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10 tips for buying the right car in 2013

Buying a car is typically the second most expensive purchase an American makes.

A spur-of-the-moment decision could cost you.

To keep your car costs in check, don’t spend more than 20 percent of your monthly household income on car-related costs. This includes car payments, insurance, repairs, maintenance and gas for all cars in your household.

Don’t assume used cars are always the best deal. They’re in shorter supply now, making them more expensive. And interest rates are higher on used cars than new ones. So consider all of your options for new and used cars.

Have a long list of possible new cars? Narrow it down by looking at ownership costs. For example, you can get insurance quotes on various vehicles before you buy one of them.

And determine the invoice price. Negotiate upward from the wholesale price instead of negotiating downward from the sticker price.

Savvy credit card management tips for the New Year

If you have credit card debt, you’re probably welcoming 2011 as a chance to start anew with your finances.

Use these tips to stay on track throughout the new year:

·         Tally up all of your credit card balances. Make a note of each card’s balance, annual percentage rate, due date & minimum payment.

·         Beware of any introductory rates that may expire, and find out what the new interest rate will be … and when it will kick in.

·         Note the monthly finance charges for each card. Add together each of those monthly finance charges to see how much carrying credit card debt costs you each month. This shocking sum will encourage you to take action.

·         Commit to a pay down strategy: Increase credit card payments on the card with the highest balance to give the biggest boost to your bottom line, or increase payments on the card with the lowest balance, to boost your momentum by quickly paying off one card.

·         You may also want to start by paying off the balance with highest APR first. Then focus your payments on the card with the next highest interest rate and so on.

·         Monitor your credit card accounts carefully. Changes to a credit card account shouldn’t take you by surprise. According to the CARD Act, credit card issuers must provide notice of certain changes to your credit card accout 45 days before they take effect. (Changes include increasing your minimum payment & rate increases on future transactions once you’ve had a new credit card open for a year, for example.)

·         Monitor your credit lines. Credit card issuers can lower your credit limit without 45 days’ advance notice.

Happy debt-slashing New Year!