Managing your own personal debt ceiling

Managing your own personal debt ceiling
(ARA) - The federal government and the average consumer have a lot more in common than you might think. The government's debt has grown exponentially since the 1980s, and this summer we saw it come dangerously close to the debt ceiling - the cap set by Congress on the amount of debt the federal government can legally borrow. Some people often ignore their limits to get what they want in the moment and push the bounds of their own "debt ceiling." Doing so could damage your credit score, dig you deep in debt that will be difficult to pay off, and ultimately hinder your long term financial goals.

The federal government has raised the debt ceiling nearly 100 times since the ceiling was established, but you don't have to. Taking on too much debt can have severe consequences - today, more than 5.6 million mortgages are either delinquent or in foreclosure, and a lack of savings can impact one's ability to retire comfortably. Here's some ways to set your limits and stick to them.

Get lean and mean: Take a hard look at how you're spending your money. Save receipts for any purchase you make for a week (or a month). At the end of your prescribed time period, go through your receipts and see where your money's going. Divide your receipts by category - such as household expenses, meals, entertainment - and tally them up for each group. Sites such as Mint.com, or smartphone apps like iReconcile, can help you track and analyze your spending if saving receipts is a hassle for you. Understanding where your money is going is a necessary step to determine your own budget and where you need to cut down, and can help you understand where you're headed financially.

Hidden expenses: You've tracked your spending. Now take a look at hidden expenses - little regular expenditures that don't seem like much on their own, but over time can drain your finances. Have a Netflix or Hulu Plus account you're too busy to use? Cancel your subscription and save $7.99 a month - which adds up to nearly $100 a year. Cancel unnecessary unused gym memberships, cellphone insurance, unused long distance plans and extra TV channels and watch your bank account rebound.

Take that savings one step further and open a separate account for those "found" funds. Look for a bank that makes it easy for you to save, with account offerings that meet your needs.

Find more hidden money by emptying the change from your wallet into a jar at the end of each week or month. Some banks, like TD Bank, offer their customers free coin counting services. Deposit the counted coins into your savings for a pain-free nest egg!

"It is important to know there are options and consumers can still find a bank that doesn't charge fees that affect your day-to-day-banking, and has an extensive store network that is open when you need it to be," says Nandita Bakhshi, executive vice president, head of products, TD Bank. "TD has programs in place to make switching banks and checking accounts as simple as possible."

Hidden fees: Just like you may not notice all the little hidden expenses that can drain your bank account, watch out for hidden bank and credit union fees - charges for paper statements, transactions with tellers or over the phone, the purchase of gift cards, or monthly checking. According to Bankrate.com, six out of 10 banks increased their checking fees recently.

Review your statement carefully each month to ensure you're not being charged for things you're not aware of - and if you find you are, have a chat with your bank to see if they offer other products that meet your needs. You should have access to services, convenient hours, and a large branch network without being nickel and dimed.

If you decide to check out what other banks have to offer, do some research on bank websites, or look to magazines like "Money" or "Kiplinger's," who have researched and ranked banks and credit unions in a number of recent studies. In a recent "Money" study, TD Bank - named the best regional bank on the East Coast - got kudos for having "a low bar to free checking," meaning their $100 minimum requirement to avoid checking fees is one of the lowest in the banking industry.

With these tips and a little bit of legwork, you'll be on your way to keeping your personal debt ceiling in check.

How to start your married life free of wedding debt

How to start your married life free of wedding debt

(ARA) - The average wedding now costs more than $25,000, multiple studies show. Few couples starting  their lives together have that kind of cash, and many will fund their weddings - wholly or in part - with credit. While it's normal to want the wedding of your dreams, your special day shouldn't lead to years of unmanageable debt.

Money problems, including too much debt, can cause significant disharmony in a marriage and can even lead to divorce. Fortunately, some careful budgeting and smart use of credit can help you prevent wedding-induced money problems from interfering with your marital bliss.

As soon as you set a wedding date, you need to begin thinking about and discussing how you'll pay for your big day. Your conversation should encompass several key financial talking points, including:

* Credit - Discuss candidly how you've both used it in the past, how you'll use it going forward and what, if any, role credit will play in funding your wedding. If you haven't already done it, exchange your credit scores, and discuss how you both arrived at your respective credit statuses.

Consider enrolling together in a credit monitoring product. Keeping a close eye on your credit leading up to marriage may help you better understand if and how you should use credit in funding your wedding. Websites like Freecreditscore.com allow you to see your credit score, which is a snapshot of your credit. The site's Credit Score Center can help you understand how your score works, how it's calculated, what factors impact it and when is the best time to apply for credit.

* Budgeting - A budget will be key to financial security throughout your married life. Establishing and sticking to a budget for your wedding is not only a good way to avoid overspending, it's a good team-building exercise for future spouses. You can learn a lot about each other based on how you manage your wedding-planning budget.

For example, every budget includes income. You'll need to realistically discuss your wedding "income" - funding sources you can rely on to help defray the overall wedding cost. Will your parents contribute? Will you dip into some savings? Will you pay for some things with credit?

* Savings - Saving money is often an exercise in compromise. For example, you may want a new car, but to save money you may buy a slightly used one instead of a current model. Saving money on wedding costs is the same. You'll need to look for creative ways to save money.

Fortunately, there are many ways to do this. Changing the time of your wedding to off-peak seasons or days of the week, opting to hold it at a different venue like a park, botanical garden or even a zoo, choosing less-costly dinner selections and even making invitations and favors yourself, can all save you money.

Many people find it difficult to reconcile the idea of financial matters and romance. But don't underestimate the romantic appeal of starting out your life together free of wedding debt. Having good credit, solid credit scores and little or no debt can be a great foundation for creating financial bliss in your marriage.