Managing Less Money
By: Source: AARP.org Date Posted: 2002-08-14 11:44:54
You don't have to be a millionaire to be concerned about managing your money. Even people with modest means need to do financial planning. This will ensure that the money they have remains secure and continues to grow.
Consumers with moderate and low incomes have many options when it comes to managing their money. Learning about these options can help you make the most of your money.
No Bank Account? Try an ETA
There's a new type of low-cost bank account called an Electronic Transfer Account (ETA). If you don't have a bank account, an ETA gives you a way to receive your federal government payments electronically. ETAs cost only $3 a month or less.
Cashing a Check? Pay Less at a Bank
Consumers who don't have bank accounts may be tempted to take their salary or benefits checks to special stores that cash checks for a fee. Before you pay money to cash a check, think about opening a checking account instead. You could be paying more to cash one check at a check-cashing store than you would pay a bank each month to open a checking account. Plus, a bank account can help you save and establish a credit history.
Qualify for Lower Bank Fees
Asking the right questions could help lower your bank's account fees. See if your bank will lower your checking fees if you are a senior citizen, keep a minimum balance in their account, or use direct deposit.
Can't Get a Credit Card? Try a Secured Card
Does your income or credit history make it hard to get a regular credit card? Maybe you should consider getting a secured credit card. To get a secured credit card, you'll have to:
- Pay a non-refundable fee.
- Deposit about $300 into a savings account as a security deposit.
If you fail to pay your credit card bill, the lender will deduct what you owe from your deposit. You'll receive that security deposit back, minus any money you owe, when you cancel your card.
Don't call a 900-number to apply for a secured credit card. It could be a scam. Apply for a card with a lender you know.
Can't Get A Conventional Loan? Try an Unconventional One!
Can't afford a conventional loan to do needed home repairs? Find out about other types of low-interest loans that government and nonprofit agencies offer. To start your search:
- Call your county or city government and ask about home repair programs.
- If you are over age 65, call your local Office on Aging for information on special programs or options.
- Check with your local bank to see if it offers loans that are insured by the Federal Housing Administration.
- Stay away from "Payday Loans." The annual interest rate for these 2-week loans can be as high as 40 percent!
Additional Resources
AARP Resources
AARP has a variety of information for consumers who need to stretch their dollars. Visit the Money and Work home page to learn about more managing your money topics.
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