Survive In '09: Your Money Team

Pay on time: Pay your bills on time, every month, no exceptions.  Mark your calendar, make yourself an appointment in Outlook, or set an alarm on your cell phone. Just make sure you don't miss a payment due date, even if you can only pay the minimum amount due.  

Pay automatically: Your bank or credit union may offer on-line bill paying, and most of those services allow you to pay recurring bills automatically. Unlike allowing creditors to take money from your account via their auto-pay plan, you set the payment date and can change it if needed. Other bills can be entered in advance, and set to be paid when due. Some banks charge a small fee, but many offer this service at no change.

Pay in full: Avoid racking up interest charges by paying your credit card balance in full each month. The more money you spend on credit, the more real money you will owe in the future.

 Track expenses: Keep a notebook of your expenses and stick to it. Make a note of the amount paid every time you swipe your card, similar to balancing your checkbook, and eliminate unnecessary items from month to month.

Use cash: Go to the ATM and take out the amount of cash you budgeted for the week. Put it in your wallet.  When your wallet is empty, stop spending.

Limit yourself: If you must use a credit card, be mindful of your limit; Try keeping your balances at or below 35 percent of your limits, since lenders evaluate you, in part, based on how much of your available credit you're using.

Monitor your credit reports:  Keeping a close watch on your three credit reports and scores throughout the year can provide you with insight into how lenders are likely to view your credit standing at any point in time. Many websites offer free credit reports. The official, no-strings-attached site for all three U.S. credit bureaus is AnnualCreditReport.com.

Be cautious of tempting credit offers: Even if those offers are 'pre-approved', lenders may request a credit report on you if you accept their offer. Too many inquiries can lower your credit rating. Before deciding to take someone up on their offer, read everything very carefully and make sure you understand. Most variable rates can increase at any amount at any time, and most will never be lower than your initial rate, no matter how far the cost of credit falls. Ask yourself if you really need the card and the temptation it brings.

Prepare for the holidays now: Before you start shopping, make a list of people you plan to buy gifts for and set a spending limit for each one.