Here is what I learned…maybe a little too late.

Don’t Neglect Health Coverage Analysis

If you and your spouse have been fairly settled at work for a long period of time, it may not come to mind that you should take some time to review your plans. This is especially true if you recently married. See which plan is most beneficial and cost-effective to your family needs, especially if you have or are planning to have a growing family.

When Baby Comes Keep It Simple

Despite the pandemonium that ensues when a new baby is due to arrive, it is wiser to keep things simple from the beginning. I support this idea fully and was very practical, often annoyingly so. In the end, it was well worth it financially speaking. Not everything must come from a just-for-baby store and the same items can be found elsewhere for considerably less. Keep in mind that babies do not stay little for long and will outgrow clothing and toys faster than you can sometimes pay for them.

Don’t Do a Trade

When you are ready to buy a new car, you should prepare in advance. From knowing the type of vehicle will be most efficient for you to the amount of money you can afford to spend, you should walk into a showroom utterly prepared and stick to your guns. Additionally, you should not trade in your old car during the deal. Instead, sell it on your own for cash.

Homeownership Is Not a Requirement

While back in the day and in the years to follow, there has been a perception if you do not own a home, you are not doing things right. The reality is, especially in today’s economy, that a mortgage can be a huge burden if you are not absolutely ready. In addition to the mortgage, closing costs, and other fees associated with buying a house, there are also considerations of insurance, taxes, furniture, utilities, repairs, maintenance, and a ton of other things to consider. Taking on too much too soon can be a financial disaster. Interestingly, I also read an article about a family’s decision to rent as opposed to owning in order to enjoy life, travel, and provide a more financially capable way of life.

Money Lessons for Generation X was created by and is property of American Consumer News.

1. Do not cancel an account that still retains a balance. Keep an account open until you have paid it off in full. Companies can raise your interest rate up to the maximum allowed in order to penalize you for closing the account if you still have a balance.
2. If you plan on making any large purchases in the near future, such as a house or a vehicle, you may want to reconsider closing your accounts. It may decrease your credit worthiness. If you plan to cancel several cards in the same time period, you may reduce your credit score.
3. If you just have too many open accounts, consider consolidating your card balances on lower interest cards and then close the remaining accounts.
4. When contacting the credit card company, make sure you are prepared to write down the details of the conversation, including the date, the time, and with whom you spoke about closing the account.
5. Ask for a written confirmation to be sent by mail. File the confirmation when you receive it in case there is ever any question about the status of the account. If you do not receive a written confirmation, follow up with the company to ensure your request has been honored.
6. When you have canceled a credit card account, ask the company representative to report your cancelation to the credit bureaus as having been “cancelled by customer’s request”.
7. Good customers may be connected to a special department so a representative can negotiate a deal with you to stay. They want to keep your business and might offer a lower interest rate o upgrade the level of your account. You may have some leverage in the negotiation process. If you current card does not offer something that you are interested in, now is the time to inquire.
8. Listen to the offer details carefully. It may be worth your while to consider the deal if it beats other credit cards you have.
9. If you decide you are not interested in the new offer, do not be intimidated by the sales tactics. Cancel the card without any hesitation.
10. For those who have had problems with credit card spending, it may be worth it to close the accounts and avoid the temptation all together. Your credit score may take a slight hit but when you get back on track, you can then focus on rebuilding your credit.

10 Things to Remember When Canceling Your Credit Cards was created by and is property of American Consumer News.