, we’ve paid down $40,000 of debt.   We couldn’t have done that if we were still charging our lives away.   This spring, we got surprise with a $4000 bill for my son’s vision therapy and managed to pay it off without paying a cent of interest on it.   That would have been impossible with our old spending habits.   Our money is doing what we want it to do now, instead of demanding it be spent on garbage like a new TV we didn’t need and couldn’t afford 3 years ago.

Interview: Jason at Live Real Now is a post from: Narrow Bridge

Related posts:

1. Interview: Free From Broke
2. Interview: Jacob at My Personal Finance Journey
3. The Real Secret Rich People Use To Be Rich

Welcome to the 321st edition of the Carnival of Personal finance. I had a lot of fun reading everyone’s submissions and added a few new folks to my reading list. I am excited to host this carnival for my first time. If you are new to Narrow Bridge Finance, be sure to check out some of my best posts and read about why you should listen to me.

This month I dealt with the single most bizarre experience of my life. I became friends with someone, started a company with him, and found out he was not who he claimed to be. It made me think about the millions of people who have been in similar situations. From Bernie Madoff to  Frank Abagnale, this week we are going to highlight some people who used finance for a very different purpose than the bloggers of today.

Image from Dreamworks film Catch Me if You Can

To begin, the con artist that makes fraud sound sexy. Frank Abangale Jr. was the subject of the popular film ‘Catch Me If You Can.” Based on the life of Abangle, Leonardo DiCaprio makes fraud look fun as he travels the world as an airline pilot, saves lives as a doctor, and eludes an FBI agent hot on his trail as he cashes fake checks and finds beautiful women.

Editor’s Picks:

Sustainable PF examines ways to make money online over four decades. Starting in the 1980s, SPF used innovative methods to create income streams. Some of them have died off and others are still applicable today.

The Financial Blogger thinks that debt is a good thing. How timely can an article be? As Fannie and Freddie are posting losses, the US Government is struggling with its own debt, and I am looking at buying a home, TFB takes a look at things from the other angle.

Mike, aka Oblivious Investor, reminds us that owning a bunch of mutual funds is not the same as diverse investing. Many mutual funds own the same stocks and some even own other mutual funds. Mike helps you dissect your portfolio to balance your investments.

Lindy at Minting Nickels made a few mistakes when she had her first baby. She shares her non-frugal moments in her post How We Didn’t Save Money with Our Babies.

Squirrelers has five easy steps to increase your savings. Sometimes it is good to get back to basics with personal finance.

Budgeting:

My blogging buddy Well Heeled has seven tips for buying an engagement ring at Costco. These are great tips when you are making such a big and important purchase.

Career:

Adam at Rabbit Funds continues a series on starting a home business. This post focuses on important accounting and marketing tasks that most bloggers and entrepreneurs can learn from.

Clint at Accumulating Money put together a list of different types of jobs for finance professionals. As a finance guy myself, I can attest to how important having a direction can be to your finance career.

Mike at Green Panda Tree House wants to help you make a plan to quit your job.

Control Your Cash reminds you that your time is worth something and you should give it a value. Do not give it away for free.

Bret at Hope to Prosper has the secret to success for working stiffs.

Your Life Their Life looks at George Costanza as a case study for how you can succeed at work.

Image via Wikipedia

Don’t forget the infamous Charles Ponzi. Yes, he is the guy Ponzi schemes are named after. Charles pioneered the genius pyramid marketing scheme that has cost so many people so much money. The Italian immigrant swindled people and governments by engaging in mail fraud and investment fraud.

Credit:

Jake at NerdWallet examines the different benefits of American Express cards. From Clear to Centurion, AmEx has a lot to offer, if you are willing to pay the fee.

Jeff from Good Financial Cents reminds you to avoid store credit cards. It is not worth it.

Janet at Credit, Eh thinks you should use income diversity as a insurance for your credit card payments.

Glen at Free From Broke found the best credit cards for college students.

Philip shares ten tips to stay out of credit card debt at Deliver Away Debt.

Debt:

Jeff at Sustainable Life Blog takes a look at what happened so far this year in his finances.

Cathy at Money Health Central has ideas for what to do after your debts are paid off.

Image from US Department of Justice

Bernie Madoff is a new edition to the list of fraudsters. Madoff admitted to operating the largest Ponzi Scheme in history. It is estimated that he cost investors $18 billion when his Manhattan investment firm went bust. He is currently serving a 150 year prison sentence. Sadly, many non-profits were dramatically impacted when Madoff’s house of cards collapsed.

Economy:

My University Money explains the implications of the rising Loonie compared to the US dollar and gives a brief FOREX lesson discussing why exchange rates vary.

Darwin from Darwin’s Money shares what the media did not regarding the debt ceiling vote.

Money Thinker has his own ideas for fixing the national debt.

Finance:

Money Beagle thinks having health insurance can be hazardous to your health. If you are considering a new addition to your family, this post has great insights.

Crystal shares her retirement checklist at Stupid Cents.

Image from US Department of Justice

Kenneth Lay is responsible for the largest corporate collapse from fraud in history. Lay lied to investors and cooked the books at Enron while being paid over $42 million per year to manage the company. The company with a $60 billion market cap with $100 billion annual revenue was exposed in October 2001 and now does not exist.

Frugality:

Kim at Blogging for Change noticed that her child’s school supplies were far more expensive than they needed to be, but most people just pay for convenience.

Free Money Finance takes a look at extreme couponing and wants to know your take.

Britney at TotallyMoney wonders if cost and expectation go hand in hand.

Hunter at Financially Consumed writes about caffeine addiction and how it impacts you, and your finances.

Glen at Parenting Family Money has 9 inexpensive ways to keep your kids entertained over summer vacation.

Jacob from My Personal Finance Journey has five great ways to reduce your car insurance.

Investing:

The Dividend Growth Investor looks at master limited partnerships and the implications of owning these investments.

The Div-Net takes a deep dive analysis into the high dividend yield of Kinder Morgan.

Intelligent Speculator things that Google might have a chance at social media after all. It is not going to happen automatically, but Google is taking steps in the right direction.

The Dividend Growth Stocks blog is on the never ending quest for the perfect dividend stock.

Matt the Dividend Monk will help you build a $150,000 portfolio by the time you are 30.

John at Stock Market Basics helps you discern the many gold ETFs you can purchase.

Ricky at Qwoter can help you decide on the best company for an IRA depending on your needs.

Growing Money has comments on CNBC’s recent list of 20 stocks about to pop.

Jim at the Retire Happy Blog has found the science of building a diversified investment plan.

John from Wallet Blog discusses the difference between money market funds and money market accounts.

Outlaw Finance gives tips on where to invest your money.

Image from ABC's Lost via Wikipedia

Okay, so this one was not a real guy, but I could not make a list of con artists without including James Ford, more commonly known as Sawyer. Sawyer taught the world about the “long con” on ABC’s series Lost. Sawyer also lived under the alias Jim LaFleur. Of course, Sawyer would not have been such a great con man if he had not learned from the man who stole his parent’s life savings.

Money Management:

Ricky at Qwoter discusses financial priorities. Learn about ideas ranging from the popular emergency fund to less known tips for building your own value.

Jen at Master the Art of Saving is taking an extreme couponing reality check. It is important to remember that behind the trendy “glamour” of feeding your family for twenty cents for four weeks that there are big costs. She also notes that guys (such as myself) may not appreciate your fifty boxes of tampons in the garage.

Anabelle at The Year of Shopping Detox wonders why so many financial experts and mean and yell-y. My personal opinion of Suze Orman is not so good, by the way.

Eric (good name!) at DollarVersity reminds us that bank account bonus offers are not always as good as advertised.

RJ at Gen Y Wealth thinks you do have enough willpower to make a difference in spending decisions. He also has strategies to make it easier on you.

MD at Studeneconomics explains why online banking is more popular than ever.

Canadian Finance Blog thinks it is time to start thinking like a wealthy person.

Jason from One Money Design asks the readers if they can live well on less than $40,000 per year.

Elizabeth reminds us to remain calm despite our volatile economic situation at Modern Gal.

Real Estate:

Nicole at Grumpy Rumblings shares her August mortgage update and the broken window hypothesis.

Sarah helps you find out how much your home is really worth at Money Under 30.

Saving:

Chris at Stumble Forward helps you set up a savings account for your child. This is an important step in your child’s financial education and future, so be sure to get them started young.

Mike at Cards Canada examines loyalty programs worth joining.

Ben at Money Smart Life has the best rental car deals for road trips.

Phil at PT Money, our great organizer for the upcoming financial bloggers conference, tells us how to save like a madman.

Other:

Boomer from Boomer & Echo is learning about caring for elderly parents and shares stories from difficult moments.

Junior at Consumer Boomer helps you decide whether funeral insurance is right for you.

Briana at Personal Dividends never travels without travel insurance. She lists of the major benefits of having your trip insured.

No Debt MBA helps you decide if admissions consulting is worth the cost.

Asking About Money interviewed No Debt MBA and had some interesting answers.

Next Week:

Next week the Carnival of Personal Finance will be hosted by Financial Uproar. You can submit your posts by visiting the Carnival of Personal Finance homepage.

Carnival of Personal Finance #321 – The Fraud Edition is a post from: Narrow Bridge

Related posts:

1. Carnival of Personal Finance – Oktoberfest Edition
2. Carnival of Personal Finance #270
3. This Week’s Carnival of Personal Finance

Today I had the opportunity to ask Glen at Free From Broke a few questions about his personal finance goals and history. Free From Broke is a top quality personal finance site. It chronicles a journey from credit card debt to being, as the name implies, a lifestyle free from debts and worries.

Like many, I was neck-deep in credit card debt.  On top of that I was living paycheck-to-paycheck with just about no savings and nothing saved for retirement.  I know something had to change so I slowly started to educate myself and make changes to my finances and debt.  I was able, with the help of moving back with my folks, to eliminate my credit card debt and start on the track to savings and retirement.

In reading up on personal finances I found Get Rich Slowly.  Loved it!  What J.D. was writing there rung true to my life.  After a bit, I thought I might be able to contribute my experiences and help people out so I started up Free From Broke.

Hmm, does having kids count?  It was a surprise to actually see how much those little rugrats actually cost (I love each of our three dearly).  Maybe another surprise, a good one, was how well my wife and I integrate our finances.  Not that I was worried we wouldn’t mesh, it’s just pleasant to know that we trust each other fully and have each other’s backs.  We’ve been able to save such that we were able to buy a house last year with close to 25% down.  Though money is tight, it hasn’t been as bad as we thought it would be.  We’re making it happen!

As for financial advice to the kids, don’t be a slave to money.  Use, and save, money well and it will be a great liberating tool.  But if you become a slave to it, buying things to live up to some imagined expectation and/or building up a lot of debt, your life decisions will be ruled by how you can pay things back, not by financial freedom.  Hope that makes sense.

Yeah, that was a BIG decision moving back with the ‘rents.  I didn’t really use any tools such as budgeting tools, but what I did utilize was making automatic savings into my online savings account and my 401(k).  Making payments automatic meant they were put away before I could use the money.  I loved seeing my account grow, even slowly.

For someone starting on a financial overhaul I have this to say – Anything is possible!  If your goal is to get out of debt it CAN be done.  It may take some time and you might take a couple of steps back occasionally, but stick to it and you will meet your goals.  Personal finance is a process that isn’t complete overnight.  It takes time and your financial plans will change over time.

Wow, good question.  Maybe it’s that, just like small savings add up over time, so does small spending.  When I was in debt, there were a couple of big things I spent on, but most of it was small like a CD bought here and there.  Over time, that spending adds up.  And when that spending is done on a credit card that you aren’t paying off every month, you are adding interest as well.  It’s easy to find yourself drowning in debt from consistent, small drops.

Consciousness.  Knowing where my money was going and realizing how much I could actually spend.  I think most personal finance issues aren’t simply a case of not having enough money.  People with six-figure salaries goes broke, even millionaires.  I think it’s when we aren’t conscious of our money and what we spend on and why that we get into financial trouble.  You need to respect your money and be accountable for your financial actions.  I see so many people pretend that things will just turn out ok but they aren’t willing to be responsible and realize what their financial situation is.

When I started making changes to my finances, it’s because I told myself things had to change.  No one was going to make that change for me.

Interview: Free From Broke is a post from: Narrow Bridge

Related posts:

1. Check Out My Guest Post at Free From Broke
2. Interview: Jason at Live Real Now
3. Interview: Jacob at My Personal Finance Journey

About two years ago, a bank closed one of my credit cards due to “inactivity.” Unfortunately, even though credit markets are loosening, it takes more than just good credit to keep your accounts alive.

I have four credit cards. Two old cards that generally sit in a drawer getting dusty, my primary card, a cash back Visa that I use for all of my purchases, and a new miles rewards card that I signed up for as part of a travel hack.

Why to Keep Old Credit Accounts

When I was young and ignorant, I closed my first credit card account because I never used it. BAD DECISION. One of the most important factors in your credit score is the average age of credit. By closing my oldest account, I was bringing down the average age.

When the bank closed my card for inactivity, it had a double whammy on my credit. First, my average age went down. Second, my credit utilization, another important metric, went up. The card had a $10,000 limit, so when it closed my total percent of credit used increased.

How to Keep Your Accounts Alive

First, and most importantly, keep a positive record in your credit report. If you miss payments, make late payments, or have a negative item placed on your credit report, banks are legally allowed to close your credit card accounts. This has to be done in accordance with Regulation B, often called Reg B or the Equal Credit Opportunity Act.

Second, also important, is to use the accounts occasionally. In my banking days, we ran a list once every quarter for customers with a major negative change in their credit and a list of inactive accounts. If there were names on both lists, we would close them immediately. We would go through the rest one by one and decide who to close down.

I have been one of those accounts, but I will not be again and you don’t have to be either.

This morning, I dusted off my two rarely used cards and will use them for a few transactions just to keep myself off of the inactive list. Those two accounts are my oldest credit accounts, and having one closed down would dramatically impact my credit score.

What Are You Waiting For?

If you have old accounts that are unused, it is time to dig the card out of the drawer and make a few purchases. Of course, pay them off right away so you don’t forget, make a late payment, or pay interest in your purchases.

Keep Old Credit Alive is a post from: Narrow Bridge

Related posts:

1. Bank Credit Laws: Reg Z
2. My Credit Score Roller Coaster
3. Automatic Credit Card Payments