At one of my favorite personal finance blogs, Free Monday Finance, the article for today talked about one of my favorite personal finance experts in Dave Ramsey. If anyone knows me, you know I am a sucker for Dave Ramsey related material. You also know that one of my biggest motivators are easy things you can do with your personal finances in order for it to pay off big in the long run.

Dave Ramsey and smart things you can do to get ahead! I am all ears!

Dave in his book The Total Money Makeover: A Proven Plan for Financial Fitness (starting at $9.50, not a bad investment to save you this kind of interest!) talks about a survey of the Forbes 400 richest people in America. When asked, 75% of these multi-millionaires said the best way to build wealth is to stay out of debt!

FMF goes on to quote that the average American will pay over $600,000 in interest in his lifetime. $600,000! (What kind of house, car, financial security could you buy with that?)

To double-check these numbers, I went over to Loan Amortization Calculator and ran the numbers on only $150,000 borrowed at 6.5% over 30 years. Paying the minimum payment of $948.10 each month, your total interest over 30 years is $191,316.73! In total, your $150k house will cost you over $340k! Sounds to me like we are paying our bank twice, if not more.

Give that a few minutes to sink in. No wonder banks have huge buildings while we live in debt up to our eyeballs!

Check back later in the week and I will let you know how much of a difference a small additional payment up front can make in your overall interest payments.

Does this make anyone else sick to their stomach’s? Is anyone else paying extra on their mortgage and not falling into the tax deduction myth?

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Finally, as past chairman of the American Bar Association’s Section on Taxation, Stef Tucker also knows his taxes. So much so that when he’s not practicing law as a partner with Venable, Baetjer and Howard, he’s teaching tax issues at Georgetown School of Law. So why would he willingly pay a higher real estate tax just to live in the District while Baldassari and Mann pay less for more land in the surrounding suburbs?
If there were one right answer to the query “We’re moving to the area. Where should we live?” one would expect these tax gurus to reach the same conclusion. Truth be told, the variables involved in choosing a home are numerous, and most have little to do with the investment or tax aspects.

Real estate agents bank on the fact that people will buy based on their emotions. And with the disparity in costs and taxes between Washington, Virginia, and Maryland, it seems that local governments are also counting on these emotional decisions to lure new residents.
In comparing the tax advantages and disadvantages of each part of the D.C. metro area, I’ll focus on 1999 as a base. But follow ongoing local tax proposals closely, as these pieces of legislation are mostly designed to lower future tax bills.

THE BREAKDOWN
The most expensive taxes that we pay are income taxes. Here, each jurisdiction has a sliding scale that taxes the first dollars you make less heavily than the last dollars.
In Washington, Stef Tucker will find his first $10,000 earned taxed at 6 percent, the next $10,000 at 8 percent, and anything greater than $20,000 taxed at 9.5 percent.
Just a jump over the border in Maryland, Phillip Mann pays a county tax in addition to state taxes. The state tax will cost 3 percent for the first $3,000 of income and 4.85 percent on the remainder. Montgomery and Prince Georges counties levy an additional 3.01 percent.

In Virginia, Bob Baldassari has it even better: 2 percent for the first $3,000, 3 percent for the next $2,000, 5 percent for the next $12,000, and 5.75 percent for everything over $17,000.
Let’s examine the taxes and costs for a sample family of four with an annual income of $250,000. Assuming they own a $600,000 home with a mortgage of $450,000 at 8 percent, it would cost about $18,300 in income tax to live in the District, $15,660 to live in Maryland, and roughly $11,300 to live in Virginia.
If you’ve ever shopped for a house in the Washington metropolitan area, then you know that $600,000 can buy you a house on several acres in Germantown, Md.; a four-bedroom home on half an acre in McLean, Va.; or 2,500 square feet of livable space in Georgetown. For the purpose of this discussion, however, let’s disregard the value of the house-buying dollar and the potential growth of the investment on the different properties, and focus solely on the immediate taxes that the homeowners will incur.

In general, Washington charges residents the most for their annual real estate taxes, approximately 1.35 percent of the property’s value. Maryland uses a confusing formula by setting tax rates on the assessed value, which they place at 40 percent of the current market value. (I told you it was confusing.) On average, you’ll pay 1.25 percent of your home’s market value each year.
Takoma Park is the highest, at 1.42 percent, Silver Spring the lowest, at 1.01 percent. In Prince George’s County, you will pay 1.19 percent in Bowie and 1.37 percent almost everywhere else. In Arlington, residents pay 1 percent, while their neighbors in Fairfax pay 1.23 percent, and those in Alexandria pay 1.11 percent. Keep in mind that there are often additional assessments depending on the amenities offered in your neighborhood.

In all cases, the tax depends on the assessed value of the property. This value is determined not by you or your neighbors, but by county-run formulas on your land and comparable home values. With real estate prices rising dramatically in the area, assessed values are escalating as well. However, according to attorney Joy Siegel, President of Settlement Pros in Bethesda, Md., you do not have to blindly accept these figures. If you think your assessed value is too high, “appeal immediately,” she claims. “Most people accept their tax bill when it should be lower.”
She has had a remarkable success rate arguing in front of county assessors to lower these values, and claims that most homeowners can do it on their own.
For parents with kids, Maryland is the place to be. The state has great parks, and it ponies up a $1,850 exemption per dependent. Washington offers $1,370 for each dependent, and Virginia checks in at only $800. The tax savings are approximately $145 in Maryland, $130 in Washington, and $46 in Virginia.
Local sales taxes can also make a significant difference in the cost of your goods. In the Distsrict, the general sales tax is 5.75 percent on most items, 6 percent on cars, and 10 percent on restaurant food and liquor. Maryland has a 5 percent sales tax, but lifts the tax for groceries. Virginia charges a mere 4.5 percent on almost everything. One exception to the Virginia rule is automobiles: The tax on car sales is 3 percent.

THE CAR CATCH
Cars are a Catch-22 in Virginia. While buying one is cheaper, owning one is much more expensive. An annual personal property tax applies to any vehicle registered in the commonwealth. Again, these rates vary depending on the county, Arlington being the cheapest at 4.04 percent and Alexandria the most expensive at 4.75 percent. Anticipate spending $1,200 to $1,400 a year to drive a new $30,000 car in Virginia.
Many outsiders think that the car tax compensates for the low real estate tax that Virginians pay. This reasoning can be correct if you are a homeowner. To live in the same $600,000 house and drive the same $30,000 car, residents would pay $8,040 in real estate taxes to live in the District, while living in Alexandria would cost $8,085 in real estate and property tax. So the difference appears to be a wash.
But soon the advantage will be to the Virginians, because this tax has been a heated battle in political campaigns and is in the process of being phased out.
Car insurance is another expense with which you must contend. Insurance rates will vary based on your age, the length of your commute, your marital status, and even your Zip code.

Assuming standard coverage on a new $30,000 Volvo for a couple with no tickets or accidents in the past three years, insurance would cost about $1,400 per year in Washington. In the suburbs, insurance will range from $1,200 to well above $2,000 in Maryland, but only about $1,000 in most Northern Virginia counties. These figures were quoted by the local State Farm Insurance offices, with standard coverage and no discounts.

AND THE WINNER IS . . .
In general, it is cheaper to live in Virginia than Maryland or the District. But the costs will change based on your own profile. If you rent your apartment and drive a Porsche, for example, you will pay an exorbitant car tax in Virginia, so you may want to live in Washington or Maryland. If you own a beat-up car but are in the market for a mansion, then perhaps you should live in Virginia. Because each situation is unique, please consult your individual tax and financial advisers.
What I cannot quantify are the values, ambience, and practical factors that lure us to certain areas. Stef Tucker would rather deal with higher real estate taxes to live in the District so he can enjoy its social and cultural events. He adds, “There is no place in the country that offers more per cost-dollar than D.C. You just have to take advantage of it.”

Phillip Mann loves his commute just over the border in Maryland. He moved his family into their dream home in 1975 and never left. Bob Baldassari lives in Fairfax County for his children, who enjoy the renowned school system. And maybe, just maybe, he stays there because he pays less in taxes.
Our three tax experts have chosen different paths. After juggling the myriad factors involved in deciding where to live, each has found a solution that isn’t too taxing.

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Thanks to technology, the tedious struggles with paperwork and year-end enrollment are soon to be a thing of the past.

Call it what you wish: e-HR or virtual benefits. But either way, managing human resources through online products has many law firm administrators excited. And it’s changing the way law firms implement and process employee benefits.

With associate salaries skyrocketing and new hires harder than ever to find, the pressures on administrators to manage budgets and recruit, train, and retain employees are greater than ever. And with a job description that includes, well, just about everything, many administrators are finding that the mountain of paperwork requires an inordinate amount of time and energy.

The larger firms, staffed with technology experts, are already implementing technology for all sorts of employee forms. But solutions for even the smallest firms are just around the corner. In the near future, this new technology will empower these firms to streamline human resources and benefits, achieving time and cost savings, eliminating duplication, verifying invoices, and enhancing employee loyalty.

Welcome to virtual administration. If used correctly, it will streamline your firm’s administration in the following seven ways.
Manage Résumés

Let’s start with an easy one. D.C.’s Wilkinson Barker Knauer has made great strides in technology to keep their local and international attorneys and staff well-connected. Yet one challenge Executive Director Elaine Gregg has is responding to the hundreds of résumés she receives each year. “It’s important to respond to each and every applicant,” she says. In her office, someone types in each person’s information and sends a letter responding to the inquiry. “Automating the process would be a great help,” says Gregg, noting how embarrassing it can be to send two letters to the same person.

Currently, résumés can be scanned into computers and software can easily locate and record the name, address, and phone number. Once in cyberspace, either the human resource department or the hiring partners can review the résumé. Each reviewer can accept the person for an interview, offer a discussion, or reject the applicant—all online.

And when an applicant is rejected, the dreaded letter is sent automatically. Case solved.
Enroll for Benefits Online.

Hiring a new employee is quite a time-consuming process. The paperwork can be overwhelming for even the most organized operation. Many companies have as many as eight points of data entry for various forms, including W-2, health insurance, life insurance, 401(k) or profit-sharing plans, dental plan, vision plan, flexible spending account, and emergency contact information. Not only must all of these forms be completed and sent to the appropriate carriers, the new employee’s information must also be added to the firm’s files for monitoring purposes.

You must admit that it was just a matter of time before the excessive paper trail for a new hire and for open enrollment moved online.

Joan Taylor is one of those who understand the need for virtual administration. “Law firms are struggling with growth, space, time, and money,” she says. As a law firm administrator for over 25 years and now as a consultant, she sees online administration of benefits as the next obvious step for law firms.

The system that Taylor is recommending to her clients, called iBenefits, allows new hires to go online and “instantaneously enroll in benefits with minimal staff involvement.” The process of notifying the payroll department and each benefits carrier, adding the employee’s record to the company’s database, and sending a confirmation to both employer and employee is automated into one step. The paperwork disappears.

An enormous added bonus, according to Taylor, is that “the technology finally gives human resources departments a holiday season.” Instead of administrators and human resource staff working day and night to process all of the paperwork for open enrollment, the iBenefits system enables them to monitor the progress of each employee through open enrollment and to send reminders and updates when necessary. The system’s charts and graphs displaying the enrollment progress should prove a great relief to everyone who has endured this tedious year-end process.

Caveat: A few administrators mentioned that automation has not relieved them of the burden of nagging employees to do their part. No matter how wondrous technology is, it still requires input.
Discard Manuals, Booklets, and Excess Paper

“Forty-four percent of employees find that accessing benefits information is more difficult than filing taxes,” says Michael Seckler, co-founder and vice president, strategic marketing, of Atlanta-based Employease, a company looking to revolutionize online benefits. The manuals describing benefits and listing providers are filled with information that is not applicable to most individuals. Besides, most of us lose the manuals. And from what I have learned, so should you.

Administrator Gregg has put all of this information online. “We want to make it easier to provide help to our employees.” Her firm’s employees go online to review plan descriptions and download lists of providers or specialists. This online process is particularly helpful in communicating benefits to the firm’s international work force.

Carol Tait, a consultant at the D.C. office of the management consulting firm Watson Wyatt Worldwide, recommends placing benefit information on the Internet, as opposed to your firm’s intranet. That way, employees can access the information from home, where important benefits decisions are usually made.

Another benefit to having benefits online is that the information is always current. Health providers are added and deleted from plans almost daily, making any hard copy quickly obsolete. Furthermore, the information can be customized for each individual employee.

And while we’re doing a little house cleaning, another paper trail may soon be eliminated. Many firms with direct-deposit mail the check receipts to employees’ home address.

“Don’t send a paper check, e-mail it,” says Seckler of Employease. Firms using this software send an e-mail confirmation of the deposit and provide employees with a historical record of their paychecks and deductions.
Inform Your Employees of Their True Worth

Administrator Wendy Cartier of Sarasota, Fla.’s Dickinson & Gibbons understands this wave of technology all too well. Recently, she installed software from Employease to help her better manage the firm’s employees benefits.

Like most firms, she has all of her employees’ information in one central database. But with the help of Employease, this database also includes information about each employee’s chosen health benefits, life insurance, disability, vision, dental, retirement plan, and so on.

So what, you say?

Here’s where virtual administration strengthens employee loyalty.

At bonus time, along with a check, she provides each employee with a statement showing how much they were compensated, plus how much the company paid toward all of the aforementioned benefits. “If they’re not happy with the bonus, they realize how much they’re actually getting.”

Cartier has found that once staff members are informed of their true costs and benefits, including Social Security and 401(k) matches, they are more likely to remain than to leave for a slightly higher salary elsewhere.

Wilkinson Barker’s Gregg began communicating benefits and payroll information to the employees at her firm last year and found the process very rewarding. “I think it’s important to let people know what we’re providing. It’s valuable information they never had before,” she says. Employees may better appreciate what the company is doing for them when they see it in a consolidated statement.

Watson Wyatt’s Tait couldn’t agree more. She believes that each human resource action should begin with the question, “How am I going to touch that employee in a way that they feel good about our organization?” She is convinced that young attorneys and staff members want to work for firms that are prepared to provide cutting-edge benefits in ways that make them feel enthusiastic about their firms.
Verify Invoices

Having each employee’s information in one database has another great benefit. According to Cartier, “Since installing the software, our bills are more accurate.” At the end of every month, her Employease system prints out sample invoices, which she then compares with the vendors’ invoices.

Because of the new system, she has caught some mistakes. “A vendor dropped two people’s coverage for no reason.” The costs were being deducted from payroll, but a clerical error on the provider’s part terminated the two employees. With her old spreadsheet system, Cartier admits that she either would not have caught the error, or would have had to fight it months later.

And with the ability to create consolidated benefits reports, budgeting becomes easier for the administrator.
Simplify Termination

It is an unfortunate truth in any business: Staff turnover is constant. And there is nothing more frustrating than the amount of work generated by an employee who is leaving.

Perhaps worse than all the exit paperwork are costly administrative errors. One administrator, who obviously wishes to remain anonymous, remembers finding employees on the firm’s benefit packages who had left the firm six months earlier.

The exit interview and termination of benefits is yet another administrative burden that is soon to be streamlined. “Now when an employee is terminated, Employease will print the HIPPA and COBRA paperwork. Automatically, it shows what type of COBRA plans are applicable,” says Cartier. The system then notifies payroll and every carrier of the termination date. The following month, using the invoice verification, she can then be ensure that the information was received and acted upon.
Redefine the Administrators’ Role

By no means is this wave of technology going to eliminate the need for human resource professionals. Most of those who are promoting this new technology claim that virtual administration will transform human resource professionals from paper pushers into strategic planners.

With this new technology, administrators will be able to function at a higher strategic level and devote more of their time to making sure the firm is becoming more profitable.

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The consuming ability of people in all around the world has shown a very significant change, but somehow it still hasn’t reached the normal level yet. It means, even though they have already had the ability to buy some things, they still should consider of their expenses first. Some people still feel that the global crisis gave them some hard times.

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Federal Estate Tax

Although the federal estate tax was officially repealed on January 1, it is possible that Congress will act to reinstate the tax in 2010 and make the new law retroactive to January 1. While some have speculated that making the tax retroactive will be unconstitutional, others disagree. And regardless, as the schedule shows the federal estate tax will return on January 1, 2011, and with only a $1,000,000 exemption.

Suffice it say that in these trying economic times, it is clear that the federal estate tax will be resurrected in some form or another as early as 2010 but definitely in 2011. As such, do not use this uncertainty as an excuse to put off making or updating your estate plan, because the consequences of not having an estate plan, or having an outdated estate plan, are simply too great. The beauty of estate planning is that estate plans can be made flexible enough to change as your life and the laws change.

The other thing to consider is where you live since currently 14 states and the District of Columbia collect an estate tax at the state level and seven states collect a state inheritance tax (Maryland and New Jersey are the only two states that collect both types of taxes):

Unfortunately, no one can predict the future and if and when someone will become mentally incapacitated or when someone will die. If you do not have a disability plan, then you and your property may end up in a court-supervised guardianship or conservatorship, and if you do not have an estate plan, then your loved ones will not know what you really wanted and your property may go to someone or somewhere that you would not have chosen had you taken the time to make a plan. Be smart – make an estate plan, or update your old and outdated estate plan, to protect you and your loved ones.

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APR Credit Cards

Seventy-one percent of credit-card mail features low introductory APRs on purchases, up from 53% in the year-ago period, according to the most recent data from Synovate Mail Monitor, which tracks credit-card mail. And balance transfer offers are on the rise, making up 65% of credit-card mail, compared to 54% earlier this year.

This is a dramatic turnaround from last year when these borrowers — who pay their bills on time and often maintain low-to-zero balances — were shunned by card companies, in part because their responsible borrowing habits meant smaller profits for the lenders. Many saw their credit limits cut and interest rates raised to rates as high as 30%. Now, card issuers are hoping these more credit-worthy borrowers will spend and carry a balance beyond the introductory period, says Odysseas Papadimitriou, chief executive of CardHub.com, which tracks credit-card offers.

Here is what to expect from these credit card offers.

Longer balance transfer promotions….

Promotional periods for 0% balance transfer offers available in October last up to 21 months, compared to the 12-month average promotional period a year ago, according to CardHub. Before 2007, it was rare to see a 0% promotional offer for as long as 15 months.

Someone paying $300 each month on a $5,000 balance at an 18% rate — a common APR right now — will incur $797.17 in interest over 20 months, an expense that could be significantly reduced with a balance transfer. Consumers with credit scores of at least 720 can choose from 12 balance transfer offers with 0% interest that last at least a year. Look for these card applications in the mail, or contact credit-card issuers or search the web to apply. The Citi Diamond Preferred and the Citi Platinum Select cards offer 21 months, the longest period; the Discover More card offers 18 months.

…but higher balance transfer fees

The downside to balance transfers is the 3% to 5% fee you’ll have to pay, which wipes out a chunk of the potential savings. Of the 18 cards offering a 0% balance transfer to high credit-score consumers, all but one have fees in this range, according to CardHub.com. (The Visa Black card is the exception, the balance transfer fee is capped at $50, but the card has an annual fee of $495.)

Many credit-card issuers have also eliminated caps for fees on balance transfers, many of which were $100 or less only a year or two ago, says Curtis Arnold, founder of CardRatings.com, which monitors credit-card trends. So now, to transfer $5,000, you’d pay up to $250. And more fee hikes are likely on future offers in the near term, says Anuj Shahani, a director at Synovate. But if you can pay off the balance in a 21-month period, you could save upwards of $500 on the 18% interest you’d have otherwise incurred.

Higher rates after the promotional period…

On average, most 0% rates will adjust to around 15% after the promotional period, a high rate for prime borrowers who, pre-credit crunch, could often secure a rate below 10%. So pay off the entire balance before the promotional period ends or you’ll be stuck with a rate that could be higher than the one you have now.

Rate changes won’t stop there. As with any credit card, the issuer can increase the APR again, and if it does so, it will notify you by mail. That new rate won’t apply to your existing balance, which was often the case before the new credit-card rules went into effect, but will apply to purchases you make as early as 14 days after you receive the notice, says Papadimitriou.

…but more forgiveness

If you miss a payment, you will have a longer grace period before you lose that 0% rate. Prior to the new credit-card law, if a cardholder was late with one payment, his interest rate could default to a penalty APR, usually 24% or higher. Now, the penalty rate kicks in only when a consumer is late on a payment for more than 60 days. Although it’s a better deal for, say, an absent-minded bill-payer, that penalty would likely wipe out the savings from a 0% offer.

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Influence Your Rich

Understanding how personal traits can influence your finances is an essential ingredient for building wealth. Here are 10 key traits:

1. Patience

Patience is one of the most important traits when it comes to saving money. This means waiting until the first wave of product hype has passed, keeping a car for an extra few years before getting another one and waiting until something you want fits into your budget instead of putting it on credit. Patience is often the difference between creating savings and being in debt. Having the patience to wait until you find a good deal is a cornerstone of good finances.

2. Satisfaction

When you are satisfied, there is no reason to spend money on nonessentials. The sole purpose of commercials is to make you believe that buying a product or service will make you happier, wealthier, better looking or improve whatever isn’t bringing you satisfaction.

3. Organization

Being organized can make you more productive and ensure that all the many issues pertaining to personal finances are addressed.

It means not paying late fees, not buying two of everything, knowing deadlines that can affect your finances and getting more done in less time. All these can greatly benefit your finances.

4. Discipline

You need the discipline to continue to save money for specific, long-term goals every month. Personal finance isn’t a way to get rich quick, but is a disciplined execution of your lifetime plans.

5. Reflectiveness

It is important to be able to look at your financial decisions and reflect on their results. You are going to make financial mistakes. Everyone does.
The key is to learn from those mistakes so you do not make them again, or recognize if you keep repeating them.

6. Creativity

The economy and our earnings do not always match our expectations. Unexpected developments wreak havoc to elaborate financial plans. When this happens, changes are needed to deal with the new circumstances. Creativity is essential to accomplish this.

Creativity allows you to make something last longer rather than purchasing it when you do not have the money. It means juggling money to stay out of debt rather than simply paying with a credit card. It means finding a cheaper alternative when money is tight.

7. Curiosity

Having curiosity helps you learn, study and improve yourself. The curiosity of wanting to know more, to take the time to study and then take what is learned and put into practice is an important process that is driven by curiosity.

8. Risk-Taking

To build wealth, one needs to be willing to take risks. This doesn’t mean uncalculated risks. It means weighing all the options and taking calculated risks when appropriate.

The stock market has risks involved, but over the long term, history shows that it provides good returns on money that is invested wisely. Those who fear risk altogether end up saving money in accounts that likely lose money to inflation in the long run.

9. Focus on Goals

The importance of setting and working toward goals is obvious. If you don’t know where you are going, it’s difficult to get there. It helps your personal finances immensely if you have money goals and are motivated to reach the goals that you have set for yourself.

Those who lack goals don’t have a road map to take them to the financial destination they want.

10. Hard Work

Creating wealth and staying out of debt rarely comes about without a lot of hard work.

Many people might hope that the lottery will solve all their financial problems. The true path to financial freedom, however, is to work hard to earn money while educating yourself to continue to have more value and increase your salary.

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Check whether your bank offers a service to pay bills online.
Most banks give customers the option to pay bills online, free, with a standard checking account. But, some banks charge an additional fee to pay bills online. You have to check your bank’s policies on paying bills online. When you use your bank to pay bills online, the bank either submits payment electronically or issues a paper check drafted on your checking account to pay the bill.

The advantage of using online bill-pay directly through your bank is that you have the ability to monitor all transactions in real-time, together with your regular banking services, and know quickly that a payment has cleared.

Think About a third-party service to pay bills online.
Some third-party providers give you the option to set up an account and pay bills online. Unfortunately, these third-party services also come with a few potential drawbacks: you can pay bills online only with partners of the website, necessitating manual bill-pay for some transactions, or you may have to pay a fee to pay bills online.

If you do use a third-party service, know what you are getting before you agree to a fee for paying bills online. Is there a limit to the number of bills you can pay online per month? Can you pay all your bills online, or only bills for specific providers?

Use software programs for paying bills online.
Some software programs, such as Quicken and Microsoft Money, offer options for paying bills online. Using a financial management program to pay bills online can be a great asset. The software can track your online bill paying and calculate whether you’re on track with your financial goals, and how changes in paying bills online might affect your complete financial plan. The drawback with these services is that they often charge to pay bills online, rather than offering the service for free.

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Here are some reasons to stay away from proprietary credit cards you can learn, summarized by CreditCards.com, a leading consumer resource for credit card information.

1. While the biggest benefit is at the beginning of the relationship, when you typically get a typical 10% to 15% discount on same day purchases, most store cards go unused after the initial transaction.

2. Private-label credit cards generally have much higher interest rates, typically in the 20% range, than general purpose cards, which charge an average 13% to 14%.

3.Though they are easier to qualify for than major credit cards, and may tempt consumers who are trying to build credit, a wallet full of store credit cards, in addition to several major cards, can quickly degrade your credit by causing you to have too many open accounts.

4.Purchases with store cards can deplete resources you would have otherwise used on reward-points opportunities from general purpose cards.

5.In event of a purchase dispute, store credit cards do not have an association to act on behalf of the consumer.

Consumers who sign up for store credit cards may also end up on marketing mailing lists or find that their personal information compromised. Large chains such as Wal-Mart routinely sell data to third parties, which in turn try to offer you special promotions or services. Unsolicited offers like these may be an annoyance, especially if you are already flooded with offers you do not want.

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All you need just to update your address once for the IRS send all checks due. Undelivered refund checks average $1,471 this year, compared to $1,148 last year. Some taxpayers are due more than one check.

Because of changes in tax law which is have new credits or expanded existing credits, such as the Earned Income Tax Credit, the average dollar amount for returned refunds rose by just over 28 percent this year.

You can check your refunds status by visit “Where’s My Refund?” tool on IRS.gov. You can also update your address through that facility. You must submit your Social Security number, filing status and amount of refund shown on their 2009 return. The tool will provide the status of your refund and, in some cases, instructions on how to resolve delivery problems.

You also should be aware that the IRS does not contact taxpayers by e-mail to alert you of pending refunds and that such messages are common identity theft scams. So you need to be aware. Do not release any personal information, reply, open any attachments or click on any links to avoid malicious code that will infect your computers. To make sure that you have a pending refund, you can go directly to IRS.gov and using the “ Where’s My Refund?” tool.

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