As school lets out for the summer, vacations are on many families’ minds. A Credit Counseling of Arkansas (CCOA) website poll showed that 84 percent of families haven’t had a vacation in the past year. Many can’t afford to take one unless they pinch their pennies. But whether someone plans an elaborate vacation or something close to home, it is vital to first create a vacation budget to avoid overspending, as spending too much will ultimately just add more stress to a family and their finances.

As CCOA’s website poll shows, people are still feeling pinched by the economy so in order to take a vacation they have to look at affordable options. But a family’s first step is to take a look at their budget and see how much vacation they can afford. And if credit cards will be used to finance the trip, it’s important not to charge any more debt than can be paid off within a few months’ time so families aren’t still paying on the vacation when next summer comes around.

Because of tight budgets, many families vacation close to home, opting to travel to nearby places they can drive to in the morning to visit and return to their home by night. This is called a staycation. It eliminates lodging costs and can significantly reduce travel and meal costs. There are probably numerous fun choices within a three-hour drive from home – perhaps a zoo, a science museum, a park, an aquarium, or sporting events. And for those who think no vacation is financially possible for them, a staycation can be doable for many on very tight budgets: Instead of going anywhere, staycationers can plan something fun at home, such as renting some movies, camping in their backyard or grilling on their patio.

More vacation savings tips from CCOA:
• Pack your own food, drink and snacks, rather than paying $3 for a bottled water at a park, hotel, or convenience store. Taking snacks, food or drinks can save a small fortune.
• Eat at restaurants where kids eat free. Also, stick with water and no dessert. A family of four can easily spend $10 a meal just on drinks alone.
• Give children a trip allowance. Kids will learn to manage their money as they contemplate buying souvenirs and snacks.
• Look in the newspapers and the Internet for discounts and coupons to area events and attractions.

Again, the most important thing is to first find out how much vacation you can afford and then plan from there

When people think of retirement planning, there is one factor that is often overlooked – becoming debt free. But becoming debt free is one of the best things that you can do for your eventual retirement.

The average monthly Social Security check is approximately $1,250. Imagine trying to live on that amount. Many retired Americans do. Imagine how much easier it would be for you as a retiree to live on Social Security if you had no loan payments, or no credit card debt to worry about. It’s becoming harder for senior citizens to financially survive retirement. Having no debt when you retire will be a tremendous help to you.

One way to knock down your debt is to avoid getting any new credit. It’s hard to put out a fire if you’re throwing more fuel on it. If you are an impulsive spender you ought to leave your credit cards at home instead of carrying them around with you everywhere you go. And if you are struggling with debt you might consider plastic surgery, and cut up your credit cards.

If you’d like a lower interest rate on your credit card call and ask your card company. Sometimes companies will lower a card member’s interest rate simply because they’ve asked. It’s a free call so it doesn’t hurt to ask. The company is more likely to lower your interest rate if you have good credit, and have a good history of making on-time payments. If you get a “no” answer, ask to speak to a supervisor. Supervisors have more authority to approve your request.

Using any extra money to knock down your debt – such as a tax refund or work bonus – can greatly accelerate your efforts to become debt free. A common mistake many families make is to buy more things on credit whenever a raise or other extra money comes their way. A better approach is to save that money, and knock down some debt with it as well.

If you need more help in destroying your debt a Debt Management Program can help lower your interest rates, and lower your monthly payments to destroy debt faster. Remember the saying, “If you aim at nothing, you’ll probably hit it.” Destroying your debt is an excellent goal to have to prepare for your future

There are various factors involved in raising a credit score, but when it comes down to it, just two key factors are responsible for an incredible 65% of your score – how timely you pay on your bills and how much you owe.

The less you owe, the better your credit score. The credit scoring gods like that you have credit and that you use it, but they like us to use it sparingly. For example, did you know that owing $1,000 on your $2,000 total credit card limit is a bad thing? Credit scoring company FICO says owing half or more of your credit line is a “score killer.” This surprises and hurts the score of many people who think that they are doing good by not having an over-the-limit or maxed out credit card.

Ideally, pay your credit card charges off each month rather than carrying a balance. It’s a credit myth that keeping a balance on your credit cards from month-to-month is better for your score than having no balance. However, having a credit card that is never used isn’t going to help your score as much as one that is occasionally or regularly used.

Take the My Money CheckUp! Answer some basic money and credit questions to get a snapshot of how you are doing financially and what areas you may need to work on. Best of all – it’s FREE! Check Up
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CCOA’s next free Homebuyer Education class is Saturday, May 4th at Washington County Extensiony Sign Up

Ever wonder what a credit counseling session looks like, or what exactly is a debt management plan? These short videos show you.

CCOA is committed to continually improving our service to you. Several clients have suggested that we add a new feature to our Web site that allows clients to access their quarterly client statements, rather than receive it in the postal mail. We heard you. This year we have been diligently working on creating this new capability for your convenience. Simply go to our Web site at www.CCOAcares.com and click on the “Client Log-In” tab on the top right of our home page.

Your username is your CCOA client number and your password is the primary’s last name plus the last four digits of the social security number.

If you have any questions please email us at ccoa@ccoacares.com or call 479-521-8877 or 800-889-4916.