Buying a home is exciting, but it can also come with unforeseen economic obstacles. If you are a first-time homebuyer, you should be cautious to avoid financial surprises or errors when buying a home.

What follows are examples of four common mistakes that homebuyers make—and tips for how to avoid them.

1. Buyers don’t know their credit score. Knowing and understanding your credit score are important first steps to buying a home, says Walter Molony, an economic affairs media manager with the National Association of Realtors (NAR).

“In all probability, you’re going to need a mortgage,” Molony says, “And if you can’t qualify for a mortgage, you’re just going to be wasting your time.”

Because lax lending standards over a period of time caused the boom—and recent bust—in the housing market, lending standards now are much more restrictive, Molony says.

• Figure out your credit score

Good credit is one of the first things lenders will look for in a potential homebuyer, so people should know whether they would be eligible for a mortgage. Common-sense actions like paying bills on time and not taking on multiple new lines of credit at one time could help potential buyers look better to lenders, Molony says.

2. Buyers don’t understand the pre-qualification process. In addition to understanding their credit scores, prospective buyers should go through a pre-qualification process with possible lenders to get a better idea of what they can afford.

“The fact is, buyers are usually very well positioned in terms of knowing what they can afford…without going through the pre-qualification process,” Molony notes. “But being pre-qualified for a mortgage gets you a leg up if you’re competing [for a home] with another bidder.”

3. Buyers are overwhelmed by prices. Every first-time homebuyer—or seasoned buyer, for that matter—should research average home values and real estate prices in the areas in which they’re thinking of buying. Numerous commercial websites show the prices at which homes in various areas sold, as well as listing prices for comparable homes in those areas.

For most buyers now—nine out of 10, according to data from the NAR—heavy research will be done via Internet before they take the next big step and contact a real estate agent.

“There are hundreds of thousands of real estate websites out there, so it can be a little like getting a drink out of a fire hydrant,” Molony says. “People want an agent to put that in context for them.”

4. Buyers don’t have the right team in place. When choosing an agent, home inspector, or lawyer to help with the purchase of a home, buyers need to know with whom they’re dealing. All real estate agents should be licensed through the state. Some agents are Realtors, meaning they follow a certain code of ethics set out by the NAR. Some agents represent the seller’s interest, while others represent the interests of the buyer, and still others represent the interests of both.

Prospective buyers should choose agents and other real estate professionals based on trustworthiness, knowledge in the market, and expertise, Molony advises. People often learn of such agents through word of mouth.

“Choosing a real estate agent is one of the biggest steps because buying a home, for most people, is the single biggest financial transaction [in which they are involved] in their lifetime, and they want to have a lot of confidence in that agent,” Molony says. “It’s really important that you have a good rapport with that person.”

Ask your friends and family for referrals before heading to the Web to search for real estate professionals. Then, meet those professionals in person before making your final decision.

By understanding your finances, doing thorough research on the real estate market, and surrounding yourself with a great team, you can avoid these common mistakes when you’re buying a home.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

According to a recent survey done for InsuranceQuotes.com by Princeton Survey Research Associates International, only 10 percent of Americans claim to be very knowledgeable about the Affordable Care Act, commonly known as Obamacare.

“People in general are not very well informed about the [Affordable Care Act], and I think the primary reason is the most significant parts of the law haven’t gone into effect,” said Alan Weil, executive director of the National Academy for State Health Policy.

Many of the survey respondents weren’t aware of when changes would go into effect, and they also didn’t know when they’d need to sign up for health insurance exchanges.

These exchanges are government-run marketplaces—primarily online—where people can compare and purchase an insurance policy, with a set of in-person options to help customers navigate the marketplace.

“There’s certainly an understanding that you can’t make this work if all you do is sort of send people to a website,” Weil said.

Exchanges will be run by individual states, by the federal government when states have chosen that option, or by a partnership between a state and the federal government.

However the exchange is run, the options and benefits available in the exchanges will be virtually the same, Weil explained. “Their functions are identical. They’ll find out if you’re eligible for a subsidy, give you options of plans, and get you enrolled.”

In general, plans offered through the exchanges will look much like private insurance plans do now, although they’ll be more structured and there will be some improvements in the nature of coverage.

According to Weil, insurers in the exchanges are required to offer “essential health benefits,” which are the types of services that have traditionally been covered by typical employer-sponsored health plans.

The health insurance plans offered will vary from state to state, but all plans will be required to offer certain federally-mandated options, like coverage for preventative services, maternity services, and pharmaceutical services.

Depending on income and family size, people may qualify for free or significantly discounted insurance plans through an exchange. According to healthcare.gov, a website set up by the federal government to explain recent and ongoing changes in health care laws, a new kind of tax credit will also become available.

People will not be required to purchase insurance through the exchanges—insurance through the private market will still be available.

“Very, very few people who have insurance through a job will want to switch over. I wouldn’t even encourage those people to give it much thought in the first year,” advised Weil. “It’s very unlikely someone with employer-covered health insurance would find themselves better off in the exchange—unless they’re getting very skimpy coverage through work.”

Those with comprehensive coverage through an employer aren’t eligible for most subsidies in the exchange. In fact, the primary targets of the exchanges are uninsured people or people—often those who are self-employed—that are currently buying insurance on their own.

Information on insurance plans that will be available through the Health Insurance Marketplace can be accessed now at healthcare.gov.

Enrollment in the new health exchanges will begin Oct. 1, 2013, and coverage through the exchanges will begin Jan. 1, 2014.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

Take real estate investor Theresa Bradley-Banta (pictured right), who has created two businesses, one drastically different than the other. She started out 23 years ago with her own graphic design firm, but now she spends her days flipping not just houses but also multi-million dollar apartment buildings with her business, the Theresa Bradley-Banta Real Estate Consultancy.

Initially a freelancer designer, Bradley-Banta started investing in real estate when she and her husband moved out of their home. Instead of selling the house, she rented out her old home to a group of college girls and loved the experience. This inspired her next business endeavor, with which she expanded her business knowledge and learned tools for success.

Tip 1: Follow your passion.

Bradley-Banta’s first experience as a landlord led to more real estate acquisitions and eventually to flipping properties, which she found she enjoyed more than day-to-day property management. But it would take a hefty stash of 20 houses to afford a property manager that could take some of the work off her hands, so she switched to multi-family buildings.

“I bought a 29-unit building, completely renovated that property, and ultimately flipped it,” she said. In doing so, she found she was more passtionate about renovating properties than graphic design. “I really enjoyed that whole process of taking up an old, rundown building that was poorly managed and making it beautiful and a really nice place for residents to live.”

Tip 2: Have a clear vision to get where you want to go.

When she began considering larger buildings, she knew she would need the right team of people behind her and a plan to get there.

“I had a purpose behind it. I wanted to really impact lives,” she said. “It wasn’t a big pile of money at the end. The most important thing I did was I started driving around and looking at apartment buildings in town and picturing myself owning them. I thought about the lives I could impact by being a great landlord. I dreamed about the buildings I could change and the team I could have in place. I really had the end in mind.”

Identify first why you want to start your own business—whether it’s to make enough money to live, to share a passion with the world, or to help people. A profit is usually the goal of any business, but identifying other, more personal goals will help guide your plans.

Tip 3: You don’t have to know everything to get started; you just need to know enough.

Don’t let your lack of expertise scare you from starting a business. As your business grows, you will learn from the experiences and people you encounter along the way.
“Just get started—you’ll learn as you go,” Bradley-Banta said. “Just make sure you’re not leaping off a cliff.”

Tip 4: Surround yourself with positive, engaging people.

The best way to gain the knowledge and support you need is to surround yourself with people who can help you—whether that’s good lawyers or good friends.

“I think it’s really important to hang out with the right people,” she said. “It’s not easy, but if you’re spending time with people who are negative, doing the same stuff day in and day out, and constantly coming up excuses about why they won’t change, you’re not hanging out with the right people. It’s just really that who you associate with plays a huge part in your success, so be aware of it.”

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

There are often more pressing questions than immediate answers, and small business consultant Barry Moltz knows this. Moltz has started three businesses, selling his last one in 1999, and he now coaches entrepreneurs and businesses on how to get started—and how to get unstuck when they face problems. He has written four books on a range of small business topics, including starting and growing your business, overcoming failure, perfecting customer service, and establishing your brand.

Moltz has plenty of tips to go around—what follows are a few bits of advice he often gives to entrepreneurs who are just getting started.

1. First ask yourself: What pain or problem does my product solve, and who am I going to target that needs to solve this pain or problem?

“Those are the first two questions, and it’s always good to see who that first paying customer going to be—that’s not your relative—someone that’s really buying because of the product or service,” Moltz said.

2. Find out what truly goes into running a business.

“A lot of people just want to provide the service and craft. They don’t realize they have to deal with all kinds of other things, like employees and taxes and cash flow,” Moltz said.

There’s a lot that goes into a successful business, and at the very least, you need to understand what those things are, from accounting to hiring to management.

3. Find a mentor.

To help you understand what is needed to run a business and to help you through any bumps in the road, Moltz suggests finding a mentor in your field or a similar one. You could meet someone at business networking events, through a local chamber of commerce, or through a website such as Score.org, where retirees connect with new entrepreneurs.

4. Solicit the support of your family.

“This really is a team sport,” Moltz said. “You need the support of your family so when things go well, you have someone to celebrate with, and when things don’t, you have someone to kind of pick you up.”

5. Let go of your mistakes.

Computer game developer Rovio Entertainment made dozens of games before it released the wildly popular Angry Birds. Moltz uses this as an example to not give up.

“You’ve got to try to figure out what went wrong, if you can learn anything from it, and then let it go and stop beating yourself up,” he said.

6. Know the difference between being a business owner and a solopreneur—and decide which one you are.

A solopreneur is an entrepreneur who operates solo, meaning that you are the entire business. Think about crafters on Etsy who make a living selling wares they create versus the owner of a local restaurant.

“You’ve really got to decide, have you just created a business or just created a job for yourself?” Moltz said. “A business is something that runs and makes you money without you being there present.”

Knowing which you are will help you adjust your expectations and better understand your business model.

7. Keep an eye on ways to grow your business, sales, and profits.

Once your business gets on the ground, you should always have a plan for the next step, even if it’s just a vague idea saved in a document on your desktop somewhere. Any growth —whether it’s in sales volume or physical space—is going to need extra time or money. Consider creative ways to get either, such as from crowd funding or by finding investors.

8. Productivity is king.

It’s easy to get overwhelmed when you’re first starting off. You may have customer demands, an inbox full of e-mails, vendors to coordinate, and employees to manage.

“We really live in a distraction-based culture,” Moltz said. “To improve productivity, think about the one or two things you have to get done in order to be successful. Do those things before you get involved in your email and your customers.”

What has been your greatest challenge as a small business owner? Leave your comments below.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

Once you’ve decided you need office furniture—because your business is growing, you’ve recently rented office space, or you’re taking on new employees—it’s time to figure out how much to spend on that furniture and how to acquire it.

For many business owners, used furniture is the way to go because it offers significant savings over new—up to 70 percent for some companies.

One way that many business owners have been picking up good deals on used office furniture is by participating in auctions. But head into an auction without a game plan and you can wind up overspending.

Here are five tips to help you with the process of buying used office furniture at an auction.

1. Give yourself time. Don’t wait until you are in desperate need to start checking out your options. As soon as you have an inkling that purchasing office furniture is in your future, find out what’s available and how much it will cost. Compare prices of new and used furniture. Check out warehouses, retailers, and big box stores, as well as auctions. Talk to furniture sellers, buyers, and fellow small business owners who have purchased furniture. Having a really solid idea of what works for you and how to get it before you need it will allow you to jump when the opportunity is right.

2. Go in with a budget. James LaGesse has 23 years of experience selling office furniture at auction as auctioneer and director of LaGesse Auctions in Fort Worth, Texas. He recommends coming in with an overall budget and not necessarily one that is itemized by product, which can be limiting. Make a priority list of items instead. But above all, says LaGesse, “always stick to your budget.”

3. Do your research. The only way to know whether or not you’re getting a good deal in the chaos of an auction is to do your research beforehand. Many auctions include a preview day, where potential buyers can come in, see the furniture, and ask questions about the products as well as the auction itself. Ask the staff what the items typically go for at auction. Compare furniture up for bid with similar items for sale. Make sure what is available will meet your needs.

“If you have the time, come in at the auction facility, walk it, and kick the tires, as they say,” LaGesse says. “Looking at pictures and descriptions are one thing, but seeing it in person is entirely different. Other than your rent, your furniture is going to be with you the longest. Think about comfort, utility, and then impression.”

4. Understand the rules and tempo of the auction. Each auction can have its own rules, so it’s important to research exactly how a particular auction will go. Is there a minimum bid to which the auctioneer must stick, or could he drop from the opening offer? Are there people bidding over the phone or online? How many people typically show up? Who is your biggest competition—other business owners or furniture dealers? Does the furniture sell in bulk or in individual pieces? Is there any reasoning behind the auction order? Have someone walk you through the auction—or better yet, go to one without bidding to get a hang of how it works before you’re ready to buy.

5. Keep your emotions in check. Bidding at an auction is often a much more emotional experience than simply purchasing a piece of furniture at a store. You are competing with other people in a short amount of time for a unique item that has an unknown price tag. Oftentimes, people get caught up in the excitement and bid away.

“A lot of people simply go with the flow and think, ‘If I just keep bidding, I’m going to make a deal because I’m at an auction,’” LaGesse says. But if you don’t stick to your budget and do your research, you might wind up paying as much for used furniture as you would for new.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

Susan Pisano, spokesperson for America’s Health Insurance Plans, noted that in a recent survey, 90 percent of health insurance companies said they offer some kind of healthy living discount program. Before embarking on a weight-loss plan, check with your insurance company to see if it offers any applicable discounts on wellness programs—or offers a program of its own.

Discount programs provided by health insurance companies

Insurance companies including United Healthcare, Humana, and Aetna offer discounts on weight-loss programs and health supplies such as exercise equipment and fitness apparel. They also offer discounts on other health-related initiatives such as smoking-cessation programs, massage therapy, acupuncture, chiropractic sessions, vitamins, and supplements, as well as books and DVDs about fitness and healthy eating.

In addition, many insurance companies have started offering free or discounted blood pressure screenings and weight-management initiatives. Exercise programs offered by the insurance companies may focus on walking, running, weight training, yoga, or basketball.

Healthy living programs sponsored by employers

You might also want to check with your employer, which may run some kind of healthy living program of its own—a trend many larger companies are starting to adopt. These programs typically include features such as gym-membership discounts, gift cards, or participation-based incentives. With these programs, you complete a course and then do a health-risk assessment that generally results in either a discount on your monthly health insurance premium or money that can be put into a health savings account.

Currently, employers can offer wellness incentives of up to 20 percent of the cost of coverage, but starting in 2014, this can go up to 30 percent—and in some cases 50 percent.

According to Pisano, the person who can have the biggest impact on someone’s health and well being is the patient – him or herself, not a provider. However, prodding people to take better care of themselves through such initiatives can provide real cost-savings—not just for the people who take advantage of these programs but also for the providers and employers who see reductions in healthcare costs.

“I think that consumer engagement is the name of the game,” Pisano said. “We have a healthcare system today where it’s clear that prevention and wellness are the keys to good health and also to affordability. If you’re thinking about 50 years ago, we had a healthcare system pretty much focused on acute care, and we didn’t really subscribe much to the idea of prevention and wellness. Now, we understand those are really the major tools that we have.”

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

It’s good to do a little research before any blind date so that you’ll know with whom you’re dealing on some basic level. It’s the same with an insurance agent: You want to know that this person is reputable and well liked, and when you do meet, you’ll want to have a few topics lined up to discuss with him or her.

One of the first things you should find out about an insurance agent is with whom he or she is affiliated. Is the agent independent, meaning he or she represents a wide range of insurance companies? Or is this person a captive agent, meaning he or she represents only one company?

Before your meeting, search for the agent through the Better Business Bureau and see if there are any complaints, or check out reviews on services such as Yelp or Angie’s List.

When you meet for the first time, you’ll want to ask a few important questions to determine if this is really the right agent and policy for you. Keep in mind the following five questions to ensure a productive first “date.”

1. What is your role as an insurance agent?

People typically think that an insurance agent handles all aspects of insurance, but that’s not the case, said Linda Rey, an independent insurance agent with her family’s company, Rey Insurance, in Sleepy Hollow, New York.

“An agent helps to facilitate between the insured and the insurance company, helps resolve discrepancies, or intervenes with any kind of dissatisfaction,” she said.

For example, an agent helps set up the policy and billing, and he or she can help get the claim reported, but the agent does not necessarily handle the claim from start to finish.

2. How do you handle insurance claims?

Asking the agent about the procedure for handling claims can reveal how he or she operates. Is this agent very hands on, helping you deal with a claims adjuster, for example? Or does he or she only offer help when you hit a snag with the insurance company? What happens if you’re dissatisfied with the insurance company’s payout—does the agent intervene?

3. Why do you need my Social Security number?

According to Rey, she and her agents are frequently asked why an insurance company needs a customer’s Social Security number and for what it will be used. Frequently, it’s used to check your credit score.

“The credit score has been proven to have a direct correlation with the policyholders’ bill-paying habits and maintenance of their policy,” she said.

Basically, the higher your credit score, the lower your premium may be if you’re a “low-risk policy holder.”

4. How do insurance policy renewals work? What about raising premiums in the future?

To get the specific answers you need, ask the insurance agent the following questions: How are the insurance policy’s deductibles applied? Is the deductible applied per year, per claim, or in the case of auto insurance, for example, per member of the family? When can I renew or review my policy?

As far as cost goes, Rey says to expect increases periodically across all lines and all companies. “If it doesn’t happen,” she says, “embrace it and consider it a bonus.”

5. What does or doesn’t my policy cover?

If you need a little more explanation of your insurance policy, try throwing out some scenarios to your agent to test your coverage. It’s a good way to understand how your policy functions—and how your agent thinks.

And like with any date, don’t settle. If you don’t click with the agent and he or she is not offering you what you need, keep looking. As the saying goes, there are plenty of fish in this particular sea.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

The staff members at eHealthInsurance.com, a website that helps consumers find health insurance, frequently field questions about health insurance policies. They have seen quite a few complaints from people who thought a healthcare provider took their insurance but who found out they weren’t covered in the way they thought after they received a bill.
There are two typical scenarios that often occur. Some patients may find that a member of a medical professional’s office staff said that their insurance policy provided coverage, but it actually did not. Other times, patients simply didn’t understand their insurance coverage when facing a test, a service, or any procedure other than a regular doctor visit—and they received a bill for which they weren’t prepared.

Coverage for office visits

Keith Mendonsa, consumer health insurance expert at eHealthInsurance.com, said, “There are lots of dentists and optometrists who will be glad to accept your insurance and submit the bill to your insurance company. This doesn’t mean, however, that they are in-network and contractually obliged to accept a certain dollar limit, which may be less than their full charge, as payment in full.”
Unfortunately patients who find out too late that they were not in-network have limited options.

“In the end, it’s always considered the patients’ responsibility to make sure that they’re seeing network providers,” Mendonsa said. He added that a 2012 provision of the health reform law requires health insurance companies to make summary of benefits and coverage forms available for the plans they sell, which may help patients looking to better understand their coverage.

“These are standardized forms that answer a number of basic—and not-so-basic—questions about what policyholders should expect to pay for specific medical services. If you haven’t already received one of these forms from your health insurance company, ask for one,” he said.

Your best bet is to call up your insurance company ahead of time, make sure you completely understand your coverage, and verify that a provider is in-network, even for small things like co-pays. For example, some office staff will take you at your word when you say you think your co-pay is $35—when actually it’s $25—and then not uncover the error in a timely manner.

Coverage for medical procedures

Patients can also get hit with unexpected medical bills when a doctor orders medical tests, services, or procedures that go beyond the scope of a simple office visit. Typically, these bills crop up when patients don’t understand for what they’re personally responsible in terms of co-payments and deductibles.

“X-rays are generally covered, for example, but if you haven’t met your deductible for the year, you may end up paying for [them] out of pocket,” Mendonsa said. “That said, if you’re at the doctor’s office or hospital and a specific procedure is being ordered for you and you’re concerned about whether it will be covered at all, you can certainly contact your insurance company or ask the doctor’s office to check with the insurer on your behalf.”

What to do if you’re hit with a medical bill

Unfortunately, if you’re stuck with a bill for something you thought was covered, you don’t have a lot of options.

If you can’t pay the bill right away, contact the hospital or billing department to figure out what you can do before it’s too late. Some hospitals and doctors have patient advocate services to help you navigate health insurance policies, procedures, and bills, so start there. If the bill is bigger than you can afford, request a cash discount or ask to set up a payment plan. But above all, do not ignore the bill. If you don’t pay, it could wind up in collections.

TIP: Have you checked your credit score in the last year? Pull a copy of your credit report from AnnualCreditReport.com to see if you have any medical bills to pay.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

Howard Dvorkin, founder of Consolidated Credit Counseling Services and author of “Credit Hell: How to Dig Out of Debt,” sees a lot more people come through his door during January and February.

“During the holidays, people aren’t used to spending that kind of money. They put more on their cards than they should, and all of a sudden, they don’t realize what they’re spending and what they’re buying,” he said. “And then the bills start coming in—and they’re shocked.”

The first step to paying off debt is simply to stop spending. Don’t compound your credit card problems by adding more, especially if this is largely frivolous debt.

Next, survey the damage caused by the holiday spending fervor. But don’t just focus on what you spent during the last two months or so. Assess your entire debt, including store credit cards, older cards with a balance, and any cards you have used to charge gifts. If you’re not sure what your debt picture looks like, pull your credit report to make sure you’re not forgetting about any accounts. While you’re at it, take a peek at your credit score, and use the prospect of raising your score as motivation to keep paying off debt.

The third step is to set up a budget. You really can’t knock out your debt with much efficiency or haste without a budget.

“A budget requires you to determine what you have available after all your expenses to liquidate your accounts,” Dvorkin said. “What I advise people to do, if they have any money left over in the budget, is to just throw that at your debt.”

Dvorkin recommends paying at least three times the minimum on the highest interest-bearing card while continuing to pay the minimum on your other debts. Once that account is paid off, take the money you were spending on that account and apply it to the card with the next-highest interest until all your debt is paid down.

“If you’re carrying balances on your credit cards, no matter what, you should use every bit of your spare cash to put towards your outstanding debt, even forgoing your savings for a while,” Dvorkin said. “Annual bonuses, holiday bonuses, tax refunds should all go toward debt.”

Take a stab at negotiating a lower interest rate with your credit card companies as well. If you know you can get a better interest rate elsewhere and you’ve been a good customer, all you have to do is ask. Worst-case scenario: You get rejected and continue paying off your debt at the usual rate.

If you can, consider doing a balance transfer to consolidate your credit card debt. This move can save you money through a lower interest rate and help keep your eye on the ball because you will only have one debt to pay off instead of multiple creditors. But be very careful with how you execute this move so that you don’t get tripped up paying more than you expected. Make sure that your interest rate won’t skyrocket or that you won’t pay high balance-transfer fees.

And don’t forget about this year. Unless you can quickly pay down all this debt and start saving up for the next holiday season of spending, you will eventually want a plan to deal with future spending. Get creative about your gifts and holiday-related expenditures. Offer to babysit, wash a car, or help out at home instead of spending money you really don’t have.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

One of the hardest parts about decluttering is finding a place to start. Some people like to start with the easy tasks first, but I like to jump into the biggest job. If I get nothing else decluttered, at least I’ve tackled that big problem that nags me the most. For me, it’s usually the garage and the hall closet. Where does your clutter pile up?

Rules of decluttering

Before you start decluttering, keep the following four rules in mind:

1. Define the boundaries. Are you going to declutter a whole room, a closet, or a toy box? Whatever it may be, define exactly what you’re doing and stick to that plan so you don’t get sidetracked or overwhelmed.
2. See exactly what you have so you’ll know what to keep and what to get rid of. Lay out all the items you’re working through and put them into three piles: keep, toss, and donate. If it’s not beautiful or useful, get rid of it. If it’s still in good condition, donate it.
3. Consider placement. Is the item in the best place already? Would it be better tucked away in a basement closet or put in a handy spot near the kitchen to ensure it is even more useful?
4. Organize. Before you put everything back in its place, think about how you will organize it and determine if you need any organizational solutions.

Some great places to declutter in your house are the kids’ rooms, the kitchen, and the living room. Help your children go through their old toys and identify what they’ve outgrown, no longer play with, or don’t like. This is easier right before the holidays than it may be at other times of the year because you can tell the kids that their toys will go to kids who don’t have any. It’s a great way to declutter as well as to teach a life lesson of compassion.

The kitchen is typically the most-used part of a home and often gathers clutter quickly. Check through your gadgets and appliances—are there any you don’t need or can store somewhere else?

Since it is the holiday season, get rid of old decorations. People tend to let their decorations pile up without editing them down. So this year, check through what you already have and get rid of what you won’t use.

Rules of donating

If all this decluttering and organizing results in big piles of donations, that’s great—for both your community and your tax deduction. It’s actually quite easy to get a deduction on your taxes, but you need to follow these three rules, particularly if the value of your donation is more than $500:

1. Prove what you donated.
2. Prove that the items you donated were not junk.
3. Prove the value of the goods you donated.

Taking photos or videos of the items can easily check off the first two. You can also get receipts from companies like Goodwill when you donate. If you’re busy around the holidays, leave it at photos and a list. You can take care of the itemizing of your donations at tax time using software like ItsDeductible, from Intuit, or DeductionPro, from H&R Block, to find the value of your goods. If anything you donate is worth more than $5,000, though, you will need a written appraisal.
If you have collectibles or other higher-priced items to get rid of, consider selling them on eBay or Craigslist. You won’t get a tax deduction, but you could still earn a little extra holiday spending cash.

Happy decluttering!

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.