3 Self-Improvement Ideas that Can Help Your Finances

by Miranda Marquit · 0 comments

We don’t often think of self-improvement as something that can boost our finances. However, there are times when the right investment in yourself can also yield financial benefits. Here are 3 self-improvement ideas that can help your finances in the long run:

1. Learn a New Skill

If you are willing to put in the work and learn a new skill, it’s possible for you to improve your finances. Your new skill can not only enhance your life, but it can also make you more marketable. The right skill can result in a promotion, or even help you find a new job or start a business.

Learning a new skill can provide you with the means to make more money, helping your finances. It’s not always fun to go out there and acquire a new skill, but it can be helpful. Work on improving your abilities, and you have a chance to see better finances.

Figure out what new skill would best help you. Is it getting certified with a computer program? What about learning how to operate a piece of equipment? Learning new skills can make you more versatile and valuable, and it can also provide you with a way to move to a wider variety of jobs and career fields so that you aren’t confined to one specific course of action.

2. Develop Your People Skills

Some of us have a hard time interacting with others. I’m a bit of an introvert with mild ADD, and I have a hard time in social settings. As a result, I’ve had to work hard to develop people skills (and sometimes I’m still not sure I’m succeeding). Developing your people skills is more than just being able to make friends and enjoy social interactions. It can also help you improve your finances.

When you learn how to interact with people, you can network better. Good networking skills can be a real help as you work to advance your career. Make an effort to learn how to build up your network, and how to approach people. You can also work on a personal statement or elevator pitch that allows you to quickly let others know what you do and how you can benefit them.

People skills can also include developing leadership traits, and learning how to motivate others. When you develop these skills, you can be valuable in almost any career — and get help moving up the career ladder.

3. Read More

If you want to learn more valuable and useful information, reading is one of the best things you can do. Read more books of information, and read more about things you aren’t sure about. This can be especially helpful if you want to learn more about money and how to manage it.

Reading biographies can help you learn how others managed to build wealth. Reading about money management and investing can introduce you to ideas and techniques that you can then apply to your own life and improve the way you manage your own money. Reading can be a big help as you find ways to make the most of what you already have, and build for the future.

Boycotting: Who It Really Impacts

by Jessica Sommerfield · 0 comments

We’ve all seen emails and Facebook posts telling us about some large corporation’s latest moral or social misstep and requiring that, as conscientious consumers, we take a stand and boycott their business. Perhaps you always dismiss these as annoying, or maybe you’ve felt concerned enough about a particular issue to participate in a boycott at some point.  Whatever the case, have you ever wondered if boycotts really make a difference or accomplish their goal? Here are a few interesting facts I learned as I attempted to answer this question for myself.

Boycotts Hurt Small Businesses 
Except in the case of small, localized boycotts, most boycott campaigns are aimed at large corporations such as recently targeted BP gas, Starbucks, or Chick-fil-A.  What the consumer is often unaware of is that refusing to buy products from these corporations, especially in the case of BP gas, directly affects small, privately-owned businesses that have nothing to do with the offensive actions, but simply carry the company name. Boycotting them doesn’t hurt the company at large, but rather small business owners. This creates a chain reaction that doesn’t result in the intended action, but affects the entire local economy of supply and demand.

Boycotts Hurt Employees
If a business is being boycotted aggressively enough, it will feel the impact. But how it reacts to the impact of lost sales isn’t usually what consumers like you and I were hoping for. Instead of cutting their own salaries, corporate heads will cut their workforce to account for the losses. This means fewer hours or loss of employment in an economy that’s difficult to find a job in.  Think about this possible affect the next time you consider joining a boycott.

Boycotts Hurt You, The Consumer 
If you boycott a business, product, or service in order to place pressure on CEOs, you are choosing to make life more difficult for yourself, too. You might have to drive farther, which means more spent on gas, to shop at a different store or eat at a different restaurant.  You may also be spending more money on the products you’re buying instead of what you’re boycotting. You may think this is all worth it to make your point, but what if the point isn’t really made? Then it’s only impacting you, as the consumer.  What’s more, pressure from boycotts may not only cause a company to lay off workers; they may also raise their prices. This affects not only you, but every other consumer.

So is it worth it to boycott? You can choose for yourself, based on how strongly you disapprove of a businesses’s actions, but keep in mind that there is always more to the picture than just the business, and your actions can make a worse, instead of a better, impact. There are many other ways to voice your opinion to a company about their decisions or policies, such as:

  • Writing formal complaint letters
  • Raising funds to support the opposite of their stance and making them aware of it
  • Discouraging people from buying stock in the company, which hurts the dividends of those high on the corporate ladder
  • Writing to a congressman or becoming involved in a lobby group

It’s good to remember that boycotting is a political right we are privileged to exercise, and we should use it cautiously and as effectively as possible.

Cut Your Cell Phone Service Charges Down to Size

by Gina Blitstein · 0 comments

Cell phones are an ubiquitous part of life nowadays, connecting us in so many ways for so many purposes. When phones were basic, so was billing which simply charged for the minutes we used. The smartphones we use today function as much – if not more – as an Internet device as a telephone. Add data and text charges to a cell phone bill and before you know it, you’re looking at a substantial monthly expense!

But even that scenario is changing. New cellular service providers are playing by different rules than the major carriers, allowing consumers greater freedom, more options and considerably cheaper charges. Gone are the days of mandatory long-term contracts. Gone is the necessity to buy your service only from the major carriers.

If you have any hesitation about switching from a big name cell phone carrier to a lesser-known one, bear these facts in mind:

  • Many smaller cellular service providers use the same network as the larger companies, so reception quality and coverage is the same.
  • Wondering what’s the catch? Here’s one reason these smaller companies charge so much less for the same service: Large companies subsidize the cost of their phones, rolling it into the cost of your service. In other words, when you buy a phone from a large company from which you’re also getting service, you get a break on the cost of the phone but pay much more for monthly service. Choosing your carrier independently of your phone enables you to get much cheaper service.

Here’s our personal experience: We were until recently with Sprint, paying upwards of $170 a month for two lines and more minutes and data than we actually used. Since we were out of our two year contract, we investigated our options. We found a service provider called Ting that enabled us to continue to use our Sprint android phones (which meet our needs just fine for the time being) and drop our service to, depending upon our actual usage, the neighborhood of $40 per month. We’re now saving at least $130 a month for exactly the same Sprint network service.

Of course, when it’s time to buy new phones, we’ll pay full price but it won’t take long to recoup the cost with that $130 monthly saving! Ting turned out to be the best option for us because, as Sprint customers we could use our existing phones. If we’d been with another carrier, we would’ve needed to first buy a phone from Ting at full price to get their low rate for service. As an added bonus, moving to Ting allows us to use our devices’ hotspots with no extra fees. On Sprint, needed to pay an additional $10 per month for the same ability, whether we used it or not.

  • Even if you’re still under contract, some smaller companies offer credit toward cancellation fees to make switching an even more attractive option.

Since you’re acquainted with your cell phone, your plan, your usage and your bill, it really is worth the time to research what’s available for you.

Check with your present carrier to at least make certain you’re on the most advantageous plan for your use and number of devices. Many of the big companies are tailoring their plans based upon the popularity of the little guys’ no-contract plans.

Also, read this informative article about no-contract plans: The Best Cheap Prepaid Phone Plans You’ve Never Heard Of.

It’s empowering to know that  we have more choice than ever in this potentially pricey area. Seize your power and save a lot!

How much could you save on your cell phone service?

How to Save Money While Still Having Fun

by Miranda Marquit · 0 comments

I’m not normally known for my frugal ways. However, even though I’m willing to pay a little extra for a good experience, it doesn’t mean that I want to overspend on my fun. As long as you’re willing to show a little patience, and if you can see the joy in the simple things, it’s possible for you to save money while still having fun. Here are some of the ways that I save money while still having fun, whether it’s staying close to home or whether I’m traveling:

Look for Deals

The best thing to do is look for deals, no matter what you’re doing. First of all, you can find good deals on almost anything when you sign up for deal sites. I like to sign up for deals in cities that I visit regularly so that I see deals that might pop up when I’m traveling there. I look for deals when I travel as well. My son and I are saving 50 percent off our spring break trip because I looked for deals on everything from our trip to an amusement park to the hotel to the rental car.

You can also find deals close to home. We often go to the theater on discount nights, or go out to eat when kids eat free. This is a good way to head out of the house without breaking the bank and enjoy a little family fun.

Use Your Rewards

Your rewards program memberships can be a great way to save money on fun items. I recent got a free plane ticket, which reduced the cost of a trip. We’re also staying for free in a hotel for an upcoming weekend getaway, all thanks to a rewards program. Whether you are using credit card rewards or non-credit loyalty rewards, you can have fun with the help of rewards. I recently signed up for a credit card rewards program connected to one of my loyalty rewards. I wish I’d done it sooner, since the way I’m racking up the rewards is amazing, and I’ll soon have more free travel coming my way.

Of course, you do have to be careful when using rewards — especially credit card rewards. You don’t want to spend extra money just for the sake of earning rewards. Otherwise, you could find yourself in debt.

Look for Free Things To Do

The best things in life are free, and you can have fun while enjoying free activities. My son and I regularly go for bike rides, and go hiking. It doesn’t cost us anything to stay at home and play a board game or put together a puzzle. These are fun and free, and they make for good memories. We also like to visit local historical sites, and support free cultural activities, like our local gallery walk that features artists from around the area. Check your community calendar for these types of activities, and you might be surprised at how much fun you can have while spending very little — or even nothing at all.

Making the Most of Pinterest

by Jessica Sommerfield · 0 comments

If you haven’t discovered the world of Pinterest yet, you probably will soon.  The first time I heard about Pinterest, I had no idea what it was. The way it was described to me, it seemed like another form of online shopping (in a way, it is), and I did enough of that.  In fact, as many other people’s first experience with Pinterest, I found it very confusing. Once I got the hang of it,  it was actually pretty fun to ‘pin’ things that I liked and to ‘follow’ other people’s pins, but the site still seemed like just another time-wasting, addicting online activity.

Then I started discovering how Pinterest could same me time and money while allowing me to share similar interests and finds with my friends. If you make the most if it, this new social network/shopping/list-making/idea-snatching/do-it-yourself playground can be a great tool in the effort to live a more cost-effective and frugal lifestyle.  Here are some ways to make the most out of Pinterest.

Recipes and Shopping Tips
If you’re a recipe collector, you’ll love what Pinterest has to offer. Most days, all I have to do is scroll through the pins of people I follow in order to find a delicious recipe, usually linked from a blogger’s site. You can also search for specific recipes or ingredients to see what pops up. Like an endless network, each recipe usually leads to more recipes you’ll want to pin to your own board. Creating a board to pin all your favorite recipes is a great way  to create a virtual cookbook, a central location you can turn to when you’re looking for something different or planning your menu for the week. Not only can you find great recipes that other people have already pinned; you can also pin recipes from other recipe sites that offer this option. As Pinterest becomes more widespread, more and more sites are allowing direct ‘pinning’ of their pages. This only make sense since Pinterest increases their visibility and site hits.

Although you won’t necessarily find coupons on Pinterest, you will definitely find pins about where to find them.  Simply typing ‘coupons’ into the search bar reveals a huge selection of links to good deals on groceries, consumables, clothes, and much more. Pinning these to your shopping board is an easier way to keep track of an endless number of coupon websites.  There are also many pins that link to blogs offering money-saving tips on nearly every category of spending, which leads to the next feature.

Do-it-Yourself Projects
It doesn’t take long scrolling through Pinterest to notice there is a huge presence of do-it-yourself themes. This plays into a common desire to find a better, cheaper way to complete every-day tasks or special projects. You’ll find anything you want to know about how to  re-purpose items, decorate on a dime, re-finish and paint furniture, or cheaply organize your closet.  I’ve found ideas I’ve saved and plan to use when I own my own home (and have a lot more time on my hands).

Gift and Entertainment Ideas
Pinterest is also a great place to find unique, personal gift ideas for any holiday; birthday themes, games, and cake recipes; and countless ways to entertain your guests frugally but with taste.  Again, Pinterest is a perfect way to put all your ideas in one location — all you have to do is create and title a new board.

What is also extremely convenient about Pinterest is the app. you can download for free on your smartphone.  This way, you can take your virtual boards of pins anywhere you go! Don’t get me wrong…Pinterest can also cost you money, if you’re not careful, because in many ways it’s another form of shopping. But if you use it as a way to shop for savings and creative frugal ideas, you don’t need to spend to make the most of it.

If you’ve never tried Pinterest, I’d encourage you to check it out. Sure, it’s addicting, but it’s also a great savings tool you’ll never know how you lived without.

Mow ’em Down with the Right Lawn Mower

by Gina Blitstein · 0 comments

One of the first signs of spring’s renewal is the regrowth of our lawns. It doesn’t take long to go from, “look at that carpet of green!” to, “time to cut the grass!” Is your lawn mower ready to take on another season or will you be shopping for a new one? If you’re in the market for a mower, here’s the lowdown on how and what to choose to best suit your needs and budget.

For a typical urban or suburban lawn, your appropriate options may be among these traditional push-from-behind mowers:

Reel – ($79.99 & up) The “original” human-powered mowers remain the least expensive option. They’re lightest in weight as they have no motor, operating by spinning blades which pull in grass to be clipped by the cutter bar. They’re available with four, five or seven blades; the heavier your grass, the more blades you need. Reel mowers perform well on grass but not on twigs or heavy debris making them a poor choice for yards with mature landscaping. Maintenance-wise, reel mowers require only regular blade sharpening. They have the further advantages of being quiet and environmentally friendly.

Electric – ($149.99 & up) These mowers provide a lightweight, powered, yet quiet experience with no carbon emissions. Electric mowers are more economical to operate than gas models. Like reel mowers, yearly maintenance amounts to blade sharpening. Both the corded and cordless versions are a good choice for smaller yards with these caveats:

  • The electric cord can become entangled on any obstacles it encounters. A long extension cord is necessary to run from the outlet to where you’re mowing, which can be cumbersome and could potentially be run over.
  • While cordless mowers are offered in both push and a self-propelled modesl, they will run for just one hour on a full battery charge.

Two-in-one electric mowers provide the option to discharge or mulch grass clippings while the three-in-one models include a bagging alternative.

Gas – ($149.99 & up) Their gasoline engines make these the noisiest, yet most powerful mowers. That power is ideal for mowing a hilly, thick or debris-laden lawn. Gas mowers come in push or self-propelled models, which have substantial differences.

When choosing a push model, your decision depends upon what you prefer it to do with clippings: side discharge, mulch or collect them in a rear bag.

Self-propelled gas mowers offer many options, including:

  • Front wheel / rear wheel drive – Rear wheel drive provides traction, maneuverability and power for steep inclines.
  • Speed control / set speed –  Speed control allows you to dictate the speed at which your mower goes to match your preference or mowing conditions. Thick or tall growth requires a slower speed for even cutting and effective mulching.
  • Recoil / electric start – Electric start eliminates the exertion of pulling the cord to start the engine.
  • Wash-out ports – make keeping your mower clear of grass build-up and running efficiently easier.
  • Blade override – disengages the blade for safety while keeping the engine running.
  • Swivel wheels – allow for easier maneuvering and longer wheel wear.

Be certain to factor yourself into the equation when choosing a lawn mower. The wider the mower you choose, the more area you’ll cover with each swipe; so if you’re not one to savor the chore of mowing, you’ll finish the task more quickly with a wider mower. If you’re not in good physical condition or looking for a workout while you mow, a reel mower may not be an ideal choice.

These push-from-behind mowers cover the mowing needs of the majority of lawns. The choice comes down to your preference, budget and your lawn’s needs.

What’s your ideal lawn mower?

3 Tips for Avoiding Higher Health Care Costs

by Miranda Marquit · 0 comments

No matter what you think of the implementation of the Affordable Care Act (Obamacare), the reality is that health care costs have long been rising, and radical changes are needed to keep costs in check in the years to come. Additionally, according to Ruth Fenner Barash, whose recent book is For Better or Worse: Lurching from Crisis to Crisis in America’s Medical Morass, the health care system has long been riddled with problems.

If you want to keep your own personal health care costs as low as possible, there are 3 main things you need to do:

1. Stay Away from the Emergency Room

There are few things in American health care as expensive as an emergency room visit. Even if you have insurance, a trip can be more expensive, since the co-pay is usually higher when you use emergency care services. Whenever possible, see your primary care physician.

Even for those without insurance, who must be treated in emergency rooms before being released, the cost can be high. First of all, there are still charges, and it can be difficult to pay them. There is another cost as well. Barash points out that emergency rooms usually have a large number of germs floating about, since patients aren’t often isolated. You might go in with one thing and be back soon with something else.

The cost of missing work and taking additional medication can increase your health care costs, just because of something you picked up while you were sitting in an emergency room.

2. Question Everything

Don’t automatically assume you need an expensive test, or that you have to take a certain medication, just because it’s recommended to you. Unfortunately, some health care providers get kickbacks for their recommendations. “Research your physician’s connections,” Barash says. Find out why you are being prescribed a name-brand instead of a generic. Find out why one specialist is recommended above another. It’s important to consider these items. A second opinion, or another procedure, might save you quite a bit of money over time. Ask questions, and don’t be afraid to get information elsewhere.

3. Find Out What It Costs

Even if your health insurance provider is picking up the tab, you should still have an idea of how much it costs. “Part of the blame for having the most expensive health care system in the world goes to us, the individuals who don’t question purchases are shop for prices,” says Barash. Find out what a procedure or medication costs, and see if you can get it cheaper. Remember, even if your insurer is paying for it, you are going to see increased costs in the form of premium hikes if the insurer thinks it is paying out too much for your health care.

You should also check your bill carefully. Billing errors can be costly, charging you for services and items that you didn’t even benefit from. You can ask for an itemized bill so that you can identify what, exactly, you are being charged for.

In many cases, knowledge is power — and knowledge can result in savings on health care.

Affordable Spring Fashion Trends

by Jessica Sommerfield · 0 comments

The spring fashions for 2014 have been revealed, and for the fashion-conscious, this is an important indicator of what to be wearing in the next few months to stay on-trend. Although most of us are satisfied with remaining relatively in fashion, since changing your wardrobe with the seasons is a huge expense, there are some ways you can keep in tune with trending fashions without spending more than what you’ve budgeted for clothes. The good news is that many of the trends are new takes on classic styles, pulling from the 60s,  which will enable you to incorporate pieces from your current wardrobe in an updated way.  Here are four spring trends and ways you can rock them without emptying your savings account.

  • Tea-length skirts

I saw one of these recently on a celebrity and was surprised at how modest this  fashion trend appears compared to others! While you can’t just pull out a frumpy, long skirt from the back of your closet and be instantly on-trend, you may be able to alter something you already have. The key with this season’s tea-length skirts is a well-fitting waistline.  Another way the trend is displayed is with a sheer overlay to a thigh-high skirt.  Either way, make sure the size and flare of the skirt don’t overpower you (especially if you have a small frame).

  • Pastels and patterns

Yes, pastels are back in time for spring. This is a trend that’s extremely easy to incorporate using clothes you already have in hues of lavendar, pink, soft yellow or mint.  Another returning trend is mix-matched patterns. Any pattern goes — gingham, strips, florals. The key is balancing patterns so they look interesting and not overwhelming. If you’re going with a bold pattern mix, opt for neutral jewelry.

  • Metallics and neutrals

Metallics have been a popular recent trend and will continue through spring. If you’re shy about this trend, stick with classics such as gold or silver that will always look good, and avoid fabrics that are too shiny and cheap-looking. Black, white, and neutrals — the easy classics most people use as a wardrobe staple — are again on-trend. Add a pop of color such as vibrant orange or red and your look will be instantly updated.

  • Kitten Heals and Comfy Shoes

Step aside, platforms and high heels — comfortable shoes are now in fashion! These styles are easy to find and even easier to incorporate into your everyday wardrobe without sacrifice.

Where to Shop
First of all, the best place to start is your own closet. Look through items you already own and try to put together new outfits that follow these fashion trends. Lay  or hang items together to see how they look, and if they’re appealing, try them on. The only thing this costs is a little bit of time in front of your mirror.

If you decide you need something, shop thrift store and consignment stores for new or gently used clothing that fits these fashion trends to save the most money on your new spring outfits.

Whichever trend you’re trying to follow, you don’t have to spend a fortune to look fashionable. If you see a particular celebrity style you want to mimic, check out websites such as thelooksforless.com, thebudgetbabe.com, or cheapchicas.com. These sites will help you identify where you can buy similar items for way less than the designer price (usually well-known outlets or department stores). You’ll get compliments on your style, and be able to pass on tips that’ll help others save money, as well.

Healthy, Affordable Spring Produce Has Sprung!

by Gina Blitstein · 0 comments

Once winter begins to wane and the weather starts to change, along comes spring’s seasonal produce to perk up our weary palettes. In-season produce is usually abundant, fresher (because it’s grown locally), tastier and affordable.

It’s a good idea to utilize in-season produce in our spring cooking. It provides the biggest nutritional “bang for the buck” and brings the flavors of the season to our table.

Vegetables and fruits that are in season throughout the spring months include:

  • Artichokes – Should have tight leaf formation, deep green color and be heavy for their size.
  • Arugula (Rocket) – a pungent, leafy green vegetable resembling lettuce. Choose firm, undamaged bright green leaves.
  • Asparagus – Choose stalks that are bright apple green with tight purple tips.
  • Beets – Choose smooth, firm, small ones. Beet greens should be bright green with red veins running through them.
  • Cherries – Should be large, firm and have deep color.
  • Dandelion greens – Choose stiff leaves with pointy, fine “teeth.”
  • Fava beans – Choose firm pods that feel soft and smooth on the side.
  • Fiddleheads – highly nutritious young wild ferns. Choose those that are firm, bright green, tightly wound and with stems no longer than an inch or two.
  • Green onions/Scallions/Spring Onions – Look for bright green tops and firm, white bases.
  • Kiwis – Choose plump, unwrinkled fruit which is firm or slightly yielding.
  • Kohlrabi – the root is frequently used raw in salad or slaws with a texture similar to a broccoli stem, but with a sweeter flavor. Look for fresh, bright leaves, even color and small size.
  • Kumquats – Look for bright, smooth skins that feel a bit heavy for their size.
  • Leeks – Choose firm, crisp, thin to medium stalks with dark green leaves.
  • Lemons – Choose firm, small fruit.
  • Lettuce – Choose the crispest and freshest.
  • Morels – mushrooms foraged in the wild and highly prized for their flavor. Choose plump ones whose cut end isn’t completely dried out.
  • New potatoes – Look for firm, smooth-skinned ones with bright red color and shallow eyes.
  • Pea greens – Look for bright vines with fresh, vibrant leaves.
  • Peas  (garden, snap, snow, etc.) – Choose ones that have plump, unblemished bright green pods; peas inside should be glossy, crunchy and sweet.
  • Radishes – Choose ones that are small to medium sized, smooth and bright red.
  • Ramps – often foraged or available at farmers markets and specialty stores, they taste like a combination of onions and strong garlic. Look for long thin bright green leaves and purple-white stalks.
  • Rhubarb – Choose brightly-colored, crisp stalks with bright green tops.
  • Spinach – Choose thick, crisp dark leaves.
  • Strawberries – Choose brightly colored, plump berries with their green caps attached.

Of course, the produce that’s available and abundant in your neck of the woods will depend upon where you’re located. These resources will help you find the freshest produce in your immediate area:

Local Harvest
Locavore Network

Once you find those bargains on nutritious, delicious spring produce, it’s up to you to make the best of the best the season has to offer. Store them properly to ensure they stay as fresh as possible until you have the chance to enjoy them. Consult this guide for proper storage of fruits and vegetables.

When you’re ready to chow down, try these recipes to help you incorporate spring produce into your menus:

10+ Delicious Spring Salads
40 Easy Spring Produce Recipes
Cooking with Spring Fruits and Vegetables
Spring Produce at Its Best

Spring provides a great opportunity to fortify your diet with healthy produce. Celebrate the coming of spring by serving up the season’s freshest and most affordable produce.

What are your favorite spring vegetables and fruits?

Has the Credit CARD Act Helped You in Recent Years?

by Miranda Marquit · 0 comments

Almost five years ago, the Credit CARD Act of 2009 was signed into law. Since then, the way that credit card issuers interact with consumers has changed. Many experts think that the CARD Act has been a success. “The CARD Act has generally been very positive and successful,” says Kevin Gallegos, the vice president of Phoenix operations for Freedom Financial Network. “It has proven to help many cardholders reduce their credit card debt load.”

According Gallegos, there are four ways that the Credit CARD Act has benefited consumers:

1. Cutting Interest Rate Hikes

“The CARD Act prohibits card issuers from raising interest rates on existing purchases unless the cardholder misses two payments in a row,” Gallegos says. “Consumers mush also be given 45 days’ notice before rates are raised on new purchases.”

Prior to the Credit CARD Act, according to Gallegos, 15 percent of accounts experienced rate hikes, and now that has been reduced to two percent. This helps consumers, since they are better able to pay down their debt without worry that an interest rate hike is going to reduce the effectiveness of their payments. More money goes to principal, rather than being used on increasing interest charges.

2. Restricting Late Fees

“In the first 10 months after the CARD Act took effect, the total late fees consumers paid was slashed from $901 million to $427 million,” Gallegos says. Not only are fewer households paying late fees (28 percent in 2012 versus 52 percent in 2008), but the average late is now lower, decreasing from $35 to $23. This takes pressure off consumers who are strapped for cash, living paycheck to paycheck. And, again, it can also aid as consumers work to pay down their credit card debt.

3. Getting Rid of Over the Limit Fees

One of the things the Credit CARD Act did was get rid of over the limit fees altogether. Unless the consumer has given the creditor permission to charge above and beyond the credit limit, the card issuer can no longer charge over the limit fees. So, if the creditor allows an over the limit charge, it is considered the problem of the creditor, and no over the limit fees can be charged. Gallegos says that only one percent of accounts incur over the limit fees since the enactment of the law.

4. Better Awareness of Credit Card Costs

There are hopes that better education will lead to better choices, and seems to be working. “Surveys suggest that one-third of households are paying down balances faster now,” says Gallegos. Now that credit card issuers have to show consumers how long it will take to pay off their debt — and illustrate how much they can save by paying it off faster — many consumers are taking action and paying down their debts at a faster rate. Fewer consumers are just paying the minimum now.

Problems with the CARD Act

Gallegos does say that the CARD Act has negatively impacted some people. Some consumers have less access to credit as a result. This made it harder for stay at home partners to qualify for credit, although the CFPB has been working to change that. Additionally, applicants under the age of 21 face more scrutiny.

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