Four resolutions that'll save you money
By Sandra Block
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The custom of making New Year's resolutions dates back more than 4,000 years, when the Babylonians started the year by returning borrowed farm equipment.
You could continue that tradition by resolving to return your neighbor's leaf blower. Or here's a better idea: Resolve to take some simple steps that will save you money. Some suggestions for 2009:
Don't be misled by other Web sites purporting to offer free credit reports, said Evan Hendricks, author of "Credit Scores and Credit Reports: How the System Really Works." These companies often require consumers to sign up for credit monitoring or other services — for a fee — to receive a credit report.
Checking your credit reports is critical this year, said John Ulzheimer, president of educational services for www.Credit.com. Interest rates on home mortgages and car loans have dropped to record lows, but you need spotless credit to qualify.
Once you receive your credit reports, review them carefully for omissions that could hurt your credit score. For example, if you've been making regular payments on a loan, and the loan doesn't appear on your reports, contact the lender, Ulzheimer said. Otherwise, "you're not getting credit for good credit management," he said. "These days, you need every good account on your credit report you can possibly muster."
If you find an error, such as an inaccurate account balance or an account that doesn't belong to you, contact the credit bureau. All three credit bureaus provide a way to dispute information on your report. Ulzheimer also recommends contacting the lender that supplied the inaccurate information.
And what about negative information that's accurate? "There's not a whole lot you can do except compensate by doing things right," Ulzheimer said. That means reducing your credit card balances and scrupulously paying your bills on time.
But there's no reason to wait until March to get your money — especially if you have holiday bills to pay. You can also speed the process by submitting the right documents, said Scott Keyes, a health benefits consultant with Watson Wyatt.
If you made a copayment, send in the receipt, Keyes said. But if you made a payment that was put toward your deductible, or you have co-insurance, wait until you receive an Explanation of Benefits from your insurance company, Keyes said. That's the document your flex-account administrator will need to process your claim, he said.
Without the Explanation of Benefits, Keyes said, the flex-account administrator has no way of knowing how much of the cost was covered by your insurer. Suppose, for example, that you went to your doctor in December, paid $200 for the service, and were reimbursed by your insurer for $100. Your Explanation of Benefits will show that your actual out-of-pocket cost was $100, Keyes said.
An online account will also help you check bank account balances — an important feature if money is tight. In 2008, the average bounced-check fee was $28.95, according to www.Bankrate.com.
The average ATM surcharge — the amount banks charge non-account holders for using their ATMs — was $1.97 in 2008, according to www.Bankrate.com. Most banks also charge a fee when their customers use another bank's ATM. The average amount of that fee was $1.46 in 2008. That works out to $3.43 — or the equivalent of paying nearly 7 percent on a $50 withdrawal.
Sandra Block is a columnist for USA Today.
