Let’s break the credit risk code!
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Earlier on UWSA we discussed your credit score and how to interpret it. Now, we introduce a new tool for raising your scores: your Credit Risk Reason Codes.

These codes are part of your credit report, and a few of the most pertinent ones may also be provided if you are rejected for a new credit line. Since descriptions are vague – numbers are sometimes all that’s included – many consumers do not realize these Risk Reason Codes can be extremely useful in diagnosing credit.

In the long run, tailoring your debt management strategy to take your personal “risk factors” into account can lead to lower credit card balances and a much easier time dealing with creditors of all kinds.

Seven Common Reason Codes and What to Do

There are less than 50 Risk Reason Codes, and some can be confusing. Depending on how mature your credit history is, and uses you’ve put your creditworthiness to, you’ll encounter different codes at different times. In some situations, credit scores can seem to plateau due to situations in your Risk Reasons; likewise, these clues are vital to deciphering why your score may be dropping or not rising as fast as you would prefer.

01: Amount owed on accounts too high: In short, the more debt a consumer holds, the more risk they will represent to creditors. At a certain point, a consumer is considered “debt burdened”; that is, their total monthly payments represent a substantial portion of their documented income. This Risk Reason represents conditions where creditors are concerned that further debt will imperil your ability to pay accounts. There are also several related messages, all of which are resolved by eliminating account balances and reducing long-term balances below 50% of available credit.

02: Level of delinquency on accounts too high: If you’ve been making payments late recently, you may encounter this. Take corrective action by communicating with your creditors and bill collectors, arranging for more favorable payment terms. If necessary, look into debt consolidation or credit counseling as a means of recovering your bearings and getting all of your accounts current.

03: Too few revolving accounts: In certain situations, especially early on in credit history, you might find that the number of accounts you have works against you. There are two ways this can happen: the more common is this; too few accounts. In terms of credit history, your accounts carry more weight as they age and you maintain them faithfully; so even if you strive to be responsible by holding few accounts, you may be penalized.

04: Too many revolving accounts: The opposite of the problem above is this. You can and should close down accounts you have no intention of using, and it may take some time to strike the right balance for your needs. Close accounts beginning with the newest first. To prevent “zombie debt”, be sure you obtain written confirmation of each closure along with a statement showing a zero balance on the account just prior to closure.

05: Too many accounts with balances: Even if balances are not high, having too many active accounts can result in a credit score penalty. That said, you have to balance this need with the need to maintain occasional use of each account to ensure your creditors don’t close them without consent. If you receive a notification of too many balances, it may simply be a matter of paying off low-balance, infrequently used accounts.

08: Too many account inquiries: “Credit pulls” that lenders execute when checking your credit history are also part of your records. If these become too frequent, they result in this Reason Code, further prejudicing your credit status. If at all possible, try to limit opening of new accounts to infrequent occasions six months apart or more. Also bear in mind that if you’re opening many new accounts, even if you are being approved for all of them, this can still temporarily damage your credit and lead to a Risk Code of its own.

19: Too few accounts paid as agreed: If you see this message, it’s another time to consider debt consolidation. This error means that there are a number of unsatisfied debt collection accounts outstanding against you. If this seems inaccurate, review your credit report thoroughly for evidence of inaccuracies, fraud, or “zombie debt” that you are sure has been paid in full, but is still reported as an outstanding balance.

Your budget’s best friend ... or worst nightmare?
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Just get a fancy new smartphone? Hidden fees and costs from your phone plan can drive up your credit card balances and bloat your telecom bills beyond your worst nightmares.

But there are ways you can fight back to “trim the fat” and still benefit from the great features of modern phone technology. If you take a few steps to be savvy, you can enjoy your phone and keep your credit card payments low.

Here are a few tips.

Beware of “bundles”: In today’s telecom environment, your phone company often wants to be your cable company, internet service provider, and heaven knows what else. Before you agree to a “convenient” bundle with an introductory rate that’s bound to grow when you least expect it, compare all your options. It’s often the case that there are several companies competing for your business in all these categories, and you can get a better deal selecting single-service options from two or three providers. Don’t be fooled by “convenience” … with virtually all bills handy online, do you really need to save five minutes at the cost of $20, $30 or more a month?

Know your contract and your hidden fees: It’s tempting to skim over telecom contracts and assume we understand the basics: “the company reserves all rights, and if you don’t like it, tough.” But when it comes to phone bills, what you don’t know can hurt you. Recently, I upgraded to a terrific new phone that seems to do about everything but make toast; but I didn’t look up my town’s “communication service fee.” It’s almost as big as the state’s separate fee – and altogether, they add $15 a month to my bill. Go over the contract carefully, with a neutral third-party expert, and understand your rights in issues like billing disputes, plus trapdoor charges like roaming. Talk to others who have the same service and see if they’re satisfied.

Take advantage of cost-cutting features: If you have a smartphone with “apps”, you can often use them to slash your charges in unexpected ways. Plans for these phones have two interdependent parts: your voice plan (expressed in minutes) and your data plan. Depending on your usage patterns, you can use this to your advantage. Certain apps can shift many calls from your minutes to your data, for example. Others can set “alarms” so you know when you’ve passed a certain usage threshold. With the right tools, you can protect yourself from nasty surprises on your monthly bill.

Keep the kids away from those 1,000 texts a day: It may not be the “cool” thing to do, but you can use your children’s telephone use as a teachable moment for budgeting. With new reports estimating teen texting – often the most expensive “add-on” feature for a cell phone plan – at thousands of messages a month, you might want to pull the plug on some of those fancy features. A good way to control a teen’s telephone budget is to trust them with a pre-paid phone that you only fill up each month; these tend to be more basic, but they limit a user’s ability to get into financial trouble.

Use your computer to make your phone more cost-effective: There are a number of “phone alternative” services that can lower your costs by allowing you to take calls from your home desktop computer. Some of these are so rich in features that they can actually replace your cell phone, your landline, or both depending on your needs. Look into “voice over IP” to learn more – the technology behind it has matured, and the array of options is growing by the day

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Owners of small and home-based businesses have a lot of issues to keep up with, and one of the ones that’s surrounded by confusion is the issue of keeping old financial records, especially receipts.

Some people swear by keeping each and every receipt.

Others consider the never-ending and always-expanding file of paperwork to be more a burden than a help when dealing with finances.

In this post, we’ll break down the basic facts for keeping your receipts and other major records.

Private persons …

If you don’t have a business, the bar is set fairly low on keeping receipts for routine expenses. Keeping copious archives of your transactions can help in special situations, such as launching a plan to consolidate your debts or reduce credit card debt. Beyond these scenarios, though, there are a few times that keeping receipts can help enormously.

Major expenses for home or car: Receipts reflecting major repair or renovation work should be kept with your tax records on a long-term basis, as they can help establish the value of your major assets and assist you in selling them.

Warranties, returns, and exchanges: It often happens that the one thing you would never expect to break down … breaks down. Lost, stolen, or damaged items might also be covered by particularly good warranties. You can’t take advantage of these benefits if you don’t have receipts. It’s the same story with returns and exchanges, which have gotten stricter as large retail chains confront the issue of loss.

Reimbursements: You may have work-related bills that your employer offers compensation for. If so, you’ll have to surrender the original receipt, so make a copy; with big companies, reimbursements can take a long time and can be lost in the system for quite a while before you see the money.

Tax deductions: It goes without saying that if you plan to benefit from tax deductions, you have to have adequate proof that you qualify. This often means receipts pertaining to the expense under consideration. Deduction eligibility can change, so consult an independent financial advisor before getting rid of anything you think you might need.

Businesses …

Businesses should plan to keep each and every receipt, just as you would keep invoices and other records that establish the scope of your activities. Your potential for tax deduction is huge compared to “John Q. Public”, and your likelihood of extended contact with the IRS is also higher than average. If you ever have to deal with an audit or any other kind of regulatory inquiry, receipts can only help you.

Generally, you should plan to keep records for seven or nine years; this represents the maximum amount of time the IRS might wish to look at, and the statute of limitations for most audits excluding suspicion of fraud. Assume the best and prepare for the worst – simple mistakes can mean you really do need records from nearly a decade ago.

What Other Records Should I Keep?

There are many kinds of records that might be important to your finances. Bank statements, insurance policies, and mutual fund statements should be held for at least three years. Notes, contracts, and leases should be held for seven years, and likewise for accident claims. This is true even if policies expire, contracts become void, and so on.

What do you need to hang on to for at least a year? Bank reconciliations, brokerage statements, pay stubs, and credit card statements fit the bill here. If you’re up to the challenge, keeping “anything and everything” can help with budgeting and debt management. We’ll explain how to use this strategy to your advantage later.

Retirement money
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Every time there’s a dip in the stock market or a big company falls into dire straits, you can hear people fretting about three things: debt, the mortgage, and the value of their 401(k). For many, a 401(k) is a critical part of retirement savings. For others, especially young folk entering the workforce or professionals for whom retirement is a long way away, the 401(k) is something else entirely: a mystery, off in the unforeseeable realm of the future.

But, as with any long-term savings goal, the sooner you start saving for retirement, the sooner you can plan to enjoy it. Since retirement can mean many years of your life – and there’s just no telling what kind of Social Security protections or other government programs will be healthy twenty, thirty, or forty years down the line – it’s important to start thinking about it now. So we begin with an introduction: just what is a 401(k)?

The 401(k) and You

Put simply, a 401(k) is a kind of savings plan that allows you to put money aside for retirement and protect that savings and its interest from taxation until you’re ready to use it. Until a worker reaches the age of 59.5 or is ready to leave company service for retirement, there are serious restrictions on withdrawing any funds from the plan. In practice, this is because companies, through a third-party plan administrator, are engaged in investing the value of employees’ 401(k) plans, and (hopefully) growing them.

Pros of the 401(k)

Though the amount of money an employee can contribute to their plan is capped at a certain percentage of their wages, every dollar you contribute reduces your taxable income and lowers your tax burden. Because no taxes are taken “off the top” of your contributions, your investment can start to accrue more interest sooner. And in many cases, companies will match your contribution on a percentage basis, chipping in a quarter or more for every dollar you add. That is a big deal, and compares favorably to investment opportunities that are taxed before the money starts really working for you.

Cons of the 401(k)

Over three-fourths of companies with 100 or more full-time employees offer a 401(k), but it still may not be the right investment tool for you. Because of stiff penalties against withdrawing from your 401(k), don’t expect to use the earnings to pay bills or reduce credit card balances, even if unforeseen circumstances require emergency spending. Further, and most frightening, 401(k) money can be endangered in a number of ways: if it’s heavily invested in the stock market, for example, it’s subject to the same risk as other non-diversified investments.

Conclusion

Overall, a 401(k) is a very strong long-term investment if backed by a reasonable rate of contribution matching from your employer. Lately, though, many major firms that used to provide strong matching have backed down in an effort to curb expenses. This can have a huge impact on your 401(k)’s earning potential over time, but there are still steps you can take to ensure a healthy fund for retirement. We’ll discuss more in a future post.

Don't let your expired debts "rise from the grave!"
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In a previous post, we focused on debt collectors and unfair collection practices.

Today, we’ll discuss “zombie debt”: debt that continues to linger “in collection” long after it is paid.

This is a recent phenomenon, owing to the huge proliferation of third-party debt collectors and debt buyers touched on earlier.

Because of low levels of communication between these middlemen, not to mention the possibility of unscrupulous practices, different companies may attempt to collect on the same debt multiple times as it passes from hand to hand.

Zombie debt can be the result of honest error, but requires even more vigilance and persistence to solve than other forms of debt collection abuse.

The Credit Report: Key to Your Zombie Debt Arsenal

The problem of zombie debt makes it even more important to monitor your credit score on a regular basis. Negative marks on your credit report are generally removed after seven years and cannot be used as the basis of your credit score; a debt collector can attempt to manipulate this by telling credit agencies that an old debt is a new one. If the debt has “changed hands”, this ruse could go undetected unless you catch it yourself.

There are three major credit reporting agencies: Experian, Equifax, and TransUnion. The best information is obtained by reviewing your reports from all of them on a regular basis. Luckily, under the Fair Credit Reporting Act, you are entitled to a free credit report from each agency once every 12 months. The official web “hub” for ordering a complimentary report from any or all of the three agencies is AnnualCreditReport.com.

If you find an error on your credit report, it’s up to you to dispute it with the three agencies. Remember: zombie debt abuses are based on the idea that you won’t fight back! If you believe a debt collector is intentionally engaging in unfair practices, whether in regards to credit card debt, household bills, or any other transaction, communicate with them only in writing and keep copious records. Consider retaining an attorney: many zombie debts are related to violations of the Fair Credit Reporting Act, a federal law that can carry stiff penalties for those who do not follow it.

The Statute of Limitations: Sunlight to Turn Those Old Debts to Dust

Another important thing to remember is that there is a statute of limitation to any debt. After the statute of limitation, creditors and debt collectors can no longer take legal action in pursuit of the debt. The specific amount of time in each case varies by state and by the type of debt under consideration; however, every debt has a limit, and the countdown generally begins within a short time after the account first goes delinquent.

Because a lawsuit is no longer possible after that time, any claim to the contrary by a debt collector violates federal standards, which may include the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. In short: regardless of fault, no one has the legal right to collect on an “ancient” debt. Any activity or claim to the contrary may constitute fraud. Consider sending a “cease and desist” letter to any debt collector you know is in the wrong; this puts them in the position of outlining the legal action they plan to take against you. In the case of real “zombie debt”, the only safe answer for them is “none.”

Have zombies lurking around your credit report?
Share you zombie stories and zombie fighting tips.

Bill collector acting like a pirate? The law's on your side
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Every day, thousands of Americans get calls from debt collectors.

If you’re in the middle of settlement, debt consolidation, or even in the early stages of seeking debt relief, you don’t deserve unwanted and harassing calls; and you don’t have to let them disrupt your life.

Today, we’ll discuss facts and resources to help you use existing consumer credit protection laws to your advantage and cut through the climate of fear that a small minority of abusive debt collectors create for hard-working people.

The Basic Facts on Debt Collection

Many major banks and other firms have their own debt collection wings which may be empowered to help you work with your creditor and develop payment plans and other strategies for getting your accounts current. However, depending on factors like your creditors’ policies and the age of the debt in question, many businesses “outsource” debt collection to a third-party agency.

“Debt buyers” may even purchase your debt from a legitimate creditor at a fraction of the debt’s value, in the hopes of profiting by collecting it. These agencies are less motivated to adhere to ethical standards in dealing with you; you are not their customer or client. Confusion or misrepresentation between creditors, third-party agencies, and payees can result n “zombie debts” that payees may be coerced to pay repeatedly. More on that later.

What Are Your Rights?

Under the Fair Debt Collection Practices Act, you can file a complaint against a collector for several violations. Here are some of the most common:

1) Repeated or continuous phone calls;

2) Use of abusive or vulgar language or threats;

3) Calling before 8 AM or after 9 PM, regardless of their own timezone;

4) Informing a third party about your debt;

5) Calling you at work after one warning against this behavior;

Furthermore, you have the right to request, in writing, verification of the amount that you owe and the name of the creditor. It’s advisable to send these requests via registered mail or care of a law firm; debt collection cannot continue after receipt of your verification request until after the information is provided in full. Making indisputable, written requests is a first step toward preventing “zombie debt.” You also have the right to request all communication in writing rather than by phone; but as individual collectors can often claim they were “not informed”, this should also be certified in writing.

A final option is a “cease and desist” letter, which requires the debt collector to cease communications after a final written notice that informs you of actions the collector may or will take. Written correspondence is the most direct way to deal with collectors; but if you are not ready to move to “cease and desist” or still need to gather more information by telephone, remember that in many jurisdictions you are permitted to record phone conversations as long as you inform your calling partner. Debt collectors, like many other businesses, often record calls for analysis; there is no reason you cannot gather information this way as well. If debt collectors refuse to speak to you “on the record” (and you should always be gathering records that will protect you against unlawful abuse!) they cannot continue harassing you, either. Be sure to get advice on the relevant laws, and be clear and upfront about your intentions.

How Widespread is Debt Collection Abuse?

Figures are hard to pin down, but it’s widespread enough to provoke revolt against unethical debt collectors. Over 8,000 violations of the Fair Debt Collection Practices Act were alleged in federal lawsuits over the course of 2009, and according to a recent Supreme Court decision, ignorance of the law is no excuse: collectors cannot be shielded from lawsuits by claiming they erred in interpreting the law. Plus, if a debtor wins a lawsuit under FDCPA, the debt collector may be obligated to pay court costs. More information and resources on the “debtor revolt” movement can be found in this recent CNBC article: “Learning How to Fight Back Against Debt Collectors.”

In Conclusion …

No one claims that consumers should be exempt from legitimate debt. But debt collection is now a profit industry, with more involvement by “middlemen” than ever before, and more complex relationships between the parties affected. Don’t get taken advantage of: protect yourself with a vigorous understanding of your rights, and the services of a financial adviser and legal counsel where necessary.

Feeling a little tax pressure? You're not alone.
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It’s April 16th and taxpayers around the U.S. are breathing a collective sigh of relief as Tax Day has come and gone for another year — at least, that’s the reaction among those not scrambling to file extensions and deal with last minute IRS complications. If you feel overwhelmed, you’re not alone. One of the best reasons to seek help from an independent financial advisor is that although 90% of Americans file taxes, it can be argued that no one really understands the tax code.

The Tax Code Debate: More Than Just a Topic for April

Effectively managing your obligations, knowing your deductions, and mining the most out of your tax strategy is a key part of staying out of debt. But it’s also so complex that, by many estimates, most people don’t do it: 50% or more of American taxpayers are just as likely to use a service like H&R Block as they are to file taxes on their own. And web-enabled software services like TurboTax have further redefined the tax landscape. But are these just Band-Aids on the wound? What does the tax code really mean to the average consumer, flooded with credit card debt or mortgage worries?

Tax season may come and go, but everyone concerned about their finances should know about the tax debate. Since the first income tax was imposed in the 1860s, positions have ranged from calling it unconstitutional to too complex to just plain unnecessary. No matter how you feel about it, though, the most likely candidate to reform the tax code in the near future is probably The Bipartisan Tax Fairness and Simplification Act of 2010 sponsored by Sens. Ron Wyden (D-Oregon) and Judd Gregg (R-New Hampshire). With many of President G. W. Bush’s tax cuts expiring at year’s end, legislative activity on the tax code has reached a high. And this may be a good thing: the actual nuts and bolts of the tax code are often a moribund topic in practice, no matter how contentious in theory.

What Does the New Legislation Mean for Us?

Sens. Wyden and Gregg have a lot of good talking points, claiming their proposals work to eliminate a collective expense of nearly two hundred billion dollars per year on tax compliance, shrinking the number of tax brackets, and providing exemptions on some capital gains. The most surprising possibility? “Easy” tax return forms, prepared by the IRS from sweeping information about taxpayers’ finances, that reduces each individual’s tax compliance to a rubber stamp — and may kill off a large part of the tax compliance industry. Some commentators have expressed worry that technology is preventing tax reform and that this, and future efforts, might simply become victims of inertia.

The real implications of the reform, no matter what final version gets passed, are clear: this is where practical political action and debt relief converge. Get informed, get active, and let your legislators know where you, the taxpayer, stand on the issues, while Washington’s attention is on them. In the meantime, hold tight, and keep your trusted independent financial advisor on speed dial: when Congress sets out to make changes to such a sweeping and complicated part of our lives, there’s no telling where we’ll end up! Write your representatives and your senators today.

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In today’s tight consumer credit market, it’s harder than ever for someone starting out on the road to financial responsibility to establish strong credit; and even with new legislation intended to protect credit-holders, the stakes may very well be higher now than they were twenty, ten, or even five years ago. A few key credit facts can go a long way toward helping teens and young adults establish a positive credit history that works in their favor when it’s time to start making big decisions.

Here are some useful credit tips to help the youngster in your life avoid debt as an adult.

1) You Don’t Have to Use Credit Cards to Start a Credit History

To get credit, you have to have a credit history. This might seem like a baffling contradiction at first, but remember that keeping current accounts other than credit cards can also start the ball rolling on documenting your responsible financial behavior.

Credit cards offered to students and others with weak or nonexistent credit history are often fraught with hidden perils and predatory terms that might activate unexpectedly. Collaborating with responsible adults to put another account in a teen’s name, such as a secondary telephone, builds credit and good budgeting habits at the same time.

2) Student Debt is a Different Animal From Credit Card Debt

Student debt is the “other” major category of debt that’s most likely to influence a young person’s life. If student debt climbs out of control, it can’t be eliminated by bankruptcy, and may make debt consolidation more complex, as — from year to year and semester-to-semester — it may come from multiple creditors. Student debt can easily grow beyond expectations, as payments do not occur until after graduation, but interest continues to accrue as balances mount “behind the scenes.”

Be exceptionally wary of private student loans, and double-check all information from a university’s financial aid office; a few of these have been implicated in collusion with private lenders who advertise on campus. The old age “trust, but verify” applies here. A student should never sign a promissory note without the input of a responsible adult, and preferably not without consulting an independent financial advisor first. Neglecting this step (tempting when “everyone has student debt”!) can have decades-long consequences!

3) Getting a New Credit Line is a Double-Edged Sword

Opening a new credit line temporarily reduces your credit score, but when managed effectively, larger, value-added credit lines open greater opportunities and establish more trust. No matter the size of your overall credit holdings, you should strive to use only a fraction: the ratio of your total credit line to your current balance is one of the most heavily-weighted factors in your credit score. This leads directly to the next point:

4) You Don’t Have to Use Credit Cards to Grow Credit, Either

Once you have an established credit line, you do not need to actively use it to maintain a credit score. Most creditors will eventually close a line of credit that goes unused for a prolonged period of time (a year or more) but any transaction, no matter how minor, will keep the account alive; and, if paid off right away, it can only count in your favor.

Often, credit lines will grow without much use; but you should always be aware of this, and be aware you can refuse credit line increases and revert to your previous limit if you wish. If creditors make changes to your account you are not comfortable with, those with negligible balance have added clout for negotiating, refusing, or just going elsewhere.

The credit landscape is evolving along with the legislation that impacts it; but the basic facts about credit cards remain the same. Used responsibly, consumer credit can be part of an enriching financial strategy, and it’s never too early to start setting good habits.

Photo By Declan Jewell(flickr)

Here’s another way to protect your budget – take advantage of the free account balance alert feature that many banks now offer. You can request an email you or a text message to your phone letting you know when your account balance falls below a level you specify or when your direct deposit paycheck has posted. They’ll also send reminders of when your bank payments are due, such as credit card debt or other lines of credit.

While there’s no guarantee the alerts will protect you from overdrawing your account or being charged fees you weren’t anticipating, they will let you know where you stand. If you do overdraw or get hit with fees, the alerts will allow you to take immediate steps to get back on track paying your bills if you break your budget.

You can prevent overdrawing your account, which is especially important if you’re still using a debit card. Instruct the bank to remove the ability to overspend from your debit card. Make sure the bank reduces the amount you can overdraw to $0. This is quite an important move for budget protection. It also keeps from getting into debt with the bank by having to worry about having an overdraft line of credit.

Once you’ve run out of funds, banks typically allow you to keep using your debt card as a credit card. Sometimes, they’ll even allow you to withdraw as much as $400 from ATM This allows them to charge you interest on the amount of the overdraft, which can be quite costly.

Probably the best way to limit overdrafts and otherwise spending more than your budget allows by getting rid of the credit and debit card. Just carry the amount of cash you have budgeted.

Similarly, avoid store credit cards. There’s so much advertising and so many incentives for consumers to apply for these cards and keep using them. But these are high interest credit lines that end up offering you no bargains. Not surprisingly, they are a bargain for the credit card company. You shave a few dollars off your purchase, they get hundreds in interest payments. That’s why you need to take only the money you’ve budgeted when you go shopping

These are all great ways to protect your budget and keep it working for you. Remember that it’s an important asset so you need to protect it from the biggest threat is has – your own ability to splurge and take yourself off track. .

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On paper, a budget may not look like much. Just a list of income and expenses. But if you’re doing your job and following that budget, you know what a critical asset it is. Your budget is keeping your finances – and your life – on track. So why not treat your budget like the precious asset it is by protecting it as you do with jewelry, a fine watch or a family heirloom?

Protecting your budget means following it. It means remembering to make payments when they’re due. It means saving and spending and donating according to a carefully crafted plan.

You can protect your budget in several ways. Here are some suggestions for the technically inclined and the not-so-technically inclined.

I use technology myself. I put my family’s budget into my computer’s Calendar. Then I sync it up with my digital organizer, which, in my case, is my cell phone. This way, I get automatic updates right on my cell phone every month when bills are due.

There are several software programs that do this too. You don’t even need a computer because even cheap cell phones usually include calendars which allow you to input recurring events.

On my cell phone, I get 2 notifications, the first one comes two days before a bill is due and the second one comes on the day the bill must be paid. This makes it very hard to forget when expenses need to be paid.

By due date, I mean the date I need to send a payment for it to get there in time. Some payments are mailed and others I handle online through my checking account.

For those who prefer not to deal with gadgets, paper calendars can work just fine. It’s best to put in expenses at least one month in advance and to check the calendar every day. Put it someplace that you’re sure to see it. And don’t forget to schedule the day to input your expenses for the next month or the next several months right in the budget calendar.

You can also use a personal date book. The important thing is whatever helps you to remember when expenses are due with enough time to make sure the funds are available for them.

Have you got a great method for staying on track with your budget? Tell us what’s working for you!