As a result there are interesting new features being added to several major credit cards that are specifically designed to help consumers manage their credit card balances. The hope of banks is that those who carry their cards will use these features to better manage their money and their credit card obligations.

Some of the features being rolled out now include those that let you set aside specific purchases and pay them off right away, while still carrying a balance on your other credit card charges. Normally if you make a new purchase but have not already paid off your balance, it just gets tacked on to your current outstanding balance and you have to pay interest on the entire total. Another feature lets you pay for one selected purchase over time at a better interest rate, while still using the card for other purchases at your normal rate. That enables consumers to finance a large or important purchase without incurring a burden on their entire card balance. This way you can isolate certain purchases, pay them off faster, and avoid getting charged all that additional interest. There are more available accounting options, too, like itemized monthly statements that categorize your expenses from month to month so that you can get a better idea of where your money is being spent.

The whole idea is to help you pay off as much of your outstanding credit card debt as possible while still having the flexibility to use the card for paying some expenses off over time. In many ways that is the best of both worlds – and card companies now offering these features think that what is good for your budget and wallet is also good for theirs.

The IRS is not trying to single you out unfairly, mind you, but it is a fact that some types of tax deductions are abused more than others, and that is the basic reason why some deductions will raise a so-called red flag when they are spotted on a return. Once that happens the tax return may be studied more carefully and closely – and that always increases the chances that the IRS employee will find a mistake or problem that could cost you more money in taxes, fees, and penalties.

A few of the big deductions that raise eyebrows include those that relate to home businesses, travel and entertainment, and using your personal car for business purposes. If you claim a home office deduction – which lets you deduct part of your mortgage as a business expense – then you are expected to only use that part of your home for business and never for anything else. If you have a vehicle and you claim mileage for gas or other expenses, you are expected to keep a daily written log of every mile. If you use the same car for running personal errands, for instance, then those miles do not qualify.

Because there is so much opportunity for abuse of these kinds of tax perks the IRS watches them like a hawk. So unless you can diligently back up your claims – and have enough financial incentive to take the deductions and risk an audit – you may be better off not using some of these more high-risk deductions.

But when creating a Will it is a good idea to avoid using fixed numbers when leaving gifts of money. That’s because the financial health of your estate can change dramatically over the years – and can also be substantially impacted by your death. You may have a million dollars, for example, the day you die but if you die with unpaid medical bills or taxes then that number will change after your death.

Instead of using numbers such as “I would like to leave $10,000 to John Jones,” it is smarter to use percentages – as in “I would like to leave one percent of the money in my estate to John Jones.” That way the money left behind will be divided as you intended, regardless of how much money you leave. Stipulating a set dollar amount, though, does not allow any flexibility for interpreting your wishes in the event that the money left behind is more or less than you anticipated.

So “I leave 25 percent of my estate to each of my four children” ensures equal distribution. No matter how big or small the pie is, in other words, each one gets a slice worth one fourth of the whole pie. Nobody gets more than their fair share and nobody gets less. But placing a dollar amount might mean that there is not enough to give one-fourth to each child. Or if your estate grows in size the children might be left with only a fraction of the total amount – rather than a full 25 percent.

But meanwhile consumers are defaulting on their credit card payments in record high numbers, and that is costing card companies lost revenues. That’s why right now credit card companies are especially focused on two issues. They want compensate for lost profits first of all, and secondly they want to try to lock in higher rates before Congress has a chance to pass laws that limit how frequently card companies can raise those rates. So over the coming weeks you can expect to see credit card companies significantly boosting the interest rates you pay on balances you carry forward from month to month.

That means that it is more important than ever for you to keep an eye on your card statements and carefully read any notices mailed to you by your credit card issuers. If you spot rate hikes that do not seem fair, don’t be shy about protesting to your bank or credit card company. Many of them will back down as long as you have made payments on time and have not gone over your credit limit. But if you say nothing you might get stuck with a steep rate for the foreseeable future.

Professional car mechanics and appraisers are a great source of affordable advice and insight, and for a reasonable price you can hire one of these experts to give you a complete report on the condition of a car. Expect to pay between $60 and $150, which is a bargain when you consider that that is just a fraction of the cost of a car or an unexpected repair because most repair shops charge about $60 an hour. They’ll check the mechanical systems, the body, the interior, do a compression check to ensure that the engine does not have a hidden crack, and tell you if the car has ever been in an accident.

Be sure to also check the title of the vehicle. If there is a notation stating that it is a “salvaged” auto, then you are probably better off walking away from it and shopping elsewhere. Salvaged cars and trucks earn that status by being totaled in a wreck or other mishap. Then insurance companies sell them for cheap at auctions. Avoid such risky vehicles, rely on the savvy and insight of the experts, and then buy a gently pre-owned vehicle with confidence. You’ll get a deep discount compared to what you would pay for a totally new vehicle and will probably also pay a little less for your insurance coverage since the cost to replace the car is not as high as it is with a brand new model.

That’s because whatever is being covered by an extended warranty should at least last until the basic manufacturer’s warranty expires. Most serious repairs or problems happen as soon as you get the merchandise home, and most stores will let you return those kinds of bad products under the basic warranty. Buying extended warranties on these items is usually not worth the cost, however, because they only cover specific problems under certain narrowly defined legal conditions.

The other big reason to think twice before buying extended warranties is that they are essentially a form of insurance, but many of these consumer warranty companies are only around for a few years and then they go out of business. So even if you have a valid claim in a year or two, the extended warranty company may not be around to honor it so the warranty will be useless.

A better strategy is to invest time in reading consumer research and reviews of the products you buy before you purchase them. Instead of expecting the item to malfunction and buying an extended warranty to protect you, in other words, spend time choosing the best product and shopping around for the best price. Buy from reputable merchants who stand behind their products with responsive customer service so that if you do have a problem they will resolve it to your satisfaction. The money saved on not buying extra warranties can be used to buy better quality, and that should serve you better in terms of product dependability and performance over the long haul.

But what is really making headlines right now is not the 4-month extension on the first-time tax incentive, but a brand new $6,500 tax benefit that applies to people who already own their own home. The innovative credit applies to those who have owned a home for at least five consecutive years and have used it during that time as their primary residence. If they decide to sell in 2010 and buy another home, then they can pocket the extra $6,500 in tax benefits – which can help many buyers struggling to pay closing costs or cover their down payments.

Check with a tax planner for details, because a few exceptions do apply. But most of those only apply to taxpayers who make rather high incomes. Singles who earn more than $125,000, for example, or married couples with income that totals more than $225,000 are ineligible. There are also some stipulations regarding how long you live in the home after you buy it, and those were primarily added to the legislation to stop professional investors and real estate speculators from taking unfair advantage of this tax benefit.

But before heading off to foreign countries with nothing but a credit card, be sure that yours works where you are going. The easiest way o do this is to talk to the bank that issued the card. They can tell you what banks in the country you are visiting also service those kinds of cards, for example, and whether yours will work in the ATM machines in the place you are going to be.

Card companies also have special tactics and procedures to help protect you from card or identity theft while traveling. Yours may be able to send you email alerts, for instance, if there is suspicious activity like large purchases on your card. You should also make photocopies of your credit cards – including both the front and back side of each card – for safekeeping. In case you lose your card you will have all the important information on the photocopy. Store one photocopy in a safe place such as the hotel safe, and leave another copy with a trusted friend or family member back home. If you have a problem your friend will have a backup copy of the card and that can speed things up when it is time to cancel a lost card and request that a new one be sent to you.

Many renters have been evicted during our current housing and credit crisis because their landlords went into foreclosure. Under the law tenants do not have to be notified if the landlord goes into foreclosure, and the first that many tenants ever hear about the situation is when they come home to find an eviction notice on their door. Evictions usually happen within a matter of 30 days or so, and that gives tenants very little time to prepare. But if they don’t move by the eviction date the sheriff can come and legally and forcibly put them on the street with all their belongings.
Keep tabs on your landlord’s credit by asking to see copies of recent mortgage payment statements or by visiting the local courthouse to see if anyone has filed legal collection actions against them. If your landlord is in financial trouble he or she may conceal that information from you in order to keep collecting rent. But if there is a foreclosure you may risk losing your security deposits and will then have to come up new deposits and first and last month rent for a new place to live.

Landlords that have nothing to be concerned about should be willing to share copies of their credit report or let you speak to their banker. Or they can show you cancelled checks that verify that they are making their house payments on time. A little extra vigilance may take some effort but it is much better to be safe than sorry as a tenant in today’s chaotic housing market and unpredictable economy.