2012 can be the year to take control of your finances again and end the year in better shape than you started. that is our goal, folks. stacy francis is the ceo of francis financial and john is president of consumer education at smart credit.com. welcome to the program. good morning. >> good to be here. >> john, we don't want to add more credit card debt. we don't want to end this year and go into 2012 with more credit card debt on top of the debt from the year before. how do you get a grip on this situation, your credit situation here? >> all that stuff you're going to open under the tree tomorrow morning, a lot of that stuff was paid for using store credit cards. retail store credit cards. the average interest rate on those cards is a whopping 24.9%. that is absolutely absurd. so as you enter 2012 the first thing you should do when you get those bills is to endeavor to attack the balance as quickly as possible because every single month you revolve one of those balances you can take that money and basically throw it away. it is not working for you. it becomes working against you at that point. that should be step number one in the new year. >> it is interesting, because we notice that the returns after the black friday weekend were the highest they've been in years because i feel like people realized wait a minute. i won't be able to pay this off at the end of the month or even in three months which maybe is a good sign. let me ask you about credit card terms changing too. you say be careful they might change in the new year. how do we track that? >> absolutely. you need to become familiar with two terms -- fixed interest rate, variable interest rate as a card holder. it's very likely that the interest rate on your credit cards have been changed without you knowing about it from a fixed rate to a variable rate. why is this a big deal? variable rate credit cards are pegged to the prime rate and many experts believe that interest rates have to go up in 2012, which means this. the interest rate on those credit cards are also going to go up. and the credit card act requires the credit card issuer to notify you of any increase in the interest rate except for variable rate cards. so it is very likely in the new year when interest rates start going up that if you start swiping and carrying balances it is going to be more expensive to do so than even you think because your interest rate has been changed without you knowing about it. >> i want to talk more about credit cards and high credit card debts. usually it means you don't have a sufficient emergency fund because if you have something that breaks in the car you're putting it on the credit card. you have something you want to pay for right away you put it on the credit card. it is time to build up the reserve. your cash reserves and savings in 2012. >> exactly. we're saying the best financial resolution you can have is beef up the emergency fund. >> how much do you need? >> at least three to six months of your living expenses. for a lot of individuals if you are the primary wage earner look more so six to 12 months of your living expenses. put it away. that is why so many people find themselves in credit card debt and bad financial situations. >> you are a financial planner and you know if you have all this credit card debt you are playing defense, not offense. you're not being able to grow and move forward with retirement planning and other things because you're sitting on this near-term debt that is completely difficult. can people get out of debt, can they really make the decision to get out of debt and try to do that in 2012? >> yes, they can. but it's not necessarily going to be easy. just like losing weight. doesn't happen overnight. >> right. >> you need to really look at your budget and figure out what are the things you can put out of their budget. also, you need to do a systematic savings plan every single paycheck. you've got a certain amount that goes to pay down that debt that goes also toward that emergency fund. >> all right. i want to ask you what everyone should focus on when it comes to retirement. in the near term is credit card debt and then long-term retirement planning and it is important at the end of the year to look at how much you are putting away, whether it is enough, and whether you can put more away. >> i would even go this far and suggest if you have any credit card debt at all that you really should put the retirement investments on the side burner for now. here's why. the average amount of interest that you're paying on credit cards generally each credit card is 13% to 15% depending on who you believe. the average interest rate on retail store card is the mid 20s. i guarantee you're going to be paying those interest rates on balances that you roll over. but what you cannot tell me, nobody can guarantee a mutual fund, a stock, anything at all that is going to have those types of returns over any period of time. so it is absolutely step number one get out of the credit card debt. step number two, look. it is an election year. we have no idea what is going to happen. markets are up and down 100 points each direction every day. this stuff drives normal investors like me crazy. i would suggest doing what a very smart person once told me to do. stop staring at it. if it drives you that nuts, then just stay out of it for a while. >> you have another very good point to end the year and reset your finances. you say keep your resume updated. this is an investment in yourself at the end of the year. keep it updated at all times. why? >> just as we said with john the markets are driving you crazy. the best investment you can make right now is investment in yourself. put your resume together. see where there might be some gaps. make sure you fill in those gaps whether it's going back to school for education, while working, or maybe asking for more responsibility taking on a new project where you're at. the biggest control piece you have is investing in yourself. no one can take that away. it's only up market investing. >> you mentioned store cards a couple times. very quickly when you're going to return your gifts, maybe not, when you're going to shop the big sales at the end of the year and the store offers you 10% off and this in store credit card, what do you say? >> just say no. absolutely not. this is an unsophisticated way of applying for credit. you do not want to load up your credit reports with retail inquiries, the absolute worst kind. you don't want to load up your report with nuisance balances across those little credit cards. you don't know if you'll need that strong, powerful credit score in the next 12 months to refinance a home, buy a new car, finance some major purchase. you don't know what you don't know. what we can tell you is the lower the score the more expensive it's going to be to carry that debt. leave the discounts on the shelf. pay cash. pay with a credit card. pay the full amount and pay it off as quickly as you can. >> they aren't offering you the card because they are nice but because they know they'll make money off you. >> of course. >> remember that, everyone. john, stacy, very nice to see you. happy christmas morning everyone -- christmas eve morning. have a great day tomorrow. next, hitting the reset button on your health. food costs money. eating healthy costs even more money right? doesn't have to. some surprising information about the cost of your food, next. on "your bottom line." in america, we believe in a future that is better than today. since 1894, ameriprise financial has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams. buy homes. put their kids through college. retire how they want to. ameriprise. the strength of america's largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪ it's like having portable navigation. a bluetooth connection. a stolen vehicle locator. roadside assistance. and something that could help save your life - automatic help in a crash. it's the technology of five devices in one hard-working mirror. because life happens while you drive. this holiday, give someone you love an onstar fmv mirror for only 199. visit onstar.com for retailers. here is an expense no one can avoid, food. the average american household spent more than $3600 last year on groceries about 8% of the typical household budget. we can help you get control over the budget and make sure the money you spend on your food helps your wallet and waist line as well. peter moore is the editor and contributor to the eat this not that series and the all new market survival guide, an essential guidebook for navigating the american supermarket. welcome to the program and happy holidays. >> thank you. >> first i want to talk about how you say invest in nutrients. why do you want to invest in nutrients not necessarily calories? >> we tend to think when we are buying something at the store or processed food that we'll get a good deal. the fact is the cheapest ingredients are the ones you stuff in the bags whereas if you buy the whole food the sweet potato rather than the fries you're getting a ton new nutrients than in the bag product and it is going to be better for you and taste better too. >> this is the better value not this. >> exactly. what you've got is five times more fiber in there and many more vitamins as well. >> let's talk about drinking your calories. it is easy to indulge in spirits as they say. you say go dark. fill your cart with dark. explain. >> well, as president obama taught us in ireland last year go for the dark beer. you are going to get polyphenols which is cancer fighting and also iron and dark beers tend to be low in calories. this is a very lo-calorie beer and maybe that is why obama is so thin. >> you look at the dark when you're looking at cantaloupe versus honey dew melon as well. >> again, it's darker because it has more nutrients in it, the cantaloupe has. so we are looking at twice as much vitamin c in there. >> really. >> and also up to 70 times more vitamin a in cantaloupe than honey dew. >> so the darker food is usually better. >> exactly. shop dark. >> it is easy to assume the fancy, natural food store you get a good value for your money. it says natural on there. you know you're paying up so you should feel happy in that purchase or you should be skeptical? >> well, when you go into the healthy food store what you're giving yourself then is permission to eat anything and everything in the store. that is part of the reason why they do the sampling in there. it leads you toward more self-indulgence when you're pulling those little morse els of cheese off the plate so you tend to buy more high calorie food. >> this is a holiday time that is all built on over consumption. you talk about how we want to reset our lives for 2012. we eat too much, drink too much, spend too much then worry about the debt, weight, and the fact we got into an argument with our uncle. >> eat as much as you want on the actual holiday but let's watch out for the other 364 days. >> drink a lot of water. before you go to a party, between your beers, so you can maybe drink more if you have to. all right. peter, so nice to see you. thanks for coming in and happy holidays. >> thanks. the holidays may be a great time to reconnect with family but also primetime for family feuds. not at my house. up next your go-to guide for avoiding those uncomfortable situations and keep the peace this holiday season. know organi. and so is having a trusted assistant. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-size or above and still pay the mid-size price. here we are... 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[ male announcer ] the only place to go for last-minute christmas gifts. walmart. well the song says it is the most wonderful time of the year but is it? to the for everyone according to "consumer reports." 35 million americans dread having to be nice during the holidays. 24% say they dread seeing their relatives. 15% do not look forward to attending holiday parties. let's bring in pete dominic host of sirius xm's stand up and clinical psychologist jeff gardier two friends of the show. pete, holidays are a good time to spend with your family or not. why do people dread being with their wonderful family? >> there are people watching right now with members of their family. they wish they weren't with. because, you know, blood is thicker than water. a lot of us don't have in common, for example we have the evangelical wing of my family and they thank the lord for every single thing that happens the entire meal and day. it's annoying to me. but i try not to say anything. and i think to be fair i might be the family member everybody is trying to avoid as well. >> i think maybe they're thinking, praying they only see you once a year. >> we have a lot of different interests, come from different walks of life, different incomes, problems, politics. >> shall we stay away from certain things? it used to be you have to stay from politics, religion, and maybe very close personal issues in the family but then my family, what else are you going to talk about? this is why you get together to talk about the big stuff. >> you say blood is thicker than water and with some of these families there will be blood. but i think it really is about positive mental attitude as always and, yes, we do discuss many of these political issues, family issues. i think it makes for stimulating conversation as long as you set the ground rules, as long as you -- >> what kind of ground rules? >> first of all that you listen to other members of your family. >> no. >> that you can express your interests, your opinions but you are not going to step -- >> no, no. that is the thing. i have to ask you about that. it has so much to do with ego. when we say politics and religion it is actually as you pull in the driveway your family members, you know what issues, you know your family well enough. you know which issues -- >> groundhog day. every year it is the same. always the same kind of touch points and you know you'll go there and then you go there. >> i have to ask the doc. how much this of has to do with ego? if i spend the time with my family today do i have to be right today with the family? >> pete, i agree. we should see these conversations, reframe it, cognitively, give the psychology speak. one kpleedian, one psychologist. we have to reframe it cognitively about learning from other people. that's why you put the ego to the side and say i'll give my opinion and i want to share something but as part of that quid pro quo i will also learn from this conversation and therefore you don't step on one another. you don't disrespect one another. >> you have taboo subjects? can grandma say we are not talking about the president, period? or we are not talking about gingrich versus romney at my dinner table. >> i think grandma says, yes. yes. grandma or grandpa, but mom and dad might not be able to make those same rules. >> i would say even if grandma says something like that we would ask grandma why and then therefore begin the conversation. >> she doesn't want mud wrestling in the front yard. >> well, but i think you can teach an old grandma new tricks and she may have had bad experiences with the family before but you can make it a positive experience. i believe in stimulating conversation. but there are some things you should stay away from. for example someone talking about, you know, some major, major incident. i don't want to get into specifics. that happened in the family where people just refused to speak to one another. >> reliving terrible things. >> reliving trauma. we aren't going to have answers at the dinner table on that tab day. >> let me ask both of you, how do youdy fees the situation once it happens? >> humor, avoidance and drugs and alcohol. >> but the other thing is -- >> i agree. >> turning to the kids sometimes we do. you want to get into it with me, fine. but you know what? my kids are here. so we're not doing this. we're not having some argument while the kids are here. and those kids sometimes are what should be -- some say you shouldn't yell in front of kids, some say you you should. but i don't think you should. >> it can embarrass a lot of people around the table. again, if you do it constructively, b say let's talk about this, but let's talk about it a little later and let's not talk about it now after you've had two martinis. >> and not drugs, but maybe a little eggnog, pete. >> prescription drugs, of course. >> of course you're agreeing. >> we'll bail him out. >> i don't mean going out to the wood shed on christmas day. i mean dr. prescribed. >> i'll take you to the wood shed right now. >> happy holidays. >> happy holidays. >> next on your bottom line, meet one family who disconnected with the american dream to reconnect to themselves 5,000 miles away from home. could you just pick your family up and move to a different country? right now? for many families, it's just not an option. but for jennifer wilson and jim hoss, it was the wake-up call they needed. jennifer chronicled her family's experience in croatia in her memoir, running away to home. i spoke with them recently about how they were able to reset and reconnect with their family. >> this is a story that i think a lot of people can relate to. you're living, two incomes, two kids, you've got day care, you've got your jobs, you're kind of running the rat race and that's the american dream. but one day you said, what are we racing for? what happened then? >> you know, we were feeling just in restlessness in our household. and we weren't connecting with each other or with our two little kids. and about that same time, my great aunt sister's paula passed away and we inherited her personal papers. i learned about this ancient croatian village where my family came from. the more i learned about this place, the more it seemed suspended in amber for the past 100 years. and i thought, what might the ancestors teach us about family and getting by in hard times? the recession was coming on about that time. we had a lot to learn. and this book is about what we did when we were there. >> your wife says to you, how about we go to croaticroatia? i know it's a longer process than this. let's take our two kids out of american schools, let's leave des moines, sell all of our stuff at a pay what you want garage sell. >> i was an easier sale than i think she thought i was going to be. i was ready for a break. so there is always going to be a reason not to do it. and we just decided it was time. i was coming home late from work and seeing my kids for a couple hours each night and i was feeling a little disjointed. and i just wanted to see them more. >> and what a way to see your kids 24/7 than to take them to a village that's been the same for 100 years. >> and at the same time you're thinking about doing this, the stock market has fell, half your 401(k) is gone, what else do you have to lose? >> we just thought, it's time to start over again. we couldn't think of a better time to begin anew with our careers, with our family. >> you make this really interesting points that we spend so much time thinking about how we want to do at work, with how we want to be perceiv