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January tune-up: Frequent flier programs

January 7, 2015 By Liz Weston

Zemanta Related Posts ThumbnailBig recent changes in frequent traveler programs mean that it’s time to rethink your loyalties.

Delta just switched to a frequent flier program that rewards customers based on amounts spent, rather than miles flown. United plans to do the same starting March 1. American will continue to reward based on miles flown, but once its merger with US Airways is completed most fliers will have to pay or use points for upgrades.

If you’re an elite frequent flier who spends a ton on tickets (or whose company spends tons on your behalf), you might be content to stay put. Most other travelers, though, should at least review other options if they’ve been trying to build miles in those programs.

It still makes sense to concentrate most of your business with one airline so you build up miles faster. If it’s hard for you to do that, then consider a frequent traveler program that allows you to more flexible by:

  • Having an extensive network of partners (like Alaska Airlines, which partners with both Delta and American and that has at least one partner in every airline alliance)
  • Using a rewards credit card that allows you to use points in different programs (like American Express’ Member Rewards, which lets you transfer points to Delta, Continental, Virgin Atlantic and British Airways, among others) or that has rewards that can be used like cash for tickets (such as Capital One’s Venture, with its “purchase eraser” feature for travel costs).

When you’re thinking about what loyalty programs to use, sometimes it helps to work backward starting from where you want to go. If you want free flights to Hawaii, for example, American and Hawaiian Airlines are two good options, at least from the West Coast. You could rack up miles on American itself and/or use the American-branded credit card, or apply for a new British Airways card to get the start-up bonus (currently 50,000 points after spending $2,000 in the first three months) and transfer those points to American. Or you could concentrate your flying on JetBlue, which has a relationship with Hawaiian, and your spending on the JetBlue American Express card.

If you don’t have a specific goal but fly mostly domestically in coach seats, consider JetBlue, Southwest and Virgin Atlantic, which typically get high marks from travelers for relative comfort and amenities. All three base rewards on dollars spent, but they don’t have the blackout dates and other restrictions that can make redeeming rewards hard in other airline programs. If a seat doesn’t already have somebody in it, in other words, you can book it with rewards.

Another tip: Check in occasionally with frequent flier blogs, which can alert you to hot deals and ways to earn extra points.

While cars no longer require traditional tune-ups, your finances still do. This month I’ll be reviewing some areas of your money that deserve some extra scrutiny and offering suggestions for the best moves now. Stay tuned for more posts–and to make sure you don’t miss any, you can sign up for my newsletter using the link on my home page.

 

 

Filed Under: Liz's Blog Tagged With: American, Delta, frequent flier, frequent flier programs, frequent traveler, JetBlue, Southwest Airlines, United

Wednesday’s need-to-know money news

January 7, 2015 By Liz Weston

Zemanta Related Posts ThumbnailToday’s top story: A month-by-month guide to staying on financial track. Also in the news: How to avoid making a big financial mistake, why you should consider a “money diet”, and how to simplify your 2015 finances.

A month-by-month guide to staying on financial track in 2015
Taking it one month at a time.

Don’t Make This Big Personal Finance Mistake
Why not having a credit card could do more harm than good.

Spending Hangover? Time For A Financial Cleanse
Clearing the financial fog.

Consider a Month-Long “Money Diet” to See How Savings Add Up
No cheating.

5 Ways to Simplify Your Finances in 2015
How to make things easier.

Filed Under: Liz's Blog Tagged With: budgets, Credit Cards, finances, Savings

Tuesday’s need-to-know money news

January 6, 2015 By Liz Weston

Zemanta Related Posts ThumbnailToday’s top story: How to choose your first credit card. Also in the news: Creating a secret financial goal number, unnecessary purchases that are killing your budget, and how to decide between a bank or a credit union.

You’re Finally Getting Your First Credit Card: How to Choose
Finding the card that best suits your needs.

Create a “Secret Number” to Make Your Financial Goal More Specific
Having a personalized number will help keep your goal in sight.

10 Unnecessary Purchases That Are Eating Up Your Budget
Small everyday purchases can add up to big bucks.

The Pros and Cons of a Credit Union Versus a Bank
Which one is right for you?

5 New Year’s Resolutions to Save on Taxes
How to keep more money in your pocket instead of the government’s.

Filed Under: Liz's Blog Tagged With: bank vs credit union, budgets, Credit Cards, Savings, Taxes

Monday’s need-to-know money news

January 5, 2015 By Liz Weston

fraud, scam, theftToday’s top story: How to make 2015 your best financial year. Also in the news: Avoiding tax scams, why this tax season could be a nightmare, and how to make sure your retirement funds last as long as you do.

5 Tips for Making 2015 Your Best Financial Year
Resolutions for your wallet.

3 Common Tax Scams and How to Avoid Them
Tax season is officially under way.

‘Miserable’ tax season could be worst in years
And it could be an ugly one.

6 ways to make your retirement funds live longer
How not to outlive your retirement savings.

4 tips for catching up on retirement savings
These tips will help you do that.

Filed Under: Liz's Blog Tagged With: budgets, Retirement, retirement savings, tax scams, tax season, Taxes, tips

Q&A: Terminating private mortgage insurance

January 5, 2015 By Liz Weston

Dear Liz: I bought my first home about a year ago. Because I had very little money for the down payment, I have to pay private mortgage insurance, which is a whopping $385 each month. My burning question about this is: How can I get rid of it? There must be a way to pay the loan quicker or pay more each month or something to make it go away.

Answer: Mortgage insurance protects the lender in case you default on your loan. Since loans with small down payments have a higher risk of default, mortgage insurance is typically required until your balance falls to 80% of the original value of your home. At that point, you can request in writing that the mortgage insurance be canceled. If you don’t make the request, the lender is still typically required to terminate PMI when your balance reaches 78% of the home’s original value.

To speed that day, you can pay down your principal, but do it the right way. Call your mortgage servicer and ask how to be sure the extra money you submit is reducing your mortgage balance. Otherwise, your extra money may just be applied to the next month’s payment, which won’t help reduce your balance much.

Filed Under: Insurance, Q&A, Real Estate Tagged With: PMI, private mortgage insurance, q&a, real estate

Q&A: Paying a deceased person’s debts

January 5, 2015 By Liz Weston

Dear Liz: When I read the letter from the woman about her mother’s debts, it brought back my situation with my brother and mom. My brother was trustee to my mother’s living will and told her she had no money. At 90, she became worried and wanted to cut back on the care she needed. My brother had the same attitude as the woman who wrote you that her mother’s property was not an asset for her to use but something to be hoarded for the heirs.

Answer: That’s not the situation the daughter described. She was asking whether she and her sister were responsible for her mother’s debts. They are not. The mother’s estate would be responsible, and her estate would include her home. If the estate’s assets aren’t sufficient to pay all the bills, however, the creditors wouldn’t be able to come after the daughters. Still, some collection agencies have been known to contact survivors, telling them they have a “moral obligation” to pay the dead person’s debts.

Filed Under: Banking, Elder Care, Estate planning, Q&A Tagged With: Estate Planning, Q&A. debt

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