Week of 3/26/2008

Beware of Interest-Free Purchases

Did your dishwasher die on you? Did your clothes dryer go kaput? Things happen. But when it happens to a major appliance or home component, it is usually a costly repair or replacement. In most cases, it's a replacement due to the original quality or age of the product. What to do?

Interest-free purchases on large-ticket items has become a competitive lure by Best Buy, Wickes, and other major retailers. It's a good deal for buyers if you don't get caught in the finance company's trap. Example: You buy a refrigerator for $1500.  The store finance company's interest rate is 20%, but you don't have to pay interest for one year. At the end of one year, you are able to pay off all but $500. Most people think they will owe $100 in interest (20% of $500) plus the unpaid balance.

This is the trap. In reality, interest is calculated on the original purchase price of $1500. You owe $300 in interest charges. To make matters worse, after the one-year, interest-free period, that 20% APR (annual percentage rate) is now applied to any unpaid balance.

How can stores offer these interest-free terms? It's easy. They thrive on public ignorance. Most people end up paying the interest that accumulates (and then some) during the interest-free period.

So how do you avoid this from happening to you? Pay off the purchase price price before the interest-free period ends. In fact, pay it off one month before. Why? Because if your last payment on your interest-free loan is even one day late, you will be charged all of the accumulated interest. These companies are merciless. They give you no slack. Interest-free purchases are good deals if you remember this caveat.

Week of 4/2/2008

Try The Y

Christian and Jewish Y organizations offer a variety of activity choices at a fraction of the price charged by private recreational facilities. Check out the YMCA, YMHA,  or JCC (Jewish Community Center) nearest you.  Programs are usually open to all faiths.

Exercise Facilities -- Many Y's are equipped with swimming pools, weight rooms, tracks and exercise rooms. They may also offer classes in stretching and yoga, as well as weekly basketball games.

Entertainment Activities -- These may include plays, concerts, dances, recitals, tours and travel opportunities.

Educational Programs -- You may find classes in parenting, reading and writing, self-help and personal growth, to name a few.

For Kids -- Many organizations offer low-cost day care and summer camps for children.

Week of 4/9/2008

Decorating On A Budget

Spring is here (although you wouldn't know it in some parts of the country). Time to refresh the old homestead a bit, but how to do it on a budget.

          1. If you plan on replacing furniture, concentrate on a few key pieces -- an area rug or a sofa for example. Always choose quality over quantity. Can't afford a new sofa? Try recovering a piece of furniture with an inexpensive slipcover.

          2. Think neutral. Stay away from bright colors or big prints for upholstered furniture.

          3. Liven or spruce up a room with accessories and paint. When you tire of the decor, you can change it by just replacing accessories and repainting. If you don't want to repaint an entire room, invest in contrasting paint and use it to liven up just the trim. Places like Burlington Coat Factory, TJ Max, Ross Dress For Less, Target, Wal-Mart all have tons of inexpensive accessories for the home.

          4. Little changes can make a difference. Change out switch and outlet plates, lampshades, overhead lighting fixtures, doorknobs.

          5. Get rid of the clutter, the knicknacks, the dust collectors. Keeping your decor simple will produce a more professional look. In fact, this one step may be all you need to do to change the appearance of a room. You might find The Definitive Guide To Home Organization For Busy People useful.

          6. Last but not least, clean -- not just a quick swipe, but a really deep cleaning.  Nothing says "fresh" like a clean home.

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