The Tax Goddess Blog

New Credit Card Rules Go Into Effect

Credit card rules have changed, in ways to help protect customers against changing terms without notice.

Starting Thursday, August 20th banks must now comply with parts of the recently passed Credit Card Act of 2009 by

• mailing bills at least 21 days before their due dates; currently this is set to 14 days in advance 
• providing at least 45 days' notice before making a significant change to their rates or fees. Currently this is set to a 15-day notice of altered fees or rates.
• Banks will also be barred from increasing fees and rates without warning when a consumer misses a payment or exceeds a credit limit.
• Consumers will be allowed to avoid future interest-rate increases and pay off any outstanding balance over time under the original rate terms. Currently, if a consumer gets hit with a penalty rate, for example, they aren't given the option to reject the rates.

Additional changes will follow in Feb of 2010, but for now, this is a great start towards helping customers maintain healthy credit and work towards payment in full of these debts.

According to Consumer Action's 2009 credit-card survey, more credit cards now come with minimum cash-advance fees and higher balance-transfer and foreign-transaction fees. The banks have used this time frame to make the changes they wanted as freely as before so as not to fall under today's implemented rules.

For now, things you should check:

• Your statement due dates (to make sure you are getting the additional time required)
• Check around for better deals.  In a good competitive nature, many cards are offering great benefits and rewards, and some even have better rates.

A good example of these benefits is with Chase: (Taken from WSJ Online Edition)

"Consumers are likely to find better credit-card deals if they also have a checking account at the bank. Under Chase Card Services' Chase Exclusives program, for example, Chase Freedom card holders who also have checking accounts at the bank can earn up to 10% more points on their spending. The bank also rolled out a new credit card, "Slate From Chase," that automatically refunds the 12th month's interest charges each year if customers enroll in the bank's AutoPay program from a Chase checking account."

So there are some great deals to be had, you just, as usual, have to call around and find them!

If you have any questions on how to find a credit system for you, or if you shoukld be using a credit system at all PLEASE speak with your CPA to get more information (our Tax Goddess can be found here if you have any questions)!

Looking our for your best interests,

Your Tax Goddess~
Shauna~

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If you think that you might need some help growing your business and saving you tax please make sure that you talk to a good CPA who can help you find the right way to move ahead on track!

Want to Learn how to Budget?

Then this new SWC educational class is for you!

Click here for the registration information

If you are looking to have a personalized budget when you leave this class, you've come to the right place!  Your budget will be ready to implement when you walk out the door!

I am so excited about this offering and can't wait to be out there helping our community gain some control back into their lives!

Shauna, your Tax Goddess!

Budgeting Tips for a downtrodden economy!

Sometimes people in a booming economy are used to spending money that they don't have.  Living on credit cards, racking up debt.  Sometimes, once the economy turns down, it is hard to get back on track and start living within your means.

Here are some of the common things that I see, as a CPA, in people's expenses that are easy ways to turn down your expenses:

1) Check your insurances.  Their may be the same coverage, with an equally good company, for cheaper.

2) Install the energy efficient light bulbs in your home.  A bit of cost up front, but TONS of savings on your electric bill.

3) Change your "standard" temperature in your home (up or down a few degrees can make a ton of difference)

4) Look at your spending habits.  For 2 weeks, write down EVERYTHING that you spent money on (kind of like being on a diet for your wallet!).  How many times di you REALLY go to Starbucks?  Could a coffee from home save you some $?

5) Write out a list of the following 3 items:  Mandatory expenses (mortgage, Groceries, savings); Flexible Spending (Cable); "Fun" Spending (Dining Out, Massages).  Categorize all of the items that you spend into one of those three categories.  What can you cut?  What is Mandatory?  Does your monthly take home cover at LEAST the mandatory?  If not, where can you cut?  If so, go down the list from Mandatory to Fun and pick which ones you want to keep!

If you need any help creating a budget for yourself, or some additional tips, please don't hesitate to email me!  I would be happy to help!