1) A Vacation

We’re all in need of a vacation once in a while but going into debt for a plane ticket or hotel stay is a bad idea all around. Accumulating debt to take a trip somewhere sunny might be exactly what you’d like to do right now but sit down and look at your finances before you get too excited about the trip. You don’t really need to go – of course, it would be nice but make sure you have the cash first. It’s that simple.

2) Buying Clothing

Yes, that was a beautiful dress and yes it fit you perfectly. Just because you would look great in it doesn’t mean you need to buy it. When you look at the credit card bill a month from now you’ll be thinking another story altogether. And it’s not just expensive fashion items… if you pick up a whole bunch of small items you’ll be breaking the bank very quickly. That dress wont feel like such a great idea if you can’t pay rent in a few months. Buy the dress but make sure you have the money for it.

3) Pay Off Other Debt

The only time this one might work is if you use a small loan to pay off other debts that are at higher interest rates – something like an IVA. Make sure you know what you’re doing though because it could end up costing you. Moving money around isn’t going to pay down your debt – you have to get serious and start paying it off.

4) Getting Gifts for Others

Some people can’t help themselves… they just love giving gifts. That is fine but when it’s going to put you in the poorhouse it’s probably time to start thinking about holding off. This is one that hits people really hard around Christmas. Families will buy all kinds of presents during the holidays and when they wake up to this spending in the new year things aren’t looking so great. Spend what you have!

5) Furnishing Your Home

It would be nice to get a new couch. That one you have is falling apart but then where does it end? If you can’t afford a new couch then don’t buy one. Going into debt for furniture doesn’t make any sense – just like clothing – these things are not necessary for your day-to-day life. It’s nice to nice things but it’s not worth it to go into debt for it.

I guess you see a pattern arising: don’t buy it unless you have the money. Otherwise you’ll be need of debt help. If it’s something that will hold it’s value or will even increase in value (like a home) then go for it but don’t go into debt for a coffee table!

It’s hard to know what to do with old financial statements – which ones to keep and which to shred. But there are guidelines, and in general, if the statement could have to do with taxes, you should keep it for a long time, perhaps several years. Of course, if you do all your banking online, it is rather a moot point, because there aren’t paper records to protect. But how do you know what to do with other financial statements?

Tax returns should have the longest shelf life, as should cheques and receipts for things like charity contributions, mortgage interest, and other documents that may affect your taxes. You should keep such records for several years, if not permanently.

Documents related to pensions should be kept for at least a year, and permanently if possible. The same goes for bank statements where there might be something that relates to your taxes. For bank statements that don’t have any long term importance, you can get rid of them after a year.

You should keep your credit card statements anywhere from a couple of months to several years. Again, it depends on whether the statements contain tax related expenses. If not, keep your receipts until you get your monthly credit card statement. If they match up, go ahead and shred the receipts. Hang onto the credit card statement for another month or so, and if there are no purchases with long term importance or related to taxes, you can get rid of them then.

The term “get rid of” goes well beyond tossing your statements into the bin. At the very least, they should be run through a shredder. Cross cut shredders are more destructive than regular shredders, but even with regular shredders, if you mix up the shredded paper that collects, you’re going to put off all but the most determined (or crazy) criminals wanting your financial information.

Some people go farther than shredding their financial records. Some incinerate them, and others get very creative, using them to line the cat box or composting the bits with chicken manure (if they have chickens). These measures are probably not necessary, but it does point up the need to keep your financial information close to the chest.

If you have the option of having your statements online, it may be worthwhile. For one thing, they’ll be archived, and for another, you won’t accidentally leave them lying around in plain view where a dishonest repairman or dodgy roommate might see them.

Depending how you interpret the word “design,” you can pick a “best” in many ways. If you’re looking for a credit card that looks nice, then there are credit card issuers like Capital One whose platinum MasterCards can be personalized in many different ways. However, if you get a credit card with the lowest interest rate that does not have a “smart chip” as some European Visa cards do, you can personalize your card in an almost infinite number of ways with credit card skins.

Think of credit card skins like the “skins” that people choose to dress up their iPod. It’s like a wardrobe of tiny clothing that won’t keep your card from working like it’s supposed to (unless you have a “smart chip” Visa). Credit card skins are basically super thin stickers that you apply to the front of your card with a hole over where your name, card number, and expiration date go.

There are websites where you can choose from a dizzying array of credit card skins with every kind of graphic or message you can imagine, from gay pride to preppy Argyle designs. Creditcovers.com has hundreds of designs to choose from and an opportunity to make your own design and make royalties from it if it sells.

Businesses can order custom credit card skins as unique and fun promotional giveaways. You can also make your own graphic credit card skins using a template in Adobe PhotoShop or a similar graphics program using t-shirt transfer paper and a color inkjet printer. Once you have the design the right size and the right shape (with the hole for your name, card number, and expiration date, print it out onto t-shirt transfer paper then cut the design out with scissors. You then put spray mount on the card, peel the backing from the transfer paper and place the design on the card. Put the ironing paper that comes with the t-shirt transfer paper over the card on an ironing board or reasonable facsimile. Preheat iron to “low.” Iron the card for 15 seconds. Check if the design adheres. If not, iron for 15 more seconds. But be careful, lest you melt your credit card with too much heat. Let cool. After the card has cooled cut away excess transfer paper with a mat knife.

Sometimes the best design for a credit card is the one that brings you the lowest interest rate. Once you have that, if it isn’t beautiful enough for you, then skins are the way to personalize your card into a statement about yourself.