Personal Finance News Wednesday 5/29

Phil's Personal Finance Tip of the Day:

Don't Let Your Vacation Wreck Your Credit

By Jeanne Kelly | Credit.com 

Summer vacations are supposed to be care-free and enjoyable. The most perplexing challenge we want to be faced with is: “Should I wear my sandals or my flip-flops today?”

That might be the perfect summer vacation but unfortunately, some summer vacations can have long-term consequences. A little proactive planning will go a long way, and I don’t just mean that you should buy SPF 50 sunscreen instead of SPF35. I’m talking about your credit.

While on vacation, we don’t want to think about our credit. But if we ignore our credit completely, we could end up paying for it for months or even years. Here are five credit tips that you probably haven’t been thinking about as you’ve been planning your summer vacation:

1. Set a budget. Summer vacations should be fun, and it’s even OK if they’re a little extravagant. But don’t go overboard. Set a budget before you go on vacation, make sure you give yourself a little cushion just in case you find the perfect souvenir, but diligently stick to your budget.
That might seem like you’re trying to suck all the fun out of your vacation, but what you’re really doing is making sure that the happiness of your vacation doesn’t turn to months or years of regret as you pay off those bills.

2. Plan for contingencies. What would a vacation be without a mishap? Make sure that you are prepared for some of the most common contingencies you might face while traveling. If you’re renting a car, make sure you have car rental insurance . If you’re going to be somewhere for any length of time, make sure that you have some kind of health or hospitalization coverage while you’re there. These are indeed credit tips because every contingency that you prepare for helps to protect your credit from unexpected, unpayable bills.


To read the entire article from Jeanne Kelly | Credit.com:
http://finance.yahoo.com/news/dont-let-vacation-wreck-credit-120021010.html


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Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.