DontSpendMore.com Blog

Category: Save Money

  • Four Credit Card Mistakes College Students Make

    “Yay, money!” If you are a student, that’s probably the first thought that crosses your mind when you see a student credit card with a generous spending limit. Unfortunately, credit cards match the proverbial “double-edged sword” cliché to the T. Used correctly, they can be great tools toward building a strong credit history and a powerful financial foundation; conversely, common mistakes could derail your future for a minimum of seven years.

    Here are some common credit card mistakes you must avoid:

    Spot and hop

    “Spot and hop behavior” refers to the habit of applying for the first credit card offer that comes your way. From annual fees to high APRs, you could end up spending a lot more than what you would want. Take your time to compare different credit card offers before zeroing in on one that best matches your needs.

    There are plenty of online tools that will allow you to compare offers and choose a credit card that is designed with you in mind.

    Applying for cards without ascertaining your needs first

    You must apply for a credit card that suits your lifestyle and personality. One size never fits all when it comes to credit cards. If you travel frequently, then a rewards credit card could be great for you, but if you are going to buy text books next month, a cashback credit card may be much better. On the other hand, if you drive every day to school, a gas rewards credit card could save you more money.

    If you are going to spend money, might as well get something in return. One caveat, though. Always try to repay the sum you spend on time. The slightest delay could cause you to lose all the benefits and cost you more instead.

    The “I will pay you later” strategy could backfire seriously

    Don’t fall for the minimum payment trap. Credit card companies stand to benefit from interest payments and other finance charges if you pay less than the full amount. If you are short of funds, try to pay off the full balance as quickly as possible. A small slip on your payment schedule could trap you in debt prison for many years to come.

    Always try to pay more than the minimum and whenever possible, in full. In addition to avoiding debts, you will also be building a healthy credit profile.

    The fine print is boring, but don’t sign up without understanding the terms

    Would you write out a blank check to a stranger? If you don’t read your credit card’s fine print that is exactly what you will be doing. From late payments to trigger points that could spike your interest rates, there are so many ways credit cards could levy penalties on your account. If you don’t understand your credit card provider’s terms and conditions, you will have agreed to all of their terms without your explicit consent. That could be dangerous.

    Nimish Thakkar is the CEO of DontSpendMore.com. The site allows you to compare student credit card offers from various companies.

  • Cheap Insurance Rates: Easy Ways To Negotiate A Reduction

    I don’t know about you, but I love bargains. There is an indescribable joy in getting the price reduced after exercising your negotiation skills. With insurance premiums shooting upwards each year, it is high time that we discussed tangible ways to negotiate a reduction.

    Here are some easy ways to flex your negotiation muscles:

    Safety goes a long way toward reducing your insurance premium

    Let us suppose that you are looking to negotiate the premium rates for your home owners insurance. If you look at the situation from the insurance company’s point of view, you will easily understand that the more secure your home, car, business, or any other asset is, the less likely you will be to claim insurance for theft, accidents or fire. So, beat the insurance company at its own game by installing safety measures like fire alarms, burglar alarms, car safety devices, and other common sense safety measures. Highlight this point while discussing a reduction. You will be pleasantly surprised to see that this tactic works, more often than you know.

    Consolidate your insurance policies

    If you are like any of the other million citizens of this country, you probably have at least three insurance companies to manage your different insurance needs like car insurance, health insurance and home insurance.

    Most of the popular insurance companies provide comprehensive insurance coverage and it is in your best interests to consider a consolidation. If you can choose just one insurance service provider and assign all the different types of your insurance needs to this one company, you will be in a better position to negotiate for discounted rates and qualify for great deals.

    Choose a higher deductible

    This helps in a large way, so choose a higher deductible on your insurance premium. But before you take this leap, make sure that you are prepared and can manage to pay the high deductible amount when the situation warrants it.

    Act like an insurance expert and negotiate confidently

    Most of us have settled down with our car insurance providers and are paying their premiums without even bothering to check out the loopholes that can help us negotiate a reduced rate. So, make a list of the features in your car that you think will qualify you for a reduced rate and then call your car insurance provider. You can then read out the list to the employee who answers the phone and confidently demand a discounted price.

    In case you are still wondering about the loopholes, here is a short list for your reference:

    • Anti-lock brakes in your car
    • Low risk occupation
    • Defensive driving course
    • Higher deductible
    • Add your own …

    Don’t forget to compare insurance rates

    Comparing different insurance rates is the easiest way to negotiate cheap insurance rates. In case you don’t know where to start, you can visit our insurance comparison page as a starting point. In just a few minutes you can compare different insurance rates and save money.

    Negotiating is a skill that some are born with, but the rest of us work hard to develop it. But when you find out about the amount of money that successful negotiators save, you will certainly find the motivation to train yourself. We hope these tips will help you negotiate cheap insurance rates. You deserve the savings!

  • How To Get Health Insurance If You Don’t Have a Job

    Most of us cannot even imagine how our lives would be if we did not have our health insurance to cover us. But there are people who do not have a job in the first place and are living highly insecure lives. Or there are instances where people enjoy health cover with their current jobs, but are suddenly faced with a situation where they lose both their job and insurance

    These situations seem too scary to even think about, but health is not something that can be ignored. There has to be some way in which people can enjoy health insurance coverage even if you don’t have a job.

    Health insurance after leaving/losing your previous job

    Many employed individuals (especially those over the age of thirty) cannot afford to pay the health insurance premiums after losing their jobs. There is a provision of the law that goes by the acronym COBRA (Consolidated Omnibus Budget Reconciliation Act) which was passed in 1986 to facilitate continuation of group health insurance coverage to former employees.

    COBRA extends coverage to certain former employees and retirees and spouses, former spouses, and dependent children of both these retirees and former employees. The major criteria here is that the services of the employee must not have been terminated due to gross misconduct.

    COBRA is commonly applicable only to private-sector employers that have employed twenty or more employees, employee organizations, or state and local governments. The coverage is generally extended only up to eighteen months after losing the job/voluntary retirement, but can be prolonged to thirty six months in special cases, where there is another qualifying event during the first eighteen months.

    Other low cost choices

    Many people are out of jobs at the moment but are trying to get one at the earliest. They only need a temporary coverage for the time period in between the previous and the next job. There are many companies that cater to the requirements of such individuals. The coverage offered is usually for a year and may not cover any of your preexisting health conditions.

    Individual health plans for those who can afford

    If you can manage to pay $1,000 or more per month for family health insurance, provided all of you are comparatively healthy, then you can consider an individual health insurance plan. You have to take into account any chronic disorders like diabetes or cancer, which could pose a problem in getting coverage.

    But if you are fortunate enough to live in one of the five states where health insurance premiums are determined by regulators, then you cannot be refused health coverage.

    But for the less fortunate ones who live elsewhere, the coverage offered by your health insurance entirely depends on the state and their rulings regarding the preexisting health conditions. Most of the time, there may be a blanket health insurance cover denial for preexisting conditions.

    Other options

    If you are a member of a certain association or group with a large number of members, you may be able to take advantage of group rates negotiated by the entity. Furthermore, there are non-profit organizations and other institutions that focus on helping people obtain the right coverage. Some hospitals have special plans for low income individuals. You may want to explore government programs as well.

    No matter what option you choose, you must try your best to obtain health insurance coverage for you and your family.

  • Which Is The Best Cell Phone To Buy?

    Choices only make your decision-making process tougher; the more choices you have the harder it becomes to make the right selection. I can say it with so much conviction because it was very recently that I got a first-hand experience. To be honest I really did not expect that the toughest question to answer (only second to the chicken or egg question) would be “which is the best cell phone to buy?” Yet, there are so many choices out there and so many features that one cannot help but get confused. I finally managed to choose and so here are my tips:

    Which is the best cell phone to buy for a girl?

    The first thing you need to note here is that majority of the cell phones perform almost the same functions, but not all of them can be suitable for young girls/teens. If you are a young girl, you really need your cell phone to be pretty and in one of those girly shades (actually I was going to say pink, but then I really hate to be classified a stereotype, so …)

    You will also need to have a plan that facilitates unlimited conversations with friends and don’t forget the social media apps, please! Ah, yes, and the accessories that go with the phone. Isn’t it fun to match cell phone covers with favorite dresses.

    At DontSpendMore.com, we have plenty of cell phone plans for both girls and boys.

    Which is the best cell phone to buy for boys?

    Sir, are you looking for a rugged-looking cell phone. Nah, lots of games would work, isn’t it? Apps, GPS, data access … coffee-maker (oh, that was a stretch).

    At DontSpendMore.com, we have plenty of cell phone plans for both girls and boys.

    Practical tips

    The best cell phone to buy is the one that suits your personal whims, fancies, budget, and requirements.  That was the point I was trying to make all this while.

    But in case you need a quick checklist of points to refer before buying your next cell phone, here it is:

    • Price range of cell phone and your budget
    • Features in a cell phone that you simply cannot live without
    • Features in a cell phone that you do not want
    • Any free bonuses products that a particular cell phone company is offering to boost sales like a memory card, mobile accessories, and others
    • Unlimited calling, data, text
    • Cell phones having the latest / most updated software
    • Compatibility of the gadget at international locations

    These points are the basic criteria on which you should compare different cell phone plans. Good luck shopping. Click here to review and compare the latest cell phone plans.

  • The Best Cell Phone Offers, Comparison Takes A Hotseat

    We have become accustomed to comparing and shopping online, and cell phones are no exception to this trend. In just a few seconds, one can perform a comparison of the best cell phone offers.

    Cell phone offers comparison: Three reasons you should do it online

    FREE! Does anything ever get better than free? First, at DontSpendMore.com, you can review and select from a comparison of the top cell phone offers in the market. From free phones to a free month, we have the best of the best at your disposal.

    Second, a suite of benefits that will make the process of comparing cell phone offers a breeze. Convenience, side-by-side comparison, expert reviews, and lots of choices. Why would anyone take the trouble of visiting physical locations when you can do so in just a few clicks.

    Third, it is easier and practical to keep in touch with the latest cell phone offers by looking out for them online. Cell phone technologies change so rapidly, you can get instant e-mail notifications and alerts if you want to.

    The process of comparing cell phone offers online

    Take stock of the basic features that most cell phone companies are offering. How else would you know what to look for while comparing between the offers? This may seem redundant for seasoned cell phone users, but this article is meant to help every kind of cell phone user, and that includes the first time user, who has just decided to own a cell phone but has no clue about how and where to start.

    The basic features include the charges that would applied for each of the features, such as making local, national and international calls, sending text messages, sending multimedia messages, making a video call, using the Internet on your mobile, uploading and downloading charges, voicemail, chat, apps, and a host of other benefits that are packages with almost every cell phone plan.

    In addition to these, you also need to check out the free bonuses (if any) that are on the offer. Other interesting perks include discounted rates for; special discounts (like discounted movie tickets for using a certain cell phone service provider); unlimited calling; flat rate plans, and other similar benefits.

    By the time you complete your cell phone offers comparison, you should have a pretty clear picture about the cell phone service provider you are going to use.

  • Credit Cards Could Make You Money

    With some common sense precautions, you could earn a few extra bucks from your credit cards. Yes, the stack of plastic cards that you thought were money drainers could actually give you some extra cash every month, PROVIDED [caps intended] you approach the practice in a disciplined manner and exercise extreme due diligence all along. Done right, you could have some extra money every month but if you make mistakes you could end up losing a lot more money. Here are some ways your credit cards could make you extra money:

    Interest rate differentials could earn you extra cash

    If you have received an offer for a 0% APR credit card, that would be the perfect starting point. Generally, the way this process works is very simple. Let’s say you have a $5,000 credit line with 0% APR for six months. Some individuals deposit this money in an interest bearing account for the duration of six months and gain some additional cash due to the interest differential. Now, it is not as easy as it sounds.

    First, you have to read your credit card provider’s terms and conditions and your state and local laws to see if the practice is prohibited. Second, getting the $5,000 into your account may cost you some money in the form of transaction costs so you will have to do the math if the overall transaction is beneficial or otherwise. Finally, the 0% APR may not be availed of for certain transactions.

    You may want to read our article Credit Card Arbitrage Could Be Tricky for more details.

    Cashback percentage, rewards, bonus points, miles, travel rewards, and others

    Not much complexity here. In fact, this is very easy. Depending on the type of credit card you have signed up for, you could win various cashback incentives, rewards, and other bonuses. There is one catch, though, if you don’t repay your purchases in full (on time), you will incur the regular APR and that would nullify your earnings so the key is to repay in full whenever possible.

    The 0% APR on purchases offer could be a money maker

    If you have an introductory 0% APR on purchases credit card, it could be a source of additional income as well. Some individuals pay for their purchases using the credit card for the duration of the 0% APR offer and deposit a similar amount in their interest bearing account while repaying a minimum balance during the duration of the offer. Just before the expiration of the offer, they repay the entire amount in full to avoid incurring any interest rate charges.

    Again, the same precautions apply. You need to calculate all transaction costs meticulously in order to avoid incurring unreasonable fees.

    Note: If you do not adapt to the various parameters, you could end up losing much more money than you expect to make so be very careful. As always, you should seek the advice of an investment professional and an attorney.

  • How To Cut Your Long Distance Phone Bill

    Due to rising utility prices, there is a lot of focus on savings. Whether it is water, Internet or any other expenditure, slashing bills is always high on priority. Long distance phone calls are often very expensive and you can reduce these bills dramatically by taking small steps. Both landline and mobile rates can be reduced by a little bit of planning.

    Remove added services

    Focus on analyzing your billing statement. Never toss your phone bills aside like a piece of paper; instead, read it carefully. Start by checking any added services that are a part of your total bill. Ask yourself how many times you have used these add-on services and if you feel you can do without them then it will save you some cash. You can get rid of them by simply calling your phone company and request a termination of such services which you don’t require.

    Make long distance calls through cell phone only

    Using cell phones for making long distance phone calls is much more economical than your landline. It doesn’t matter if you are calling your mother in San Francisco or your best friend in Boston, always use a cell phone and you will save lot of money.

    Paperless billing statements

    Many phone companies charge a small fee to their customers for paper billing statements. There is a cheaper and simpler way of checking bills if you ask your phone company to send all the statements electronically. It will also benefit the environment.

    Use VoIP

    These days, technology in mobiles and landline phones is such that you can call anyone using VoIP services. These services not only provide you a much cheaper alternative but some of these services enable you to call absolutely free of cost and in the process save you tons of money. Using VoIP applications you can call all over the world through the Internet. Some of these services also let you make a video call using a camera. But it requires a super-fast Internet connection.

    Buy a phone card for long distance calls

    If you rarely make a long distance phone call then it is better to purchase a prepaid telephone card for long distance calls. Also, ask your phone service to cut the option of long distance calls, when it’s done you will be able to receive a long distance calls only. One important thing to remember about calling cards is that, once used it has an expiry date. So try to use all the credit before it expires.

    Trends

    Today, more and more people are relying on mobile phones and eliminating the landline entirely. Both have their pros and cons. The only drawback of mobile phones (as the only source of calling) is its battery life. Most mobile phones batteries don’t last more than a day or two. So don’t forget to keep it charged, as you might need it in case of an emergency.

  • Innovative Ways To Lower Your Credit Card Interest Rates as Much as 50%

    How to lower your credit card interest rates

    The biggest fear for any debtor is the spiralling cost of interest rates by their credit card companies on their present debt balances. Sometimes, these rates can even rise to a massive 30% APR. All such companies take our signature on a legal document which authorises them to push increases in interest rates, subject, of course, to legal restrictions imposed by local, state, and federal governments.

    For those credit card users who wish to maintain a zero balance all the time will not be bothered by rate changes. But others who maintain a revolving balance will struggle to reduce their debt. For that reason, this article will focus on various techniques that will help with management of revolving debt and also lower card rates.

    Three effective techniques to lower your credit card interest rates

    1. Hardship Program

    If you are struggling with your debt then the best thing you can do is to ask your creditors whether they have any “hardship program”.  Not all the companies offer this option but many do. Usually these programs last no more than three to twelve months.

    Usually, for the first six months the creditor manages to cut down existing interest rates in half or even down to 0%. Its only disadvantage is that you won’t be able to use your credit card during that period. This is in fact a blessing in disguise if you want to get rid of your debt.

    2. Get used to cards that maintain relatively lower rates

    First step is to compare interest rates of various credit cards. Standard cards usually have basic features but offer lowest rates. People often buy them for their regular APR, which is considerably lower than those of rewards and travel cards. But lookout for the rates after the promotional period gets expired, anything below 10% is considered to be on the lower range.

    3. Transfer balance to a low interest rate credit card.

    There is another way to lower your credit rate. It can be done by transferring a balance transfer to a card which has low interest rate. For this reason choose 0% APR credit cards, such cards will help you reducing your debt.

    There are two key points which should be kept in mind while moving your balance successfully:

    a)      Stop racking up balance on cleared card

    Many people made the cardinal mistake of pilling up debt again on the cards whose debt have been shifted on to low interest rate card.

    b)      Read the fine Print

    Make it your habit to read all the terms and conditions and know well in advance the balance transfer fees on the new card. You should know how long will you be paying the low interest  rate and when that period expires what will be the regular rate applicable on your debt.

  • Cut Your Insurance Bill Aggressively

    Nobody likes to overpay for insurance. So before talking to the insurance companies it is a good to know in advance what types of coverage you need, otherwise you might end up paying much more than required. In order to avoid falling prey to such companies you should follow these three easy steps to cut your insurance bill.

    Get membership in professional organizations and associations

    It is commonly observed that memberships can be very beneficial, as you can get discounts on various restaurants, airfare, and other services. There are also many employers who offer memberships to their employees and help reduce the amount of the insurance bill. Contact your insurance firm and talk to your employer. It is beneficial to both the employer and the employees to participate in such money-saving programs.

    Bundle insurance needs

    This method has got many advantages. Besides the usual reduction in auto insurance costs, the overall insurance bill is lowered significantly. Having several insurance policies with different companies is not recommended at all, as combining all of these services with one company will lower the rate appreciably. As you will become a major client, the company will reward you with one low rate.

    The best possible way to bundle your services is when you speak to an authorized person from the company who can sanction the required changes to your policy. See what rates that company is prepared to offer to you and then visit other insurance companies and compare these rates with what they are offering. Tell other insurance providers what rates your company is providing and you will be surprised to see that these companies will go all the way in order to compete with your current insurance company. This way you can effortlessly reduce insurance rates.

    Assume more risk (or go for a higher deductible)

    The simple strategy of opting for a higher deductible could lower your insurance rates by double digit percentages. The savings in premium amounts may offset the higher deductible option over a course of time and if you manage your insurance program carefully, it could actually save you more money.

  • How To Save On Gas: Easy Tips

    Smiles literally evaporate at gas pumps these days. Apparently, they are far more volatile than liquid gold (gas) and much more sensitive to fuel price fluctuations than financial indexes. With gas prices soaring virtually every week, it is no wonder many individuals are opting for either fuel-efficient cars or revisiting their driving habits altogether. We understand. Our mission at DontSpendMore.com is to save our customers as much money as possible every month. We have prepared this article How To Save On Gas: Easy Tips with that very purpose in mind. Done right, you could hundreds of dollars on gas costs alone.

    Here are some tips you may want to consider:

    Don’t tire your tires

    When it comes to fuel-efficiency, over 90% of individuals will look at their engines first. The truth is that your tires could be a major factor in driving up gas costs. If you really want to save on gas, take good care of your tires.

    Poor alignment, deflated tires, worn out rubber — all of these could force your engine to work harder (to overcome resistance and friction) and increase your gas costs. Maintaining your tires in good shape should be an absolute priority to save on gas costs.

    Revisit your driving habits

    Many drivers mistakenly believe that driving habits do not influence gas consumption. The truth is that poor driving habits can convert even a fuel-efficient car into a bank-breaking gas guzzler. Even small changes could go a long way toward reducing fuel costs.

    – Driving fast can cause increased gas utilization (acceleration consumes gas, a lot of gas). Consider slowing down on the road.

    – Keep a safe distance from the car ahead of you. You will have to brake less frequently and thus add more to your gas savings.

    Reduce engine overload

    From constantly-running air conditioners to “engine-unfriendly” devices, any activity that increases the load on your engine could spike up gas consumption and cost you dearly at the pump. While it may not be possible to shut down the air conditioner during summer (not recommended either), powering the conditioner off for a few minutes every time the car cools down may reduce the overall load on the engine. As a starting point, you could avoid parking in sunny areas and use special thermal coatings to ensure the car doesn’t over-heat naturally. A little circulation might help as well.

    Take a good look at your trunk

    Millions of individuals use their cars as spare (free!) storage rooms. To push the additional load, your car is going to use that much more gas. Go through your trunk (and your back seats) to find any weight-bearing items that can be eliminated.

    Idling could be expensive

    If you are going to wait for more than thirty seconds, turn the car off. An idle car consumes gas as well. Of course, if your wait is going to be less than thirty seconds, you won’t benefit much from this practice but if you are going to wait more than thirty seconds, turn off the car.

    Compare gas prices

    Now, this is so easy. There are so many online tools that will help you compare gas prices at multiple pumps. From smart phone apps to cutting-edge websites, just a few clicks could pull up the latest prices at pumps in your area. This one simple tip alone could save you hundreds of dollars every year.

    Logistics matter

    Online maps and GPS devices compare routes in terms of the time taken to get from A-B, but they will rarely tell you finer details about the number of stops, traffic conditions, the number of inclines you will have to drive on, and other road conditions that could increase gas consumption. If you drive to work every day, try taking different routes and measure the amount of gas consumed on each.

    Simply changing your route could add to the gas savings significantly. Leaving a few minutes early could offset any time-related disadvantage associated with the alternate route.

    Regular maintenance is important

    Don’t neglect on your car’s maintenance. Visit your mechanic every few months to check on engine oil, brake pads, air filters, and other mechanical failures. A well-maintained car will not only last longer, it could reduce gas consumption and save more money at the pump.

    Gas could evaporate

    Sure you know that, but did you know that if your fuel cap is not tightly secured you could be losing small amounts of gas every day. A simple manual inspection of your fuel cap could mitigate this problem in just two seconds.

    Gently tap the nozzle

    If you take a closer look at the pump, so many individuals pull out the nozzle in a hurry. This may look innocent but some gas inevitably falls on the floor. If you gently tap the nozzle before removing it, this little extra gas spillage could be avoided (add to your gas savings). Why would you want to throw away the gas? A small trickle may sound innocuous at first but if you add up the waste, in the long run you could be throwing away a much larger amount.

    Take advantage of gas credit cards, discounted gas cards, gift cards and other money-saving options

    Cashback rewards and percentage gas discounts are just two ways in which you could benefit from owning a gas credit card. Some cards may charge an annual fee. Do the math to see if owning the card saves you more money on gas than the cost of the annual fee. If so, it may be a good idea to sign up for a gas mile credit card. You can review your options at DontSpendMore.com

    Do let us know how much you saved on gas. We always love to hear from our readers.