People who are smart with their money stick to a budget. People who are even smarter with their money re-evaluate their budget often. Now, more than ever, presents the need to recalculate your budget.

Things certainly don’t cost what they used to. Bread is more expensive. Milk is more expensive. Eggs are more expensive. Gas used to be extremely cheap. Then, it skyrocketed. Now, it is finally affordable again.

More and more people have become keenly aware of their day-to-day budgets. Some families have been forced to stick to a drastically-lower budget due to a recent layoffs. Other families don’t know it yet, but their turn to enter the layoff market is fast approaching.

The current economy has forced most everyone to take a daily inventory of individual budgets. Budgets need to be constantly changed and altered. Every time your financial situation changes, your budget needs to change along with it.

That is the only way to stay on top of your budget.

One more thing…American families have finally realized how detrimental it is to have massive amounts of debt. President-elect Obama recently pinpointed this catastrophe by saying that millions of American families took advantage of cheap credit to get into debt that they couldn’t afford. Now, these families have to face the realities of a weakened economy.

These families are threatened with losing everything, including their homes.

What will it take for American individuals, couples and families to realize how important it is to stick to a realistic budget.

If you haven’t used a budget before, now is the time to create one.

If you haven’t stuck to a budget before, now is the time to stick to one.

If you have too much debt, now is the time to get rid of it.

If you haven’t learned how to properly and carefully manage your finances, now is the time to learn how.

Now is the time to get everything in order for tomorrow. You never know what will happen tomorrow.

In it’s December issue, Kiplinger’s Personal Finance magazine chose the best credit card offers of 2008. Kiplinger’s chose four different credit cards to best suit almost any spending style in the most popular credit card categories: cash back, gas reward, travel and low rate. Using one of these credit cards can add up to huge savings every year. Review the list below to see the results.

1. Cash Back - Blue Cash from American Express
2. Gas - Chase BP Visa
3. Travel Rewards - Simmons First Visa Platinum Travel Rewards
4. Low Rate - Wells Fargo Prime Rate

If you pay your balance in full each month, be sure to check out these cards from American Express, Chase and Simmons First. For those that carry a balance, check out the low rate card from Wells Fargo.

To review the terms and conditons for each card, see the credit card issuer’s website for full details.

The American economy is struggling in more ways than one. Americans around the country are having a hard time making minimum payments and mortgage payments. Everyone has seemingly “tightened their belts.” Out of all of the bills out there, which one is taking the biggest hit? Credit cards.

The number of two-month credit card delinquencies has risen 24% since August. More and more consumers are finding themselves unable to pay simple credit card bills. These consumers don’t expect to get out of this bind anytime soon.

Retailers and merchants are already feeling the nationwide pinch. Consumers have stopped spending money. However, as the number of credit card defaults continues to rise, the situation will only worsen.

Recent statistics show us that approximately one in every eight credit card holders is in trouble. One in eight card holders will likely default on a department-store-issued credit card. The Fitch Retail Credit Card Index predicts more charge offs in the near future. Charge offs are debts that are deemed to be “uncollectable”. Fitch expects the number of charge offs to surpass 12% in the first half of 2009. The number of current charge offs is already 40 percent higher than the highest levels in 2007.

There is a bit of surprising news however. The Fitch Index reports that retail credit card portfolios remain healthy. How could this be when the number of defaults has escalated so much? The interest rates that are being charged to consumers exceeds the number of charge offs. Thus, the “healthy” retail credit card portfolio status.

So, how reliable is the Fitch Retail Credit Card Index? Well, it tracks more than “$72 billion in principle receivables backing approximately $40 billion of retail or private label credit cards.” Citibank Omni Master Trust and GE Private Label Master Trust are the largest issuers in Fitch’s Index. Some major retailers that are included in the Index are: Wal-Mart, Home Depot, Inc., J.C. Penny Co. Inc., Best Buy Co, Sears Holdings Corp.

Discover Financial Services has announced the introduction of the only biodegradable credit card available in the US market. The new Biodegradable Discover® More Card is made from 99% biodegradable PVC, which allows 99% of the card’s plastic to safely be absorbed into the soil of exposed landfills. The card will break down in water, soil, compost or wherever microorganisms are present and is expected to degrade completely within five years.

“The biodegradable Discover Card is another way for environmentally conscious consumers to do their part to help protect our planet,” said Kelly Tufts, director of marketing planning & strategy at Discover Financial Services.

This announcement is part of Discover’s commitment to help fight climate change and encourage responsible resource use. Discover also encourages its customers to help save paper by enrolling in paperless statements. In 2008, Discover saved more than an estimated 4.6 million pounds of paper.

Existing cardmembers can request the card directly through Discover Card’s customers service. The new biodegradable card is identified by a biodegradable symbol located on the back of the card. The biodegradable card still provides the same best-in-class features and benefits that all Discover Card cash rewards cards include.

For me personally, the answer to that question is a resounding yes! Customer service isn’t just about talking with someone on the phone or at a counter and having them answer my question or conduct a transaction for me. It’s more about my overall impression of the entire experience; the atmosphere, the goods or services and the way I was treated makes the complete package, not just some salesperson sucking up to me to get a sale. I understand that not every person at every company has the capacity to perfrom at such a standard every time, but there are a few companies out there who just seem to get it right while others can’t.

Take for example two credit card companies - USAA and American Express. Both companies have received the highest rankings for customer satisfaction, one from Consumer Reports and the other from JD Power and Associates. Is this a coincidence that I have accounts with both of these companies? Not exactly. USAA is more by coincidence for me, but without surprise, while American Express is solely by choice. My experience with both of these companies has been excellent and it is no surprise to me that either of these companies receive high ratings from other customers and ultimately from organizations like Consumer Reports and JD Power and Associates. Using a credit card from American Express does come at some cost, but I knew that before I became a customer. To me that additional cost or slight inconvenience is more than worth it.

Just like you I’ve also had bad customer service experiences too. For many years I used cellular services provided by Sprint because I was getting a “great deal” (price) on my monthly bill. However, anytime I had a problems with my phone or service,  I had to go to a Sprint store where I expected to leave there completely frustrated with my blood near its boiling point. Sure the reps were nice for the most part, but no one could ever seem to really help me or fix my problem. Why I stayed with them for so many years, I don’t know, but I now recognize the money I saved on my monthly bill was not worth it at all. When the opportunity to switch to a different provider presented itself, I did so without hesitation. The money I saved resulted in a lot of frustration and an overall bad customer service experience.

So I beg the question, does customer service influence where you shop or which companies you use? For me the answer is clear, I would rather pay more, sometimes a lot more, to have customer service experiences like those I’ve had with USAA and American Express. Leave us your comments and feedback.