Many credit card issuers have experienced problems with their loan portfolios as defaults increase. Instead of encouraging prudent usage, they are starting to cut off those that don’t spend on their cards! The target: Inactive credit card users with high limits. Often times, these are people with a strong credit score that have left open their cards to maintain it – and they could be in trouble.

Credit card companies are increasingly worried that inactive cards with large open credit lines present a real risk of fraud and large potential liabilities. As a result, many major issuers including Chase, Bank of America, American Express and Citibank have been slashing credit lines and closing accounts of those who do not spend on a regular basis – oftentimes without much notice!

The only way for consumers to stop this trend is to start spending on their cards again. Otherwise, credit card companies will keep shutting them down. In fact, Discover alone closed 3 million accounts in 2008 due to inactivity and plans to cut up to 2 million more. After all, there’s no sense in trimming the loan portfolios yet if they can reduce risk for free by cutting inactive users…

Coupon clippers may be surprised to find that coupons can be found online, too! In fact, a recent study found that the number of searches on coupon web sites doubled from last January until September. It’s clear that many Americans are discovering new ways to save online, but what are some of the best web sites to find coupons and avoid paying full price for anything?

The most popular type of coupons available online deal with technology bargains both online and in stores. These types of deals can be found on web sites like TechBargains.com and SlickDeals.net. Consumers looking for more standard products from a variety of retailers may want to check out web sites like RetailMeNot.com and CouponCabin.com.

There are also a number of new technologies being developed to help you save. RetailMeNot.com has developed a downloadable browser application that alerts you to promotions and coupons when you’re on a retailer’s web site. It is a great way to ensure that you’re getting the best deal possible before you click the buy button and checkout and saves you a lot of time.

In the end, these coupons may be a great way to save money and are definitely worth watching!

Grocery stores are low margin business, which means they rely on selling a lot of items and focus on up-selling customers on expensive items when possible. Savvy consumers are able to see these expensive items and avoid them, but sometimes it can be difficult to tell when you’re getting ripped off by the grocery store. So, here’s a list of the most common grocery store rip offs that you can avoid purchasing during your next visit…

1. Bottled Water – Water is a lot cheaper coming from the tap or filtered through a re-usable filter. Recent studies have also shown that tap water is better for the environment as the process of making and filling bottled water leaves a large carbon footprint.
2. Energy Bars – Energy bars are often placed by the checkout as an “impulse buy” for consumers looking for a quick, healthy snack. However, these bars are often just as healthy as a candy bar, but cost two or three times more.
3. Pre-made Meat Patties – Having meat patties already formed for the grill may be convenient, but the luxury can cost several times that of ground meat in bulk. Taking the time to make your own patties can save you a fortune.
4. Salad Packs – Bags of salad can be a major convenience to making a fresh salad, but they often cost three times as much as buying the vegetables fresh. Salad kits that include small bags of dressing and croutons are also a rip off.
   

Combined, avoiding these and other expensive items at the grocery store can help you lower your monthly bills and become a smart shopper.

Most newspapers and television shows love to quote the Dow Jones when explaining the markets movements. The average was started by Charles Dow in the 1800’s as a way to measure stock market movements, but many academics are now questioning its relevance.

The Dow Jones only includes 30 stocks that are selected by a committee to best represent more than 6,000 readily-priced publicly traded companies in the United States. Several major sectors are not even represented in the index, such as transportation and utilities. Some consider this outdated now that computers are capable of calculating much larger indexes, such as the Russell 3,000.

The Dow Jones also has a few flaws in the way the index is calculated. The index is price-weighed, which means that it is not weighted according to the value of the companies like the S&P 500. So, for example, if a $20 stock moves up $1, the move can be negated by a $1 move in a $100 stock. This skews the average towards the activity of higher priced stocks. Another key flaw is that the Dow Jones doesn’t include dividends in its calculation.

Regardless, the Dow Jones remains a very important average for the American public. The media often quotes the average as a broad measure for the market. However, before you get concerned when the Dow Jones falls sharply, keep in mind that the rest of the market may be healthy. This is especially important to remember during these troubled times – there are plenty of healthy stocks out there.

Most people will consider 2008 as one of the worst periods on record for homeowners. The collapse in the subprime market led to a surge in foreclosures. The increase in foreclosures spooked investors who then pulled the floor out from under the market and caused foreclosures in the broader markets. Finally, this led to lower valuations across the board for the majority of homes in the United States. So, where are home prices headed in 2009?

Many economists believe that home prices will continue to fall in 2009. Ken Rosen, a prominent economist, told attendees at the World Economic Forum in Davos that he expects home prices to drop an additional 6% to 7% in 2009. He believes that the housing market downturn is only ¾ complete and the cumulative slump could reach 24% this year. However, he suggested that the government could take actions to prevent a slump by instituting a foreclosure moratorium to stabilize the economy.

Despite the gloomy reports, there is some positive news in the housing sector that came out today. There was a sharp rise in purchasing of foreclosure properties from banks that were holding them far below value. The good news is that 1 in 6 houses are in foreclosure, so this type of buying could help improve the sector for the rest of homeowners. Higher valuations in their neighborhoods and a stabilization in prices should help improve the long-term value for everyone.

So, expect a decline in the first half of 2009 but the signs of a recovery in the second half of 2009.

There are many tools available for those individuals looking to prepare their own tax returns no matter how high their income. The newest addition to the free filing industry is the IRS’s Free File Fillable Forms (FFFF) service. The service is perfect for individuals that are looking to prepare their own taxes on paper, but those who don’t know what they are doing should stay away!

The website is http://www.freefilefillableforms.com/

The advantages of this new system is that there is no income limit and you can take your time with a saving feature. Meanwhile, there are many forms that are available as part of the package, including rental income, business income, capital gains, farming income, and much more. The disadvantages are that you cannot file the state form electronically and there are no error messages telling you to add forms when needed.

Those looking for more help might be better off with other free solutions, like TurboTax’s free service. This service features a Q&A path, live community support, free audit support, and a cheap state return fee of just $25 per state. Other services include H&R Block’s TaxCut service and TaxAct Online, which both other free federal filings and cheap state filings. Overall, there is a solution for everyone!

American’s wallets are hurting more than ever from the combination of a domestic recession and a global economic slowdown. As a result, many consumers are noticing just how much they are spending on services like cable and television. It may come as a surprise to know that many services like these are actually priced lower than they were last year. So, why are the bills so high? Answer: Extras and add-ons.

The average cell phone costs about $48.50 per month, which is about a dollar a month less than in 2003 with 60% more minutes to kick. However, the average cell phone bill is closer to $76 per month as consumers add on minutes, text messaging, ring tones and games. These extras can end up costing an extra $20 to $30 a month or much more with new smartphones containing applications.

Cable television and internet is a similar story. Costs have actually risen some 20% to around $44 a month, but the average bill is closer to $100, up over 60% since 2003. Consumers are quickly adding new services like digital video recording, extra channels, and other services that have jumped the price substantially from their base levels.

Consumers looking to save money during these tough times may want to consider taking a second look at these services and evaluating whether these extras are really worth the money. Do you need games on your cell phone or the latest ringtones? Do you need HBO at home when you only watch a couple movies a year? Think about it… and save!

The global recession has caused great pains for consumers, but there may be some diamonds in the rough. Consumers may feel pinched more than ever, but many companies are feeling the same way. Cable and phone companies are losing customers fast and investors are demanding more subscribers to their services. As a result, many are willing to negotiate on rates in order to keep customers – good news for your wallet!

Customers looking to reduce their cable or phone bills can simply call up their phone companies and express that times are tough and rates are simply too high. Often times, the companies will negotiate and reduce your bills by up to 50% just to keep you as one of their customers! This is especially true for customers of special offers that are expiring. Many times, companies are willing to extend these special offers indefinitely in order to keep you signed.

Many of the steepest discounts are offered to customers who buy the so-called triple-play bundle of television, internet and voice service, since customers pay the most for all three. Comcast now offers economy bundles that include scaled down efforts while phone companies are quickly reacting to save customers as they migrate to the new services. Additionally, many new cheaper services are being offered to help consumers save in today’s environment.

So… what are you waiting for? Give you phone and cable company a call today!