Sherry Tingley

ATM Fees, Overdraft Fees Add Costs To Poor Financial Planning

September 29, 2014 By Sherry Tingley

ATM Bank fees are on the rise again. The average cost for ATM withdrawals out of network is now $4.35 per transaction. Bankrate.com completed their 17th annual Checking Survey and reported that average ATM charges have risen 5% over the past year.

ATM Charges

Greg McBride, Chief Financial Analyst for Bank rate reported that ATM fees and overdraft fees go up year in and year out. The average surcharge for out-of-network ATM withdrawals have risen 6.5% for the 10th year in a row of increased fees.

ATM fees are the price you pay for not planning ahead to get to an in-network ATM or for picking a bank that doesn’t have ATMs close to where you live or work. There are smart phone apps that will help consumers find the nearest in network ATMs to help you avoid these fees. Consumers can take comfort in the fact that with a little advanced planning, they can avoid any bank fees completely.

There are actually two fees that can be charged to the customer using other banks ATMs. One fee is charged by the bank that owns the ATM and another fee is charged by the customers own bank. Both of these fees have gone up. Together these fees can be as high as $4.35. That represents an increase of more than 5% from last year.

The cities with the highest ATM fees in the nation are Milwaukee, Phoenix, Houston, Cincinnati, San Francisco and San Diego.

Overdraft Fees

For the 16th consecutive year, overdraft fees have risen with the average cost at $32.74 per transaction.

Consumers can choose what type of overdraft protection they want to have on each account. Without overdraft protection debit card transactions that create insufficient funds can just be declined without any overdraft fees. This cannot be done for automatic withdrawals like mortgage payments.

Limit Your Expenses

Limiting these types of bank fees is always within the reach of the consumer. Smart phone apps can be set to alert you when you have reached a minimum balance. Apps can also point you to the closest ATM for your particular bank. These kinds of fees are basically the result of a “sloppy financial habit,” says McBride.

Get Sensible With Credit Card Usage

September 25, 2014 By Sherry Tingley

use wisely — Credit Card Usage Has Lessened Since 2008

Americans seem to have learned something from the Great Recession that began in 2008. Before that landmark crises, they were going mad with credit cards, racking up personal debt that left them hamstrung when the economy went bonkers. Afterward, they became more frugal, financial experts noted. And now, with the crises apparently over, they are using their cards again, but in a less exuberant way.

Recently released Federal Reserve data showed a 9.7 annual percent increase in the amount of credit extended to customers. Revolving credit – bank-issued credit cards and retail store cards – showed an annual rate increase of 7.4 percent. Those numbers were almost three times higher than the 2.5 percent hike recorded in June. And for all of last year, the increase was only 1.3 percent. Even that was an improvement over 2009 and 2010, when growth was flat – as in most sectors of the economy.

The outlook for future growth is promising. CardHub, a website for consumers looking for the best deals in cards and rates, is looking for a $41.9 billion net increase in credit card debt this year. That’s 8 percent more than in 2013 and 14 percent over 2012.

But the growth shows a more cautious use of credit cards, according to Theodore Iacobuzio, vice president of global insights for MasterCard. He believes the unfettered love affair that kept people using their credit cards freely before the recession is over. “They’re not going back to how they used them before,” he said.

Pre-crisis, average American households had about seven credit cards, not counting debit and store cards. Now, they’re using the cards as tools to pay off debt and they’re paying off that debt faster than before.

Wish fulfillment has taken a backseat to the use of cards to help manage the new economic realities in many families. That’s reflected in the record low numbers of those who are delinquent in payments. Two factors are at play here, the first being the fact that many Americans have gone to great lengths to cut their credit card debt and are not replacing it with new debt. The second effect is from a greater number of consumers who defaulted during the economic crisis and cannot replace their credit cards. From April through June this year, only 2.25 percent of credit card accounts were in arrears. That’s the lowest since the Federal Reserve began tracking the figure in 1991.

Many consumers are playing it safe with prepaid cards from outlets such as WalMart and Green Dot. They have the advantage of being able to check their balances online or via text messages and avoid the fees often associated with cards issued by banks.

That option helped many Americans through the recession, especially those who were having a tough go in the job market.

Although the difficulties the recession created were a headache for many American families and came on too fast for pre-planning, they may have forced a more reasonable approach to debt. Consumers who got burned are being more careful of the flames and thinking twice before they blithely take their credit cards out of their pockets.

Do You Really Need A Credit Card?

August 30, 2014 By Sherry Tingley

Some folks love them. Some folks hate them. Either way, credit cards have become an almost universal financial fact of modern living in America.

Having one is probably a good idea, says Christopher Viale, board chairman of the Association of Independent Consumer Credit Counseling Agencies. They’re important in building a good credit score and many card holders judiciously cash in on the related perks – rewards programs, points, cash back or miles, to make their money go farther.

However, Viale says, there may be a downside to using your credit card as first choice in making payments. They constitute a serious temptation to overspend, which could result in excessive debt and damage to your credit score.

Experts list these warning signs that your credit is controlling you instead of the other way round:

No. 1: Pay your credit card bill on time each month. Missing payments can create chaos. Your VantageScore could drop 70 to 90 points for the first instance of missed payment. If you are able to make only minimum payments and are struggling to do that, take it as a warning sign. Stop using the card and pay with cash. Make a plan for getting the card back on an even keel. If you have multiple cards, concentrate on the one with the highest interest, while continuing to make minimum payments on the other cards. Resist the temptation to spend just to benefit from special offers or discounts from retailers. What you stand to lose is more than what you stand to gain. At least once a year, write down your expenditures and scrutinize them. If an honest analysis shows you are overspending, adjust.

No. 2: If you are using a card that carries interest rates of 18 to 20 percent, consider that a red flag. It’s important to your credit scores and competitive loans to show some smart spending habits. Cards with lower interest rates are available. If you apply for a card with lower interest and are turned down, you can be assured your credit use is out of balance and needs attention. Brand loyalty at this point is counter productive. Don’t stick with a card that doesn’t offer you the rates and rewards you deserve. Too many inquiries into credit card offerings can hurt your credit score. Don’t apply for a new card until you’ve done your homework. Closing a credit card account also can have negative connotations, so consider if it is worth keeping your current card as part of your overall assessment.

No. 3: If you have been beguiled by the lure of attractive sign-on bonuses and lucrative rewards offerings and now have a wallet full of cards, it’s time to assess and start trimming. The more credit you have in your pocket, the more likely you are to overspend. And you may find yourself confused about which payments you have made and when. Not worth the prospect of missing a payment. Viale suggests two cards that have good rewards points.

No. 4: Luxury credit cards are designed to attract attention. Flashy colors and materials heavier than plastic seem (only seem) to lend some extra legitimacy to your card. Beware such ego strokes. If you see them as status symbols, take a closer look. Luxury cards may carry high annual fees. They may have very high or even unlimited credit limits, a clear invitation to overspend, a disaster for average card holders. Be certain your credit limit is manageable. If you have one of these “status cards” in your array, consider closing it out. Look for a more reasonable card in the same issuer’s selection. Closing out a card entirely could affect your credit score, but there are times when that is the best thing to do. A temporary dip in the score is preferable to keeping a high-fee card that tempts you to overspend.

Personal Chefs For The Super Rich

June 12, 2014 By Sherry Tingley

From Private Chefs Inc. — Foods served by the Private Chefs Inc.

Ever dream of what it would be like to have your own personal chef? One percent of the population can afford to treat themselves to this kind of luxury, while the rest of us, just dream about it. We may be driving Cadillacs in our dreams.

Costs: $2800 A Day

Private Chefs Inc provides the super-rich with culinary delights anytime they are willing to pay $2,800 per person for the convenience of a personal chef. Past customers like Aaron Spelling, Adam Sandler, Arnold Schwarzenneger, Beyonce, Bill Gates, Dale Earnhardt, Lady Gaga, Jerry Bruckheimer and George Lucas have been satisfied clients.

Founded by Christian Paier, Private Chefs is in the business of catering to the wealthy. The company provides clients with a personal chef for a day. The private chef consults with his clients about the menu, does the grocery shopping, meal preparation and kitchen clean up. They serve individuals as well as large groups.

Christian Paier, Founder of Private Chefs Inc.

So how did Christian Paier become skilled enough to satisfy the palates of the super wealthy? Christain Paier’s unique background in cuisine started at an early age. His parents, residents of a town in Southern Austria owned meat shops as well as restaurants and he was surrounded by quality cuisine. By the time he was fourteen, he knew he wanted to be a chef.

Executive Chef For A 5 Star Hotel

His official training began at the Hotel Kramer in the Austrian Alps, where he learned from the greatest chefs in Europe. From there he accepted a position at The Breakers hotel in Palm Beach Florida. At the age of 22, he became the youngest executive banquet chef in the hotel’s history.

After four years at the Breakers hotel, he began work at the trendy Rockenwagner’s in Santa Monica, California. Impressing many of his high profile clients he received many offers to be a private chef. One of the offers led him to an eight year job with “Hollywood Royalty.”

Founding Private Chefs Inc.

By 1995, he had created Private Chefs Inc. His company is currently well recognized, appearing in more than 50 magazines and newspaper articles as well as a television show. Forbes magazine says,

“About the last thing a new millennium mover-and-shaker needs to do at the end of the day is toil over a hot stove. Private Chefs Inc., a Beverly Hills-based employment agency, serves up in-home chefs to the fabulously wealthy.”

The 99% of Americans who can’t afford a chef from Private Chefs Inc., may have to resort to watching the TV show, “Celebrity Dish,” where you get an inside look at amazing recipes and lifestyles.

Powerful Budgets Help You Get What You Want

April 5, 2014 By Sherry Tingley

We all have them: Expenses we can’t sidestep, things we would like to have and long-term hopes and plans that require up-front planning.

Stretch Your Dollars By Budgeting — Budgeting Helps You Keep Your Dollars

That’s what budgeting is all about. It gives you a clear picture of what you have, what you must spend and what’s left over for those things that are only dreams in the making. For most of us, it’s clear that the “musts” will eat up most of the paycheck. Surveys show that the average American household spends 80 percent of its income on essentials. Sixty percent, right up front, goes to housing, food, gas and insurance.

The budget becomes the tool that keeps you within the boundaries of your available income and allows you to wisely plan for the “wants.” What it takes is discipline, planning and prioritization.

Use Budgeting Tools Online

First off, be aware that many financial institutions offer on-line or paper plans to help you create a budget. Use them.

Goal Setting

Where to begin? Setting a goal is a good idea as a prelude to making the plan. Clearly put down in black and white what your main financial objectives are.

Establish Your Exact Income

The next step, obviously, is having a very clear picture of your income. That’s essential to planning the outgo. Start with your net income. Get some concrete evidence of what the figure actually is by reviewing pay stubs or other records of income. Standard deductions are shown, such as insurance, taxes, 401K contributions, etc. That will give you a list of what’s being skimmed off before you get what actually goes into the bank. The latter figure is what you’ll work with as you plan how to spend.

Discover Your Basic Expenses

The next step is to look at your basic expenses. As a rule, these don’t fluctuate much from month to month. They include rent or mortgage payments, utility costs, car payments and expenses, insurance and regular payments on existing loans, such as education costs.

Establish An Emergency Fund

Ideally, you need a safety net, a reserve for those unplanned life events such as unseen medical expenses, car repairs, large appliance replacements, necessary upgrades to furnaces, water heaters, etc. etc. The list is long and, for most people, entirely unpredictable except in the fact that they inevitably happen. Try hard to build yourself a little cushion against the day that it’s your turn. That means creating a savings program that is backed by a firm hands-off policy. An automatic deposit into a bank or credit union savings account , mutual fund or other established savings program may reduce the temptation to dip into this reserve. Setting up a yearly CD account may be what it takes to reduce the temptation to dip into easily available savings.

Cut Back

Look for places where you can trim. Do you really need several hundred options for television viewing. How about a basic program? Could you save on meals by taking a lunch to work a few times each week? Public transportation? Car pooling? Eating at home instead of frequently dining out? Expensive personal habits such as smoking and excessive drinking might offer a source of savings, as well as reducing medical expenses down the line. Look online to find advice, such as practical tips on how to save money. There are dozens of them.

Plan a certain amount of cash to see you through each pay period. Knowing you have just $60 in discretionary spending money may make the desire for a $60 pair of shoes easier to bypass.

Pay Off Credit Cards

Try to pay off credit cards. Don’t accumulate a pocketful to begin with. Choose one, based on the best combination of offerings, and stick with it. If that advice comes too late, make a concerted effort to pay them off one at a time, starting with the one with the highest interest. Add a few dollars to the monthly payment on that one account until it is paid off, then go to the next one. With your budget firmly in mind, resist the temptation to use credit cards for “whim” purchases.

Include every person in your household in the budgeting process. If a wife is firmly committed to a budget and her spouse is bent on accumulating debt, or vice versa, the effort is usually hopeless. Children who see the figures concretely may make fewer demands on the family resources. And they’ll learn the fundamentals of money management into the bargain.

Continue Planning Throughout The Year

A budget isn’t a one-time effort. Ongoing planning and revision are essential as life circumstances affect income and spending. Routinely balancing the bankbook is part of wise budgeting. It’s easy to miscalculate spending if you aren’t certain what the bottom line is. Save receipts and write down where you spend money so you can’t become hazy about actual expenditures.

Allow Occasional Splurges

An occasional splurge isn’t fatal, but there is a calming effect in being in control of your income and outgo. Make a budget your friend and stick with him.

Budgeting Mistakes That Can Cost You Hundreds