Account Check-Up!

Still on the topic of getting your finances in order, it is important to be in control of your accounts, yesterday we discussed setting yourself up with a system and establishing a routine for keeping your transactions up to date. Today, we'll talk about accounts and how to make sure they're working for you.

First of all, make a list of all of your accounts -maybe you already have them in your software program, if so you've got a head start, if not that's ok.

You'll need to examine each account individually. Some of the types of accounts you may have are:

• Bank/Credit Union Checking, Savings, Moneymarket, investment etc.



• Credit Cards (Visa, MasterCard, Discover, American Express etc.)



• Store credit cards (eg. Sears, Macy's etc.)



• Mortgage accounts



• Auto loans



• Lines of Credit



• Personal loans



• Retirement accounts



• Mutual Funds

This may take a little time, don't get overwhelmed, just take them one at a time.

Evaluate each account based on the following questions:

1. Are there any monthly service fees?



2. What is my interest rate?



3. What are the penalties for overdraft, returned item etc?



4. Are there any prepayment penalties for paying off an account early?



5. Is it feasible to transfer this account elsewhere if I find a better deal?

No service charges and low interest rates for credit are always the best option, many banks and credit unions offer free checking, just make sure you are aware of any qualifying factors (such as maintaining a minimum balance etc.). Do shop around if you find yourself in a less than ideal situation. As you look at each account, please be careful to evaluate whether there's a real benefit in making the switch. It may be unrealistic for you to attempt to refinance your mortgage or auto loan, so be sure to read the fine print. If you have reasonable credit and want a better rate of interest on your credit card, it's definitely worth considering transferring a balance, there's a lot of competition in the credit card market.

Don't forget to look at the interest dividend rate you are receiving on any savings and investment accounts, you might be able to get a greater return elsewhere.

I know, all of this doesn't sound like a fun way to spend a summer's day but remember your investment of time will reap rewards later.

Blessings!

Smart Mom