Springtime is about more than just cleaning out the attic and sprucing up your home. It’s about cleaning up and clearing out your finances as well.
Here are two ways in which you can get your financial information in tip-top shape – before you get in way over your head.
1. Prune the credit cards. Experts say that most people only need one or two cards. For those who pay off their balances each month, it makes most sense to stick to only one card – preferably one that pays cash rewards or frequent-flier miles. Limit your spending to one card and you’ll reap the rewards much quicker. For people who tend to carry over their balances, the two-card approach might work better. Use one card for purchases that can be paid in full every month. Use the second one for rolling over outstanding debt. Of course, you should try to get the lowest possible interest rate on that second card so that what you owe doesn’t grow more than you can handle.
2. Consolidate banking accounts. Many families have multiple bank accounts – checking, savings, CDs, money market accounts, etc. You can often earn higher interest rates or qualify for loan discounts by moving all those accounts to Towpath Credit Union.