• Declutter - It might sound a bit simple, but you will save money simply by removing any clutter from your car. The less rubbish inside your car (books, boxes of stuff in the back, coats etc) will reduce the weight of your car, which increases the number of miles per gallon you’ll get.
• Remove roof rack - It might be handy to have your roof rack but it increases drag and makes your car less efficient. Just by removing it you can improve performance and save money on gas.
• Keep windows up - Another easy way to decrease drag and improve performance is to keep the windows screwed up when on the move. With the windows up the car engine doesn’t have to work as hard to push the car forward, which means you consume less gas.
• Turn off aircon - Driving with air conditioning on means the car engine has to work much more and therefore use more fuel. You’ll get increased MPG with air conditioning off, and because you’ll probably sweat a bit you’ll also lose some weight!
• Turn off the radio - Anything that runs off the engine, even the radio, increases the amount of fuel consumed. Bring along your iPod instead!
• Don’t harge gadgets off cigarette lighter Again, it might seem like nothing, but even charging up your phone or laptop from the cigarette lighter can increase the amount of gas your car consumes. Charge your gadgets before you drive.
• Check tyre pressure - Every car has an optimum tyre pressure, and even the smallest digression can have a huge impact on fuel consumption. To avoid such inefficiencies make sure to regularly check your tyre pressure.
• Drive smoothly - One of the best ways to save money on gas is to drive smoother. Try and avoid stopping and starting the engine. Free wheel down hills where safe. Cap your speeds at 50 - 55 mph as this is the optimum for most engines.
• Car pool - If you have friends at work who live nearby then setup a car pool. This is both environmentally and financially friendly.
• Use a rewards credit card to purchase gas - There are many credit cards that reward you for purchases made on it. These rewards can range from cashback to air miles.

There are two things you can be sure of in life, paying tax and death.

Well I’d like to add another to that rather demure and completely uninspiring list, that of spending money. If you’re anything like me (alive, needed fed regularly) then you can start saving big next time you are stocking up. Here’s a few tips to get you started on the road to frugality in the kitchen!

1. Choose where you shop - Want to save money on food, then start training yourself to avoid those costly delicatessens and specialty stores. You may not agree with large, faceless, soulless corporate non-entities like Tesco and Walmart, but they are cheap. And when you have a credit card balance to clear, you can do with saving some cash.
2. Keep your eyes down - Yep that’s right, keep your head down. This isn’t some anti-ego post either, it’s purely a tip to keep more of your cash in your back pocket. Ever noticed that prices of goods at eye level are more expensive? Well, it’s not by chance. Supermarkets cater to our inherent laziness; we want in and out as fast as possible. And who cares about price? Wrong. Get those eyes down low, where the cheap goods are and start saving!
3. Shop in the evenings - Yeah, I’d rather spend my evenings on the sofa or chatting with friends, but if it means wringing that little extra out of your cash it then so be it. So why shop later in the evening? Well it’s simple really. All those perishable goods (bread, milk, cheese) have a date on them that determines whether they can be sold or not. So if something is due to expire tonight, it gets marked down to sell quickly. Hence your late night saving.
4. Brands cost more - Have you ever thought why or how brands can afford snazzy logos, fancy packaging and prime time television ads? It’s because they cost more. And just because they cost more doesn’t necessarily mean they taste any better. Be on the lookout for plainly packaged, non-branded and cheaper food on the lower shelves.
5. BOGOF - I don’t mean to be rude! BOGOF, if you haven’t worked it out yet, means ‘Buy One Get One Free’. If you see a BOGOF on an item you need to stock up on, get it. Nay, get two of them and save even more!
6. Collect your points - Most decent supermarkets run royalty schemes to keep you coming back. Make sure you are registered and that you have that card in your wallet any time you go food shopping. Start gathering your points and you can maybe get a few freebies out of them!
7. Be determined - It’s highly unfashionable, but giving yourself a food budget is so important. Whether it is £50 or $75, do not overspend. Squeeze every last penny out of your budget and do not be tempted by the in store advertising to spend.

So there you go, seven fundamental and ultra simple tips to make your money go longer next time you are out shopping for food.

1. Stay out of debt - Although you need to have a little debt to start building your credit rating, don’t let it get out of control. If you don’t have the money to purchase something outright, reevaluate how much you really need it before you jump. Just think that one pair of shoes could mean the difference on whether or not you can buy a house in the future.
2. Get a credit card with a high limit - Just remember that you need to keep the balance low. This will dramatically improve your credit rating.
3. Stay on top of your report - If you find an error, get it fixed right away. There are numerous places like freecreditreport.com where you can get updates whenever something is added to your report.
4. Always pay your bills on time - This really does matter, especially with some services such as your phone bill.
5. Don’t over apply for credit cards - Only request credit that you actually need.
6. Don’t close out your credit cards - If you have no balance on your credit card, don’t close the account. Keeping it open and current will help improve your credit rating.
7. Close new accounts first - If you do need to start closing a few accounts, start slowly, sticking with the newest ones first.
8. Never max out any of your cards - This gives a bad impression on your credit report. Keep your balances low and pay down any cards that may be carrying a high amount of debt.
9. Be smart about transferring balances - If you get a new card that has a low interest rate, it’s fine to switch, but don’t let the balance sit there. Even if you get one of the many low interest credit cards, you’ll still need to pay it off as quickly as possible.
10. Go secure - If you are already in credit trouble, get a secured credit card and use it occasionally. Pay off the balance regularly and keep it current. You’ll be able to rebuild you credit.
11. Ask for an increase in your credit line periodically - Every six months or so, you should ask your credit card company for an increase in your available credit. This will help build up your score. Just don’t max them out once you do get an increase.
12. Never overspend - If you can’t afford something, don’t buy it. Find a budget that works for your income level and stick with it. If you really have to have something, start saving for it instead.
13. Open a savings account - Stable people have savings accounts. You can start putting aside a little bit here or there and over time, it can really add up.
14. Pay more than the minimum payment - Sticking with the minimum payment usually will handle only the principle on your account and not the interest.
15. Keep at least one good account open - If you are out of debt, it can be a relief, but you should keep at least one open account to keep your rating from sliding down.

Our final three points for this series close things out in a way that is similar to our beginnings. These suggestions are some what basic but can be very important. They both speak to the need to insure that you get comfortable on the phone, stay comfortable and keep as many advantages as possible during the discussion with the credit representative on the other end of the line that could save you thousands of dollars.

Get Comfortable

The first thing that you should do before making the phone call is to get a headset or use some other hands free device for your phone. You will need to be comfortable and flexible when you call. Use an ear bud or headphone with a mike so that you can talk hands free. This will make it possible for you to manage your notes, computer, files or anything else that is important or might prove to be distracting.

Keep in mind that the operator you speak with will have one and will be working on a computer so give yourself the same advantage.

Outnumber the Call Center Representative

Next, bring someone else into the room during the conversation or put the call center person on speaker phone with your spouse, significant other, or parent. A conversation with two people on your side versus one slightly skews the conversation in your favor. You now outnumber the credit card company representative. Two brains are better than one. Use them.

Ask your spouse or relative questions as the conversation develops.

1. Does that make sense?
2. What do you think?
3. Is that really a better deal?
4. Should we accept the other offer?

Show the representative that the other person is influencing your decision. Now they have to convince both of you and work a little harder. That gives you an advantage and decreases the chances that you will miss an important detail. Plus, if a supervisor comes on the line, the match up will be even and you will not be out numbered.

Record the Call to Practice for Next Time

Finally, ask the representative if you can record the call and then record it. This will give you a record of the conversation. It serves as proof to any deal you might be offered. Probably most importantly, it gives you a record so that you can study your performance and make improvements or modifications the next time you call to negotiate a better rate on this credit card or any other!

For More Information see:

Part 1: Prepare Before You Call Your Credit Card Company for a Better Interest Rate

Part 2: Credit Curb Appeal for Credit Card Rate Negotiations

Part 3: Paying Down Debt Positions a Better Rate Negotiation

Part 4: Researching and Scripting the Pitch to Lower Your Credit Card Rates

Part 5: Credit Footprint Improvements Prior to Rate Negotiations

Part 6: Organizing All the Angles before Negotiating a Better Rate

Three Way Negotiating Dynamic in Your Favor

Before you actually transfer a balance, call the card where the balance resides and tell them you intend to transfer a portion of your balance or the entire balance if that is the case, but be specific. Then ask the company holding the balance today to give you a lower rate before you use the balance transfer. This will save you a cash advance fee and that can be very important even if they are only matching the rate!

You should also ask for a lower regular rate as opposed to a teaser rate. Tell them that you would like to keep things where they are not just for the next 3-6 months, but until the balance is paid in full.

If they can’t give you a lower regular rate then ask for a teaser rate and if that doesn’t work, then transfer the balance.

Know Your Credit Report

Order a copy of your credit report and study it in detail to understand how you will look to your credit card company at this point in time. Keep in mind that they will look at your history covering all of your creditors and not just your single account with them. If you find any errors or omissions, note them and take actions to correct them, but be ready to describe them on the phone and fill in the gaps. Similarly, if the credit report lags behind the actual status of your accounts by a month or three, be ready to do a fast reconciliation explanation on the phone.

For More Information see:

Part 1: Prepare Before You Call Your Credit Card Company for a Better Interest Rate

Part 2: Credit Curb Appeal for Credit Card Rate Negotiations

Part 3: Paying Down Debt Positions a Better Rate Negotiation

Part 4: Researching and Scripting the Pitch to Lower Your Credit Card Rates

Part 5: Credit Footprint Improvements Prior to Rate Negotiations

Today we are going to focus on three areas. Reviewing your total footprint on the credit card company you will negotiate with, transferring balances to ‘balance’ your debt load percentages and avoiding the balance transfer trap.

Total Foot print with a Bank or Credit Card Company

If you have more than one account with the same bank, review those accounts as well. With the mergers and consolidations it is not unlikely to have multiple accounts with the same company. Review the big picture of your relationship with this bank and discuss it with the agent on the phone.

Rebalance your debt burden so that none of your credit cards have balances in excess of 80% of your Credit Limit.

Consolidate your debt utilizing balance transfers. Move your outstanding balances to your cards with both:

1. A low fixed or adjustable rate before the balance transfer incentive, and
2. A good balance transfer incentive

Avoid the Balance Transfer Trap

Do not transfer your balance to a card with a teaser transfer rate when the normal fixed rate is higher than the card you are currently paying today.

It’s a trap. The credit card companies are counting on consumers to screw up and borrow more at higher rates. There is a reason why they offer those rates and its not to get your business, its to get your business plus interest. They know they will profit from you in the long run.

Don’t skip a payment on a card just because the balance transfer covered your minimum for the month. Pay anyway. It lowers your total debt balance which is good!

For More Information see:

Part 1: Prepare Before You Call Your Credit Card Company for a Better Interest Rate

Part 2: Credit Curb Appeal for Credit Card Rate Negotiations

Part 3: Paying Down Debt Positions a Better Rate Negotiation

Part 4: Researching and Scripting the Pitch to Lower Your Credit Card Rates

Research Your Accounts

Review your Accounts in detail and compile that information in a place where you can find it and use it when you make the call.

If you have accounting programs like Money or Quicken, run reports and calculate the total amount of interest and fees you have paid on this credit card over the life of the card.

Run the same reports for the last 5 years, the last year and the last 6 months.

Gather up the facts about your recent progress

1. If you have made a payment and its in the mail prepare to mention it.
2. If your income has gone up or your expenses down, note it.
3. Be prepared to make your case with this information too.

Prepare a Script

After you have read all of our Preparation instructions including what to do and say on the call and what not to do.

1. Then write or type a legible script of your opening statements, your detailed request and reasoning, and several individual pages for potential standard responses if they say no. Think of these responses as mini scripts.
2. Memorize your scripts.
3. Practice your script with your spouse or a friend on the phone. Remember the person taking your call at a call center is trained and experienced at doing this every day all day, you are not. You need the practice and you need it on the phone!

Next time we will look at some of the additional complications that are present for many debtors and how you can prepare for those details as well.

For More Information see:

Part 1: Prepare Before You Call Your Credit Card Company for a Better Interest Rate

Part 2: Credit Curb Appeal for Credit Card Rate Negotiations

Part 3: Paying Down Debt Positions a Better Rate Negotiation

Stop Spending So Much

It’s the discretionary income that really makes the difference. If you earn a $100k a year and spend $120k you are worse off than someone that earns $30k and saves $10k, but you have more potential to turn things around. From a financial perspective its easier to cut costs and expenses than it is to boost your revenue. Psychologically, it’s a different story, but force yourself it will help.

Before you make the call work hard to decrease your expenses. There are a number of things you can do to decrease your expenses and divert some of those funds towards your credit cards. These are just a few:

• Stop dining out all together
• Buy cheaper food at the grocery store
• Take your lunch to work
• Don’t go shopping for anything but necessities
• Stop renting movies
• Drive less to save money on fuel and wear and tear on your car
• Drop your cell phone plan down
• Drop your cable package down or cancel it even if its just for the summer.

Why?

All this work to decrease your expenses can make it possible for you to get your balance down further and faster. That might bring your outstanding balance down to a percentage level that allows the credit card company more room to offer you a better deal. Paying down your credit card is the overall goal anyway, and so it helps no matter what the result of your rate negotiation.

What’s coming In our next installment?

We will cover some of the research needed and start to talk about ‘The Script.’

For More Information see:

Part 1: Prepare Before You Call Your Credit Card Company for a Better Interest Rate

Part 2: Credit Curb Appeal for Credit Card Rate Negotiations

Pay Down as Much As Possible

You need to attempt to pay off your debt aggressively before you call. If you have extra money in your bank account, send it in as a payment to get your balance down. Do what you can to bring in more cash and make a big payment on the target card in question.

Benefits

• This helps bring your total balance down improving your metrics.
• It shows the credit card company and possibly the analyst on the phone that you are serious.

Boost Your Income

Find ways to bring in extra money, such as asking for a raise, taking a part time job, doing freelance or contract work on the side, holding a garage sale, using your income tax refund, selling a few things on Ebay.

Paying down your debt as much as possible and reporting that your income is higher than what it used to be are the two most powerful things you can do. Now don’t worry if this is not an option we have more tips coming in our next installments.

For More Information see Part 1: Prepare Before You Call Your Credit Card Company for a Better Interest Rate

This process can be done off the cuff with a simple phone call and a request, it never hurts to ask or you will definitely receive nothing. A rate reduction can save you hundreds if not thousands of dollars, which can make it very important to many people.

So we will cover are going to cover 15 steps in multi part series to prepare you for the call. Future articles will cover even more strategies and tactics that you can use. Lets face it something that can save you thousands of dollars in compound interest is worth a little more investigation!

The Test Run Option

Now, I do not recommend calling without preparation but it won’t hurt much and will give you some practical experience. If you fail come back and do the preparation we recommend and improve your odds of succeeding. Do not wait forever to make things ‘perfect.’ If they were perfect, your debt would be paid off you would be able to use cash to make your purchases and the call would not be necessary.

Getting Serious

If you tried the test run or not the first thing you need to do is a little soul searching. You are going to be negotiating to save yourself thousands of dollars. That is like trying to talk yourself into a free car. You need to understand your own position and motivation and perspective. So our first tip is to ask yourself if you want to change to a different credit card company if you do not get a better rate?

1. Consider their customer service.
2. Consider how often they have increased your rates in the past.
3. Consider how many penalties they have charged you.
4. Consider how many balance transfer fees your have been charged and if they were reasonable.

You need to understand just how serious you are about your effort before you proceed. Everything that we will cover in the future will be determine by your goals and attitude, which will come across on the phone!