11 Spring Cleaning Tips for Your Wallet

Spring is almost over and if you haven't gotten your financial house in order yet, now is the time. Finances need spring cleaning too, whether you're cleaning up your debt, banking, retirement savings, or mortgage. While you're building your spring cleaning "to do" list, here are 11 ways to clean your financial house and fatten your wallet:

1. Give yourself a credit check-up.

Review your credit report at least every six months. 8 in 10 credit reports are riddled with errors that lower your score, making it difficult to open a new credit card, purchase or refinance a home, buy a car, or find a job. Sites like Quizzle.com offer easy online access to free credit reports, scores, and dispute services.

2. Check your credit limits.

The new Credit CARD Act changed the way many credit card companies do business. While the act protects consumers from unfair billing practices, many credit card companies are adjusting credit limits in their own favor--particularly for riskier customers.

This can lower your score due to "credit utilization," which compares your balance against your overall limit. Credit utilization is a large part of your credit score, and when it rises above 50% your score drops. Know the limit on your cards, and quickly pay down the debt on any card with utilization above 50%.

3. Plan to pay off your debt.

"Spring ahead" with a clean financial slate. Pay off your debt by either focusing on the highest interest rate first, or on the lowest balance. The smartest strategy--and the one that will save the most long-term--is to focus on the high interest debt first, though focusing on the lowest balance may be easier. To create a realistic pay-off plan, it's time to look at your budget and cut the fat anywhere you can. Use those cuts to throw money at your debt and pay it down sooner.

4. Use paperless billing.

Reduce your personal and financial clutter by signing up for paperless billing. According to PayItGreen.org, 151 million pounds of paper and nearly 2 million trees could be saved each year if 20% of American households switched to electronic billing. Not only is paperless billing more "green," it's also a more efficient way to organize financial documents. Many banks and creditors also offer incentives for going paperless.

5. Use automatic bill-pay.

Many banks offer automatic bill-pay as a free, time-saving benefit. Entering your bills places your payments on auto-pilot. Online bill-pay has many benefits; you'll save time and trees, qualify for potential bankers and creditor rewards, and stay on-time for every due date. Just be careful of costly mistakes should you lose track of payments.

6. Get the most out of your savings.

Lately savings rates are downright pathetic, but it's wise to compare interest rates. A small difference can actually add up to big money. Using sites like Moolanomy, you can find which banks offer the highest-yield savings accounts--and switch to the bank with the best rates.

7. Make it automatic.

Avoid spending money "just because it's there" by establishing automatic deposits from your paycheck into your retirement account. You'll save money and time, with one less thing to worry about.

8. Evaluate your saving habits.

If you have extra cash, save it--and be sure you're saving enough. Use online retirement calculators, benefits experts, or financial planners to determine how much you'll need when you retire; then plan appropriately. Any initial cost will be well worth the peace of mind.

9. Rebalance your investments.

Is your money in the right place? Find out by checking your 401(k) or IRA. If you're not sure where to allocate funds, check with your plan manager to determine the right investments for your age, goals, and life circumstances. Most companies offer online tools that help determine how to invest, along with paid services for hands-on guidance.

10. Find ways to save on your home loan.

Tackling small expenses means small savings. If you attack larger expenses, you'll reap greater rewards. For many Americans that includes home loans; with mortgage rates at historic lows, you could save thousands over the life of the loan with a tiny rate adjustment. Don't wait for a lower rate. With the current environment and the nature of the market, there's less chance of a major drop and more chance rates will increase. Save on your home loan now.

11. Decide if a longer or shorter mortgage is better.

Are you in the right mortgage? Knowing that means more than just your interest rate. Your mortgage term should suit your financial situation. Longer terms on fixed-rate loans may lower your payments; if you can also lower your interest rates, you'll free up major cash. With a shorter term you'll pay off your loan faster and save on interest fees. This option typically involves a higher monthly payment, so only switch if your financial situation allows it.