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Here’s a blast from the past: coupon clipping has made a strong comeback. Earlier this month, New York Times business blog, Drilling Down, reported that 3.5 billion coupons were redeemed in 2009, a jump of 700 million over 2008’s redemption numbers. The last big year for coupon exchange was apparently in 1992 when 7.9 billion were redeemed. After that, overall use declined. Issuing coupons was seen as a waste of paper, a wasted corporate expense, and considered socially passé.

Guess there’s nothing like an extended recession to bring back a true blue. Especially when budget strapped customers begin comparing the price of Brand X laundry detergent to Cheer or even worse, Dreft, a $12/bottle baby clothes detergent.

Mathew Tilley, marketing director at one of the biggest coupon processors says, “In a down economy, coupons might make the difference between turning your loyal consumer over to a private-label brand, and keeping them in the fold. In essence, you’ve lowered your price for them in a short period when they needed the help.”

But while coupon clipping may be a golden oldie, it’s got a definite modern day tenor. Sure, there are still those who clip from the Sunday papers but Media Daily News reports that in 2009, the digital coupon business jumped 170% from the previous year. Budget conscious shoppers are looking for, and finding, good online deals.

Coupons.com is an aggregated savings site that allows customers to search out particular coupons to print or download either to a mobile device or customer loyalty card. The site has accumulated some astonishing numbers. “Last year, the Coupons.com network redeemed $858 million in coupons — up from about $320 million in 2008 and about $140 million in 2007, for a total increase of over 500% in just two years. Overall, 45 million consumers used digital coupons in 2009 — up almost 20% from 38 million in 2008. In percentage terms, that represents an increase from about 12% to 14% of the total U.S. population.”

There’s even a site for the seriously-time strapped. In December, CNN Money Reports interviewed Shannon Justice on how she turned her budget needs and past marketing expertise into lean, mean, coupon-hunting machine. Observing that coupon clipping (paper or virtual) is a time suck, Justice created SmartCouponDeals.com. Members pay $5 per month and receive coupon and saving email alerts on customer-designated pharmacy and grocery stores such as Walmart, Kroger, CVS, and Food Lion.

The savings can be quite substantial. One pharmacy sale notification included an alert on Bayer blood glucose monitors. Typically priced at $60, Walgreens offered them at a one-week only sale price of $15. For those watching both budget and medical costs, this alert more than paid for the monthly membership.

Marketing may have once painted coupon clipping as a nostalgic remnant but their multiple benefits for today’s shopper are no laughing matter. Coupon savings give consumers both a sense of budget control and savings savvy – rare ego boosts in these still-tight economic times.

We all know the usual budget derailments like car repairs, Starbucks runs, iPhones, and eating out. But what about those not-so-obvious cash drains like Facebook applications? Not so, you say. They’re just fun time wasters on a great social media site and besides, what else am I going to do since I’m still unemployed?

Ok. I can accept your point. After all, enough people have commented about Facebook providing an unexpected silver lining during some very rough times. So many old friends to find, so much news to catch up on, so many great applications to check out.

And unfortunately, a few new ways to bust the budget.

Frankly, I was a reluctant Facebooker. I had no time and even less interest. But I was told, in no uncertain terms, that if I wanted to keep in touch with my socially hip friends, I had to join. Apparently, email is as passé as a handwritten letter – who knew?

So I sucked it up, created an account, and had some fun.

I didn’t get the Farmville and Mafia Wars hype though, especially when I found out users could buy virtual privileges. It just didn’t make sense to me. If I’m already on a budget for real life items, why would I want to blow money on virtual stuff I can’t even use?

And then there are the tests assessing your 70’s groove thang, sports personality, or doppelganger tendencies. Continue Reading »

Few people like talking about it.

Fewer admit doing it.

But as the jobless recovery grinds on, more people find that they have no choice but turn to family members for financial help. A December New York Times/CBS poll revealed that out of the 700+ people surveyed, over half had borrowed money or requested some other assistance from family or friends.

Swallowed pride, eating crow, loss of independence–whatever you want to call it, asking siblings and parents for help is not easy.

After all, it’s one thing for a newly-graduated, 20-something with college loans to move back with Mom and Dad. It’s another when the mid-career, almost 40-something, moves back in. And let’s not forget the unexpected monkey wrench when older parents lose jobs, houses, or suffer medical setbacks.

Borrowing from the family bank often generates queasy feelings for both borrower and lender, regardless of whether the lender is the parent or the child. As one person put it, “It’s a cliché, but when you lend money to a friend, when you lend money to family, it changes things.”

But it doesn’t have to be this way.

In fact, many borrowers have a fierce sense of pride about repayment. Some family members will even insist on drawing up a repayment schedule.

Formal notes are one of the more equitable ways to approach this emotionally fraught situation. For the borrower, a private loan can set a manageable interest rate, create flexible repayment options, and possibly allow future tax deductions. For the lender, there is future interest and principal income, plus an assurance that the loan might actually be repaid.

However, while formal notes can reduce the stress of Family Bank borrowing, Smart Money Magazine adds a final caution. The IRS is particularly vigilant about “interest-free” loans that exceed the $10,000 annual, tax-free gift limit. If you don’t establish an interest rate, they’ll gladly set one for you.

Bottom line: formal notes can make a difference so just make sure your tax accountant ties off any loose ends.

Note:  BudgetTrackers currently have two Lender/Borrower options available. They can either create a loan entry in the “My Bills” section or an “I Owe You” memo that connects both the lender and borrower (as long as both are BudgetTrackers) until the debt is satisfied.

Other resources to check out:

Borrowing from friends and family to buy a house. While this article refers specifically to documenting private mortgages, it has pointers that can help with other family-type loans.

Keep in mind that not everyone is a reliable debtor. If you have one of these in your family, check out this useful article (plus, interesting reader comments) from Money Magazine.

If it looks too good to be true, it probably is.

Twenty years ago, Mom was probably referring to things like the Publisher’s Clearing House Sweepstakes, free puppies, and clowns. Today, Mom would most likely replace the sweepstakes scam with debt settlement companies.

And for good reason.

Debt settlement companies quickly spring up in bad times and vanish just as quickly in good. Most people don’t even realize these exist until skyrocketing debt levels come pounding on the door. Then they appear, circling, as the graphic Southern vernacular puts it, “like crows around road kill.”

Dark humor aside, the reason why there are so many debt settlement companies is quite simple. Seasoned Budget Trackers already know the challenges of successfully paying down credit card debt. For those new to the budgeting self-discipline, it can seem overwhelming. And after a few rounds on the unexpected medical bills + mortgage interest rate jumps + threatened job loss rollercoaster, a settlement company’s expert appeal can appear heaven-sent.

But before saying that you’re too smart to fall for something this obvious, consider this point.

Anyone who’s recently attempted a mortgage modification, probably thought more than once how nice it might be to have someone else deal with all the red tape and all those voice-activated phone trees from hell.

Continue Reading »

This video will walk you through setting up a new Bill or Credit Card along with some features that come with the My Bills page.