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I love presents! I love waking up on Christmas morning to a tree drowning in presents. My family spends the day opening presents, watching movies, eating good food and talking to friends and relatives on the phone. Heavenly.

However, creating that pile of presents without breaking the budget and without gathering ANY credit card debt is a trick. A trick that I have pulled off for many years, by the way.

Here are my top 8 No Debt Santa Claus secrets:

1. Shop all year long. Yep, you start shopping the day after Christmas. Grab up those very last 90% off clearance wrapping paper and store it for next year. Christmas DOES come once a year whether you plan for it or not.
2. Determine a “secret hiding place” for gifts that you collect throughout the year. When my kids were little, I kept boxes in the attic. Now, everyone knows where the secret place is and agrees not to look.
3. Buy gifts for yourself and give them to someone else to hold onto until the holidays. I don’t know about you, but I really am the best person to buy gifts for myself. I know what I want and I am out shopping for everyone else. When I see something that I like that is a great buy, I snatch it up and give it to my daughter to store for me. Then, I “forget” about it until I open my gift. One of the advantages of this tip is that I don’t have to return my gift because it is already the perfect present.
4. Buy gifts at yard sales. I have gotten some of the very best gifts at yard sales. I bought a $200 beaded lamp for $20. My daughter and I were both there and so we both “forgot” about it.
5. Redeem credit card points for gift cards. I do not have credit card debt, but that doesn’t mean that I don’t use my credit cards. I pay off my cards in full when I get the bill every month and I use the points for gift cards. My family particularly likes the movie passes and book store gift cards.
6. Make homemade goodies to give as gifts. It is well known that I make chocolate covered pretzels during the holidays. My hubby’s co-workers have been asking for them all year. These are a great way to give a little something to many people without breaking the bank. I purchase the necessary ingredients throughout the year when I see them on sale.
7. Learn how to create unique gift wrapping. The fact is that you can get gift wrap and tags super cheap at the 99 cent store. I use gift bags with tissue paper quite a lot. However, along with keeping to one’s budget, you also want to have the holidays be a time of creating beauty and memories with your family. Making handmade gift tags is a wonderful activity to do with your kids. Teaching them how to wrap a beautiful present is a lifelong skill.
8. Find out what your friends REALLY want as a gift. Perhaps what you mom really wants from you is a mother-daughter day of baking, shopping or just taking a long walk. Maybe your best friend would love to have you coming and help her reorganize her closet. Perhaps you co-worker would like to have a lunch together to talk about something other than work. Many times the very best gift is just your time and attention. Don’t under estimate the value of YOU as the best gift.

What do you think? Did I miss something important?

This post is copyrighted by BargainBabe.com. Other sites posting this content are violating the DMCA.

This is a post by BargainBabe.com writer Yazmin Cruz.

From the 60 comments left on my book review of Clark Howard’s “Living Large in Lean Times,” it seems many of you know a lot about living large on budget. That’s great! The person I picked as the winner is enthusiastic and eager to learn more.

Without further ado, the winner of the book is

Tanya. She wrote:

I would love to win this book. I never buy anything unless it’s on sale and I have a coupon. I stopped buying books and get them from the library, and we only go to movies at the discount theater or when we get a LivingSocial deal. We eat at home most nights and try to enjoy as many free events (movies/concerts in the park, festivals, etc.) as possible. What else can I do, Clark??

Tanya, this book will answer your question. Be prepared to learn about about buying a car, saving money on prescriptions, and protecting your wallet when you travel. In the back of the 251-page book, you’ll also find a reference guide to money-saving websites. Tanya, you have 48 hours to email me your mailing address.

If I don’t get a response, the book will go to the first runner up Michelle Ventresca, who said she does not have health insurance because she can’t afford it. In the book, Howard warns against buying single-issue insurance policies like cancer insurance or accident insurance because they’re a rip-off. He suggests that if you’re in your late 50s and early 60s you’re much better of considering long term care insurance.

The second runner up is MB, who shared her cheap thrills of heading to free and inexpensive activities in her area. The book includes a chapter on how to score cheap sporting and concert tickets, get free ebooks, and score free music.

Howard’s book hit the shelf Aug. 2 so you won’t find it in the library yet. If you didn’t win and you’d like a copy, buy it on Amazon for $10.96 (orig. $18).

Free credit score?

Reader Ruth needs help finding a free place to get her credit score. She writes:

i have found places where you can get your credit report for free. do you know of anywhere to, safely, get your credit score? seems like the ones i have checked charge for it.

Ruth, you allude to getting your free credit report through the legit site AnnualCreditReport.com, which is a great place to start. The contents of this free annual report is what makes up your score, so making sure it is accurate is essential to improving your score. But I can understand your desire to know your credit score number.

CreditKarma, which I wrote about in August 2009, provides a score free, but it is not the FICO credit score which you are seeking. The only other offers I’ve seen are “free” when you buy something else. Anybody got an answer?

This is a post by BargainBabe.com writer Yazmin Cruz.

In “Living Large in Lean Times,” author, radio host, and penny pincher Clark Howard says he is frequently asked when the economy is going to come back. To win this book, see below. Clark’s response shocks a lot of people: five to ten years. So what’s a person to do in the meantime?

Learn to live large in lean times, says Howard. He writes:

I can’t predict when the nation will get healthy. But I can help you empower yourself so that you have your personal financial house in order. That way you can survive and ultimately prosper regardless of the country’s progress. You do it one step at a time, fixing your finances and then building the path to independence and ultimately, dare I say, wealth.

The 251-page book, on sale for the first time today, is divided into

ten chapters in which Howard writes about issues everyone will have to go through in life: buying insurance, saving money on prescriptions, buying electronics, elder issues, and protecting your wallet when you travel, among other things. “Living Large” is an easy read.

This book will help newbie saver a lot, and if you’re a seasoned saver you’ll also find helpful nuggets of information. I particularly liked the insurance section of the book where Howard recommends saving money on prescription drugs by finishing your expired pills and buying larger doses and then cutting the pill in half. The computers and Internet section will also keep you up to date with ways to combat identity theft.

Let us know how you are living large during lean times by Friday, August 5, 2011 at 5 p.m. PST for a chance to win my review copy. Winner announced Monday. If you can’t wait to get your hands on the book and read more about Howard’s suggestions, you can purchase a new copy on Amazon for $10.96 (orig. $18).

MyFico.com

Curious about what goes into your credit score? It’s been more than a year since I wrote about this, so it’s time to revisit this ever useful information.

There are five parts to your credit score. Payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and

types of credit (10%). FICO, a financial analysis firm, uses these categories to rate consumers’ credit risk with a three-digit score. Within each category, there are up to seven factors.

For example, in the payment history category, credit rating agencies consider how many accounts you are up to date on, whether you have a bankruptcy or lien, and how long an overdue bill has been past due, among other factors.

In the length of credit history category, they consider how long it’s been since you opened an account, how long each specific account has been open, and how recently you’ve used each account. Read all the factors that are considered for each part of your credit score.

This is important stuff to know, but unfortunately the three credit rating agencies, TransUnion, Experian, and Equifax, don’t share specifics. How many points do I lose if I have a bill past due seven months instead of two? How many points do I gain if I am paid up on three accounts instead of one? We don’t know because they won’t tell us.

More information would help consumers improve their score, but getting a copy of your free credit history report (sans FICO score) through the FTC, is a good start. Look for open accounts that can be closed, errors, and mistakes. Fixes can take months, so get started early if you plan to apply for a mortgage or car loan.

When should your student get credit? Credit: Phil Scoville/Flickr

Credit.com recently listed its top three credit cards for students. Being unsure if teenagers should even have credit cards, I was curious what they recommended. Do the cards encourage responsible use? Are the usage rules and fees clearly stated? How do the cards compare to those aimed at adults?

Credit.com considered 41 factors to determine the top three cards, including annual fees, rewards to dollars ratio, online shopping discounts, APR, fees to cancel the card, how user-friendly the application is, and more.

The evaluation was run by Credit.com writer Beverly Blair Harzog, who started with 45 cards. I was surprised that out of a 100 possible points, the winning cards only scored between 50-52 points. Either Bev has ridiculously high standards, or these cards leave a lot to be desired. Here’s what she said about each one:

Winning card – 52 points – Discover Student CardBuilder: Build Your Own Credit Card

Pros: Discover’s CardBuilder allows you to create your own card. Well, it sort of does. There are some restrictions on the combinations you can create. I created a student card using CardBuilder and came up with a pretty terrific credit card. I chose the 5 percent cash bonus rewards, with rotating categories such as gas, restaurants, department stores, and groceries.

I like the reward categories because they fit in with the student lifestyle. The only hitch is that on purchases other than the rotating categories, you get a low .25 percent before you reach $3,000. Hint: Get there in a hurry by putting some of the semester’s expenses on the card and paying it off during the 25-day grace period. I pay tuition regularly, so trust me, it’s not hard to spend this much quickly. After you reach $3,000, you get 1 percent on everything. Right away, you’re teaching your child how to take advantage of rewards cards!

Cons: The card I created offers a 12-month zero percent introductory APR, which I highly recommend for someone who’s new to credit card payments. It leaves a little margin for error if your child has to rotate a balance for a month or two. Here’s the downside to my Frankenstein credit card: a 19.99 percent APR. But guess what? The goal is to teach your college kid that a smart consumer pays off the balance every month. If a credit card is handled properly, the APR shouldn’t matter. If not handled properly, well, your child will learn a painful credit card lesson. There’s no annual fee.

Second Place – 51 points – PenFed Visa Platinum Cash Rewards for Students

If you don’t have a family member in the military, you can qualify your child for this card by joining the Pentagon Federal Credit Union (this requires a $20 contribution to the National Military Family Association). There’s one other caveat: you must also be willing to be a joint owner on the account.

Pros: You get five percent cash back from gas purchases paid at the pump. On all other purchases, you get one percent cash back. Not bad at all for a student card.

Cons: You get a 13.99 percent variable APR on purchases, which is an excellent rate for this category. There’s no cash advance fee and there’s no annual fee. You can also get a 24-month, 4.99 percent introductory rate (and pay no fee) on balance transfers made between July 1, 2011 and September 30, 2011.

I don’t usually recommend that parents co-sign for a child so I consider this a disadvantage, or part of the “cost” of getting this card. There are too many legal and emotional issues that can arise. But this is an excellent card and if you think your child won’t have problems paying off the balance on time every month, this is a good option.

Third place – 50 points – Journey Student Rewards from Capital One

I continue to love the way Capital One presents its credit cards to consumers. It’s simple and direct. And on this card’s home page, they include credit education for students. I think that’s a great touch.

Pros: You earn 1 percent cash back on all purchases. That’s a rewards program that’s easy to explain to your kid. But you know what I really love about this card? If you pay your credit card bill on time, you get a 25 percent bonus on the cash back you earn each month. Positive reinforcement is always a good thing, right?

Cons: This card has a fairly high 19.8 percent variable APR. If your kid pays the full balance on time, this won’t matter. There’s no annual fee, no foreign transaction fees, and no balance transfer fee.

Note: Credit.com receives a commission when someone applies for and has his/her application for the Journey Capital One card accepted. It does not receive remuneration for the other two cards  mentioned in this post.

Credit.com is currently updating its disclosure policy to include a statement at the bottom of any credit card reviews for which the site receives a commission (upon successful application). The site also has an FTC disclosure in the right sidebar. Together, these two disclosures make it one of the most transparent credit card sites I know of.

Credit.com was founded in 1995 by Adam Levin, who used to be the Director of the New Jersey Department of Consumer Affairs. The company is based in San Francisco and New York.

Tom Purves / Flickr

This is a post by BargainBabe.com writer Yazmin Cruz.

Your smart phone is about to get smarter as mobile payment apps replace swiping plastic, by enabling you to tap your phone and exchange your credit card information via a radio frequency field. But just how safe is this?

I first learned about mobile payment apps in a college personal finance class. My professor warned us to be careful about using these apps until laws catch up with technology. Let me explain.

Once upon a time

the government enacted laws to protect consumers using credit cards. For example, did you know that by law you are not liable for any fraudulent transactions if you report your credit card missing before the card is charged? Or that you are only liable for $50 if the card is used before you report it? Before these laws were on the books, each credit card company had their own rules and some followed regulations imposed by the industry itself.

Which is where we are now with mobile payment technology. There is no standard for how mobile payment app companies should handle fraudulent transactions. Each offers their own policy on protection for fraudulent or disputed charges. Notice that the existing credit card law has no reference to mobile payments even though you’ll still be using a credit card via your cell to pay.

Another reason to stay away from mobile payments is that, like credit cards, it desensitizes us from our cash. Mobile overspending will be just as easy as when using plastic because the whole transaction is disconnected from our money – or lack thereof.

A third problem arises when your mobile phone gets lost, stolen, or hacked into. While many of the companies pushing mobile payment apps are reassuring customers they use the latest technology to encrypt their information, take precaution by knowing beforehand what you are liable for in case your phone gets into the wrong hands. If you think you’ve been the victim of identity theft, act fast to avoid major damage to your accounts.

What other safety issues are you worried about? Or are you looking forward to putting your credit cards away and using your phone to pay instead? If you’ve used a mobile payment app, what has been your experience?

Real or fake? Credit: dreamglowpumpkincat210/Flickr

The fraudulent email I received from my credit card company, well, turns out it was real! After receiving the suspicious email and phone call asking for my social security number, I alerted the company and shared the email and phone number. Here is the (edited) response I received this morning from its Abuse department.

Thanks for checking with us on this e-mail. It actually is a valid e-mail that we sent to our customers and we’re sorry if it alarmed you. We appreciate your bringing it to our attention.

The response also included tips to detect phishing e-mails.

- Be careful of urgent-sounding e-mails that ask for your personal information.
- If you get an e-mail that claims to be from us but you aren’t sure, or you think it’s suspicious, don’t click any of the links. Just send it to us then delete it.
- Notice typos and grammatical mistakes. It’s a dead giveaway in fake e-mails.

And the email from my credit card company suggested these steps to make sure no one gets access or my personal information. Interesting that it omitted credit card freezing to prevent theft.

- Log in regularly to your online accounts and notice the last log in date.
- Check your bank and credit card statements to make sure all that you recognize all the transactions. If something looks suspicious, give us a call.
- Make sure you update your browser with the latest version and install any security patches that come with it.
- Make sure you have up-to-date anti-virus software and that run a scan on your computer at least once a month.
- Be careful when you download free software off the Internet. A lot of that free software can have viruses or other malicious software that could steal your information.
- Pay attention to e-mails from us—or other online companies—that tell you about e-mail and address changes, or any other activity on your accounts.

Lastly, the response said here’s what to do if I’m worried I clicked on a fraudulent email.

- Call us immediately to report that account information may have been compromised.
- Log in to Capital One Online Banking and change your password and security questions.
- Check your accounts for suspicious activity.
- Run your antivirus software on your computer.

I’m still concerned about the phone call, and replied that asking for my social security number was “a ridiculous question and one that should not be asked, even by legit callers. Your company should know better.” But I am a tiny bit relieved.

• Decide on the type of credit card you need. There is a wide variety of credit cards available from those designed for students to professional business people. There are different pros andcons with each type of card, so it makes a difference on the type you need.
• Look for the APR, or Annual Percentage Rate, for each credit card. Some cards will offer a very low APR as an introductory offer, and at some point in time a higher interest rate will apply. These periods of time can range from a couple of months to a year. There are credit cards offering 0% APR for up to a year!
• Keep in mind credit cards with a low APR (4.99 to 8.99% is considered a good rate) apply to those with good credit. People who have less than stellar credit will be looking at interest rates of much higher than that. A credit card that assesses an interest rate at 20-30% is really not worth it, as that high of a rate will most likely make it close to impossible to pay the balance down if you don’t pay it off every month.
• Determine if the credit card allows 0% balance transfers, which will come in very handy should you need to transfer a balance from one card to another.
• Compare credit card reward programs. This can be a good way to get an extra bang for your buck. If you travel a lot, credit cards that offer air miles or hotel discounts may be a great choice for you. If shopping is your thing, many credit cards offer both online and offline deals.

Make sure you read all the fine print. It is dry and boring, but the more you know the better you can protect yourself. Sometimes making a simple spread sheet can help you detail the benefits of different cards. It’s worth the time and trouble now, to save you money and to save you from financial concerns in the future.

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Freeze your credit beyond ice! Credit: paalia/Flickr

The best way to prevent identity theft is to freeze your credit, a little known and little used tactic. The second is to chose a harder password (more on that below). I learned both these tips last week during a savvy-shopping summit hosted by ShopSmart magazine, which is published by Consumer Reports.

New York Times’ Ron Lieber, who writes the Your Money column, shared the first nugget. The good thing about freezing your credit, which is NOT the same as literally freezing your credit card in a block of water, is that no company can open an account in your name this way. (The exception is any company you already have an account with.) So if a criminal, or your next door neighbor, is trying to open an account in your name, no dice. A bank, mortgage lender, or other company won’t be able to

access your frozen account, disabling them from establishing a new line of credit.

The downside is that it costs about $20 to freeze it, and then it costs a little more money to thaw it. You can set a credit freeze online that takes place almost immediately at all three credit bureaus: set a credit freeze at Equifax, Experian, and Trans Union.

The second nugget comes from Amazon CEO Jeff Bezos, who spoke at the ShopSmart summit.

“Chose harder passwords,” Bezos said. Your online bank might be super secure, but if you use the same password for a low-security site, criminals may get access to the weak site and use that password for sites that are harder to crack.

Do you use the same password for multiple sites?

Shhhhhheeeeyyyeeeeesss. (That’s me shushing you while admitting guilt.)

A good way to remember all those uber-difficult passwords you’re going to set is a smartphone app that save your passwords. Remember the password for the app, and up pop all your other passwords so you don’t have to remember them. Anybody got one to recommend?

Don't let your credit cards turn into a headache. B Rosen / Flickr

This is a post by BargainBabe.com writer Yazmin Cruz.

With recent breaches of personal data security from Sony, Michael’s, and a Dallas-based email management company, consumers must take steps to keep their information safe. Think you’re untouchable? Take these easy six steps to make sure.

1. Monitor accounts – If you notice something out of the ordinary in your bank or credit card statements, give the company a call. Keep an eye out for charges in other states, online transactions, and gas charges. These transactions are the most commonly made by hackers because they require little, if any, personal interaction, making them an easy way to test a stolen card.
2. Change your passwords – Keep your online accounts safe by frequently changing your passwords and making them as strong as possible by using allowed characters and numbers. Make sure to use different passwords for each of your accounts and most importantly don’t share your passwords with anyone. (A good way to keep passwords safe is with a password app or manager.)
3. Change your PINs – Like passwords, these numbers need to be kept in a safe place and not in your wallet. Avoid identity theft by knowing what should and should not be in your wallet. Call your bank and credit card company to change them when necessary. Do not use birth dates as PINs as hackers tend to attempt these numbers first.
4. Report phishing emails – If you ever get an email asking for your username and password, do not respond. Keep in mind that most banks and credit card companies do not ask for such information via email. Instead forward the email to the bank or credit card company so they become aware that their customers are being targeted.
5. Check your credit report – Make it a habit to check your credit report every year to keep your finances clean of any mistakes. You can get a copy of your report online. It’s free once a year.
6. Know your rights – Buying identity theft insurance is pricey and not necessary. Under federal law, if unauthorized charges are made with your credit card, the maximum amount you can be liable for is $50, that’s if you report it after the charges have been made and not within 60 days after the billing error. If the charges are made after you report the card lost or stolen, you have no liability.

Many credit cards offer some sort of incentive, but some credit cards which offer air miles also have decent typical APRs, inviting balance transfer offers and 0% on purchases, so as well as getting a good deal on the card, you could also be earning air miles every time you use it. Some credit card providers even offer special deals for new customers, so you can start building up your miles more quickly.

Some people may be wary of air miles credit cards, but providers are joining forces with reliable companies and banks, all over the world. The credit cards associated with banks, rather than airlines themselves, are often a lot more flexible about which airlines you can redeem your miles on, so that is something to remember when choosing a deal.

So when you spend, you receive air miles which can then be used for free air travel. As well as the flight itself, many providers offer other related rewards, such as travel insurance. And if you would prefer to travel in style, you can use air miles to upgrade yourself from economy. There is also the option of ‘topping-up’ your air miles by paying the extra it would cost to reach your preferred destination, if you find you do not have enough miles to get where you want to go.

Of course, even if you do not travel frequently it is still worth saving up air miles, as they will accumulate and you may find one day that you have saved up enough for your dream holiday abroad!

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taberandrew/Flickr

Got a credit card you love? Sharon is looking for one with a high cash back rebate to use for a trip to Disney in 2012. She writes:

I need a credit card that is best for flyer miles, no black out dates, no fees and good %. Which one do you recommend? We will go to Disney in 2012. I’m so confused reading all the cards and can’t decide! Thanks so much ~ Sharon

I would recommend comparing credit cards at three sites before making up your mind. I like NerdWallet, BillShrink, and Mint. Each site asks questions about your spending habits to sift through credit card terms and present the best matches to you.

Why use more than one site? Most sites that review credit cards have an interest in recommending certain cards over others because they are paid through affiliate links for each person who signs up for a card. By comparing results at multiple sites, you’ll be better able to sift through the crud and find a good card. Things to keep in mind:

• 1 percent cash back is standard, so push for a higher cash back (as long as you can abide by the terms).
• Knowing how much you spend on plastic each year will help you decide if paying an annual fee is worth it.
• Do the math. Calculate how much you would earn, minus fees, using your top three credit card contenders.
• Is earning miles more important than the cash back percentage? You may have to pick one over the other.

My main credit card is a CapitalOne card with a 1% cash back rebate, which is more important to me than airline miles. I’ve been meaning to get a separate card for groceries and gasoline that have a higher cash back rebate. What do you think Sharon should do?