It is a little-known secret that credit card companies don’t want you to know. If you call them and ask them to lower your rates, they might just do it. Of course, it helps if you are a good customer with a long history with the creditor and have good credit. It also helps to carry a moderate balance and make considerably more than the minimum payment each month. If the credit card company sees you as a low risk borrower and knows they receive monthly interest payments from you (i.e. you carry a moderate balance), they will want to keep you as a customer.

Initially, the credit card representative will tell you that it is just not possible for them to lower your rate. At this point, you should say something like, “Are you sure because I just received a pre-approved offer for a credit card with an interest rate that is half of what I’m paying you and will allow me to transfer my entire balance from this card to theirs for 0%. I’ve been with your company for a long time so I thought I’d see if there was anything you could do.”

The representative will tell you to hold on for a minute at which point she will put you on hold and curse the fact that it was her who picked up your call. Then she will come back and tell you the good news about your new lower rate or tell you to take a hike.

If she tells you to take a hike, you’ve only lost a few minutes of your time. If she comes back with a lower interest rate, you have just saved thousands of dollars a year and it only cost you a few minutes of your time.

The credit crunch has made this tactic more difficult than it was in years past, but if you are a good customer and have good credit, your odds of getting a lower interest rate are somewhere around 50%.

Here’s what’s wrong with store credit cards.
1. The interest rates are usurious. In other words, they’re really high. Think 20%-30% high and that’s for people with good credit. There is no reason to pay these high interest rates unless someone is threatening to break your legs.
2. The store runs a regular credit inquiry on you. This means it registers on your credit report. This factor alone should be enough to dissuade you from applying for the card. Credit report inquiries of this type negatively impact your credit score. And although credit card companies deny it, they may take the actual store into consideration when looking at the rest of your credit report. If you apply for a store credit card at Store XYZ and the credit scoring algorithm determines that most people who apply for Store XYZ credit are deadbeats, you get thrown into the deadbeat pile. Not good.

The retail stores know that most people who sign up for the card will not pay their full balance off on the first payment. They know that they will make multiples of the original discount you received on merchandise in their cut of interest and fees, not to mention repeat business by people who are spending money they don’t have by charging their purchases to their store credit cards.

Signing up for store credit cards is a surefire way to lose money.

For those who do not know what a coupon code is…have you ever gone through an online checkout and seen a little box that says “Promo Code” or “Coupon Code”? If you have seen the box and not entered a code into it, you have paid more for the item than you could have.

We use coupon codes on this site. For example, in one of our recession tips, we mention a budget spreadsheet at The Spreadsheet Store. But rather than simply mentioning the spreadsheet, we also offered a 20% off coupon code to use in their online store. Don’t tell anyone, but it’s RECESSION20. OK, tell whomever you wish to tell.

A good way to find coupon codes is to do a Google Search. If you clicked on the Google Search in the previous sentence, you noticed lots of sites that specialize in collecting coupon codes from online retailers.

Another great way to find coupon codes online is to visit forums and blogs related to the product you are looking for. Many times, companies will issue coupon codes to these sites in an effort to promote their product to those sites’ visitors. If you are interested in fitness equipment and can’t find the coupon codes you are looking for in a general Google search, go to a fitness website, register and have a look around. You may be surprised at the discounts you will find at these sites.

If you absolutely cannot find the coupon codes you are looking for and you have some time, you may wish to experiment with certain generic codes like 20OFF or MEMBERDISCOUNT or things like that.

Online coupon codes usually take just a few minutes to find and save you lots of money.

What does this mean? It means you take 10% of your after-tax income and save it, preferably using dollar cost averaging in an equity index fund. You do this before making your budget or paying your other bills and you do it every time you get paid.

You may be thinking, “The stock market is tanking…why would I do that?” We hear ya. The beauty of this strategy is that during the down times, your 10% buys more shares and during the up times it buys fewer. This means you will be insulated from stock market swings. Add in the effects of compound interest and you may just end up rich no matter what the economy and stock market do.

Some great books to check out in terms of paying yourself first are The Wealthy Barber and The Richest Man in Babylon.

We highly recommend both books.

If you do nothing else suggested on this blog, pay yourself first. It is the single best thing you can do for your financial future.

Start by writing down all of your expenses for one week and taking a look at how you are spending your money. This will be an eye-opening experience. Divide your expenses into categories and make cuts where you can.

Also be realistic about your income. If you make $1000 per month after taxes, your budget should not have more than $900 in total expenses allocated. The “missing” 10% ($100 in this example) is used to pay yourself first. In other words, no matter how much or how little you are making, it always pays to pay yourself 10% of your after-tax income before setting your budget.

We can hear you grumbling right now but in this case it’s truly “No Pain, No Gain.” (But hey, this is just Recession Tips, not Recession Rules so do what you want.)

If you are not comfortable setting up your own budget, there are tools available to help you set one up.

PC users should take a look at Microsoft Money and Mac users should take a look at Quicken for Mac.

If you know your way around Microsoft Excel, you should check out a budget template. Recession Tips members can save 20% on this budget template by entering coupon code RECESSION20 at checkout.

Of course, no tool will help you unless you commit 100% to live within your means.

1. Write it down.
2. Make a budget.
3. Pay yourself first.
4. Examine your monthly debits.
5. Be realistic about your cable television needs.
6. Ditch the land line.
7. Get an unlimited text messaging plan.
8. Talk to your spouse and/or children about your economic situation.
9. Shop with a list and stick to it.
10. Use coupon codes when shopping online.
11. Make day trips close to home instead of going on an extravagant vacation.
12. Develop a “prison workout.”
13. Buy a coffeemaker.
14. Drink lots of water.
15. If you’re a man, cut your own hair.
16. If you’re single, use an online dating service.
17. Wake up early.
18. Press “Mute” during commercials.
19. Sleep on it.
20. Avoid “convenience” stores.
21. Unless you drive a Ferrari, don’t buy premium gasoline.
22. Reduce your stress.
23. Clean out your closets and your garage.
24. Bring your lunch.
25. Pay more than the minimum credit card payment each month.
26. Pay off high interest rate credit cards first.
27. Bathe and brush your own pet.
28. Develop a charity plan.
29. Eat at restaurants on special occasions only.
30. Never sign up for store credit cards.
31. Be smart about who you let into your inbox.
32. Use your public library.
33. Have a snack and drink a large glass of water before going shopping.
34. Get a Netflix membership.
35. Use movie theater outings for special occasions only.
36. If you have pets, find a veterinarian who offers free ancillary care.
37. If you don’t drink, never “split the check” with people who do.
38. Take digital photos and store them on your computer.
39. Always carry an energy bar.
40. Use a water filter.
41. If you are single, go for a walk on your first dates.
42. Never use ATM’s that charge a fee.
43. Forget about picking stocks.
44. Buy store-brand trash bags.
45. Join a professional association.
46. Buy your clothing from outlet stores.
47. Never borrow money to pay for food, utilities or clothing.
48. If your employer matches 401k contributions, contribute (at minimum) the percentage they match.
49. Stay away from the freezer aisle.
50. Go outside for some fresh air and sunlight.
51. Call your credit card companies and ask them to lower your rates.
52. Buy dessert at the grocery store.
53. Become familiar with all of the benefits offered by your employer and use them.
54. Cancel your newspaper and magazine subscriptions.
55. Don’t leave your job until you have another one lined up.
56. Never buy anything located near the checkout counter.
57. Don’t use your checking account overdraft protection as a regular line of credit.
58. Trade babysitting nights with a friend or neighbor.
59. Ask for discounts on products and services.
60. Sleep for eight hours each night.
61. If you can’t pay all of your taxes, set up an installment plan.
62. Monitor your credit.
63. Avoid checking account overdraft and credit card over limit fees.
64. Use store discount cards.
65. Pay your bills on time.
66. If you’re signing up for a monthly service, ask for any setup fees to be waived.
67. If you can’t pay a bill, call your creditor and ask to work out a payment plan.
68. Ask your boss whether layoffs are planned at your company.
69. Open your mail.
70. Use dollar-cost averaging to invest in an index fund.
71. Trade in your booze and cigarettes for a gym membership.
72. If you have cable television, skip the HDTV purchase.
73. Never take an early withdrawal from your retirement account.
74. Take public transportation when possible.
75. If you have to drive to work, set up a carpool.
76. Buy generic prescription medication when available.
77. Use coupons for grocery shopping.
78. Don’t exceed the posted speed limit.
79. Consider public school for your kids.
80. Beware of phone/cable/internet bundles.
81. Turn down the heat.
82. Avoid flagship shopping districts.
83. Forget about keeping up with the Joneses.
84. Before making a large purchase, calculate how many hours of work it takes for you to make that much money.
85. Instead of giving a birthday or Christmas gift, write a heartfelt letter to someone.
86. Don’t buy lottery tickets.
87. Use positive self-talk to attract wealth and income.
88. If you work for someone else, start a side business.
89. Beware of the grocery shrink ray.
90. Know how much you and your time are worth.
91. If you are single, do not get involved in any way with a spendthrift.
92. If you need to purchase an expensive item, bring competitors’ advertisements with you to the store.
93. Don’t read catalogs (even for fun).
94. Don’t lend money to your friends.
95. Don’t “invest” in “get rich quick” programs.
96. No one needs 50 pairs of shoes.
97. Do not go to Las Vegas or Atlantic City (or anywhere else where gambling is legal).
98. Diversify your sources of income.
99. Live like your parents lived.
100. Don’t go it alone.