Saving Money

A colorful sky blends its colors across a calm sea just after sun down on Dauphin Island, Ala., Wednesday, May 16, 2012. If you want to buy into a beach timeshare this summer, buying directly through the owner and paying in cash could make it a cheaper purchase. (Dave Martin/AP/File)

Buying and selling timeshares: eight tips

By Angela Colley, Contributor / 05.19.12

Looking for a timeshare or vacation plan? You won’t have a hard time finding one. The American Resort Development Association says in 2010 – the last year the information was available – there were 197,700 timeshares at 1,548 resorts, and 8.1 million “intervals” under ownership. An interval is usually defined as one week at a vacation destination, sometimes two.

But while getting into a timeshare will prove easy, don’t expect the same when it’s time to get out. Timeshares often plunge in value. Plus, the resale business is riddled with scams and when economic times are tough, that’s the toughest time to sell.

Read on for more tips on both buying and selling a timeshare…

First, if you’re thinking of buying a timeshare…

1. Skip the developers

You can buy a timeshare for a fraction of its initial value – sometimes pennies on the dollar – if you buy through an owner rather than the development company. Use timeshare resale sites like The Timeshare User’s Group and My Resort Network to connect with motivated sellers.

2. Pay in cash

The interest rates on timeshare mortgage loans typically run higher than traditional mortgages – between 12 and 18 percent on average, according to Professional Timeshare Services. But the main reason cash is king is resale: Like a car, the vast majority of timeshares depreciate in value. Which means, like a car, a big loan means you’ll probably be upside down and unable to get out.

3. Understand the extra costs

You won’t stop paying for your timeshare at the closing. Most timeshares come with annual maintenance fees that run into hundreds of dollars annually. In 2010, timeshare holders in the United States paid an average of $731 a year in maintenance fees overall, ARDA says. And don’t forget travel: Plane tickets to and from your timeshare could also add hundreds to the cost.

4. Don’t buy with a plan to sell

Only buy a timeshare if you expect to hold onto it. Timeshares don’t appreciate – in fact, depreciation is the norm. It’s unlikely you’ll get more than your purchase price, and odds are good you may not be able to sell it at all. Before you even think of buying, read as much as you can, including the Federal Trade Commission’s Time and Time Again: Buying and Selling Timeshares and Vacation Plans.

Now let’s tackle selling…

1. Sell where you bought 

In the video, Stacy suggests starting with the company you bought your timeshare from. Some timeshare companies have a resale program. Others may provide you with a list of interested buyers. But most won’t help you at all. These people are in the business of selling new units, not helping you resell yours.

2. Sell to other owners

Ask the timeshare company who has the “interval” in your timeshare before and after you. Offer to sell your time to those owners. They may want to buy the timeshare from you to extend their stay.

3. Use a local broker

A licensed real estate agent might sell your timeshare for you, but you’ll probably pay a higher commission rate than you would on the sale of a house or a condo. According to the ARDA, the real estate company may charge you a commission fee of 10 to 30 percent. Before you sign up with a real estate agent, ask about the agent’s marketing plan and experience. Don’t pay commission to an agent who will only post an ad online, since you can do that yourself. Look for a licensed agent experienced in selling timeshares.

4. Sell online

You can sell your timeshare online yourself. Some websites specialize in reselling timeshares. Check out:

• RedWeek
• The Timeshare User’s Group
• My Resort Network
• TransAction Realty

Post a free classified ad on a local buying and selling site like Craigslist or the online classified section of the local newspaper where your timeshare is located. By posting an ad in the timeshare’s location, you’ll attract buyers interested in that area.

If you need to sell quickly, use an auction site like eBay. Starting an auction on eBay costs $70 – including a $35 insertion fee and a $35 final value fee. The auction can run from one to 10 days. Here are some tips for writing that ad…

•  Find your selling point: Research other timeshares and hotels in your area and find something your timeshare has that other vacation options don’t. Use that as leverage when you post an ad. Make your timeshare stand out and you’ll draw in more buyers.
•  Price competitively: As Stacy pointed out in the video, timeshares in the same resort can be nearly identical. Check local ads for other timeshares for sale in your building and price yours lower. When buyers have several to choose from, they’ll obviously choose the cheapest unit first.
• Time your sale: List your timeshare a month or two before the start of the vacation season. That is when the majority of buyers will be looking and you stand a better chance of selling your timeshare quickly.

5. Watch out for scams

Timeshare resale scams are always widespread, but scammers really start coming out of the woodwork during tough economic times. In 2009, the Federal Trade Commission received 819 complaints about timeshare resale. By 2011, that number was more than 5,000, according to USA Today.

Horror stories abound. In an article called "Selling your timeshare? Look out for scammers," the Virginian-Pilot recounts a story of one couple called by a resale company that had a definite buyer for their unit – they even had a signed letter of intent from the buyer. All the owners had to do was send $375 to the company and the sale was done. They sent in the money, then never heard from them again.

Watch out for resale companies that offer to “take the timeshare off your hands” or want large sums of money upfront – they’re likely a scam. For other companies, do your research before signing up. Contact the Better Business Bureau to see if the company has any complaints against them. Compare prices with other resale companies and get everything in writing – including contract terms, marketing plans, refund policies, and costs – before you agree to anything.

And check out another useful FTC Web page: FTC Warns Consumers to Exercise Caution When Selling a Timeshare Through a Reseller.

Bottom line? If you want to buy a timeshare, make sure it’s something you’ll be able to use, enjoy, and afford for life. And if it passes that test, don’t buy it from a high-pressure on-site salesman. You’ll find plenty of hapless people like the one in Stacy’s story looking to get out and willing to sell cheap.

And if you’re planning on selling, tread carefully and keep your expectations low.

Angela Colley is a writer for Money Talks News. This article originally appeared in Money Talks News.

In this April file photo, a group of skim boarders walk along the shore at sunset at Aliso Creek Beach in Laguna Beach, Calif. Summer vacation season is coming, and being flexible with travel times and lodgings can save you big bucks on your trip. (Joshua Sudock/The Orange County Register/AP/File)

20 ways to save on your summer vacation

By Angela Colley, Contributor / 05.16.12

Summer vacations are on the rise again…as long as vacationers are getting a good value.

Choice Hotels International surveyed 2,199 people this week. Eighty-seven percent said they planned to take the same number of trips (or more) this summer than they did last year, while 9 out of 10 people said they’re looking for the best value in their hotel stay.

Surprisingly, when asked what customers consider to be a good value from a hotel, 75 percent ranked free breakfast as their No. 1 priority.

While I love free cinnamon rolls as much as the next girl, a continental spread isn’t the best way to save money on a vacation.   Read on for more ways to go on vacation without going broke.

1. Be flexible with both time and place

You’ll save the most if you keep your vacation options open – and that includes both travel times and locations. For times, book in the off-peak seasons when popular destinations are cheaper – like booking a cruise in July.

For locations, you’ll pay less year-round for less popular destinations. We list six money-saving spots in "Cheap-But-Fun Travel Destinations for 2012."

And if you’re set on visiting a popular destination, you should still consider more than one. If you’re fixated on Disney World, you might miss a great deal on Universal Studios. Before you lock in New York, consider Chicago.

2. Compare transportation options

Don’t limit your transportation options to just flying or driving. Depending on the distance, day of the week, and time of year, it may be more cost-effective to take a train.

For example, the travel costs for a trip I’m planning from New Orleans to Chicago breaks down like this:

• Estimated driving cost: $554
• Cost on American Airlines: $394
• Cost on Amtrak: $234

Then there’s the new breed of luxury buses that operate in several states: cheaper than an airline, but with more legroom, free Wi-Fi, and other amenities. See what one looks like and learn more in "Can a Bus Beat a Plane?"

3. Book and fly midweek

If you do decide to fly, tickets are typically cheaper midweek. As Stacy mentioned in the video, most airline sales start on Tuesday and end on Thursday, and the two cheapest days of the week to fly are Tuesday and Wednesday.

4. Travel light

Some airlines – like Jet Blue and Southwest – allow you to check one or two bags for free, but most charge an additional fee for your luggage. Airfarewatchdog has compiled a list of airline luggage fees (they can cost as much as $38 for the first bag.) If you’re flying on an airline that charges, downgrade your suitcase to a carry-on. Not only is it cheaper, it’s easier to handle and there’s less risk of loss or damage.

Can’t carry enough clothes? That’s what laundromats are for.

5. Have a checklist

Make a checklist of everything you need before you pack and double-check it before you leave. If you get to your hotel and realize you forgot something important – like your cell phone charger or the SD card for your digital camera – you’ll waste money buying another.

6. Check your insurance

Travelers insurance and rental car insurance can save you a fortune if something goes wrong, but you don’t have to buy it independently. Both types of insurance are often covered by credit card companies, homeowners insurance providers, or auto clubs. Check what you already have before purchasing more.

7. Stay outside popular areas

Having a hotel room in the center of everything is convenient, but staying a few miles outside the city is often cheaper. For example, next weekend I could book a room at the Omni Hotel in Dallas, Texas, for $149 a night through Hotels.com – or I could stay a few miles away in Las Colinas, Texas, at the Wyndham for $64 a night. I’d save $85 a night staying in the suburbs.

And no matter where you stay, stay for less. Before you check in, check out our post "8 Tips to Save at Any Hotel – Even the Nation’s Trendiest."

8. Find cheaper lodging with vacation homes

Vacation homes cost the same (or even less) than hotels, but offer more than most standard hotel rooms – like full-service kitchens, washers and dryers, and bigger living spaces. So you can eat out less, stay in more, and never have to worry about a late-night trip to a laundromat. See our story "Vacation Home Rentals: 17 Tips to Save on Your Next Trip."

9. Sleep in a hostel

I’ve always stayed in hotels, but my friends prefer hostels when they’re traveling. Why? Because a hostel is dirt-cheap compared to most hotel prices. You’ll only get the basics, namely a bed and linens, but you’ll save a ton this way. For example, a private room in the India House hostel in New Orleans would cost $23 a night, or you could stay at the Best Western French Quarter Landmark Hotel for $180 a night.

Hostels aren’t listed on most travel sites. Instead, use a site like Hostels.com to find the going rates.

10. Consider house-swapping

Another lodging alternative – stay for free. If you’re willing to swap homes (temporarily) with someone else, you can stay in their house for free during your vacation.

Several sites allow you to view ads for available homes, and post your own, such as:

• HomeExchange.com
• The Vacation Exchange Network
• Digsville

Don’t assume that because you don’t live in a vacation destination, nobody would want to stay at your house. People choose their destinations for lots of reasons, from business to visiting grandma. See our story "Best Hotel Price You’ll Find This Summer? $0."

11. Dine out less

Dining out is my single biggest “extra” when I travel. During a three-day weekend in Austin, Texas, I spent more than $150 on food. Don’t do that. Instead, book a hotel room with an in-room kitchen, rent a vacation home, or do a housing swap and cook most of your meals.

12. Use discount food apps

If you do dine out during your vacation, use a restaurant-locating app to find special deals and the best prices. Some of my favorite apps include:

• Yelp Check-Ins
• LocalEats
• KidsEatFree

When you get there, split your meal in half, ask the waiter to box it up, and use the hotel’s mini fridge to store your to-go box. That way, you just got two meals for the price of one.

13. Turn your vacation into a tax deduction

Turn your vacation into a business trip and you can write off some of your expenses, including transportation, lodging, dining out, and even some cruises. Check out "8 Tips to Turn Your Vacation Into a Tax Deduction" for a how-to.

14. Take an alternative vacation

No one says your vacation has to include a pricey tourist destination. There are plenty of cheaper ways to get some down time. For example:

• Take a staycation in your own city and live like a tourist for a few days
• Go camping in a national park
• Visit your state’s capital for the weekend
• Visit friends or family (especially those with guest rooms)

15. Plan cruises carefully

The listed price of a cruise includes food, lodging, and on-ship entertainment. It doesn’t include tips, the cost of onshore excursions, or airfare – and those costs add up. Research all the associated costs before you book a cruise. If you’re not sure how to find the best deal, let a travel agent handle the arrangements for you.

16. Sightsee free

Popular tourist attractions are pricey, but there are plenty of places you can sightsee free. For example, in Louisiana, admission to the popular plantation homes costs up to $18 per adult, but the National Park Service hosts free walking tours of the French Quarter in New Orleans. Look for cheaper options before you start booking those pricey tickets.

17. Use multiple travel sites

Travel sites save you a ton of money but they don’t all have the same deals. Check multiple travel sites before you book. Like:

• Hotels.com
• Priceline
• Kayak
• Expedia
• Orbitz
• Hotwire

18. Take public transit

Rental cars and cab rides are expensive but public transportation is a steal. For example, in New Orleans a cab ride across town runs about $22, but a streetcar will take you the same distance for $1.25. Major cities post their public transportation routes online and many have integrated with Google Maps so you can look up routes from your phone on the go.

19. Ask a local

Want the real scoop on the best cheap food, fun and free entertainment ideas, or which souvenir shops aren’t a total rip-off? Ask a local. As a local living in a popular tourist destination, I can promise you, many of us are happy to help you have a good (and cheap) time.

20. Don’t pay for overseas phone service

If you’re traveling overseas, plan your calls before you leave. While the hotel will let you use their phone to call internationally, you’ll pay a hefty premium for it. If you’ll have Internet access in your hotel room, set up a Skype or Google Voice account before you go. If not, ask your wireless provider if they offer temporary international calling. Many providers offer global SIM cards or rent overseas-capable phones for a small fee.

Did I miss any money-saving travel tips? Sound off on our Facebook page.

Angela Colley is a writer for Money Talks News. This article originally appeared in Money Talks News.

In this October file photo, a man using a cellphone passes an AT&T store in New York. When you sign up for a cellphone or checking account, it's likely that you sign an arbitration clause, which means giving up the right to sue the company in the event of a dispute. (Mark Lennihan/AP/File)

What is arbitration? You sign away rights. Is that OK?

By Bill Hardekopf, Contributor / 05.15.12

If you have applied for a checking account, cellphone, or credit card, you have probably signed away some of your rights.

You may not even be aware that you have. In many cases, consumers agree to an arbitration clause that forfeits their right to a jury trial or class-action lawsuit if something goes wrong.

That means that if your cellphone carrier overbills you, you can't take the company to court. If the credit card company isn't moving to resolve a dispute, a threat to sue probably won't get you anywhere. Instead, you've agreed to have your case heard before an arbitrator who will make a binding decision.

Is that a good thing?

Companies that use arbitration clauses claim that the process is fair, and that it is faster and less expensive than litigation. It's also quite popular.

Of the 265 types of checking accounts offered by the 10 biggest banks, all but 10 required accountholders to waive the right to a jury trial, according to a 2010 study by the Pew Safe Checking in the Electronic Age Project. For 189 of those accounts, they also had to agree to have the dispute settled before a private arbiter chosen by the bank.

In the wake of that imbalance of power, the Consumer Financial Protection Bureau last month announced plans to study the use of arbitration clauses in financial contracts. The CFPB will analyze the kinds of claims that consumers bring in arbitration cases, the prevalence of arbitration clauses in agreements for consumer financial products, and what kind of an effect arbitration has on consumers and companies.

When it passed the Dodd-Frank bank reform bill, Congress gave the agency the power to create regulations that limit or end the practice.

The CFPB wants consumers to share their experiences and opinions about arbitration as part of its inquiry. Comments must be submitted by June 23, 2012. Information can be found here.

The US Supreme Court has sided with companies in favor of binding arbitration in two recent court cases.

– Bill Hardekopf is founder of Lowcards.com, a credit -card information site.

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A woman shops for clothes at a department store in New York in this 2010 file photo. Shoppers spend an average of $1,700 per year on clothing and accessories, but there are loads of ways to save.. (Shannon Stapleton/Reuters/File)

23 ways to save money on clothes

By Angela Colley, Contributor / 05.10.12

Americans spend $1,700 a year on clothing and accessories. If that seems like a typo, it’s not – it’s been backed up by studies from the Bureau of Labor Statistics and Bundle, a site that compiles data from credit card spending.

Here are 23 ideas on how you can dress for less.

1. Sell what you don’t wear

If you don’t wear it, drop it off at a consignment shop. When the shop sells your clothing, they’ll cut you a check for a portion of the profits. You won’t get the full amount, but you won’t have to do much work either. Stacy recommends going through your closet once a year. If you haven’t worn that sweater in 365 days, you don’t need it.

2. Shop thrift stores

In the video, Stacy found a pair of Lucky brand jeans for $12.99. Thrift stores sell gently used clothing at a deep discount. Many stores also have regular sales or a weekly special. A thrift store in my area has a “50 percent off anything with a yellow tag” sale every Wednesday. Just make sure you’re shopping at a true thrift store and not a vintage clothing store. The difference: Vintage clothing stores sell trendier older pieces at a markup. Thrift stores sell older and newer clothes at a discount.

3. Find coupons online

At Money Talks News, we don’t believe in paying retail, and you shouldn’t either. (Check out our deals page before you shop online or in-store.) On the go, use your smartphone to find clothing coupons before you check out. There are several great coupon locating apps for Androids and the iPhone. My favorites:

• Coupon Closet
• Coupon Sherpa
• Shooger

4. Check the tag before you buy

Read the label before you buy. If you buy a dry-clean-only silk skirt, you’ll keep paying for it every time you pull up to the cleaners. Stick to machine-washables and save.

5. Take care of your clothes

Remember that “machine-washable” doesn’t equal “indestructible.” Wash your clothes on the gentle cycle in cool water and even line-dry them – they’ll last the longest this way. For delicate items or clothes that might shrink, hand wash. Take care of your clothes and you’ll get years of use out of them.

6. Buy out of season

Retailers put out-of-season clothing on clearance to clear the stock from their stores. You can save a ton buying clothing when you don’t need it – like a coat in May or a swimsuit in December.

7. Shop online clearance sales

Don’t discount online retailers (and retailers’ websites) when you’re shopping for clothes. They follow seasons too with huge discounts – and a larger selection than most stores – on clearance items.

8. Repurpose old clothes

If you’re handy with a needle and thread – or even a pair of scissors – turn something you’re no longer wearing into something else. I cut the legs off my old jeans and turn them into shorts. My friends repurpose old shirts into tank tops and skirts. You can even make a purse out of an old sweater.

9. Don’t buy it because it’s on sale

Don’t buy clothes unless you really need them – even if they’re on sale. Thirty percent off isn’t a good deal if you don’t wear it 99 percent of the time.

10. Buy basics from generic brands

Your basics don’t need a designer label. Buy T-shirts, tank tops, and lounge wear from cheaper stores. I buy all my layering tank tops at Old Navy. My track pants I wear for errands came from Target. Simple cuts and solid colors don’t require a high-end designer.

11. Skip expensive workout clothing

Same goes for workout clothes. A pair of Puma running capris cost $55 – or you can buy them at Old Navy for $16.94. You’ll get the same workout whether you’re wearing a fancy yoga outfit or an old T-shirt and sweatpants. Check cheaper retailers like Target, Walmart, and Kohls for more affordable workout gear.

12. Proceed with caution at outlet malls

Outlet malls do have deals. They also have scams. In "5 Tips for Finding Outlet Store Deals," Brandon found that some outlet store clothing isn’t store overstock. The pieces were actually made for the outlet mall, meaning they’re lower quality. And those “75 percent off!” deals – they’re not actually 75 percent off. Read the fine print and you’ll see that is the discount on the suggested price, not the actual retail price. It’s more marketing gimmick than deal.

Check the labels on outlet store clothes. Avoid anything that says “factory line” and do the math on supposed deals before you buy.

13. Swap with friends

At the start of every season, my friends and I go through our closets and trade whatever we won’t wear. Last winter, I ended up with enough sweaters to last the entire season. Set up a trading day with your friends or family members. Then take anything you have left to a consignment shop. You’ll end up with new clothes and some extra cash.

14. Stick to simple garments

Trendy clothes cost more and have a shorter shelf life. You could spend hundreds trying to keep up with the fashion magazines, only to realize you no longer adore that peasant skirt six months later. Stick to classic styles and basic pieces that are always in style – jeans, polo shirts, T-shirts, and simple skirts.

15. Shop discount stores

I save a lot of money by shopping at T.J.Maxx, Ross, and Marshalls. Discount stores sell overstock and slightly imperfect pieces from other retailers for a fraction of their cost. Just check the clothes carefully before you buy them. I’ve lost money on spaghetti straps that ripped or buttons that popped off, but it’s rare.

16. Hem your own clothes

Tailor-shop pricing varies by area – where I live, it costs $10 to $12 to have one pair of jeans professionally hemmed. If I had all 14 pairs of my jeans professionally hemmed, I’d pay $168 on top of the cost of the clothes. Hem your clothes yourself and stop paying the professionals.

If you can’t sew, offer to swap jobs with a friend who can. I’m horrible with a needle and thread, but I can babysit. So I watch my friend’s kids for a night, and she hems my new clothes the next day.

17. Borrow what you only need once

If you only need to wear something once, borrow it from a friend or family member. You’ll save 100 percent and won’t have a useless dress or suit filling up space in your closet.

18. Don’t rent what you’ll wear more than once

If you can’t borrow it, buy it. In "Formal Wear: Rent or Own," Stacy recommends buying a tuxedo if you plan on wearing it more than twice in your lifetime. Stacy interviewed Andy Rizzi, a retail employee, and found that tuxedo rentals in his area cost $85 to $100 on average. Rent three tuxedos and you could spend $300. Buy from a discount store or resale site like Craigslist, and you could spend much less and own the tux outright.

19. Buy uniforms at discount stores

Work and school uniforms get expensive, but you can buy them at discount stores for a fraction of their cost. In my area, we have stores that sell school uniforms, scrubs, and overalls at deep discounts compared to the cost of buying them through your work or school.

20. Don’t skimp on swimsuits

When it comes to swimsuit shopping, it doesn’t pay to buy cheap knock-offs. A well-designed swimsuit will cost more upfront, but can last years. Three years ago I dropped $85 on a higher-end swimsuit. I wash it by hand and line-dry it after each use, and it still looks brand new. Check out "16 Tips to Find the Perfect Swimsuit for Less" – a complete guide to swimsuit shopping.

21. Shop the men’s and kids’ section

Women’s clothing is often priced higher than men’s and kids’ clothing. If you’re a woman looking for something universal – like a T-shirt or hoodie – check the racks in the men’s and kids’ sections first.

22. Treat clothes shopping like grocery shopping

I won’t go to the grocery store without making a list first, but I’ll blindly charge into the mall credit card in hand. That is the wrong way to go about it. The next time you shop for clothes, make a list of what you actually need and stick to it.

23. Buy clothes that fit now

Only buy something if you can wear it today. Buying something a few sizes too small because you think you’ll lose weight later is a gamble. Even if you do, you may realize you don’t like the way that shirt looks on you. Either way, you’ve wasted money.

Our goal was to create a complete list of ways to save on clothing. Do you have any tips? Sound off on our Facebook page and tell us!

Angela Colley is a writer for Money Talks News. This article originally appeared in Money Talks News.

A shopper carts her purchases from a Wal-Mart store in Mexico City last month. In a recent Consumer Reports survey, Walmart was ranked among the worst supermarket chains, with high marks for competitive pricing failing to make up for woefully low marks in customer satisfaction. (Edgard Garrido/Reuters/File )

The best and worst grocery stores: You get what you pay for

By Karla Bowsher, Contributor / 05.08.12

I can’t stand customers who choose to shop at Walmart but still complain about the service. Walmart is known for rock-bottom prices, so long lines and lackluster customer service shouldn’t be a shocker.

In fact, that’s exactly what Consumer Reports discovered when they asked more than 24,000 people to rate their grocery shopping experiences for the magazine’s May issue. Despite its low prices, Walmart ranked among the country’s worst supermarkets. Check it out…

The rankings

The best…
 

Consumer Reports polled shoppers about food prices, selection, and quality – as well as customer service, line length, and crowds. Four chains came out on top. In particular, the magazine says shoppers praised these supermarkets for “quality meat and produce, a clean shopping environment, and very good or excellent prices.”

• Costco Wholesale
• Fareway Stores (located in Illinois, Iowa, Minnesota, and Nebraska)
• Trader Joe’s (Arizona, California, Connecticut, Massachusetts, Nevada, New Jersey, New York, Oregon, and Washington)
• Wegmans (Massachusetts, Maryland, New Jersey, New York, and Pennsylvania)

The worst…

Three chains came out on the bottom because they “tried customer patience the most.”

• Pathmark (Delaware, New Jersey, New York, Pennsylvania)
• Pick’n Save (Wisconsin)
• Walmart

In limbo…

Two chains were rated as highly in certain categories as they ranked poorly in others.

• Whole Foods (located in the U.S. and Canada) ranked “very high overall” but was criticized for “exceptionally high prices.”
• Walmart was praised for its low prices but performed poorly enough in other categories to still be ranked among the worst supermarkets overall.

The moral of the story

Although many supermarkets avoided the best- and worst-ranked categories, I see two lessons that any grocery shopper should take away from these survey results…

• If you get what you pay for, you must choose between quantity (i.e., price) and quality (i.e., service). This seems obvious, but I find myself reminding others of it too often. It reminds me of my parents. Mom, a paragon of penny-pinching, only shops wholesale clubs and Walmart. Dad, more interested in helpful employees and uncrowded aisles, pays a little more to shop at Publix Super Markets.
• If you’re more interested in saving money, think outside the box. As Money Talks News has reported, grocery stores aren’t the only place to buy groceries. In "The Cheapest Groceries Online," we reported that groceries from Walmart.com can be as cheap as those from Walmart stores – sans the hassle that earned the store poor ratings this month. In "30 Ways to Save on Food," we reminded you that alternatives like salvaged grocery stores and farmers markets sometimes have the lowest prices.

Karla Bowsher runs the Money Talks News deals page and covers consumer, retail, and health issues. This column first appeared in Money Talks News.

This 2011 file photo shows a JPMorgan Chase bank building in New York. Chase is one of the issuers offering introductory zero-interest credit cards with no-fee balance transfers for new customers. (Kathy Willens/AP/File)

Credit cards bring back no-fee, no-interest offers

By Odysseas Papadimitriou, Contributor / 05.06.12

It was the great deal you were never supposed to see again: credit cards with a zero percent introductory interest rate and no transfer fee, unlike the 2 to 3 percent typically charged by card issuers. Credit-card legislation in 2009, known as the CARD Act, had outlawed so many of the industry's profitable but anticonsumer practices that issuers weren't supposed to be able to afford offering truly zero percent loans anymore.

Nevertheless, these deals are making a comeback, at least for now. The benefit to consumers is undeniable.  

Take the No Balance Transfer Fee Slate Card from Chase.  It’s currently the best free balance transfer credit card on the market, thanks to a 15-month, zero-percent introductory interest rate with no transfer fee.  If you have roughly $6,500 in credit card debt and are paying a 15 percent annual percentage rate (APR), as the average cardholder did at the end of 2011, you would save around $950 in interest by transferring your debt to this card and paying it down before the regular APR kicks in.

 A standard zero-percent balance-transfer card would shave off nearly $200 of those savings because of the balance transfer fee.

Of course, paying down that much debt that quickly is not feasible for everyone. Before transferring a balance to any card with a low introductory interest rate, you should use a credit card calculator to determine whether you can afford to pay off the debt before high regular rates kick in.

In and of itself, a free balance transfer credit card won't solve debt problems. All it can do is lessen interest charges temporarily. The real keys to becoming debt free are lifestyle changes and a fresh perspective on everyday spending. To put it bluntly: You need to cut out the expenditures you can't afford.

One way to do this is to rank your expenses in order, and cut those lower-priority items that exceed your budget.  By designating one credit card for everyday spending and requesting that your issuer lower the credit line to your budgeted monthly spending limit, it will be more difficult to go back into debt. If your card ever gets declined before month’s end or you see any finance charges creeping onto your monthly statement, you’ll know your spending is getting out of hand.

Will the new zero-fee, zero-interest credit-card offers last? It's hard to say. The 2009 CARD Act has crimped their profitability.

There is no question we’re better off without the bait-and-switch marketing tactics, undeserved interest rate increases, and obscene penalty fees that were frequent practices before the CARD Act outlawed them.

Even if the zero-free, zero-interest offers aren’t sustainable for issuers in the long run, they are here now and can save many consumers some serious money.

– Odysseas Papadimitriou is chief executive officer of Card Hub, a website that helps consumers find the best credit card offers.

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In this April file photo, Donna Boulanger, right, of Randolph, Mass. looks over her resume as she waits to speak with Colleen Kingsbury of Travizon during a job fair in Boston. According to Ballenger, employers these days are far more understanding when it comes to employment gaps on a job applicant's resume. (Elise Amendola/AP/File)

Why unemployment isn't a résumé buster

By Brandon Ballenger, Contributor / 05.01.12

If you’ve ever been unemployed or underemployed – working for lower pay at less responsibility just to make ends meet – you already know what it’s like to be perceived as damaged goods…

Your friends and family are supportive but uncomfortable around you. You apply for jobs and don’t get called back, even though you’re qualified. And you wonder if you’ll ever find meaningful work again.

Well, there’s finally some good news, and it’s not just Friday’s big announcement that the jobless rate dropped in January from a year earlier in most metropolitan areas. Two days earlier, a new study was quietly released that shows employers have wised up to reality – they’re no longer holding your bad luck against you.

“The vast majority of employers – 85 percent – reported that they are more understanding of employment gaps post-recession,” jobs site CareerBuilder announced Wednesday. In a poll of more than 3,000 hiring managers, “Nine-in-ten (94 percent) said they wouldn’t think less of a candidate who took a position during the recession that was at a lower level than the one he/she previously held.”

That should help some of the 5.4 million people the U.S. Bureau of Labor Statistics says have been out of work for at least six months. But the survey also offered advice from those employers on what to do to improve your odds of catching their eye. Here’s how they suggested you improve marketability if you’re currently unemployed or underemployed…

• Take a temporary or contract assignment (79 percent)
• Take a class (61 percent)
• Volunteer (60 percent)
• Start your own business (28 percent)
• Start a professional blog (11 percent)

CareerBuilder itself had some tips – including the novel idea to search-optimize your résumé. “Most employers use electronic scanning devices to screen and rank candidates,” CareerBuilder says. “Make sure to pepper in words from the job posting into your résumé as it relates to your experience, so your résumé comes up higher in employer searches.”

But once they find your résumé, you have to get them to look at it – a task employers spend an average of six seconds on, according to a study released last Thursday. So make sure your résumé is well-organized and uncluttered. Check out 3 Tips to Build a Better Résumé.

CareerBuilder also emphasized networking to find leads, bringing fresh ideas to the interview, and following up with a thank-you note afterward. We’ve got more advice in Job Interviewing: 8 Things to Do and 8 Things to Avoid.

– Brandon Ballenger is a writer for Money Talks News, a consumer/personal finance TV news feature that airs in about 80 cities as well as around the Web. This column first appeared in Money Talks News.

In this 2011 file photo, a shopper looks at televisions at Costco in Mountain View, Calif. According to Bowsher, joining a wholesale club like Costco is one of the best ways to save money on groceries. (Paul Sakuma/AP/File)

Never buy retail again. 15 ways.

By Karla Bowsher, Contributor / 04.27.12

I don’t believe people who claim they never buy anything without a coupon – because I know that’s impossible. Coupons don’t exist for everything, and certain types of coupons are released a lot less often than others.

But what is possible is never paying retail.

For the past year now, I’ve maintained Money Talks News’ deals page and curated our deals posts, sifting through hundreds of deals a week. That job quickly made me realize: There are so many ways to avoid paying retail that it’s almost never necessary. So I started keeping an anti-retail list. I’m at 15 and counting. If you have more tips to add, I’d love to hear them…

1. Coupons

Your Sunday newspaper is still one of the best places to find coupons, but it’s not the only place. Printable coupons can be found all over the Internet. I cherry-pick the best ones I see for our deals posts and pages, but you can find more by doing a Web search or checking the websites of your favorite brands.

2. Online codes

You should never buy anything online without first checking for what’s called a coupon code or promo code. These alphanumeric codes are the online version of a coupon. Instead of handing your coupon to the cashier, you enter the code at the online checkout. I post the best codes I find on our deals page, but you can also do a Web search for a product name plus the words “coupon code” or “promo code.”

3. Sales

I still find sales are one of the best ways to save. I cherry-pick the best deals I see for our deals posts and pages, but I also highly recommend regularly reading your local Sunday newspaper ads, which you can also find online for free at ShopLocal.com/sales.aspx.

4. Free stuff

I’m not a big fan of freebies, especially online freebies. Too often, they require you to do something in return or give up personal information, which hardly makes them “free.” But true freebies are out there. I recently scored a free reusable grocery bag from Target – which I’d told you about in my April 20 deals post - and you can find more legit freebies on our freebies page.

5. Deals of the day

Amazon.com is known for its steeply discounted Deal of the Day, but the trend is spreading. Lots of online stores – from Target and Walmart to Home Depot and Hotels.com – offer up one item each day at a bigger-than-usual discount, sometimes with free shipping thrown in. Stop by our deal-of-the-day page for a list of links to retail daily deals.

6. Cash-back websites

Online cash-back services like Ebates and Big Crumbs are a sure-fire way to shave at least a few percentage points off the price of just about any online purchase. Plus, the cash-back can often be combined with online sales and codes to maximize your savings. If you haven’t already signed up with one of these services, be sure to check out my recent article, How to Make Money With Rebate Websites.

7. Cash-back credit cards

If you pay off your credit card each month, a cash-back card can ensure you’ll pay less. For specific options, visit our credit card page or email Money Talks News credit card guru Jason Steele.

8. Mail-in rebates

These aren’t as common as they used to be, but when I do see them, they’re usually significant savings – if you can remember to mail them back before the deadline. (I kicked myself for forgetting about the $100 rebate that came with my cell phone.) The other risk with mail-in rebates is that they can get lost in the mail, although I’ve never had a problem with that.

9. Amazon-like retailers

Who doesn’t love Amazon.com? They sell seemingly everything imaginable – and not only is pretty much everything sold for less than full retail, many of their prices are unbeatable. Buy.com and Overstock.com can be worthy competitors, though.

10. Wholesale clubs

Shopping at warehouses like Costco is perhaps the best way to save money on groceries. Other potential warehouse deals include everything from furniture and electronics to clothing and fine jewelry. If you don’t already belong to one, check out my article How to Pick the Best Wholesale Club.

11. Outlet stores

Consumer Reports says you can save an average of 38 percent at outlet stores, but it’s not always a deal. Some outlets stock lesser-quality versions of what their non-outlet stores sell. To get what you pay for, check out 5 Tips for Finding Outlet Store Deals before making a long trip to an outlet mall.

12. Dollar stores

Not everything at the dollar store is a bargain either. Before you buy something, you have to stop and think about whether you could find it for less money elsewhere. Still, it’s a great place to find everything from gift wrap to cleaning supplies at well below retail. And yes, we’ve done that story too: 10 Dollar Store Duds and 5 Dollar Store Deals

13. Yard sales

Yard sales and garage sales can be a great place to find all kinds of things for a fraction of their retail price – if you know what you’re doing. Money Talks News’ expert yard sale shopper, Angela Colley, recently shared some of the best yard sale-hopping tips I’ve ever read in 10 Ways to Save Time and Money at Garage Sales.

14. Secondhand stores

Thrift stores are another great place to find items like housewares and clothing for a fraction of their retail price. They can be hit-or-miss, however, so instead of making a trip just to go thrifting, plot nearby stores on a map and stop by when you’re in the area. And remember that upscale finds are more common in stores in upscale neighborhoods.

15. Haggling

You have nothing to lose by asking for a lower price. In fact, Money Talks News founder and serial haggler Stacy Johnson says it’s “the easiest way to save money.” For haggling tips, check out last week’s article The Simplest Way to Save on Everything.

Karla Bowsher runs the Money Talks News deals page and covers consumer, retail, and health issues. This article first appeared in Money Talks News. 

A for sale sign sits in front of a home on a quiet street in Walpole, Mass.in this 2006 file photo. It's a buyer's housing market, but Ballenger warns that a few costly mistakes can make a buying a home l go bad. (Steven Senne/AP/File)

Buying a home? Avoid these five mistakes.

By Brandon Ballenger, Contributor / 04.26.12

If you want a new home and can afford it, now is an exciting time to buy. According to the National Association of Home Builders, prices nationwide are the most affordable they’ve been in decades. Interest rates are low. And there shouldn’t be a supply problem – RealtyTrac predicts a lot more foreclosures ahead.

One potential fly in the ointment? Getting the loan.

As you already know if you’re a house hunter, mortgage financing is no walk in the park. “Extraordinarily tight standards currently prevail,” Elizabeth Duke of the Federal Reserve said in January. “Borrowers who likely had access to mortgage credit a few years ago are now essentially excluded from the mortgage market.” Why the tight standards? Once bitten, twice shy: Lenders left standing after the foreclosure tsunami are requiring more documentation, stricter appraisals, and bigger down payments.

That’s one thing that can turn “buyer’s market” into “buyer beware,” but not the only thing. Here’s a look at potential buyer pitfalls:

1. Dumb move: not first finding financing.

Many people who would have qualified for a loan a couple of years ago don’t today. Or if they do, it’s for a lower amount. Don’t shop for homes until you shop and get pre-approved for a mortgage. Shop without financing and you’ll risk watching your dream house sold to a more qualified buyer.

Months before you set foot in your first house – a full year is better – start preparing. Check your credit score: A low score will keep you from qualifying, or result in higher rates that will cost you thousands of extra dollars over the life or your loan. (To see how much, check out this calculator from credit score company FICO.) If you find you’ve got credit score issues, address them: See 3 Tips to Raise Your Credit Score – Fast.

When your credit score is as good as you can make it, go loan shopping. To learn more about cutting through fees and getting the best possible deal, check out Follow These 3 Steps to Save Thousands on Your Next Mortgage.

2. Dumb move: lowballing.

Combine desperate sellers and a flood of foreclosures and you’ve got the perfect environment to bag a bargain. But be careful. Not all sellers are desperate and not all respond well to lowball offers. While it’s nearly always a good idea to offer less than the asking price, trying to “steal” a house can backfire. Make a ridiculously low offer and the seller may not take you seriously. Worse, they may so insulted they refuse sell to you at all.

Don’t expect much help from your agent. Since they’re motivated to close the sale, many will want your offer to come as close as possible to the asking price. That’s why knowing things like neighborhood “comps” (comparable prices of similar nearby homes) is so important. So is knowing the seller’s loan balance. It may be impossible – and will certainly be more complicated – if you enter “short sale” territory by offering less than the mortgage.

3. Dumb move: buying without inspecting.

Would you marry a complete stranger? Buying a home without first having it professionally inspected is just as dumb.

Never submit any written offer that doesn’t include a time period to thoroughly inspect the house. The primary reason is obvious: It protects you from a potential disaster. But another, more subtle reason is nearly as important. The results of an inspection may help negotiate a lower price, because an inspection nearly always reveals problems with the home.

A real estate agent can refer you to a qualified home inspector, but you can also look up local home inspectors through the American Society of Home Inspectors website. The few hundred dollars they charge could be the best money you’ll ever spend. If you’re looking at a foreclosure or short sale, this is doubly important, because if the owners couldn’t afford to keep the house, they probably couldn’t afford to maintain it properly.

4. Dumb move: not having “outs.”

To get a contract, buyers typically have to put down “earnest money” – a deposit of a few percent to prove they’re serious. Backing out means you don’t get your money back, unless you did it for a reason listed in the contract, known as a contingency.

One contingency was noted above: an inspection contingency. But there are others, including not being able to get financing, not being able to sell your existing home or a low appraisal. In general, the more outs you have, the better. But the opposite is true for the seller. (See 5 Mistakes Home Sellers Make). So if you give yourself too many escape hatches, expect some push-back.

5. Dumb move: not crossing “t’s” and dotting “i’s”

Buying a home is an emotional decision. Which translates into potential problems for those using their hearts instead of their heads.

Entering into a contract to buy the house of your dreams will feel like the end of the process, because you’ve shifted from hunter to homeowner. You’re mentally arranging your furniture and deciding what color to paint the kid’s rooms.

Don’t let down your guard yet. The process of closing on your new home is an opportunity for the professionals on the sidelines to throw a few fees your way. Carefully go over the paperwork and understand everything you’re expected to sign and every fee you’re expected to pay. If you don’t understand something, ask about it. If you find a fee you didn’t expect, challenge it. And if the paperwork blizzard leaves you feeling like a deer in the headlights, hire help.

– Brandon Ballenger is a writer for Money Talks News, a consumer/personal finance TV news feature that airs in about 80 cities as well as around the Web. This column first appeared in Money Talk News.