By Kyle Olson

Look around you; there are thousands upon thousands of advertisements, attention grabbers, and pleas to try and get you to save money. Many people blindly adhere to what they’re told and think they’re getting a deal, when in actuality, they’re hurting their finances, according to the experts.

Sometimes hurting them to the point of having to file for Chapter 7 bankruptcy to get them out of the never-ending debt cycle they found themselves in.

Recently, Yahoo Finance listed the 5 things that consumers do that hurt their bottom line when they think they are being frugal.

5 Ways You're Failing Being Frugal

The Free Façade

Free credit checks, free shipping, free premium cable package upgrades, etc. The list can continue on for miles with all the offers that are on the market today. But ask yourself this, are you truly getting a deal? The experts say, a resounding,  NO! Within these seemingly great deals are hidden costs that can come back and bite you in the rear end. One example is how online retailers entice the consumers by offering free shipping on offers over a certain amount. Usually that amount is more than what the customer wanted to purchase in the first place and they find themselves over spending to receive the now useless free shipping. Experts say, be weary of the free offers because they’re not truly free.

Coupon Clipper Conundrum

Experts say that coupons are best when used in moderation. Many factors go into finding deals with coupons and it often amounts to having to travel to different stores in order to fulfill the coupon’s rules. With gas prices being as high as they are, it might be more of a burden than a blockbuster deal. Also, it encourages over buying, which can lead to closets full of toilet paper and toothpaste that go to waste.

The Dollar Store Blues

While there are some great deals at these specialty “dollar stores”, experts say that most of what the store sells isn’t worth the price. Consumer reports found that some items might even be unsafe to purchase, such as electronic equipment and vitamin supplements. Buyer beware!

The Drive-Through Dollar Menu

Okay, many people agree that fast food is convenient and cheap, but the long term effects outweigh (pun intended) the short term benefits. The Cancer Project recently did a study that showed that a majority of the items on these menus are packed full of saturated fat, sodium and cholesterol. The report also showed that many of the food's ingredients were linked to an increased risk of cancer in the consumer.

The DIY Debacle

DIY, or “do it yourself”, trends have exploded over the years. While the concept is great, many projects do more harm than good to your finances. One tip the experts gave, changing your own oil will end up costing you more in the long run—hire a professional to handle the greasy stuff.

By Kyle Olson

When deciding to close a credit card, there are many options to consider. Some experts say that closing a credit card, in general, is a bad decision as it eliminates the amount of available credit on your credit score, among other harmful things.

Some people decide that the temptation of a credit card is too much to bear. Others believe the high interest rates aren’t worth the small perks when you purchase gas or groceries. Some even go into deep personal debt because of their credit cards, sometimes having to end up filing for bankruptcy.

Regardless of the reason of why you decide to close a credit card, experts say there are good ways to go about the process of closing it, and bad ways.

The Bad

Closing a long-standing account

When you close a credit card that has a long history of timely payments you may end up hurting your credit score. Lenders view people with shorter credit history as a risk factor.

Assuming a dormant account will automatically close

Lenders can keep your account and credit line open indefinitely, regardless of the amount of time it has been open. If you’re confused as to which accounts are active and which are closed, experts suggest contacting the issuer of the card or ordering your credit report to find out.

Consolidating cards

Closing other cards to put the balances all on only one other card can be detrimental to your credit score. If the balance exceeds 50% of the credit line, your score will take a hit.

Canceling to make a big purchase

If you’re in the market for a house, car, or boat you may want to think twice about closing any credit lines. Sometimes it’s only temporary but it could be a crucial drop in your score if you’re aiming for a low interest rate or mortgage rate.

Close too many

Experts say it’s better to close accounts one by one if you do decide to close your credit card accounts.

The Good

Okay, we got through the nightmare mistakes that some people make. If you have decided to close some credit card accounts, there are ways that experts say you can go about it in a successful manner.

Closing cards you don’t use and that have high interest rates

If you feel you are likely to splurge with a credit card, then closing it might be a great idea. Also, experts say that the less cards that are open in your name, the less chance of identity theft happening.

Closing an account that still has a balance

If you’re looking to just pay the card off but can’t do so in a quick manner, asking the issuer to close the card while you pay down the balance might be the right option for you.

Have one primary card

Select a card that has great benefits and low interest. Paying it off each month can greatly improve your credit score.

Keep an account open

Creditors look for people who have accounts open and who are responsible with their money. It’s important to keep at least one card open to show that you can handle to challenge.

Destroy canceled cards

Running your card through a paper shredder is a great idea, according to experts, if the machine is capable of the task. Make sure you check before jamming your cards into your office’s paper shredder.