DEBTHELPER

Debit card fraud can leave you in the lurch

2012-02-09T10:36:00.000-05:00

Despite consumer protections, you could still be on the hook
By Tamara E. Holmes

If you think your funds are protected in the event of debit card fraud, you might be surprised to learn that in some circumstances, they really aren't.

The next time you make a payment with plastic, consider this scary statistic: More than 25 percent of data breaches in the United States involve credit and debit cards, according to the Identity Theft Resource Center. While there are laws that limit consumers' liability for fraudulent charges, there are instances where debit card users may be left footing the bill.

The Fair Credit Billing Act limits liability for unauthorized credit card charges to $50. The Electronic Fund Transfer Act (EFTA) provides similar protections to debit and ATM users, keeping their liability to $50 or less, but only in certain cases.

"As a general matter, you're not liable for unauthorized transactions, but if you lose the card, you may be liable if you don't report that someone's been using your account," says Nessa Feddis, vice president and senior counsel for the trade group American Bankers Association.

According to EFTA, if you report a debit or ATM card missing before it's used, you'll be liable for nothing. If you report it missing within two business days of discovering the loss, your liability is capped at $50 for unauthorized charges. However, if you don't report the loss within two business days, you could be held liable for $500. If you don't report unauthorized charges within 60 days of receiving a bank statement with the charges, you could be held liable for the entire amount.

Beware of 'friendly fraud'
While banks can't penalize you for being careless with your debit card or for leaving a piece of paper lying around with your PIN number, there may be unauthorized charges that banks can hold you responsible for under EFTA.

The customer will be held liable if the customer gave permission to the individual who made the transactions and did not revoke that authorization with the bank.

-- Amanda Landers
Capital One Bank

For example, when the disputed charges were made by a friend or family member, the situation could get murky. "Merely knowing the suspected perpetrator would not result in the cardholder being liable for fraudulent transactions," says Lisa Westermann, a spokeswoman for Wells Fargo. However, "if the customer gave his or her PIN to the fraudster, we may decline the fraud claim."

Say you decided to entrust your PIN number to a relative so that she could make one withdrawal for you. Even if the relative then made another withdrawal without your permission, you could be held liable for both transactions.

"The customer will be held liable if the customer gave permission to the individual who made the transactions and did not revoke that authorization with the bank," says Amanda Landers, a spokeswoman with Capital One Bank. Once you tell your bank that a person you gave temporary access to your PIN no longer has that access, the bank would likely have you change your PIN or issue a new card, Neddis says.

So what happens if a friend or family member discovers your PIN and uses your card without your permission? While the bank will likely let you off the hook for the charges, you may first have to sign an affidavit stating that you didn't authorize the person to make the charges. That could then open that person up to the possibility of law enforcement actions taken by the bank. "If it's your son or daughter or someone you know, are you really going to want to bring charges against them?" says Linda Sherry, a spokeswoman for Consumer Action. "That's what the bank is probably going to want you to do."

Bank procedures could vary
Though banks can by law hold you liable for $50 if you report unauthorized transactions within two days, most will not hold you responsible for anything if it turns out fraud was committed.

However, that may not be enough to eliminate financial strain since an unauthorized ATM or debit card transaction can leave a consumer's bank account drained. To ease some of the pain, many banks provide provisional credit in the amount of some or all that was taken while they investigate the claims.

When Michael Alston of Austin, Texas, noticed unidentified charges of about $110 after his debit card was skimmed at a gas station, "my bank restored the entire amount the very next day," he says.

Wells Fargo provides credit within the first 48 hours of the discovery of the breach, while Bank of America provides credit within 24 hours and J.P. Morgan Chase within one business day. Banks also vary on the procedures customers must take to report a claim. For example, Capital One requires that customers submit a claim in writing before provisional credit is granted. However, if an investigation finds that fraud was not committed, the customer will then be responsible for paying the credit back.

If consumers feel their banks are unduly holding them responsible for unauthorized charges, they should speak to a manager or someone higher up in the bank, Consumer Action's Sherry suggests. If that doesn't work, they could contact the new Consumer Financial Protection Bureau at 855-411-2372, which, while not yet accepting debit card complaints, will assist consumers in determining which oversight bureau to contact regarding their issue.

Otherwise, the Federal Reserve Board regulates state-chartered banks that are members of the Federal Reserve System. The Federal Deposit Insurance Corp. regulates state-chartered banks that are FDIC insured and that aren't members of the Federal Reserve System. And the Office of the Comptroller of the Currency regulates national banks that have the word "national" or initials "N.A." in their names. And the National Credit Union Administration regulates federally chartered credit unions. For contact information on these agencies, visit "How to file a complaint."

But more than anything, consumers should take steps to keep their PINs and debit cards safe. "It's a shared responsibility to make sure there is no fraud," says Feddis.

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How Important is a Budget?

2012-01-31T09:01:00.000-05:00

The first thing we did when we decided to get out of debt was reevaluate our budget. We knew that we had to change the way we spent our money before our financial situation could change.

The amount of information out there on budgeting is overwhelming. There are lots of trite and obvious articles out there (like this one) that give such groundbreaking (and condescending) advice as “Incurring debt is easy but getting out of debt is not.” or “Reducing the luxuries will always be the best place to start for you to make some real savings with the least impact on your lifestyle.”

I’ve even read articles recently discouraging people from budgeting because, “You know you should budget, but you also know you’re not really going to do it.”

I vehemently disagree with this logic. The NUMBER ONE reason people are in so much financial trouble right now is that they are not willing to put in the work and sacrifice needed to save money, wait for purchases, or do without some things altogether. The simple act of budgeting is like an athlete training and developing discipline. At some point you have to be willing to do the hard and boring things if you want to make changes and improve your situation.

I will say that, in the previously mentioned article, the author goes on to talk about the idea of an “Anti-Budget” – a worksheet listing all the things you have to pay subtracted from your income, leaving you with what he calls a spending allowance. In my mind, that is a budget, so what he’s really doing is just trying to present the idea of budgeting in a different way. That’s good.

Back to our family’s budget. When we started reevaluating our finances, we had two assumptions:

There’s no way we can decrease our current expenses – we’re already at rock bottom.
There’s no way we can increase our income – that’s beyond our control.

Expenses
“Rock bottom” for us still meant spending more than we earned, so we knew something had to change. When we decided to get this debt taken care of – whatever the cost – we started cutting mercilessly: turning off cable, selling a car (only paying for gas and maintenance on one vehicle has saved us more than we imaginged it would!), even cutting a few important things – like piano lessons for the kids – for a short time. A lot of these changes won’t be permanent, but paying off our debt is more important to us (short- and long-term) than having these luxuries that just a few months ago seemed like necessities.

Income
When I realized that “income” did not have to equal “salary,” that was a game-changer for me. Instead of relying solely on the salary from mine and my husband’s jobs, we started trying to think of other ways we could earn money during the month. Clothing that we normally would have (tried to) sell in a garage sale, we started putting up on eBay (and getting three times a garage-sale price). We sold over half of the Wii games that our kids no longer played. Things that had been lying around the house, taking up space, now became valuable.

My point in saying all of this: If you want to badly enough, you can always find something to do to make more money. Whether it’s selling stuff or teaching an instrument or a hundred other possibilities, don’t wait for someone to give you the money you “deserve” – go out and get it.

I’ve written more about our family’s budgeting philosophy. When we dealt with these two areas, budgeting because a lot less overwhelming. It’s still hard – and it takes discipline to stick to it. When financial crises come, the single best first step in tackling them is to have a written budget that will show you where your money is going. If money isn’t tight, your budget can probably be a lot less formal than ours is, but even then it’s still important to, as Dave Ramsey says, “Tell your money where to go, so you don’t have to wonder where it went.”

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Meet Fee-Fighting Vigilante Molly Katchpole

2012-01-19T11:13:00.000-05:00

She took on Bank of America and then Verizon over fees By Minda Zetlin

If it weren't for Molly Katchpole, we might all be paying some sort of fee for using our debit cards.

In October 2011, Bank of America announced its intention to charge some customers who used debit cards $5 a month for the privilege, and several other large banks said they planned a similar move. It was Katchpole, a recent college graduate working two part-time jobs, who posted a petition on Change.org demanding that the bank rescind the fee that forced the bank to change plans.

"The American people bailed out Bank of America during a financial crisis the banks helped create. And now your bank is profiting," read the petition. Four-and-a-half weeks and 306,000 signatures later, Bank of America announced it was canceling its controversial fee.

Fast forward to Dec. 29, 2011, when Verizon Wireless announced it would begin charging customers $2 for making one-time credit or debit card payments online or over the phone using its automated system. The move was intended to force customers into using its auto-pay option instead. This time, instead of weeks, it took less than a day for Verizon to reverse its course. The mobile giant changed its mind after another petition posted by Katchpole collected more than 160,000 signatures in less than 12 hours.

CreditCards.com caught up with Katchpole to talk about her motivations and her personal finance philosophy.

CreditCards.com: What inspired you to start the petition against the Bank of America debit card fee?

Molly Katchpole: I was hanging around online reading the news, and saw Bank of America was planning this new fee in early 2012. They didn't really give any explanation, and I couldn't think of any except that they wanted more profit. So I went to Change.org. I had signed a couple of petitions there and knew they'd had a lot of victories in the past. I wrote up a petition, it went up and within a couple of days it had tens of thousands of signatures.

After about a week, I closed my bank account. The media really liked that, and I started getting a lot of press attention for it. I think I became the face of the whole thing. Sometimes when there's a lot of customer upheaval, there's no face to it, but I think that's what I was.

After about two and a half weeks, a Bank of America executive called me up. He wanted to explain the fee to me, and we talked on the phone for about 25 minutes. It was a weird conversation because I didn't really believe anything he said. It all sounded very scripted.

CreditCards.com: What explanation did he give?

Molly Katchpole: He said that they wanted to be more transparent with their fees. But that's not an actual reason. They're trying to be more transparent with their fees so they're announcing this one, but it doesn't explain the fee itself. To be honest, I think Bank of America handled the whole situation very poorly. It took them a while to say anything at all. It was like a train wreck for them.

After a month, three other big banks that had been [intending] to impose a debit card fee backed down, and after three more days, Bank of America backed down, too.

CreditCards.com: What do you think made it possible for you to have such a huge effect?

Molly Katchpole: Change.org was wonderful because it has a huge email list. It's a way to reach a lot of people who sign petitions. Occupy Wall Street was going really strong at the time and that had a lot to do with it. Bank Transfer Day, a movement for people to transfer their accounts from big banks to community banks or credit unions had been announced, so that certainly helped. You had hundreds of thousands of people leaving their banks. They were getting awful press.

It also had a lot to do with the timing. They had just raked in $2 billion of profit the previous quarter. And a lot of people in America are in a really bad slump right now, deeply in debt or with their houses underwater. I don't think they were expecting the amount of backlash they got.

CreditCards.com: With Verizon Wireless, it took less than a day for the company to cancel its plan to impose its $2 billing fee. And it appears the phrase that scared them out of it was "Molly Katchpole."

Molly Katchpole: I would love to think that! But people were extremely upset. The petition I put up was doing even better than the Bank of America one had. A lot of people say that big companies don't pay attention to that kind of stuff. They absolutely pay attention. When I talked to the Bank of America executive, he said they noticed my petition the first day or two that it was up.

A petition is a concrete collection of people who are upset. You don't have to look on Twitter or Facebook to see how many people are upset, although you can do that, too. But Verizon could see over 160,000 people had signed the petition. I think that definitely had something to do with their decision. Verizon was also being investigated by the Federal Communications Commission over the fee.

CreditCards.com: You had two part-time jobs at the time the Bank of America fee was announced. What were they?

Molly Katchpole: I was a nanny. I was also working for a political public relations firm, which was just me and one other woman. It was really great, but it was freelance and it varied each week.

CreditCards.com: Do you think working for that PR firm gave you insight into how to do this?

Molly Katchpole: No. And when I was in college, I didn't study anything that had to do with politics. My degree is in art and architectural history. But I was always an activist at heart, and I've been using Twitter for a long time. I've been using social networks and the Internet since I was in middle school. I think my generation is programmed to use the Internet for this kind of stuff.

CreditCards.com: So anyone could do what you did?

Molly Katchpole: Yes. I really want people to do it, but we need to be strategic and not go after every single thing. There's something to be said for writing down how you're feeling about something. If you look at the petitions, I list why the fees are wrong. I think that's an effective approach. We need to be able to mix emotions with facts and hard lines of reasons. We need to be as strategic as these companies are being.

CreditCards.com: What are you doing now?

Molly Katchpole: I'm a fellow at a nonprofit called Rebuild the Dream. I'm on a team that creates campaigns and petitions. I'd been following Rebuild the Dream since it started and had applied for a fellowship but not heard back. Then I did hear back at the end of the first petition -- I think maybe they saw it -- and they hired me as a fellow.

CreditCards.com: What is your own personal finance philosophy?

My personal finance philosophy all along has been to live below my means. So just because I can afford to go out every day and get coffee at Dunkin Donuts, or go out to eat two nights a week, doesn't mean that I should. I learned that from my parents.

Molly Katchpole: That's a really interesting question that I've never been asked. I absolutely do! I grew up in a working, middle-class family and learned a lot from my parents. My mother was excellent at handling our money and my parents had beyond perfect credit. They knew how important it is to be as financially independent as possible.

When I was in high school, I always had a job. When I was in college, I had a work-study job as part of my financial aid. I worked in the summers. My personal finance philosophy all along has been to live below my means. So just because I can afford to go out every day and get coffee at Dunkin Donuts, or go out to eat two nights a week, doesn't mean that I should. I learned that from my parents. Our vacations were always a lot of fun. We would go to Vermont and have a little cabin for a week, but it was never extravagant.

My dad's a machinist and my mom's a physical therapist's assistant. There weren't tons of extras, but we lived very comfortably. I'm worried that people in my generation who are working those types of jobs might not be able to do that.

CreditCards.com: Do you have a lot of student debt from college?

Molly Katchpole: I have a 15-year repayment and $60,000 in debt. That sucks, and I don't necessarily think it should be that way, but that's how it is for me right now.

I've been at my job since the end of November, so I'm still in a grace period for paying back these loans, and am trying to save up money so I can pay them back. I have two private student loans and unsubsidized and subsidized Stafford federal loans. On one of my student loans, I owe $180 a month, and on the other $190 a month. I think when I consolidate my Stafford loans they will total about the same. If you pay a little more each month, it goes straight to principal. So I made the decision that I'm going to make it a nice and easy round number: $200 a month for each of those loans. That way, I can reduce the principal more quickly.

CreditCards.com: If you could imagine the perfect job for you to be in 10 years from now, what would it be?

Molly Katchpole: Working to uphold the working and middle class and make sure they don't wither away is really, really important to me. I'd like to be able to do that.

I would also really like to be a teacher. Actually, there are a lot of different things that I'm interested in and am feeling it all out right now. I don't know where I'm going to be in 10 years. And I'm OK with that.

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1099-C surprise: IRS tax follows canceled debt

2012-01-05T10:47:00.000-05:00

Forgiven credit card debt may be taxable income

By Connie Prater

If you thought your money woes ended last year when you settled that credit card debt, think again.

Avoiding 1099-C tax problems

What you should know: Have you negotiated with a creditor to pay less than you owe on a credit card debt? The IRS considers forgiven or canceled debt as taxable income.

What to do: Experts advise consumers to seek tax advice before negotiating credit card debt settlements to avoid a "surprise" tax hit from cancellation of debt.

For many consumers with debt problems, after the debt collector leaves their lives, the taxman arrives.

Months after successfully resolving credit card debts, consumers have received 1099-C "cancellation of debt" tax notices in the mail. Why? The U.S. Internal Revenue Service considers forgiven or canceled debt as income. Creditors and debt collectors who agree to accept at least $600 less than the original balance are required by law to file 1099-C forms with the IRS and to send debtors notices as well. Taxpayers must report that "income" on their federal income tax returns.

"A lot of people don't realize they have any tax issues at all when they are going through this," says Alison Flores, a researcher at The Tax Institute at H&R Block, the nation's largest tax preparation service. "They say 'I'm really poor, I'm broke and I can't pay my bills. How can you consider this income?'"

It is, according to the Internal Revenue Code. For example, a person with $10,000 in credit card debt who negotiates to pay only $6,000 of the balance would have $4,000 in forgiven debt income. That $4,000 must be reported as "other income" on Line 21 of the 1040 tax form. Depending on the amount of debt forgiven, the taxpayer's income level, deductions and other factors, the consumer could face a sizable tax bill come mid-April.

Surprise tax problem

The problem: Many consumers have no clue what the 1099-C forms are, and some may be trashing the cancellation of debt notices because the forms are sent by creditors or debt collectors with whom they thought they no longer had business. Still others are not filing the 1099-Cs with their federal income tax returns -- putting taxpayers at risk for IRS audits, penalties and fines. Consumer credit counselors and tax attorneys say few consumers are aware of the tax implications of settling to pay a lesser amount than they owe in credit card debt.
"It's truly something that consumers need to be aware of, as they are often blindsided by it," says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, a nationwide group of nonprofit credit counseling agencies. "Just when they think the debt monkey is off their back, here comes the IRS obligation."

The number of "surprise" tax problems is growing as the amount of bad debt rises amid a nationwide credit crisis.

According to the IRS, the number of 1099-C cancellation of debt forms filed with the federal government by creditors and debt collectors nearly tripled between 2003 and 2009. The IRS received fewer than 1 million forms in 2003 and more than 2.673 million in 2009 The projected number for 2010 is 2.8 million (see chart). The IRS expects to get 3.1 million debt forgiveness forms by 2012. Part of the spike may be due to the rise in mortgage foreclosures, but a major portion of it is also attributed to credit card debt.

Debt forgiveness leads to rise in 1099-C filings

Canceled and forgiven debt may be taxable income for
some consumers. According to the IRS, the number of
taxpayers filing debt cancellation forms nearly
tripled between 2003 and 2009. The IRS estimates the volume
of filings will continue to climb into 2012, when they will
hit a projected 3.11 million. Source: Internal Revenue Service,
Analysis and Statistics, Office of Research,
Forecasting and Service Analysis

Negotiating with creditors, debt collectors and debt buyers to pay a fraction of the amount owed is a common practice in the industry, often accomplished through third-party agents such as consumer credit counselors or debt settlement specialists.

"Debt buyers are willing to negotiate a discount, sometimes at a very significant discount off the entire balance, to settle the debt," says Barbara Sinsley, general counsel for the 600-member Debt Buyers Association (DBA International), a trade group of companies that buy and sell portfolios of debt from banks and other creditors.

Seek advice immediately

Consumers who receive the 1099-C cancellation of debt forms should immediately take them to a tax preparer or tax adviser, experts say.

"Make sure your tax preparer understands the rules related to these type of activities," says Mark Steber, vice president of tax resources for Jackson Hewitt tax preparation service. "Ask to talk to an office manager. Tell them 'I need to see someone who understands this type of situation.'"

Taxpayers may qualify for one of several exclusions that allow them to reduce taxable income from canceled debts. If the exclusions apply, they must file an IRS form 982 in addition to the 1099-C.

"Theoretically, you have income if you don't meet one of the exceptions," says Eric L. Green, a tax attorney with the Convicer & Percy law firm in Glastonbury, Conn.

The exclusions include debts discharged during bankruptcy and debts of consumers who are insolvent (meaning their liabilities exceed their assets) prior to the cancellation of debt. However, the exclusion applies only up to the amount by which consumers are insolvent. That means if $5,000 in debts were forgiven and liabilities exceeded assets by $2,000, then the $2,000 would be excluded as income. "The remaining $3,000 would be reported under other income," says H&R Block's Flores.

Debt resolution tax tips

* Consult with a tax adviser before finalizing debt settlement agreements to find out the potential tax implications. Ask for a tax preparer who is knowledgeable about 1099-Cs.

* Clarify with the creditor or debt collector the exact amount that will be declared on the 1099-C form.

* Be aware that the 1099-C is coming. Don't throw it away. Take it to your tax preparer.

* If there is a dispute about the amount reported on the form, contact the creditor or debt collector immediately to resolve the matter. Ask for a corrected 1099-C form.

Homeowners who default on mortgage loans may also qualify for exclusion of their foreclosures under the Mortgage Forgiveness Debt Relief Act, which took effect Dec. 20, 2007, to help homeowners caught in the mortgage crisis. This provision applies to debt forgiven in calendar years 2007 through 2012.

Other exclusions are for certain farm debt, student loans and real property business debts.

Informing consumers

Much of the surprise element of the 1099-C cancellation of debt forms could be eliminated, say tax preparers, if all creditors and debt buyers routinely informed consumers that there could be tax ramifications when settling debts for discounted amounts.

At Wells Fargo, one of the nation's five largest credit card issuers, all settlement-offer letters include disclosure of possible 1099-C implications, according to Lisa B. Westermann, assistant vice president of public relations for Wells Fargo Card Services. Other credit card issuers did not respond to requests for information about their policies.

"The bank doesn't tell you," says Green, the Connecticut tax attorney. "From the bank's perspective, it's not their job to give tax advice."

Says Sinsley from the debt buyers group: "There is no current law that says that a debt buyer must disclose that a 1099-C would be forthcoming after the settlement of debt."

She says debt buyers have been sued for the unlicensed practice of law after giving consumers advice on resolving their debts. It's something she advises her members to avoid. "A debt buyer is not the consumer's financial planner," she says. "Everybody's financial situation should be discussed with a tax adviser."

Knowing the amount of forgiven debt to be reported to the IRS would help consumers plan ahead, Sinsley says. "When they are negotiating the settlement of the debt, the consumer can discuss with their tax adviser what consequences there would be in exchange for the settlement of the debt," she says. "If the consumer is settling a debt, and they know the settlement is X and the forgiveness is Y, they can go to their tax preparer and say, 'If I do this, what is my tax impact?'"

The IRS has released numerous publications and bulletins about 1099-Cs, IRS spokeswoman Theresa Branscome says. However, many of those publications have focused on mortgage forgiveness rather than credit card debt.

Check the figures

Another tip from tax preparers: Make sure that the amount of canceled debt listed on the 1099-C form is accurate.

"Make sure that you agree with the numbers," says Steber from Jackson Hewitt. "They can include interest on the debt that hasn't been paid for a while." If there is a discrepancy, Steber says, "you better go back and talk to them now and find out what it is."

Another potential problem: receiving a 1099-C before the debt is actually paid off. According to Lauren Saunders, managing attorney for the National Consumer Law Center, creditors have sent cancellation of debt forms to consumers at the point that the credit card issuers charged off the debt and sold it to debt buyers. "The consumer is potentially liable both for taxes on supposedly forgiven debt while continuing to be liable for the debt," Saunders says. "We've had calls about that situation. Seems like you can't have it both ways: Either you forgive it or sell it but not both."

Consumers who receive 1099-Cs in error may request that creditors or debt buyers send corrected forms to the IRS, but the situation leads to confusion and complications for consumers, according to the law center.

Several tax advisers called the 1099-C requirements unfair to consumers trying to overcome mountains of debt. Others say the tax rule is further proof that there is no free ride and consumers who borrow money must be prepared to live up to their financial obligations.

The bottom line on 1099-Cs, says tax attorney Green: "Be aware and prepare for it. When you receive that form, go immediately to a tax adviser. Don't ignore it. That has real dollars and cents consequences."

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Some Tips For A Frugal New Year’s Eve Party

2011-12-29T08:40:00.000-05:00

by Mrs. Not Made of Money
After the stress of the holidays, there’s nothing better than hosting a New Year’s Eve bash to help you cut loose and have some fun. What won’t relieve stress, however, is having to begin the new year by facing leftover bills from your party. Vow to start your new year on the right foot by throwing a killer New Year’s Eve party that doesn’t break the bank. Here are a few tips I have for saving some money on your party:

Free Invites

Saving money on your party can begin as soon as you start inviting folks. Forget spending any of your previous party fund on invitations and postage. Instead, send out your invitations electronically with websites like Evite.com. I love that I can track my invitees responses and send updates about the party to everyone at once.

Inexpensive Eats

Since New Year’s Eve parties tend to start later in the evening and ramp up until the clock strikes midnight, you can skip the elaborate dinner you might have prepared for a Christmas or Thanksgiving party. All you really need to provide for a New Year’s Eve party are great appetizers. Scour the frozen food aisles at your supermarket (or whip up your own) for simple appetizers that you can stock up on. At the party you can give your appetizers a little extra glamour by placing them on festive trays or dishes.

Drinks You Can Afford

You could easily spend a small fortune trying to stock up on different types of beverages for a New Year’s Eve party. Alcoholic drinks can require many different types of liquor to create them. In addition, you might want to have something on hand for your guests who don’t drink alcohol. Before you know it, your beverage list can get out of control. Instead of trying to guess what drinks your guests might want, choose a “signature” drink for the evening. Then you can focus your shopping on making sure you have enough supplies on hand to keep everyone’s glass full for the big moment at midnight.

Entertainment on the Cheap

Hiring a band or renting karaoke equipment is sure to blow your party budget out of the water. Fortunately, with the advent of mp3 players, you can probably get your hands on some great music without spending a dime. Chances are that you have a friend or two who already has quite a collection of music at his disposal. Ask him if he’d mind providing the music for your little party.

Stunning Décor for Next to Nothing

To decorate your home for your New Year’s Eve party, all you really need to do is pare down your Christmas decorations. As you take down your Christmas tree, be sure to keep your strings of lights handy. Then, string the lights throughout party central. Use lots of metal or glassware to give the lights something to reflect off. The resulting effect will be glamorous without being too over the top. Then, dim the room lights and turn up the music.

Reader Questions:

Are you hosting a New Year’s Eve party this year?

If you are do you have any money saving tips to share?

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Millions Getting Fourth Credit Score

2011-12-19T13:08:00.000-05:00

WEST PALM BEACH, Fla. -- Millions of Americans are about to get a new credit score.

A company called Core Logic announced it will be putting out something called a Core Score. Much like the three established credit reporting companies, this score will attempt to rank a consumer’s financial history. But the Core Score aims to be much more comprehensive.

"It can really hurt you because it takes into consideration, again, everything you've ever done, if you've ever missed a rent payment, a car payment, if you've had payday loans," said Andrew Bernstein of DebtHelper.com.

Bernstein said the company looks at court records and factors homeowner association and condo board liens. It also looks at wage garnishments, alimony payments even a missed utility payment. What is also different about the new Core Score, Bernstein said, is that credit troubles don’t disappear after seven years.

"Even a bankruptcy only stays on between seven and 10 years," said Bernstein. "But with this new Core Score, that will be on there for life."

Bernstein said the new score could actually be quite beneficial to those who haven’t owned property or a car because it will be able to give a person a credit score, thus giving them access to a mortgage or car loan.

"In a way, I think it's good because if you're missing those bills, it's just as easy to turn around and miss important, credit-bearing bills," said Amanda Fetscher, while shopping at a Lake Park Target.

At first, it's expected the score will only be used when consumers attempt to get a mortgage or car loan. It's expected to be more widely marketed in the coming years. Landlords and employers might even use it when making renting and hiring decisions.

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Credit cards: How to avoid getting tricked this holiday season

2011-12-14T09:37:00.000-05:00

Dec 2 (Reuters) - 'Tis the season to charge it.

Pay a little now, finance the rest with credit cards. If you're like a lot of people, that might sound like a good deal for holiday shopping. "We spend more in this five-week week period than in the collective 47 weeks that lead up to it," says credit expert John Ulzheimer.

Yet your option to pay the full amount that is due for the billing period -- the smart thing to do -- may not be the most prominent one displayed on your credit card statement. And when you go online to pay your bill, the minimum payment box might already be checked.

Even sophisticated consumers can fall into the minimum payment trap, according to Linda Salisbury, a Boston College professor who studied consumer behavior when paying credit card bills. She surveyed hundreds of people on the subject.

Using actual credit card payment data collected by British researchers as well as her own research, she says consumers appear to be drawn to paying less than they might have when they see a "minimum payment" amount on their bill.

Credit experts say you need to resist the draw to pay low and instead shell out for as much as you can afford in order to break the hold of card debt. That attraction to pay less, Salisbury says, has a greater impact on people who have the money to pay the bill, because they could afford to pay the full amount, but don't, and end up spending money on interest instead.

The impact of paying the minimum is significant. An example: If you have $10,000 in debt on card with a 10 percent interest rate and a bank that requires a minimum payment of 4 percent of the balance (initially $400 a month), it would take about 10 years to pay off that card if nothing more was charged. Increase your payment to $800 a month and it would take 14 months and save you nearly $2,000 in interest.

That impact is even greater on those who accept the tempting store credit card offers being constantly dangled in front of them, with those cards typically carrying interest rates at 20 percent and higher.

New York City bankruptcy lawyer Daniel Gershburg says he sees the psychological pull to pay the minimum by clients all the time.

"They believe that because they're making this tiny payment every month, they are above water, when, in actuality, they're not," he says. "It's really a huge problem because consumers then spend so much more and pay so much more in interest because of this unrealistic sense of security that a minimum brings with it."

You might think that the calculations on your statement showing how long it will take to pay off your credit card debt would motivate higher payments. But that hasn't been the case, Salisbury says. "We were surprised that the additional cost and loan payoff information didn't have a positive effect."

The federal CARD Act, which took effect in 2010, is responsible for the disclosures we now see on credit card statements -- how long it will take to pay off a balance if you pay the minimum as well as how much you'd have to pay monthly to retire your debt in three years. There are also plenty of online calculators out there, such as what you can find onthat let you change scenarios to see just how much a difference a bigger (or smaller) payment can make.

"Give it a try the numbers can be scary," says Bills.com president Ethan Ewing: "The minimum monthly payment is a costly way to pay down your balance, and can effectively lock you into a lifetime of debt."

The Consumer Financial Protection Bureau says 70 percent of consumers surveyed say they have noticed new credit card disclosures on their bills. But fewer than one-third say this caused them to make bigger payments or stop charging up their cards.

A bit of good news for holiday shoppers with good credit who are intent on paying off their debt: A resurgence of card offers featuring introductory balance transfer interest rates that last a year or more (Citiis offering 21 months). Some of the offers are fee-free. Others charge up to 3 percent of the balance, that could be hefty -- $600 if you transfer $20,000.

Source

10 Easy Tips to Save Money this Christmas

2011-12-08T09:24:00.001-05:00

Want to learn how to save money on gifts this Christmas and not feel like a Scrooge? According to this year’s National Retail Federation holiday survey, the average American will spend close to $700 this season on gifts, cards, decorations, and the like. This is one time when you want to be below average — way below. In fact, if you are in debt, just say no to gift buying this holiday. There is absolutely NO reason for you to go further into debt buying gifts for others. There are 13.6 million Americans who are still trying to pay off holiday debt from last year. Don’t join them by digging yourself into a deeper hole.

If you are going to buy gifts this year, the key to avoiding a holiday season that drains your bank account is to start planning early. Here are the top 10 money saving tips for steering clear of holiday debt and starting the new year in better financial shape:

1. Plan it. Before you shop online or enter the chaos of the shopping mall, take 10 minutes at home to create a spending plan that lists who you need to buy for and how much you will spend.

2. Use discounted gift cards. How would you like $100 worth of gifts for $80? You can purchase discounted gift cards for hundreds of online/offline retailers including the Apple Store, Radio Shack, Sears, Home Depot, and others. Discounts are usually 5-30 percent off the face value of the card. Check out GiftCardRescue.com and GiftCards.com.
3. Use social media. Before you start shopping, start following your favorite retailers on Twitter and Facebook. Many companies offer discounts exclusively to their Twitter followers and Facebook friends. A quick search of their recent posts may reveal money-saving discount codes.

4. Barter via online chat. When you’re shopping online, look for a “chat” or “live help” button. Tell the customer service rep you’d like to shop with them but you want a 15 percent discount. Ask them to check with their manager or you will abandon your shopping cart and click over to their competitor. This won’t work all of the time, but when it does it will save you money.

5. Find discount codes. I never buy anything online without trying to find a discount code first. I’ve literally saved hundreds of dollars and it doesn’t take more than a minute. Simply go to RetailMeNot.com, SecretPrices.com, and FreeShipping.org to pull up all of the available discounts for your store. Use the discount code during the checkout process to get free shipping or to save 20 percent or more.

6. Get cash back. If you’re going to spend hundreds of dollars this year on gifts, you might as well try to get a few bucks back. I’ve used ebates.com (affiliate link — all proceeds will go to charity) for some time and have received several rebate checks.

7. Bring on the envelopes, chuck the credit cards. Leave your credit cards and debit cards at home. Allocate an amount of money for each gift, and put that money in separate envelopes marked with the recipients’ names.

8. Give group gifts. When exchanging presents within large groups of people, even “token” gifts can really add up. Try a “white elephant” exchange, a secret Santa strategy, or going in with co-workers on a gift for your boss.

9. Make a promise that you won’t buy anything for yourself. When you’re shopping for gifts, it’s easy to be tempted to buy for yourself. Make this season about others, not you — and remember that the items you want will likely be less expensive during the after-season sales.

10. Avoid the “10 percent off, buy more” phenomenon. Stores often offer great deals when you sign up for their credit cards, but beware the high rate of interest these cards charge and ask yourself if you’ll really be saving money in the long run. And don’t spend more than you intended just because you’re now getting a discount on your purchase.

If you follow these money saving tips, I guarantee you will put more green — and less red — into holiday shopping this year.

Source

BBB Black Friday Tip Sheet

2011-11-23T08:51:00.001-05:00

It’s time to start planning your Black Friday, that special day after Thanksgiving when retailers gear up to offer their best. Better Business Bureau past experience tells us that all deals are not created equal and the fine print is often the most important thing. Before you head out the door for a block buster and get caught up in the frenzy, the BBB offers the following tip sheet to help you save time and money.

Tip 1 – Know before You Go.

In the coming weeks many retailers will release their Black Friday deals online, in social media and other publications. Research where the sales are and make a list of your gift priorities to compare prices and plan your day of deals. Since many advertisements will begin before the actual sale, build up a coupon collection as soon as possible. Remember to bring ads with you on Black Friday just in case the price is not what you expected.

Tip 2 – Don’t Fall for False Advertising.

Despite BBBs effort to advance trust in the marketplace, some companies will resort to advertisements that are untrue, misleading, deceptive, or plain fraudulent. Black Friday advertising will be abundant and BBB urges consumers to watch for red flags.

Many consumers have experienced frustration and lost money they can’t afford to lose after being lured by prices too good to be true, bait and switch ads designed to bring you in but push you toward more expensive items, fine print return policies, final sales, and deals that end before the day is done. To protect you on Black Friday, BBB advises consumers not to believe all they see or hear without doing their own research to confirm the claims being made. For details and help to decipher truth in adverting, consumers can review BBB's code of advertising.
If you find advertising you’d like the BBB to investigate tell us more by emailing info@upstatenybbb.org.

Tip 3 – Maximize Advance Alerts.

Do you have favorite retailers? Now is a good time to sign up for their email alerts and “like” their Facebook page. BBB Accredited Businesses and other stores are working to reward your loyalty and you may get a jump on special offers.

Tip 4 – Set up Your Reward Cards.

Have you ever stood in line with out your store rewards card? You either missed out or the clerk may have handed one over. Black Friday deals may have strict restrictions with no sharing allowed. Make sure you have reward cards with your favorite stores and keep them with you. Check your credit card rewards program as well for special points that could add up on Black Friday.

Tip 5 – Shop with Trust.

If you find a deal – don’t just jump at the first chance to get it. The BBB recommends doing your research on the business – know how long they’ve been in business, look into their customer service track record, check them out at bbb.org. If you have concerns about the type of gift or the right fit – make sure you ask about their return policy too.
Tip 6 – Comparative Shop Online.

There are dozens of Black Friday websites that claim to capture the best deals around and they can really help you do your comparative shopping online. Before you pick your favorite site, the BBB recommends that consumers find a reputable site that’s not a fly-by-night operation by checking them out at bbb.org and see what others say about the site through an online search.

If you decide to buy online there are a host of security measures to abide by, among them to Start with Trust and know you are dealing with an experienced, reputable retailer; confirm that the site is secure and be certain you have a phone number and physical address should problems arise with your order.

Tip 7 – Look for QR Codes.

They’re square, black-and-white and funny looking – but they can take you straight to a deal. QR stands for Quick Response codes and they’re popping up in many ads and print materials. Several BBB Accredited Businesses use them to help you Start with Trust and they can bring you directly to a special offer or a BBB Business Review. Before you can scan one and view the offer - you’ll have to install a QR app reader. Most newer smart phones are equipped to scan QR codes and if you’re a mobile shopper you could really have some fun.

Tip 8 - Shop Small

Save your gas money and your time when you stay close to home. The Better Business Bureau is encouraging consumers to support small businesses in their community on Small Business Saturday, the day after Black Friday. Check your neighborhood retailers for their weekend deals and gain some goodwill by knowing you’ve done your part to help them thrive during the holidays. Although a price match may not be applicable for some items - your neighborhood store may be able to guarantee a price for you – even if you decide to buy later.

Tip 9 - Check Return and Exchange Policies.

All bets can change for Black Friday deals which means the store policies can change too. Make sure you know what the return and exchange policy is for your Black Friday special and that a return is even possible – especially if you’re buying online. Final sales, a very short return window (like before December 25th) or in-store or online only credit could leave you with deal gone wrong.

Tip 10 – Shop Safely.

While getting a deal is important, there are ways to shop safely without putting yourself or your wallet in jeopardy. The Better Business Bureau advises consumers to take their time and plan ahead for the best rewards.

· Make a list and prioritize where you should go and when.

· Bring friends into the mix to help sort through your options, two cars can go in two directions making it easier to get limited quantities and some pals will even wait in line as you trade off shopping in the stores.

· Remember to get gift receipts and keep them organized for those moments when the thought wasn’t quite enough.

Source

AICCCA Says Consumers Need a Plan to Avoid Red Tuesday™

2011-11-18T10:42:00.001-05:00

Fairfax, VA – November 17, 2011 – Black Friday is almost here, followed closely by Cyber Monday,
both of which bring sales that are hard to resist. The Association of Independent Consumer Credit
Counseling Consumers says that consumers who are going to advantage of these sales need to be
aware that a Red Tuesday could be the result of charging their holiday expenses.

Consumers are expected to spend an average of $704.18 on holiday related expenses for 2011
according to the National Retail Federation. Charging that amount on a credit card with an
interest rate of 18 percent and making only a five percent minimum payment each month would take
almost four years to repay. Add $233 in interest charges during that time and consumers will find that
their 2011 holiday expenses cost close to $1,000.

.“Red Tuesday is a real possibility for consumers who do not take the time to plan,” said Dave Jones,
president, Association of Independent Consumer Credit Counseling Agencies.

In order to avoid a Red Tuesday in 2012, AICCCA offers the following tips for Black Friday
and Cyber Monday spending:

Write it down. Look over the ads and make a list before you shop, whether online or in person. A
complete list makes it easier to walk away from impulse buys.

Pay with cash. For Black Friday shopping, determine the amount of money you have on hand to spend and take only that amount of cash with you when you shop. Be sure to leave your credit cardsat home so that when you run out of cash, you will have to stop.

Do your homework. For Cyber Monday shopping, search for free shipping and coupons. Be sure to
shop only at sites you trust. Credit cards are actually a safer option for online shopping. To avoid
incurring interest charges and adding to your debt load, charge only the amount you can pay in full as
soon as the bill arrives. If you go over that amount, try to charge no more than what you can pay off in
90 days or less.

If your Tuesday is red, contact an AICCCA member at 866-703-8787 or visit http://www.aiccca.org/.
AICCCA: Founded in 1993, Association of Independent Consumer Credit Counseling Agencies
is a national membership organization established to promote quality and professional delivery of credit
counseling services. AICCCA and its members are focused on financial education, efficient processes
and advanced technology to best serve clients and creditors. AICCCA members are independent
nonprofit agencies that advocate for debtors, annually counsel millions of consumers nationwide
and provide debt management services to consumers with excessive unsecured debt. To
contact an AICCCA member agency call (866)703-TRUSTAICCCA (866-703-8787) or visit
http://www.aiccca.org/.

Say Sayonara to These 8 Bad Shopping Habits

2011-11-15T10:15:00.001-05:00

Whether you love to shop or find the whole thing a drag, you’ve likely developed some bad habits that are costing you money and time. Sometimes shopping itself can be a bad habit, especially during the holidays when events like Black Friday and Cyber Monday encourage impulse buying.

While changing your buying behavior takes more than a tip sheet, there are some problems that can be fixed without your ever missing them. Consider taking the “never-again” pledge and see how much you can save by ditching the following seven shopping habits.

1. Don’t Double Up With BOGOs

Buy-one-get-one-free offers require you buy two of a product, so ask yourself a few questions before going for the second item. Do you have enough storage space? How long before you’ll actually use the product? What if you don’t like the first half of the deal; will you just trash the second?

2. Resist Checkout Impulse Buys

Put on your blinders while waiting in supermarket lines. Merchants place tempting items directly in your line of sight — like tabloid newspapers — so you’ll grab and stash them in your cart. Check out “9 Ways Supermarkets Suck You In” for more sneaky strategies to avoid.

3. Nix Extended Warranties

Clerks selling electronics, appliances and other big-ticket items are often trained to push extended warranties. These upsells cost far more than they’re worth, since most of these products already come with manufacturer warranties for at least the first year. Extended warranties also can be difficult to cash in on, should the product break down.

4. Avoid Gift Wrap Services

Gift wrapping and gift boxes, particularly those purchased online, usually cost far more than they’re worth. Pick up your own supplies at the dollar store and get out the tape. Better yet, recycle gift bags you’ve received in the past, or consult Martha Stewart’s “Gift-wrapping Ideas” to re-purpose common household items for a truly unique approach.

5. Forgo Store Credit Cards

Merchants offer savings when you sign up for their credit cards, but you’ll ultimately pay through the nose via interest rates and potential late fees. For some reason, just applying for these cards also dings your credit rating. Just say no and, instead, buy cheap gift cards from websites like GiftCardGranny for your preferred merchants. You can save anywhere from 10 percent to 50 percent and still buy the merchandise you want at the card’s face value.

6. Don’t Drink and Shop

There’s usually a healthy mark-up on drinks sold in store coolers. If you’re the type that needs a bottle of soda or water to make it through a dreary shopping trip, plan ahead and bring your own from home.

7. Prevent Gift Card Waste

According to an article on Kiplinger.com, American households have an average of $300 in unused gift cards collecting dust in their wallets, purses and sock drawers. Holding onto gift cards is a costly habit, one which can be remedied by exchanging them for cash on Gift Card Exchange Day. Scheduled for Dec. 26, this one-day online event serves as both a reminder and a resource to trade gift cards for greenbacks, with resellers competing for your unwanted bounty.

8. Dodge Daily Deals

Daily deal sites like Groupon and LivingSocial make saving look easy, and as a result make spending even easier. Thanks to overzealous deal purchasing, there’s now an entire industry made up of merchants who buy your unused daily deals for resale. If you habitually purchase daily deals and rarely use them, consider going cold turkey for a while.

As a consumer and money-saving expert, Andrea Woroch dissects retail trends and provides smart shopping and money-management tips to help Americans save more. She has worked with top news outlets across the country including NBC’s Today, Good Morning America, New York Times, USA Today and Kiplinger Personal Finance. For better buying tips and personal finance advice, follow Andrea on Facebook and Twitter or check out her website atwww.AndreaWoroch.com.

Source

Tips on saving money on groceries

2011-11-04T09:16:00.000-04:00

If you've been to a grocery store lately, you know that meat, dairy products, cereal, coffee and soda have all seen double-digit price increases in the past 12 to 18 months. Even worse, there are more hikes predicted.

This year's wild weather and roller-coaster oil prices are partly to blame. And unless things stabilize, shoppers are looking at food prices being 3 to 4 percent higher next year, said Michael Swanson, an agricultural economist at Wells Fargo.

When prices climb too high, thrifty consumers can always find alternatives, said Bea Krinke, a registered dietitian in St. Paul, Minn. But quitting a favorite food is rarely easy, even if you treat yourself once a month as Krinke suggests.

If deprivation isn't on your menu, Twin Cities supermarket gurus — Carrie Rocha of Pocketyourdollars.com, Karen Gunter of Creativecouponing.com and super shopper Kim Crumb of Bloomington, Minn. — suggest how to save on five budget-busting foods. Their best tip? Keep track of prices on 10 to 15 of the staples you regularly buy so you can recognize a good deal when you see one.

If you'd rather beat the price hikes instead of waiting for a sale, now is the time to buy peanut butter and popcorn. Both are expected to rise by 25 to 30 percent in the near future. Luckily, both have a long shelf life.

Bacon

Why so high?

With the price of feed rising, the hog industry has cut back on production to prevent losses. Not as many pigs, not as much bacon.

How to save:

— Choose other pork products that are on sale, such as pork loin, or skip it all together.

— Buy on sale at stores with double coupons.

— Stock up when it's on sale, typically before Thanksgiving, Christmas and Easter, and then freeze excess.

Substitutes:

— Buy sausage or breakfast links, which are cheaper than bacon, a premium pork product.

— Try turkey bacon, Bacon Bits or soy-based bacon pieces.

Beef

Why so high?

"The export market is on fire in China, Korea and Mexico," said Swanson.

Less inventory here means higher prices.

How to save:

— Look for items with a "reduced for quick sale" sticker. Ask the meat department when reduced items are put out. Freeze or cook immediately.

— Embrace smaller portions. It's an easy way to reduce beef consumption and eat more healthfully, said Krinke.

— Buy better cuts of meat for less at Costco or sign up for your grocer's weekly e-mail for savings and a coupon.

Substitutes:

— Chicken, pork and turkey are often cheaper. Stock up on turkey at Thanksgiving and freeze.

— Tenderize cheaper cuts of meat with acidic marinades, such as Italian dressing, or chop meat into small pieces and put in a slow cooker.

— Get protein from whole grains such as quinoa or soy and dairy products.

Cereal

Why so high?

A large portion of corn supplies is now being diverted to ethanol. Oats and wheat prices are higher.

How to save:

— Clip cereal coupons that are featured in the circulars, or print coupons from Smartsource.com, Coupons.com, Bettycrocker.com, Pillsbury.com or other company websites.

— Buy in bulk at warehouse clubs or co-ops.

Substitutes:

— Experiment with store brands, especially corn flakes or other standard fare.

— Mix cheaper store brands with brand-name cereal.

Mllk

Why so high?

Exports are at an all-time high, said Swanson, due to an expanding middle class in countries such as Mexico, Philippines and Egypt.

How to save:

— Try neighborhood gas stations, convenience stores and pharmacies that use milk as a loss leader.

— Freeze milk for use in cooking. (Most people don't like drinking milk after it's been frozen.)

Substitutes:

— Check the price on powdered milk. It's cheaper, and it's fine for use in recipes.

— Gradually train yourself and your kids to drink a mixture of powdered and regular milk.

Cheese

Why so high?

Prices have doubled in the past year and coupons are scarce.

How to save:

— Buy in larger quantities at warehouse clubs.

— Shred and freeze cheese when on sale. Shredded cheese tends to freeze better than blocks.

— Shop for cheese in the dairy case, not the deli or the specialty cheese case, where prices are higher.

Substitutes:

— Experiment with reducing the amount of cheese on a pizza, for example, to what's palatable for you, said Krinke.

Soda pop

Why so high?

It's the higher cost of corn syrup, aluminum, plastic and transportation.

How to save:

— Watch for Pepsi coupons. Now that Coke is winning the soda wars, Pepsi is fighting back with discounts.

— Stock up around holidays, when discounters and supermarkets sell 12-packs for less than $3 and 24-packs are about $6.

— Mix cheaper generic colas in 2-liter bottles with brand-name stuff.

Substitutes:

— Make your own at home with the do-it-yourself kits from SodaStream at Amazon or Bed, Bath & Beyond.

— Mix sparkling water with flavorings or apple, lime, orange or grape juice.

Source

7 ways to protect your credit rating during unemployment

2011-10-21T08:29:00.001-04:00

Losing a job is bad enough, so minimize the damage to your credit By Jodi Helmer

In the midst of polishing your resume, scouring job boards and meeting with recruiters, it's easy to stop paying attention to your credit score.

But taking steps to protect your credit during a period of unemployment will make it easier to recover from the financial setback and may even help you land a job.

For one thing, even if you're not looking at your score, your prospective employer may. In 2010, 60 percent of members of The Society for Human Resource Management ran credit checks on at least some potential hires, up from 25 percent in 1998.

Experts suggest you follow these seven tips to safeguard your credit score if you're unemployed, or if your job situation is shaky:

1. Consider payment protection: In exchange for a fee, payment protection insurance puts your payments on hold for a predetermined period of time. It's offered on debts such as credit card balances, car loans and even mortgages.
"You won't qualify for payment protection after you lose your job, so research the options now," advises Rodney Anderson, author of "Credit 911: Secrets and Strategies to Saving Your Financial Life."

Read the fine print so you know exactly what protection you're getting and how much it costs.

2. Request a credit report: Before you send out resumes or schedule interviews, order a copy of your credit report from each of the three major credit bureaus. You're entitled by law to one free one per year if you get them through AnnualCreditReport.com .

"Knowing the details of your credit report can help you explain any possible red flags during an interview," says Anderson.

According to the Fair Credit Reporting Act, you're also entitled to a free credit report if you are unemployed and searching for work.

If there is something in error on your credit report, you can have it corrected. Or if there is something accurate but possibly damaging to your chances of finding a job, the three major credit bureaus -- TransUnion, Equifax and Experian -- allow you to write a 100-word letter, explaining the circumstances to anyone who requests your report.

3. Stick to cash: Without a regular paycheck, it can be tempting to charge everything from groceries to a new interview suit with plans to pay the balance later.

"If you pay with cash, you tend to be more disciplined about how much you're spending," explains Deborah McNaughton, president of Professional Credit Counselors Inc. and author of "The Essential Credit Repair Handbook."

The other benefit to using cash to cover expenses: It ensures you have available credit in case of an emergency.

Just be sure the bills in your wallet did not come from a cash advance on your credit card. Cash advances come with additional fees and higher interest rates, which are charged beginning the instant you take the cash.

4. Meet the minimum: When your credit card bill comes in the mail, focus on making the minimum payment, not paying down the overall balance.

"You need to maintain your cash reserves," says Leslie Linfield, executive director of the Institute for Financial Literacy. "Now is not the time to try to pay off your credit card balances."

Make sure to make minimum payments on time. Some credit card issuers will report even slightly late payments to the credit bureaus, which will hurt your credit score.
"Depending on your score, one 30-day late payment can drop your score as much as 100 points," adds Anderson.

You can resume your goal of paying off credit card debt after you land a new job.

5. Communicate with creditors: If you're having trouble making your monthly payments, pick up the phone.

Linfield suggests calling creditors to find out about financial hardship programs. Often, creditors will agree to lower interest rates or set up more affordable payment plans.

"Creditors want to work with you," she says. "They have programs you will never know about unless you call."

Don't be embarrassed to admit that you are struggling to pay your bills. Linfield notes that in a time of chronic unemployment, creditors receive these calls all the time.

Making the call before your accounts go into collections is essential for safeguarding your credit score.
"Once your account is turned over to collections, your credit score will take a huge hit," she says.

6. Defer debts: The easiest debts to defer during a period of unemployment are student loans. Call your lender and ask for an "economic hardship" deferment, which allows you to postpone payments and stops interest from accruing on the principal while you're unemployed.

"If you have been unemployed for at least 30 days, start the deferment process," says Linfield.

Linfield is quick to point out that deferment has no impact on your credit score because deferred debt is not reported to credit bureaus as missed or late payments.

You may also be able to defer your mortgage or car payment for 30 to 90 days, giving you a bit of breathing room if things are tight. Call your lender to ask about your options.

7. Stop shopping for credit: When you lose your job, it might be tempting to apply for new credit cards to ensure you have as much available credit as possible in case of emergency. Anderson cautions against this approach.

"The chances of getting approved for a credit card when you're unemployed are not very good and every inquiry [on your credit report] can ding your score," he explains.

Applying for additional credit cards also increases the likelihood you'll accrue more debt and be unable to afford the payments when the bills come in.

Following the tips won't ease the pain of unemployment, experts say, but they will keep trouble from infiltrating into another area of your financial llife.

Source

Get Out of Debt: 6 Steps You Need to Take

2011-10-14T16:32:00.002-04:00

One of the most important financial lessons that you can learn is that debt is prison. Indeed, when you are paying interest on your debt, that money is going straight into someone else’s bank account — and you receive nothing in return. Plus, paying that interest makes it harder to pay down the principal and to reduce your debt. Even though it might be difficult to get out of debt, it is doable. Here are the steps you can take to get out of debt.

1. Really Decide that You are Committed to Getting Out of Debt. The first thing you have to do is decide that you are really committed to getting out of debt. You need to truly want to change the way you do things, and get serious about paying down your debt and getting on the path to financial freedom. Without the commitment to get out of debt, you are likely to give up.

2. Stop Adding to Your Debt. Take a look at your budget, and figure out how you can better live within your means. Before you can effective tackle your debt problems, you need to stop making purchases with debt. Look at your spending, and cut back on the unnecessary items so that you are living within your means.

3. List all of Your Debts. Next, list all of your debts. List the balances, minimum payments and interest rates. Decide on an order to pay them off. Many people like the “debt snowball” method. You take that lowest balance debt, and concentrate on that first. This method is psychologically rewarding, since you see success faster, and are encouraged to keep going. Others, though, prefer to start with the debt with the highest interest rate, since it will save more money in the long run, since you will get rid of the most expensive debt faster.

4. Decide How Much You can Put Toward Debt Pay Down. Now that you have prioritized your debt list, it’s time to figure out how much money you can put toward your debt pay down. Honestly evaluate your spending, and look for places to cut back. You should be able to find waste in your spending, and, instead of spending it on frivolities, put it toward paying off your debt. Pay the current minimum on all of your debts, except the one at the top of your list. Put your debt pay down amount toward that debt. The more you can put toward it, the better.

5. Look for Ways to Earn More to Speed Up the Process. If you want to speed up your debt repayment process, you can look for ways to earn more money. Start a side hustle. Get a part-time job. It’s only for a little while. If you can put your debt repayment efforts into overdrive, you can be free that much sooner — and you will reap the benefits.

6. Acknowledge Your Successes. You can stay motivated when you acknowledge your successes and take time to reward yourself. Don’t go big though — you want to stay out of debt. But you can hold a little celebration, or you can retire each debt in a creative way. Buy a small treat, or cook your favorite dinner at home. Be sure to mark each milestone, and get excited about your next step toward success.

Source

Chase Debt Management Plan Class Action Settlement

2011-10-11T15:56:00.002-04:00

Tuesday, 20 September 2011 10:44
By Matt O'Donnell

Chase Bank has reached a class action lawsuit settlement over allegations it induced individuals enrolled in debt management plans to pay fees to certain credit counseling agencies.

As a result, individuals who were enrolled in a debt management plan and paid fees to one of the 11 credit counseling agencies listed below may be able to receive a portion of the Chase Bank debt management plan settlement.

The class action settlement will resolve a lawsuit, entitled Abat, et al. v. Chase Bank USA, N.A., et al., that alleges the credit counseling agencies listed below misrepresented themselves as non-profit agencies and that Chase benefited from their allegedly false statements by inducing debt management plan enrollees into paying fees to them.

You are considered a Class Member of the Chase Bank debt management plan class action settlement if you had a debt management plan for which you paid either initial or monthly fees to any credit counseling agency affiliated with Andris Pukke, Eriks Pukke, DebtWorks or the Ballanger Group, including:

AmeriDebt, Inc.
CrediCure, Inc.
Neway, Inc.
Debtscape, Inc.
PreActiv, Inc.
Debticated Consumer Counseling, Inc.
A Better Way Credit Counseling, Inc.
Mason Credit Counseling, Inc.
Nexum Credit Counseling, Inc.
The Credit Network, Inc.
Visual Credit Counseling, Inc.

Chase Bank denies any wrongdoing but has agreed to establish a $4.9 million class action settlement fund to resolve the litigation. This money will be distributed in equal shares to Settlement Class Members who submit valid claims, after payment of Plaintiff awards, administrative costs, attorneys’ fees, etc. is paid out.

The amount of money you can receive from the Chase Bank class action settlement will depend on the number of valid claims submitted and the amount remaining in the Settlement Fund after the payment of all costs.

If the total number of valid claims submitted is less than 3,000, then each Class Member who submits a claim will receive an equal share of $2.25 million, or $750 each.

If you wish to receive a cash payment from the Chase Bank credit counseling class action settlement, you must submit a valid claim form either online or postmarked no later than October 10, 2011.

Claim forms and more information on your rights in the Chase Bank Debt Management Plan Class Action Lawsuit Settlement can be found at www.AbatSettlementClass.com.

Cheap Halloween Decorations To Fit Your Budget

2011-10-06T08:14:00.002-04:00

The cost of Halloween decorating has become out of control. The cost of a single decoration can be the entire budget for some Halloween parties. Decorating for Halloween does not have to crack the pumpkin. Make use of our cheap Halloween decorating ideas and keep more of your hard earned money.

Halloween Decorations For Your Door

What better way to set the Halloween mood than at the front door. An affordable option is a plastic or cloth door cover. These can be found at dollar stores and party stores. You could also cover the door with Halloween themed fabric or a Halloween table cloth. Use a wire coat hanger and pull it into a circle. Wrap the hanger with a string of old Christmas lights and decorate with cheap masks, corn husks, ribbons, Halloween candy or even plastic spiders – any Halloween theme you choose will work for this. A simple way to add Halloween to your door is to hang a sway of leaves, wrapped candy, plastic bugs, little skeletons, etc. above your door. You could even add lights to your sway.

Halloween Decorations For Tables

Make a Halloween tree by hollowing out a pumpkin and filling it with potting soil or marbles. Cut a branch from a tree and stand it up in the pumpkin. Paint the branch black and add small Halloween themed decorations. These can be homemade or store bought. Best part, this Halloween tree needs no water. For a quick decorated vase, use a store bought plastic trick-or-treat pail such as a skeleton head, pumpkin or black cat and add a mum or Halloween bouquet to the center. This makes a great centerpiece for any table. Decorations for a sweet treat vase are as follows: place your brightly colored Halloween candy into a clear, clean vase. Add flower picks shaped in Halloween designs to add some height and dimension. This decoration does double duty as it can then be given out as treats on Halloween night.

Cheap Halloween Decorations That Hang

Don’t neglect the ceiling. Add fake spider webs and spiders to your corners. Hang spiders from your lights and even to your curtain rods. If you don’t like spiders than add cute ghosts or pumpkins to the upper areas of your home. Paint eyeballs onto ping pong balls, hot glue string onto the eyeball and hang from your ceiling. Glow in the dark paint is fun for this project. Inflate rubber gloves and tie shut like a balloon. Paint on fingernails. Attach a string and hang from the ceiling.

Don’t Forget Ambiance

Decorating is not all about the decorations. Setting the mood can take your decorations to a whole new level. Add a little music and the correct lighting and Halloween begins to come to life. Most all stores carry some type of Halloween music. Decide what mood you are trying to create and use music to make it fall into place. You can make use of candles as well. Cut a candle sized hole into a small gourd. Place a tea light candle inside the gourd and decorate around your room. As another lighting option, replace the light bulbs in your room with Halloween colored bulbs – black, yellow and orange. This change in lighting enhances the Halloween mood.

In this article you were given simple and cheap Halloween decoration ideas. Remember Halloween decorations do not need to be expensive. Hunt for bargains at discount stores, yard sales and your own closets. A great tip is to shop after Halloween sales and get great bargains for next year. Happy Halloween.

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Debit or Credit?

2011-10-03T17:04:00.002-04:00

...some issuers are making debit cards less attractive by charging monthly fees and eliminating rewards. Citi is hoping to capitalize on this change by convincing dissatisfied debit customers to use its credit cards instead.

Debit or Credit? Citi Places Its Bet
By SUZANNE KAPNER

Making an aggressive push to rebuild a flagging business, Citigroup Inc. is stuffing America's mailboxes with credit-card solicitations.

Citi Group, hurt by the downturn, is aiming to bolster its margins by luring new credit card customers, Suzanne Kapner reports on Markets Hub. Citi mailed an estimated 346 million card offers to North American customers in the third quarter, according to figures to be released later this month by Mail Monitor, a unit of research firm Synovate.

That is more than one for every man, woman and child in the U.S. One in three credit-card offers that landed in consumers' mailboxes last month came from Citi, Mail Monitor estimates.

The postal blitz is expected to make Citi the largest mailer of credit-card offers, ahead of longtime industry leader Chase, for the first time in eight years. It shows how Citi is trying to regain ground ceded to rivals after losing hundreds of millions of dollars on credit cards following the 2008 financial crisis.

In terms of dollars spent by U.S. consumers on Citi credit cards, the bank ranks a distant fourth, behind American Express Co., J.P. Morgan Chase & Co. and Bank of America Corp., according to the Nilson Report.

The push comes at a time when consumers, still smarting from bingeing on easy credit during the bubble years, are showing little appetite for new debt. In fact, Citi's peers have toned down their attempts to acquire new customers amid signs that the economy is slowing.

Citi said it is emboldened by a continuing reduction in uncollectible debts in its credit-card portfolio, a sign that the worst of the fallout from the financial crisis is behind the company. Citi's North American card business earned $584 million in the second quarter, compared with a $154 million loss a year ago.

Jud Linville, a former American Express executive hired last year by Citi to revamp its card operations, said he sees opportunity as rivals pull back. Mailings for American Express, Bank of America and Discover Financial Services all fell in the second quarter from the first quarter, according to Mail Monitor.

"This is a business where you look for vacuums," Mr. Linville said. "Are there players moving out of certain categories?"

One potential void was created last year by an addition to the Dodd-Frank Act, which overhauled financial regulation. Known as the Durbin Amendment, the new rules, which go into effect in October, will limit the fees that banks collect from merchants each time a debit card is swiped, making cards far less profitable for the issuers.

As a result, some issuers are making debit cards less attractive by charging monthly fees and eliminating rewards. Citi is hoping to capitalize on this change by convincing dissatisfied debit customers to use its credit cards instead.

Some new customers are being wooed with cards that aim to simplify the byzantine fee structure that card companies have adopted. Simplicity, which Citi rolled out this summer, offers no annual fee, no late charges and no penalty rates. Other cards offer 0% balance transfers at a time when interest rates are low.

Since these customers typically carry revolving balances, they could turn out to be profitable for Citi once the teaser rates expire in about two years, analysts said.

"Save when you switch. Save when you shop," proclaims one Citi mailing that offers 0% interest rates on purchases and balance transfers for 18 months, after which the rate would revert to 13.99%. "You're pre-approved to apply."

Citi said it is being more selective in its marketing, focusing on well-to-do consumers instead of the broader swath of customers targeted in the past.

But the solicitations won't come cheap for Citi. A piece of direct mail can cost upward of 70 cents, including postage, putting Citi's direct-mail expenditures at more than $240 million in the third quarter, analysts said. Acquiring customers through direct mail costs 10 times more than acquiring them through a branch network, which means Citi's costs probably outweigh those of Chase, which operates five times as many U.S. branches.

Overall card solicitations remain well off their highs of 2005. Response rates for direct mail have been falling, prompting issuers to turn to other avenues such as the Internet for acquiring new customers. Analysts said an issuer would be lucky to sign up 25 new customers for every 100 mailings. Because there is a lag time, Citi isn't expected to see a big bump in its portfolio for at least six months.

It is unclear how much success Citi will have convincing customers to switch from debit to credit. There were nearly 38 billion debit-card transactions in 2009, up from 25 billion in 2006, according to the latest figures from the Federal Reserve. Over the same period, the number of credit-card transactions fell to 21.6 billion from 21.7 billion.

Still, two-thirds of respondents in a survey conducted by the market research firm Mintel Group Ltd. said they would stop using their debit card or switch to another issuer if their bank charged a fee. Citi does not have a big debit-card business of its own, giving it more room to maneuver.

In its bid to get debit-card customers to sign up for its credit cards, Citi will face competition. In a recent bank statement insert, Chase posed the question "Debit or Credit?" and then made the case that credit cards are a "great choice for making all your purchases big and small." Chase said it isn't encouraging customers to switch from debit to credit.

Citi's Mr. Linville said he is unfazed by the rivalry. "This is about out-executing the competition," he said

The Trick to Saving Money: Slash Costs From Top Down

2011-09-23T12:31:00.001-04:00

It's great to cut back on the small stuff by skipping your morning store-bought latte and bringing lunch to work, but what's really going to make a huge difference is saving on the big items. In fact, cutting back on the small purchases can backfire on you because it can feel like you're depriving yourself and may cause you to revert back to old ways.

To make great strides forward, the key is to focus on the big picture, then work your way down to the little things. Start with your biggest expenses, which include housing and transportation, then work your way down to the smaller spending categories, like weekend entertainment. Get started on this top-down saving method with these tips from Forbes:

•Gather your statements: Gather your statements together from the last six months, preferably those that state your monthly expenses. This includes credit card, savings account, and checking account statements.

•Categorize them: Start categorizing your expenditures. For example, you can group them by groceries, utilities, rent, transportation, recreation, and more.

•Figure out your biggest expenses: Figure out your biggest costs every month and list them in order.

•Brainstorm ways to save: Now that you know which categories are your biggest expenses, brainstorm ways to save on them and tackle them from the top down. Perhaps you can find a roommate or rent a smaller room in your apartment building to lower your monthly housing costs, or maybe you can consider getting rid of your car and taking public transportation instead.

Before you start plotting to do away with your Starbucks habit, tackle your most expensive purchases first to make greater headway toward your saving goals. But remember to do what works for you and your lifestyle. How have you saved on the costlier expenses in your life?

Source

Bankers become wordsmiths as some credit card contracts get rewrite

2011-09-15T08:57:00.002-04:00

New consumer financial watchdog agency has targeted confusing disclosures

By Connie Prater

Several large U.S. credit card issuers have become wordsmiths in recent months, taking axes to those long, hard-to-read credit card contracts. The goal: reducing the amount of gray fine print and replacing the gobbledygook with text about your credit card terms you can actually understand.

Chase, HSBC, Discover and Citi are all rolling out new, more simplified credit card agreements. Starting in October 2011, customers opening new accounts and existing cardholders requesting copies of their agreements will be given the newly revamped documents, says HSBC's Rob Sherman.

New Chase card customers began receiving the clearer and plainer agreements in May 2011, according to a spokeswoman. Citi says it has been rolling out its new agreements since the summer.

Rewrite or else?

Why rewrite now? Some banks may see the handwriting on the wall as the new consumer financial watchdog ramps up to police credit cards and other confusing financial services. Leaders of the new federal regulator -- the Consumer Financial Protection Bureau -- have signaled for months that they'll be taking aim at confusing credit card terms that trick users and make it difficult to compare one credit card to another.

"If there's not a lot of gobbledygook, then everyone knows what the deal is," says Ruth Susswein, deputy director of national priorities for the Consumer Action advocacy group. "The more information is clearly and concisely put, consumers are better in making wise financial decisions."

Credit card agreements are those multiple page documents that every card user gets when they open a credit card account. Among other things, the contracts spell out the terms of use of the card and what happens if cardholders default and don't pay what they owe. Anyone who has tried to read one can tell you it's no easy feat. Lawyers, lawmakers and people with advanced degrees say they struggle to understand the confusing terms. Many agree it must be impossible for average people to know what they're getting into when they open credit card accounts.

CreditCards.com found average contract at 12th grade level

A CreditCards.com special report published in July 2010 found that the average U.S. credit card agreement was written at a 12th grade reading level, but the average adult reads at only a ninth grade level. That put the average credit card agreement beyond the understanding of four out of five Americans.

The CreditCards.com analysis reviewed more than 1,200 credit card agreements and used computer software programs commonly used in the publishing industry to determine how difficult or easy it is to read written materials. The higher the reading grade level of a document, the more difficult it is for average adults to understand. The analysis showed the hardest contract -- from GTE Federal Credit Union -- was rated an 18.5-grade reading level.

Not all contracts proved so difficult. The average reading levels for U.S. Bancorp were 8.9. Bank of America came in at 9.0, Barclays Bank Delaware at 8.1 and Capital One Bank's reading level stood at 7.3.

If there's not a lot of gobbledygook, then everyone knows what the deal is.
-- Ruth Susswein

Consumer Action

Banking industry representatives say banks don't deliberately make the agreements confusing. They say they are complicated because state and federal laws require disclosure of specific information. Consumer advocates and language experts, however, say that's no excuse and the contracts can and should be simplified. They point to the credit card issuers whose contracts have lower reading levels as proof that it can be done.

At HSBC, the bank has been able to reduce the reading difficulty from a 12th grade level in 2010 down to an eighth grade level for its general purpose credit cards this year, Sherman says. Contracts for retail credit cards are slightly harder to read -- at the 10th grade level -- because they contain different wording about arbitration that make them more challenging.

"Our focus on the agreements is because we want our customers to understand the terms and conditions of the card," says Sherman, vice president of public affairs for HSBC North America.

According to Sherman, they shortened sentences, deleted unnecessary words, redesigned the layout and added more bulleted lists to make things easier on the eye. They hacked away at multi-syllabic words, Sherman says, "replacing them with more reader-friendly words." Then, they asked customers in focus groups which lines of text were more comprehensible.

Sherman says HSBC tested its competitors' contracts, too, although he wouldn't reveal the results.

"Based on our own assessments, we think we've achieved a leadership status in the industry among other issuers," he says. "Regardless of where we fall against the rest of the industry, we're very pleased with the progress that we achieved ... We hope that our industry peers do the same."

'Wonder what they were thinking'

Chase held focus groups as well -- after one of its contracts received a black mark from the Center for Plain Language, a Washington, D.C., nonprofit organization that advocates for clear communication and plain language in business, government, nonprofits and universities.

The center hands out Wonder Mark awards each year for documents, videos or websites that produce information that makes you "wonder what they were thinking when they wrote this," says Deborah S. Bosley, a board member of the Plain Language group. Chase "won" in 2010 and later launched extensive reviews of its contracts. The company sent its results back to the language group for review. Bosley says they were so impressed with the new version that they created a TurnAround award, which praises companies that show improvement.

"Chase is a perfect example of why we give the Wonder Mark award. We wanted to motivate companies to clean up their act," Bosley says.

We improved the readability and reduced the word count significantly.
-- Matthew Towson, Discover

Chase spokeswoman Gail Hurdis says the bank was able to get its contracts down to reading levels better than Reader's Digest articles, which are known for simple language. "It was something we wanted to do," Hurdis says.

They're rewriting at Discover, too. CreditCards.com's 2010 analysis found Discover's agreements had an average 14.9 reading grade level and averaged 10,287 words. By comparison, according to the CreditCards.com's analysis, the popular teen fiction novel, "Twilight," has only 3,132 words.

"We completely rewrote our card member agreement last year," spokesman Matthew Towson wrote in an e-mailed response. "We improved the readability and reduced the word count significantly."

None of the banks said that the rewriting has been prompted by fears that the Consumer Financial Protection Bureau will crack down on them.

CEO's call to Warren: We did it

Elizabeth Warren gave the bureau credit in a July 2011 interview with ABC News. She is the Harvard law professor who came up with the idea for a federal financial protection agency to birddog consumer interests. Obama appointed her to lead efforts to get the bureau up and running, and, for many, she was the face and voice of the new agency.

Warren related an incident to ABC News about a CEO of a major credit card issuer who told her of the bank's efforts to make terms clearer. Warren had met with the major CEOs in the fall of 2010 urging them, among other things, to make credit card agreements easier to read.

She told ABC: "I got a call back about three months later from the CEO from one of the largest credit card companies and he just said, 'I want you to know we've cut our agreement length in half, and we've changed what's called the readability score to make it easier for people to be able to understand this.'"

Warren said the call showed things were moving in the right direction. She has since left the agency. A spokeswoman for the bureau could not confirm which CEO contacted Warren. None of the major banks would discuss what their executives told Warren.

I have a Ph.D., but it doesn't mean I always understand everything on a credit card agreement.
-- Deborah S. Bosley, Center for Plain Language

In February 2011, on the one-year anniversary of the most significant reforms enacted in the Credit CARD Act of 2009, the bureau issued a report showing that credit cards had improved but that consumers still complained of being confused about their terms. Warren said then the agency's challenge would be further simplifying terms so that different credit card products could be more easily compared.

The annual J.D. Power and Associates survey of credit card customer satisfaction, released in August 2011, found that satisfaction with credit cards was up for the second year in a row. The survey found that 35 percent of customers said they understand their credit card terms -- up from 32 percent the previous year.

Complicated but doable

Bosley, from the language group, acknowledges that it may be difficult to break every credit card term down to the most basic level, but many credit card issuers have lots of room for improvement.

"I have a Ph.D., but it doesn't mean I always understand everything on a credit card agreement. I understand more than most ... But certainly the average person has difficulty with it," Bosley says.

"Some of the information is, by its very nature, complicated," she adds. "Because of that, it should force credit card companies to simplify those agreements as much as they possibly can."

Source

10 Ways to Simplify Your Finances

2011-09-09T09:34:00.001-04:00

People can have several bills to pay each month. They will have the mortgage, the electric bill, the water bill, the gas bill, their auto insurance bill, their cell phone bills and the list goes on. There can even be times when a bill is missed and the payment is late. This can be dangerous for something like the car insurance because one missed payment can mean the insurance will be cancelled. What would be a tremendous help would be to simplify the finances. Following are ten ways to do this effectively.

1. Make Electronic Payments

Setting up electronic payments means that people don’t have to do anything. Their payments will be taken from their bank accounts when they are due and they can never be late. This frees up the time they would have had to take writing checks and mailing these bills every month; it also saves money on stamps.

2. Take Advantage of Electronic Statements

Receiving statements in the mail means that people have to keep track of a lot of paperwork. A better plan would be to have electronic statements. The company would be happier with this arrangement because they save on administrative costs, and the customer can keep everything in a convenient place online.

3. Use Online Bill Pay

Online bill pay with the bank makes it possible to pay the bills online. This makes managing finances simple like in the previous example.

4. The Old Tried and True Spending Budget

Creating a budget helps people tremendously who don’t know where their money is going every month. A budget is a plan, and people who make a list of all the necessary bills they have to pay know they will be able to pay those bills when they give them the highest priority.

5. Reduce the Amount of Money Spent Each Month

When creating a budget, people might notice that they have too many different types of bills to pay each month. This can mean that they will have an unmanageable number of spending categories in their monthly budget. If the budget is too complicated, it’s not going to benefit people who want to make their finances simpler. They need to keep all of their spending categories to a minimum in order to make the budget strategy work.

6. Consolidate Accounts

A big help is to consolidate accounts which will keep them all in one place. For example, some people have more than one savings account. If all of these savings accounts are under one bank then these accountholders can log into that one bank and see all of their accounts in one place making managing money much easier.

7. Set Up a Level Pay System for Utilities

When people set up level pay for their utilities, they know that they will be billed around the same amount of money each month. Utilities can be unpredictable and in some months, people can use more than of one type of utility than another. For example, in the summer people tend to use their air conditioning more often. Level bill pay will help keep them from overspending during these months.

8. Give Things Away

By giving things away, the house is much less cluttered and there are fewer things to manage.

9. Purchase a House that Fits the Family’s Needs

When purchasing a new home, be sure that the house is exactly what will be needed and nothing more or less. This will ensure that the mortgage payments will be easily manageable and that the maintenance on the house isn’t overwhelming.

10. Make a List of Things to Accomplish

Making a change from a disorganized state to a more organized one can take a little time. Before getting started on this project, people can make a list of their most important goals down to the least and finish each goal before moving on to the next. Setting a time when they would like to have the goal accomplished will ensure that the item gets done and can be crossed off of the list.

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Empty pockets are no excuse!

2011-08-31T08:25:00.000-04:00

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.

Norman Vincent PealeStella is a happily married woman, an expert in a specialized area of technology and a division manager in a prestigious organization. She was raised in a rural, poverty-stricken area where education was not valued, girls were expected to be married by their early twenties and teen pregnancies were commonplace. Stella had decided at an early age that she wanted a different life even though her parents were not supportive and she had no money.

She got a job after graduating from high school and eventually saved enough to attend the local community college so she could save money by living at home. When the cost of tuition doubled and she couldn’t afford to continue, she researched alternatives and applied to the least expensive school in the state system. It meant giving up her dream of going to the State University, working two jobs and living in very inexpensive housing in less than ideal circumstances, but she did it!

Her path wasn’t easy but she never let circumstances stop her. Her success was a direct result of her perseverance, determination and tenacious attitude. She approached every setback and obstacle with the attitude that she would find a way to keep going forward—and she did! You can too. Money may make some things easier, but a lack of money doesn’t mean there is a lack of opportunity!

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Is Willpower Alone Working For You?

2011-08-16T09:17:00.000-04:00

How often have you tried to achieve a goal that requires a lot of willpower?
How often have you failed?

So many goals can feel almost impossible, because they need a constant commitment to changing our usual ways. If you’re trying to lose weight, get out of debt, cut out the procrastination or even brush your teeth twice a day, you’ve got to keep on making the right choices – and it’s all too easy to let a moment of weakness derail your plans completely.

Exercising willpower or self-discipline takes up a lot of energy.

I’m sure you’ve had the experience of starting several new goals at once (perhaps in January) – trying to get fit and quit smoking and cut your spending and read more books. Chances are, you didn’t manage to stick with any of them – your willpower was simply stretched too thin.

So, are you doomed to fail? Of course not. You just need to make sure you’re using your willpower the right way.

How Habits Work

Unlike willpower, habits don’t require a massive amount of energy. They’re automatic – like taking a shower in the morning or putting on your seat belt when you get into a car. You barely think about them.

When you’re using your willpower to make changes in your life, you’re going against many of your established habits. For instance, if you’re trying to lose weight:

You’re cutting out the usual doughnut with your morning coffee

You’re switching from a fast food lunch to a healthy sandwich

You’re trying to exercise in the evenings, instead of flopping in front of the television

The problem is, it’s all too easy to let things slide. If you stop at the coffee shop every morning, those donuts will be there, tempting you. If you have to walk past three fast food outlets to get to a store that sells healthy sandwiches, there’s a good chance the lure of a burger and fries will be too much for you. And once you’re at home in the evening, how likely is it that you’ll get up from the sofa and go out to the gym?

Use Your Willpower to Set Up New Habits

Instead of fighting your habits, turn them around.

It’s much easier to use your willpower once to set up a good habit than to keep on struggling again and again to overcome a bad habit.

For instance, if you want to save $100 per month, then don’t force yourself to write out a check every time. Instead, set up an automated transfer from your bank account – that way, the money will go out without you lifting a finger. It becomes more effort to not save than to save.

When you’re trying to establish a new routine, do your best to find ways to break old habits. Don’t stop at that coffee shop, intending to order a skinny latte (chances are, you’ll end up with a full-fat cappuccino and a doughnut). Instead, cut the coffee shop out of your routine altogether. Go to a smoothie bar instead, or take a thermos of coffee with you.

Here are a few other ways that you can use willpower once to make a new habit easier than an old one:

* Freeze your credit card in a glass of water – so that you have to melt the ice before you use it

* Clear all the junk food out of the house – so that if cravings strike at 9pm, you won’t be able to dig into your candy stash
* Block any websites that you waste time on – so that you can’t just flick to them in moments of boredom

Sometimes, you might not be able to use willpower just once – but you can try exercising willpower at the start of the day (when your motivation levels tend to be higher). For instance:

* Put food in a slow-cooker in the morning – so that a healthy meal is waiting in the evening

* Throw your gym kit into the car – so that you can drive to the gym on your way home

* Set your alarm half an hour earlier – so you’ve got time to work on a goal or project that’s important to you

Maybe some of these suggestions have sparked off a new idea for you, or perhaps you’ve got your own way to use willpower effectively. Let us know your thoughts in the comments!

Source

US Credit Rating Cut by the S&P: How to Save yourself from the Coming Economapocalypse

2011-08-08T09:01:00.000-04:00

Let’s start by summarizing the mayhem that we’ve seen over the last few weeks:

1. Republicans and Democrats in Congress put their own political futures ahead of the best interests of the country (once again) before finally agreeing on an incomplete deal to raise the debt ceiling and cut spending.

2. The stock market dropped over 12%.

3. And finally, S&P cut the U.S. governments credit rating from AAA to AA+ (on a Friday after the markets were closed no less). This is the first downgrade ever for the U.S. in history.

4. Oh, and Europe is becoming more insolvent if anyone cares…

What Does the U.S. Credit Rating Cut Mean?

It basically means that S&P, a credit rating agency, has slightly downgraded our government’s ability to repay its debts. The U.S. had a AAA rating, the highest offered, but it was cut to AA+. .

Some are already claiming that the impact of the credit downgrade will be:

■An increase on the interest rates the U.S. pays on its debts – resulting in an estimated $75 billion annual increase in payments

■Increase in consumer interest rates – mortgages, auto, credit cards, etc.

■The stock market tanking

■Job loss

■A further slowdown in the American economy

It remains to be seen whether those things will actually happen, but regardless, we’re heading into some murky waters. I’m not here to place blame (on Wall St. bankers and greedy mortgage providers) or tell you what to do with your investments (dig a hole in the back yard). Rather, I want to focus on what you, me, and the common folk of this fine country (turned steaming pile) can do to protect and even thrive in troubling times (apocalypse). Here’s a list to start.

1. Budget as if You’ve Already Lost your Job

Relax, I’m not saying you’re going to lose your job. But I do think you would be wise to start planning as if you are going to.

Why? Who knows how employers are going to react to the latest developments. This is an unprecedented age of employee and employer disloyalty. But as we saw during the last recession, they are rather quick and brutal in making personnel cuts to maintain profitability. Do you want to be held prisoner by someone looking to pad or keep their multi-million dollar year-end bonus?

Taking budgetary steps now to diminish that threat can only be good for you. You’ll start saving more and you’ll have less stress about what is out of your control. Budgeting puts you back in control. You can start doing this by working on the budgeting spreadsheet that I personally created and use.

2. Pad your Emergency Fund

An emergency savings fund is meant to mitigate a negative financial event like job loss or medical emergency. At a minimum, you should plan on having 6-9 months of living expenses set aside and easily moveable, if needed. That may sound difficult, but the payoff in peace of mind is worth it.

3. Plan your Next Career

If you love your career and see no potential for job loss, smile and be happy. However, if you’re in a declining industry or geographically tied to a particular area and there aren’t many alternatives to your current employer, start thinking about your next career.

Job security has little to do with performance, and much more to do with economic forces, communication, locale, and a scarce skill set. Doing what you are going to be passionate about is key, but these 4 factors are next in line.

If the unthinkable does happen, and you lose your job, you already have a plan for your next move – whether that’s an apprenticeship, school (bitterly avoid more student debt), moving, or building a network.

4. Build Multiple Income Streams

Focusing on growing multiple income streams is the buzz strategy of the last few years in the personal finance world. But there’s good reason. It offers stability, peace of mind, hope, and can allow you save above normal means if it’s in addition to a full-time gig.

Figure out what your marketable hobbies are and start exploring a little. One of my colleagues started making and selling jewelry on Etsy her store became so popular that she ended up quitting her job to pursue it full-time when she started making more income than through her day job.

5. Start Scaling Back your Consumption

Maybe this should have been #1 on the list. I personally think we are at the very beginning of a prolonged recession. The economy could only expand so far on inflated housing values, consumer debt, government debt, technology, and cheap oil for so long.

Instead of accepting that reality, we fight it with even more debt and problems. We treat the symptoms, but not the cause. Those who start embracing a simpler life with less consumption are going to thrive.

Instead of buying more stuff, enjoy the stuff you have. And if you don’t enjoy the stuff you have, sell it and use the money to pay off your debts.

Your Turn:

1.Do you think we are heading for very troubled economic times?

2.How are you preparing?

Source

Debt after Death . . . Who Pays?

2011-07-26T16:52:00.002-04:00

After a relative dies, the last thing grieving family members want are calls from debt collectors asking them to pay a loved one's debts. As a rule, those debts are paid from the deceased person's estate.

According to the Federal Trade Commission (FTC), the nation's consumer protection agency, family members typically are not obligated to pay the debts of a deceased relative from their own assets.

What's more, family members – and all consumers – are protected by the federal Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to try to collect a debt.

Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.

Does a debt go away when the debtor dies?
No. The estate of the deceased person owes the debt. If there isn't enough money in the estate to cover the debt, it typically goes unpaid. But there are exceptions to this rule.

You may be responsible for the debt if you:
• co-signed the obligation;
• live in a community property state, such as California;
• are the deceased person's spouse and state law requires you to pay a particular type of debt, like some health care expenses; or
• were legally responsible for resolving the estate and didn't comply with certain state probate laws.

If you have questions about whether you are legally obligated to pay a deceased person's debts from your own assets, talk to a lawyer.

Who has the authority to pay the deceased person's debt out of his or her assets?
The person named in a will who is responsible for settling a deceased person's affairs is called the executor.

If there is no will, the court may appoint an administrator, personal representative, or universal successor, and give them the authority to settle the affairs. In some states, others (or other people) may have that authority, even if they haven't been formally appointed by the court.

Whom may a debt collector talk to about a deceased person's debt?
Under the FDCPA, collectors can contact and discuss the deceased person's debts with that person's spouse, parent(s) (if the deceased was a minor child), guardian, executor, or administrator.

Also, the FTC permits collectors to contact any other person authorized to pay debts with assets from the deceased person's estate. Debt collectors may not discuss the debts of deceased persons with anyone else.

If a debt collector contacts a deceased person's relative, what can they talk about? Collectors are allowed to contact third parties (such as a relative) to get the name, address, and telephone number of the deceased person's spouse, executor, administrator, or other person authorized to pay the deceased's debts. Collectors usually are permitted to contact such third parties only once to get this information.

The main exception is if a collector reasonably believes that the information provided initially was inaccurate or incomplete, and that the third party now has more accurate or complete information. But, collectors cannot say anything about the debt to the third party.

Even if I am authorized to pay a deceased person's debt, can I stop a debt collector from contacting me about the debt?
Yes. To exercise this right, you must send a letter to the collector stating that you do not want the collector to contact you again. A telephone call is not enough.

Make a copy of your letter for your files, send the original by certified mail, and pay for a "return receipt" so you can document what the collector received and when.

Once the collector gets your letter, he cannot contact you again except to confirm that there will be no further contact or that he or the creditor plans to take a specific action, like filing a lawsuit to collect the debt. Keep in mind that even if you stop collectors from communicating with you, you are still responsible for the debt.

For Complaints and More Information
Report any problems you have with a debt collector to your state Attorney General's office at naag.org and the Federal Trade Commission at ftccomplaintassistant.gov.

Many states have their own debt collection laws that are different from the federal FDCPA.

Your Attorney General's office can help you determine your rights under your state's law.

For more information about debt collection and additional rights provided under the FDCPA, see Debt Collection FAQs: A Guide for Consumers and visit ftc.gov/MoneyMatters, which offer shortpractical tips, videos, and links to reliable sources on topics like credit repair, debt collection,job-hunting and job scams, vehicle repossession, managing mortgage payments and foreclosurerescue scams.

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

I’m Done With My Debt!

2011-07-22T15:23:00.000-04:00

In 2006, Roger Simpson was drowning in debt. He owed thousands of dollars to credit card companies with no visible way out. Then, one fateful day, he was at a community event and happened to stop by the Debthlelper.com outreach booth. He found the counselors to be friendly and helpful, and after the event, he decided to follow up with a visit to the Debthelper office.

“I decided that it wouldn’t hurt to see what it was all about,” indicated Mr. Simpson. Because the Debthelper.com process includes analyzing each client’s situation, including dissecting monthly income and expenses, he got a clear picture as to where he stood with his debt and what it would take to resolve it.

“My first impression was that the counselors were very helpful and very friendly,” stated Mr. Simpson. “It was not hard to make the decision to join the program, because everything was made so clear to me,” he added.

It wasn’t always an easy process for Mr. Simpson, however he said that he never doubted he would complete the program. “I always looked forward to the day I would be out of debt,” he said.

“There were some times I was late with a payment, but the counselors at Debthelper.com were always there to assist me,” said Mr. Simpson, who also stated that, “I never got any nasty letters or calls from Debthelper.com if I was late, just friendly assistance from the staff. They made everything so easy.”

With the assistance of the Debthelper.com counselors Mr. Simpson also created a monthly budget and has utilized it for nearly the entire time he has spent in the debt management program.

“I would suggest a monthly budget for everyone,” says Mr. Simpson, “It really helps to keep your spending in perspective and helps you to save.”

He suggests that consumers who are facing a similar situation to the one he faced “Do not stay in neutral! Join the Debthelper.com program.” “I highly recommend it!” Mr. Simpson said.

Mr. Simpson indicated that he has received a number of offers for new credit cards, but has no intention of “ever getting into this position again.”

Mr. Simpson also suggests that you take advantage of all the free financial life skills programs offered by Debthelper.com.

“If I had known about them sooner, I would not have waited so long to start,” said Mr. Simpson.

When asked how it feels to be debt free? Mr. Simpson exclaimed: “It feels great! Sometimes I never thought this day would come and it has.”

In addition to a Debt Management Program and the free Financial Life Skills Seminars, counseling for Bankruptcy, Reverse Mortgages and Loan Modifications.

Credit Card Management Services, Inc.
4611 Okeechobee Blvd., #114
West Palm Beach, FL 33417
P: 800-920-2262
E: clientservice@debthelper.com

Five Ways to Take the Bite out of Back to School Shopping

2011-07-18T10:37:00.000-04:00

by Tracy
While some lucky kids won’t be returning to school until after labor day, others like my children, are going back as soon as the second week of August. Last year, the National Retail Federation estimated that each family of school aged children would spend an average of $606.40 per family. That’s a pretty big hit to take at once; here are five suggestions on how to reduce the sting.

1. Start shopping now for things that can be bought second-hand. This can be anything from expensive graphic calculators to clothing to nap mats and text books. If your child will be attending a private school with specific uniforms, ask the school about the possibility of buying used uniforms.

Amazon, eBay and Craigslist are good places to start your hunt for used books and electronic equipment. If your school district requires uniforms, you’ll need to start scouring thrift and consignment stores now, as the competition for uniform pieces in good quality can be fierce because of high demand and low inventory.

2. School supplies are already on sale at many retailers. If your school released the supply list for this year already, you can break up the list and purchase a bit per week to spread out the expense. My suggestion would be to buy things like specific colored folders and notebooks now, because it seems like every year there is one color that simply can’t be found anywhere! Basic supplies like pencils, notebook paper and erasers will be widely available and on special somewhere until well after the first day of school.

Please note that generally when teachers specify a brand it’s because others don’t work as well. It does stink when generic crayons can be had for 10 cents a box but the list says Crayola but it’s also very frustrating for children when their supplies are poor quality.

If your budget is especially tight, you can wait to buy things like copier paper, paper towels and dry erase markers that are intended for the classroom. The teacher will be storing these supplies to use all year long, so it’s generally not a big deal to bring them in a couple of weeks late. Most teachers are very understanding of tight family finances and will be glad to let you know what your child needs immediately and what can wait until your next payday.

3. Speaking of waiting, there is no need to buy the entire year’s wardrobe before school starts. I think retailers like to sell us this idea of one grand back to school shop, but spreading it out seems to be the smarter choice to me. You might miss out on back-to-school sales and tax-free days but you’ll get to take advantage of clearance racks and smaller crowds.

Go through your child’s closet and make a list of what is needed immediately and what you’ll need eventually. Buy what can’t wait before school starts, then add to your child’s wardrobe at leisure. You can keep a running list of what your children need and the sizes in your wallet so that you can take advantage of deals when you see them.

4. Think twice about how much your child actually needs. Do you need five changes of school uniforms or can you get by with three sets? Are half a dozen pair of jeans necessary or can your child get by with two or three? Buying too many clothes can lead to clutter and items that are outgrown before they’ve been worn twice.

Do talk to your older children about their wardrobes and how it affects their confidence and social life. Some children simply don’t care while others are extremely self conscious about not looking the same as their peers. It’s important not to be too dismissive of their feelings while helping them develop more realistic expectations. Being in tune with social cues about how to dress can actually serve them well as adults, as long as you’re there to teach them how to do so in a responsible way.

5. Don’t stock up too much! Sometimes the bargains can be so good that it’s hard to resist filling up a cart for later. It’s fine as long as you have a place to store them, are reasonably well organized so that you can find them later and your money isn’t better used on something else right now.

As a general rule, I’ve found that having lined paper, glue sticks, pencils, erasers and sharpeners on hand at home to be useful for completing homework. Multiple large boxes of crayons can be frustrating as it seems like most assignments only call for the 8 basic colors and we wind up with huge buckets of crayons with rarely a plain red or blue in sight. Notebooks, folders and binders don’t seem to be used as much and will go on sale next year so no need to buy more than one or two extra.

School supplies will also go on clearance after the back-to-school sales are over, so it might be worth your while to wait until then if you want to stock up. Do remember to look for things that you’ll need for your own use, too, keeping in mind that things will go on sale again eventually!

Have you started thinking about back to school shopping yet? What are your tips and tricks?

Source

Miami Homeowners Event by Bank of America.

2011-07-07T16:36:00.001-04:00

For three consecutive days, from June 23 to June 25, 2011, the Miami Beach Convention Center was open for an unprecedented event that the largest servicer of major mortgage issues in America, Bank of America, organized. Bank of America hosted this workshop to help thousands of homeowners, either already facing foreclosure or at risk of losing their homes. Hundreds of Bank of America employees, knowledgeable in equity protection, participated in this event.

HUD Approved Housing counseling agency Credit Card Management Services, Inc. dba DebtHelper.com counselors: Mr. Carlos Llerena, Mr. Keith Berard, Mr. Dario Santa and Mr. Pedro Padilla travelled from West Palm Beach to participate in this "Help for Homeowners Community Event”. All worked continuously to assist the thousands of homeowners in trouble.

Anxious homeowners, starving for help, lined up every morning to resolve their mortgage issues, some already in foreclosure, others struggling to continue to pay their mortgage. Most cases stemmed from a reduction of income. Many were customers complaining there is too much of a delay after sending all their documents, multiple times, without any resolution. Bank of America put them at ease after allowing them to watch a prepared video and speak face to face with underwriters. The event provided confidence clients needed to produce some ‘hope’ to save their homes. Bank of America’s maintains confidentiality regarding how many modifications they approved during this event.

Contact Debthelper.com for more information.

4611 Okeechobee Blvd., #114
West Palm Beach, FL 33417
P: (800) 920-2262 F: (866) 561-2622
E: counseling@debthelper.com

Define Success

2011-07-05T09:16:00.002-04:00

…The idea has gained currency that women have often been handicapped not only by a fear of failure—not unknown to men either—but by a fear of success as well. ~Sonya Rudikoff

How do you define success? On a scale of zero (not successful at all) to ten (completely successful) where would you score yourself ?

• What would be different if your score was a ten?

• What would be different, if you scored one point higher?

Now focus solely on financial success and define what that would mean to you. Again, score yourself from one to ten and then ask yourself if things changed and you could magically score a ten:

• What would your life be like?

• How would it change your relationships and the way you spend your time?

• What expectations would you place on yourself and how would you respond to others’ expectations differently?

• Would you support charities and help others more or less… or differently?

Does anything about being a ten scare you? If so, you may unconsciously sabotage yourself so you’re not put in that position. Be aware of ways in which you may lose opportunities because you may be averse to being successful and accomplishing your goal.

Start visualizing life as a TEN! Think about the possible downside and be prepared to face those challenges –and you will be successful!

Source

FTC-Approved Company Will Save Dirt from Your Facebook Profile for 7 Years

2011-06-22T08:35:00.001-04:00

As reported by PC Magazine, June 20, 2011: We've all heard it a thousand times: be careful what you post on Facebook; it could come back to haunt you. Now Social Intelligence Corp., a startup that does background checks for companies via social media, has been given the go-ahead by the Federal Trade Commission (FTC), which last week concluded that the year-old company operates within the boundaries of the Fair Credit Reporting Act.

So about that old bleary-eyed picture of you doing a keg stand flipping your middle finger to the camera that your college roommate posted? Maybe you begged him to delete it. Maybe the potentially damning photo was removed from Facebook. Maybe you've forgotten about it. But as Forbes reports, Social Intelligence Corp.'s memory isn't exactly short term. If the company sees some dirt on you pop up on Facebook or Twitter or Tumblr or in the personals section of Craigslist, the company stores it in your file, where it will remain, ready to ruin potential job prospects for seven years. It will continue to build that file, too.

"We store records for up to seven years as long as those records haven't been disputed," Social Intelligence's chief operating officer Geoffrey Andrews told Forbes. "If a record is disputed and changed then we delete the disputed record and store the new record when appropriate."

Applicants have to sign a form that grants Social Intelligence permission to run background checks, and the company must inform an applicant if it has found a tidbit that has prevented the person from landing a job.

Forbes got its hands on a few reports Social Intelligence has made for reporters. One job applicant was indicated to be a racist for joining a Facebook group called "I shouldn't have to press 1 for English. We are in the United States. Learn the language." In another case, an applicant had a photo on a social media profile featuring "multiple guns and a sword." Of course the job-seeker could simply delete the photo or leave the group, but considering Social Intelligence keeps the information for seven years, it might not make a difference.

2011-06-19T19:49:00.001-04:00

HAPPY FATHER'S DAY

Sweet Justice: How To Foreclose On Your Bank

2011-06-08T11:17:00.000-04:00

It’s time to turn the tables on too-big-to-fail American banks, and one homeowner did just that.

In this all too familiar tale, the homeowners paid for their home in cash and had no mortgage. Bank of America, for whatever reason, had paperwork showing that they did owe a mortgage and they subsequently foreclosed on the home and seized it. After thousands of dollars spent and the many headaches associated with going to court to clear their names, the homeowners won a judgement against Bank of America.

The homeowner’s attorney says that they repeatedly contacted Bank of America to be paid the legal fees, but the bank ignored the requests.

As a result, the homeowners were left with no choice but to come after the bank’s assets. The showed up at Bank of America with their attorney, a Sheriff’s deputy, and a moving truck – full prepared to seize the banks furniture and cash in tellers’ drawers. According to the attorney:

“I instructed the deputy to go in and take desks, computers, copiers, filing cabinets, including cash in the drawers.”

“He [bank manager] was visibly shaken having two sheriff’s deputies sitting across your desk and a lawyer standing up behind them demanding whatever assets are in the bank – it can be intimidating. But so is having your home foreclosed on when it wasn’t right.”

“As a foreclosure defense attorney, this is sweet justice, because this a symptom of a larger problem.”

Video:

It seems like this is the best option for anyone who has been foreclosed on, intimidated by their banks and won a judgement against them. Send over the trucks, the police and your attorney and take what’s owed. They’d do the same thing to you.

Sweet justice, indeed.

Author: Mac Slavo
Date: June 6th, 2011
Website: http://www.shtfplan.com/

How Cee Lo Green Taught Me to Achieve

2011-06-03T14:17:00.000-04:00

I’ve got to make a confession. On November 9, 2010, my life changed. You see I was minding my own business, watching the Colbert Report, and saw Cee Lo Green pick up the microphone to finish the show by singing his hit single “Forget You” (aka “[expletive deleted] You”).

Since that day, that song has been playing in my head non-stop…for almost 6 months now. (By the way, if you haven’t heard it yet, open up YouTube and listen before reading further). Well wait, I'll put it right here. If you've seen this, skip it and scroll passed the video.

With a song stuck in my head for 6 months straight I had two options:

- Punch myself very hard in the face and hope a different song would start playing in my head, or
- Analyze the lyrics until I learned something useful.

That’s how Cee Lo Green taught me to achieve. Let me explain…

I’ve never been all that productive of a person. You see, I’ve always waited until I was “good enough” until I started taking meaningful action. I would do tons of work trying to become “good enough,” but since that’s a pretty vague goal I tended to get stuck always preparing to take real action. I would rarely accomplish something meaningful.

Luckily Cee Lo stepped in. You see, in “Forget You” he tells a beautiful story: guy loves girl, guy sees girl in a car with a rich dude, guy gets angry that he wasn’t rich enough for her, guy says screw this. He sings, “I guess the change in my pocket wasn’t enough I’m like, forget you!” And moves on. He could have sang, “I guess the change in my pocket wasn’t enough I’m like…well, I guess I’ll get a second job, try to invest wisely, and eventually win you over.” Not quite as catchy.

The wise Cee Lo realized that it wasn’t worth wishing he had more money, or waiting until he got his Ferrari. If that girl wasn’t going be with him…forget her. Realistically, even if he did wait until he got that cash, car, and xbox, that girl still wouldn’t want him (or by then he would have been over her). So he started from where he was, not from where he hoped to be one day.

What does any of this have to do with real world achievement?

On one hand, most of us want our life to change in some way. On the other hand, most of us are waiting for something before we can really take action. We’re waiting to finish a class, get a promotion, have a new situation, or find a direction. Many of us think that if only we had that one thing in our life happen, then we could start making progress.

- I need a perfect outline before I write that essay or blog post

- I need the perfect work out and diet plan before I start exercising

- I need the perfect website, traffic, blog, or product before I can start an online business

- I need to wait for the right time before I quite the job I hate

I know what I did for the longest time is either:

- work my butt off trying to be prepared enough to start making progress, or

- pout and feel sorry for myself.

If only I had asked, “WWCLD?” (what would Cee Lo do?). He would have said, “forget being ‘good enough.’ I am where I am. I don’t need to wait until I’m ‘good enough’ or ‘ready.’ I am going to start moving forward from where I am right now.”

Start achieving like Cee Lo

I’m not telling you to go record a hit record (although if you do, referencing Mr. T’s catchphrase like Cee Lo does in “Forget You” is always the right choice). Instead, pick the one biggest goal you currently have in your life. Got it? Okay, I don’t care if you’re starting at zero in pursuing that goal. I don’t care how much you have to learn before you can really do it. The most important thing you can possibly do is to say “forget you” to whatever you think you need to do before you act. Figure out how to take your first step now.

Don’t be like Cee Lo was before his “Forget You” kick. He had to “borrow, beg and steal and lie and cheat, trying to keep” the girl. In the same way, you’d have to work your ass off to get to a point where you are “good enough” to start taking real world action. Screw the ideal. Start from where you are right now.

P.S. I’ve not consulted Cee Lo, but I’m pretty sure we’re best friends and he probably agrees with everything in this warped interpretation of his catchy song lyrics. Sorry Cee Lo if you’re being misrepresented here!

Source

Don’t Let Summer Scorch your Budget!

2011-05-31T18:09:00.004-04:00

Staying on a budget can be difficult, but it seems especially difficult during the summer months. During this time many new expenses, such as paying for summer camp and vacation, pop up and can sometimes have a way of getting you off of your budget. However, there are several things that can be done to combat the temptation to stray.

First, try living on a cash budget. This will allow you to physically see the money leaving your pocket. It also means you won’t be able to rely on your credit or debit cards. In addition, living off of a cash budget will let you see the reality of your expenses, but it doesn’t mean you get to stop logging down your different costs. This means saving your receipts and another good and forgotten habit, balancing your checkbook.

Saving your receipts is an easy way for you to sit down at the end of the day and see if there were any mistakes or improvements made in your spending habits. This daily task also opens the door for conversation with a spouse about what they spent for the day and how they are doing with their personal and mutual financial goals. Remember, not enough conversations about finances are had and that budgeting is a responsibility that requires teamwork.

Balancing a checkbook seems to be a habit that many have lost, especially with the rise of online banking. Though it is good to be always checking your accounts online, sitting down and actually taking the time to do the math and check the numbers yourself lets you see what is coming in and going out of your accounts.

Furthermore, ask yourself if others in your household can participate. If you have older children in your home that have jobs, help them set up a budget as well. Assist them in making goals to reach, such as putting a certain amount of money in their savings account or toward their college fund. Children, no matter what age, follow your example and being involved will only drive the lesson home even more.

Last, prepare for the unexpected. It is never a bad idea to have money in your savings account specifically put aside for an emergency. Everyone can budget and save their receipts, but to be ready when you aren’t sure what might be coming your way is sensible and wise.

To learn more about being financially savvy and to see some surprising statistics, try taking this quiz. And if you have any summer budget tips, share them with other readers here!

Source:
How Stuff Works

Stop Identity Theft so You're Not the Next Victim

2011-05-23T12:50:00.006-04:00

Identity theft can happen quickly but the damage that is left for the victim to clean up is rarely dealt with as fast. Identity theft can happen in a variety of ways with thieves looking to steal debit and credit card information and Social Security numbers. With this information thieves can ruin excellent credit scores, apply for mortgages and even file false medical claims. However, there are ways in which you can prevent identity theft and take action if it happens to you.

Avoiding Theft:
One prevention method is to constantly be checking your bank statements. By keeping tabs on what is being charged or withdrawn, you could easily point out a faulty charge if a thief ever tried to use your account to their benefit. Also, by consistently checking your bank statements it’s easier to freeze the account and maybe receive a refund on any faulty charges rather than having to cancel it altogether. Next, review your credit reports. The three main credit agencies, Equifax, TransUnion and Experian, are required to give you a copy of your credit report, if requested, by law once a year. Another great tip is to use your credit card for online purchases. This is a somewhat safer route because it is not directly linked to your checking and savings accounts like your debit card. Other important and basic prevention tips include shredding documents with personal information and never carrying your Social Security card in your wallet. In addition, be wary of the information you give out online and change your passwords every couple of months.

What if you find that you’ve become a victim?:
First, try not to panic and calmly go over how you were robbed and what account the thief has access to. Was it a faulty charge on your debit or credit card? If so, notify your bank or credit card provider immediately. Let them know the amount of the charge and when it occurred and ask them to freeze your accounts. Next, you will need to notify the one of the three major credit agencies listed above so they can put out a fraud alert. The alert will remain on your credit report for 90 days and the agency will automatically issue you a free updated report. Once you receive the updated report, review it thoroughly for any suspicious activities such as accounts that you didn’t open. Make a report with your local police department and with the Federal Trade Commission. Once the various reports are made, as with other important documents, make copies and file them away in a safe place.

If you experience identity theft in a larger scale there are other steps you may need to take and there is even a way to put out an extended fraud alert that can last up to seven years. In the meantime, be sure to always use the internet wisely and protect your information. In addition, if a scanning device at a gas pump or ATM looks odd or that it may have been tampered with make sure to let the manager or an employee at the establishment know.

If it comes to the point where your identity theft has caused you to go into debt, call the counselors at Debt Helper and ask about the different services they offer that may help lower your debt.

Source:
The New York Times

Top Ten Ways to Spend Less and Get More

2011-05-19T11:04:00.000-04:00

Today, families are looking for more ways to save and live the “value lifestyle.” This new behavior is evidenced by the record high coupon redemption rates (9.7 percent in the first quarter of 2010 and sixth consecutive quarter of increased usage, according to NCH Marketing Services, Inc. 1Q 2010 Coupon Market Quarterly Update) and savings trends noted across multiple industry studies and surveys. There is a new norm which includes a permanent shift in how we shop and how we save. Today’s shopper has a keen eye on value that is here to stay.

The average family can save at least $1,000 per year by spending just twenty minutes a week seeking coupons, savings, and deals from a variety of sources. As I meet shoppers and savers across the country, I am impressed by their great savings and ingenuity. How much you save depends on you. Consider these practical tips to spend less and get more:

1. Share savings with a friend: People are passionate about scoring great deals and word-of-mouth is one of the best ways to find deals. What better source than a trusted friend?

2. Seek savings in print and online: Those achieving the greatest savings are clipping print coupons and clicking and printing online coupons. While grocery is the number one category for coupons, they are available across categories from dining to home improvement and everything in between. And be sure to search for coupon codes or free shipping offers for all of your online purchases.

3. Organize your coupons: Organize coupons the way in which you walk through the store—putting those expiring soonest in the front. The average expiration of a coupon in 2009 was 10.6 weeks, according to NCH Marketing Services, Inc. 2009 Coupon Marketplace Facts

4. Stock up on sale items: When you see an item on special that you use regularly, or a savings is featured with your loyalty card and you have a coupon, stock up— 66 percent of coupon shoppers say they are often able to combine coupons with other in-store specials, sales or frequent shopper discounts.

5. Easy access: Create a coupon envelope that lives in—and is always returned to—the car of the family’s main shopper allowing even the unexpected shopping trip be one in which you save.

6. Plan meals around savings: If you find a fantastic coupon, don’t dismiss it simply because the item is not usually on your list. Planning your meals at the same time as reviewing coupon offers and store circulars lets you take advantage of really great deals—and try new recipes. Many savvy cooks create meal plans based on what the stores advertise that week.

7. Double your savings: If your favorite retailer offers double or triple coupon values, shop on the days when you can get even more savings. Also, look out for daily deals at your favorite local grocer or restaurant.

8. Do your savings homework: Consumer research indicates big-ticket purchases require research. The Internet can help. Electronics, appliances, furniture, autos, and trips top the list of more expensive items that require planning.

9. Call manufacturer 800 numbers: Up to 35 percent of manufacturers only send coupons upon request.

10. Eating for free: Kids eat free (our three favorite words)! Many chain establishments have proven the old adage of no free lunch (or dinner) wrong, especially if you have kids. Full service chain restaurants continue to offer some pretty sweet deals in the form of kids-eat-free promotions.

Live the value lifestyle and you’ll rarely need to buy anything that’s not on sale. For more tips to stretch your budget, visit redplum.com.

By: Lisa Reynolds, “Mom Saver-in-Chief” for RedPlum

Source

Coupon for the Kids at Chili's May 10th

2011-05-09T15:19:00.001-04:00

Source

Inheritance Choices

2011-05-05T08:38:00.000-04:00

Lots of folks confuse bad management with destiny.~Kin Hubbard

Joan and Robin were sisters and had comparable lifestyles. When their parents died, they each inherited $200,000. Ten years later Joan was asking Robin for financial help. What happened? As soon as they received the money Joan had given $50,000 to her children to pay off their college loans, bought a new car for $30,000, put down $75,000 on a condo as a vacation home (leaving her with another mortgage, upkeep expenses and home owners association fees.) The other $45,000 just disappeared over the years on travel, shopping, house maintenance, etc. Robin had also used her inheritance to purchase a second house for retirement and vacations. Most of the time it was rented and that money paid the mortgage and all expenses so ten years later she owned it free and clear and was making money on the rentals. She had allocated $10,000 of the inheritance to splurge and gifted $10,000 to each of her children. The rest was saved or invested. Joan thought Robin was lucky and believed that things never worked out for her. She totally ignored the fact that they both had made choices that led to their financial outcomes. You can control your financial destiny by taking responsibility for your choices—make them work for you in the long run!

Syble Solomon

Funding for housing help gets budget ax

2011-04-29T09:08:00.001-04:00

$88 million cut in housing counseling has consumer advocates concerned
As reported by MarketWatch.com, April 25, 2011: Millions in federal funding for housing counseling services have been slashed for the 2011 fiscal year — funds that pay for U.S. Department of Housing and Urban Development-approved counselors to work with first-time home buyers, older homeowners considering a reverse mortgage and borrowers heading dangerously close to foreclosure.

The elimination of HUD’s $88 million Housing Counseling Assistance Program comes at a time when foreclosures remain elevated and a slew of consumer protection regulations for the mortgage industry are making their way to the books.

“We don’t understand it. We’re stunned,” said Bruce Dorpalen, director of public affairs for the Affordable Housing Centers of America, a nonprofit housing counseling organization. “It’s not an awful lot of money, but it really has high impact.”

Others aren’t so sure the services have been fruitful enough.

“It’s not clear to me what we’ve gotten for our money,” said Mark Calabria, director of financial regulations studies at the CATO Institute, a public policy research organization. “Every dollar of taxpayer money should have some accountability… we have to ask whether they’ve been effective.”

HUD-approved counselors give independent feedback to consumers as they consider how much house they can realistically afford or how to clear up their credit to qualify for a mortgage or rental, as well as a variety of other housing concerns, said Janis Bowdler, director of the wealth-building policy project at the National Council of La Raza, a Hispanic advocacy organization that offers bilingual housing counseling through its network.

But lately, the greatest need has been foreclosure prevention assistance. Many counselors work with borrowers to help them get mortgage modifications or other lender workouts so they can keep their homes. Counseling also helps steer people away from scam artists looking to prey on vulnerable homeowners, Bowdler said.

“This is a program that has long enjoyed bipartisan support,” Bowdler said.

Still, Calabria said he’s not convinced that the services have resulted in a significant number of households saved from foreclosure.

In fact, some believe that the efforts to modify mortgages and keep families out of foreclosure are only delaying the inevitable: Some borrowers won’t be able to keep their home, but could spend many months living payment-free as they wait for resolution, Calabria said. And even those who do get a modification sometimes end up re-defaulting on their mortgages, he said. All of the delayed foreclosures could be prolonging the return of a healthy real-estate market.

There’s also this take: Perhaps the onus to fund housing counseling should be on the mortgage industry instead of taxpayers, Calabria said.

It’s important to note that another chunk of federally funded housing counseling did maintain funding for 2011, one specifically aimed at helping distressed borrowers. The National Foreclosure Mitigation Counseling Program, administered through NeighborWorks America, will receive nearly $65 million in funding for services in the 2011 fiscal year, said Erin Angell Collins, spokeswoman for NeighborWorks.

But that’s not enough to serve all the homeowners who need this kind of help, Bowdler said. The NeighborWorks funding was meant to supplement the HUD counseling support during the foreclosure crisis, she said.

Other housing help
Foreclosure help is probably the most common reason people seek a HUD-approved housing counselor, but it’s not the only one, Bowdler said.

For example, those who have already lost their homes in foreclosure and need assistance in repairing their finances and securing a rental home use the services, she said.

Sometimes lenders require counseling for buyers if they’re taking advantage of a first-time buyer program that offers flexibility including down payment or credit requirements, Bowdler said. Some local buyer assistance programs also require counseling as a requirement for participants, she added.

Reverse mortgage counseling is also mandatory for home-equity conversion mortgages backed by the Federal Housing Authority, said Barbara Stucki, vice president for home equity initiatives at the National Council on Aging.

“Right now there is no other source of funding, and in many ways HUD counseling funds allowed [the NCOA] to provide free counseling to those with modest means,” Stucki said.

Reduction in service
HUD’s fiscal year begins in October, so the effects of the cuts will be felt in the fall, Bowdler said.

To give an idea of how a nonprofit would be affected: NCLR helped more than 62,000 families with home buyer, rental and foreclosure prevention counseling last year, but its network of organizations that provide the counseling would shrink from 55 organizations to 20 with the cuts — if the group isn’t able to close the gap through private fundraising, Bowdler said.

“We’re going to see a significant reduction in service, or counselors will have to start charging,” she said.

The 2012 budget proposed by President Obama does reinstate funding for these services, Bowdler said. But she’s concerned that the funds will be a target once again for trimming budget costs.
Stucki’s concerned, too.

“The mood of Congress is not to be more generous,” she said.

Source

The Dangers of Paying the Minimum on Your Credit Cards

2011-04-19T09:33:00.003-04:00

Because of the CARD Act, creditors must print on credit card statement the amount of time to pay off the card’s balance (and interest paid) if you just made minimum payment required. I’ve spoken with many consumers and I can tell you that a lot of people think the information is a misprint. How can it take 22 years to pay off a $15,000 credit card debt? Needless to say, this information is very eye opening and extremely useful.

I have used a couple of real examples to show you the impact of paying the minimum on moderate balances of $680 and $1424. To make things simple, each example assumes that no more is charged to the account during the time frame and the interest rate is 14.5%. You will see how fast interest adds up!

The first example is a bill for $680, if you make the minimum payment of $15 a month, it would take 6 years to pay. The total amount paid would be $991, with $311 of it in interest charges. This is almost 50% of the original bill. If you pay more than the minimum or $23 a month for 3 years, you would pay $842 and $162 in interest. You save $149 paying it 3 years earlier. Either way it is still a very long time to pay a bill totaling $680.

Monthly payment: $15 Pay off: 6 years Amount paid: $991 Interest: $311

Monthly payment: $23 Pay off: 3 years Amount paid: $842 Interest: $162

The next example is a bill for $1424. Paying the minimum of $28 a month would take 12 years to fully pay off the balance. The payments total $2,662, with $1,238 of it being interest. This is 86% of the original bill. If you pay more than the minimum of $49 a month, you would pay the bill off in three years, which is 9 years earlier. You pay $1,764 and $341 in interest; the savings of $897 is substantial.

Monthly payment: $28 Pay off: 12 years Amount paid: $2,662 Interest: $1,238

Monthly payment: $49 Pay off: 3 years Amount paid: $1,764 Interest: $341

In addition, if you don’t pay the bill within the date it is due, a late fee of $35 is added to your bill. And, your interest rate could also go up as a result. Look at your cardholder agreement, if you haven’t thrown it away, for the “default rate.” That’s the rate they can charge if you miss a payment.

I don’t know about you, but I don’t like paying interest; it is throwing money away. I don’t get anything tangible in return for this wasted money. I can think of many things to do with $1,238 or even $341 and using it to pay interest isn’t one of them.

John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling. He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. Follow him on Twitter here.

Source

CUTS to HOUSING Counseling

2011-04-14T16:54:00.001-04:00

ACTION ALERT!!!

The 2011 Budget which Congress is voting on will have no funding for HUD Housing Counseling.

This means that, in the middle of the housing crisis, the funding which goes to local HUD approved housing counseling agencies, intermediaries, and state housing finance agencies for pre-purchase, rental, reverse mortgage, and foreclosure counseling will not be available.

WHAT YOU CAN DO:
Call your Congressperson, your two Senators, and the White House and tell them to restore the $88 million for HUD Housing Counseling in the 2011 Budget. The vote is happening this week, so you need to call TODAY.

WHERE TO CALL:
House of Representatives: 877-851-6437 & 866-220-0044 ask for your Representative. To find your Representatives, enter your Zip code on this website http://www.govtrack.us/congress/findyourreps.xpd

Senate: 877-851-6437 & 866-220-0044 ask for both your Senators. Find your Senators here: http://www.senate.gov/general/contact_information/senators_cfm.cfm

White House: 202-456-1414 ask for the Comment Line
This will not be overturned unless there is a major outcry against these cuts. CALL RIGHT AWAY. Say no to cutting the $88 million in HUD Housing Counseling funding.

Please circulate this information to others who can call.

Same Price for Less Food?: The Secrets the Food Companies are Keeping from You

2011-04-14T15:14:00.005-04:00

The current state of the economy is difficult enough, but paying more and getting less doesn’t help, especially when it comes to putting food on the table. Lately, the amount of food consumers are getting for the price they are paying just isn’t adding up.

Chip companies are sending out bags with about 20 percent less product than what was packaged in 2009. (The spokesperson for the company said that the extra 20 percent was just a “limited time offer.”) This trend can also be seen walking down the pasta aisle. This quick and easy dinner option used to be sold at 16 ounces per box and is now weighing in at 13.25 ounces per box. The same can be said for canned vegetables which also used to weigh in at 16 ounces a can and can now be found weighing as low as 13 ounces. This list goes on and on and ranges from canned tuna to sugar.

But how are companies getting away with charging the same prices for less food?

According to The New York Times and John T. Gourville, a marketing professor at the Harvard Business School, it’s all about the packaging.

“Consumers are generally more sensitive to changes in prices than to changes in quantity. Companies try to do it in such a way that you don’t notice, maybe keeping the height and width the same, but changing the depth so the silhouette of the package on the shelf looks the same. Or sometimes they add more air to the chips bag or a scoop in the bottom of the peanut butter jar so it looks the same size,” said Gourville.

One example of this would be the new “fresh packs” of crackers. Though the box shows stacks of crackers that are broken down and packaged into several groups so they stay fresh for longer, the packs are actually a marketing ploy to give you less food...a whopping 15 percent less!

Another excuse companies use is that they are trying to make their products “greener.” Procter and Gamble is using this method stating that it’s “using at least 15 percent less energy, water or packaging than the standard [size].” What they fail to mention is that if there's less packaging, there is less product.

No matter what the companies say to try and excuse their products, now is the time to be more observant than ever. Make sure to closely examine the labels on items before sticking them in your cart. Also try to avoid grabbing the newer packages. Though the packaging may state all the qualities that make it better, the standard container is likely to have more product.

Does 'good' debt really exist?

2011-04-11T16:04:00.001-04:00

Some experts say the recession has changed how debt should be viewed

By Marcia Frellick

Does "good" debt exist anymore? Financial experts differ, but many say that in today's economy, it's time to reconsider how we look at some common types of debt.

Traditional thinking separates debt into "good" and "bad." Mortgages and student loans have been considered good debt because they have fairly low interest rates and hold the promise of a substantial long-term payoff. Auto loans and credit card debt usually rate a bad debt label.

But with unemployment hovering around 9 percent, housing prices falling nationwide and the average cost for a four-year private education soaring to an average of just more than $37,000 a year, according to the College Board, does good debt really exist anymore?

Noted personal finance author David Bach says no. The recession, he says, taught us that "all debt is bad if you can't pay it off."

"With many Americans today, almost 30 to 50 percent of their paycheck is going just to interest payments," says Bach, whose latest book is "Debt Free For Life." "Often it's more than that. There's been a real awakening that debt is bad."

Others say good debt still exists, that buying a house is still a sound investment over the long haul, and borrowing for a college education is a good risk -- if you keep borrowing down and study for a profession that can pay it off.

Here are some ways the debate shakes out:

Cars and credit cards

In terms of bad debt, financial experts agree that a large amount of auto loan debt is hard to justify. If you have to have a car to get a job, then get a cheap car, but borrow as little as possible. Borrowing money at high interest to pay for a depreciating asset just doesn't make financial sense, they say. But there is more debate on credit card debt.

Jordan Goodman, author of "Master Your Debt," warns against it. "If you're paying 18 or 25 or 29 percent, it's hard to imagine what you'd invest in that would pay you more than 29 percent reliably," he says. "And, of course, it's not (tax) deductible."

But Lita Epstein, author of "The Complete Idiot's Guide to Improving Your Credit Score," says credit card debt isn't all bad if it helps you establish a solid credit history that will help you with big purchases later: "Generally, you get your best credit score when you use 10 to 20 percent of your credit limit," she says. "That shows any creditor who's considering you that you know how to manage your credit wisely, you know how to pay your bills on time and you're not going to get yourself in over your head."

Robert Pagliarini, president of Pacifica Wealth Advisors in Los Angeles, says credit card debt is good if it will make you money. Period. He gave an example of buying a piano on credit so that you may give piano lessons.

"Why wait four years to save up and buy the piano, when you can buy it on credit now and make some money? This is what businesses do. They borrow money ... so they can invest it into research, into assets so they can make more money. That's what individuals need to do."

Student loans: Good debt or bad debt?

Student loans are good debt, even as costs escalate, if you can expect to make a salary when you graduate that will allow you to pay off the debt within a few years, says Carol Roth, business strategist and author of "The Entrepreneur Equation." In today's economy, that may mean only taking on the debt only if you are entering a high-paying field or finding a less expensive college that will make the math work, she says.

You also have to consider that a college education pays off in other ways, she says. "There's a value to having an education, to learn and to be a well-rounded person but only you can assign what that value is, based on your own circumstances."

Personal finance columnist and author Liz Weston says there's a rough dividing line between good student loan debt and bad: "Don't borrow more than you can make in the first year of your career," she says.

Pagliarini says student loans are still a good bet financially, even in a time of high unemployment.

"The research shows that the more education you get, the more you're going to make long term," he says.

He notes the national unemployment rate is an average and doesn't fully illustrate the difference in unemployment among different education levels. "When you look at the people with bachelor's degrees and above, that number just about drops in half." In fact, Bureau of Labor Statistics numbers for February 2011 show unemployment rates for people with a high school diploma and no college to be 9.5 percent; it's 4.3 percent for people with bachelor's degrees and above.

Goodman says he agrees that on average people with college educations make more than people without. But the risk for making that choice has gotten too high, he says.

"People are taking on huge debt and, in the case of student loans, they're not forgivable even in bankruptcy. The two debts you can't get rid of are taxes and student loans."

That debt burden is exactly what concerns Thomas Alexander, Finance Department chair at Northwood University in Midland, Mich. He says paying for a college education with student loans is no longer a good risk unless you're entering high-paying fields, such as medicine, engineering or accounting.

"If someone is getting a degree in sociology or history -- the chances of landing anything that would give them a high return is pretty small," he says.

He says college is not for everyone and the better payoff may be skipping college and going into a trade.

"If you take a student who does not go to college and becomes a plumber or electrician -- those guys are going to make more money than 75 percent of the college graduates, but we've made the feeling in this country that that is beneath them."

Mortgages vs. renting

Goodman says taking on a mortgage is not a way to build wealth as it has been in the past.
"Home prices are falling -- probably will continue to fall -- and 25 percent of the population is underwater (the house is worth less than the amount of the loan). Home deductions [for interest] are overrated. You get a deduction at your tax bracket, so if your tax bracket is 25 percent, you're still paying 75 cents on the dollar. If you're not being bailed out by home-price appreciation, this may not be a good deal."

Roth says it's all about the math. She gives an example of buying a $275,000 home purchased with 25 percent down and taking out a 30-year mortgage at 4.5 percent. It will cost you $68,750 today to buy that home (that's the 25 percent down), and you will pay out more than $376,000 over 30 years. Even if the home doesn't appreciate in value, you will have an asset worth $275,000 at the end of 30 years. Rent at $1,500 a month over 30 years would be $540,000 and that would be without inevitable rent increases. There would also be no asset at the end.

That makes the beginnings of a case for why a mortgage is a good idea over the long haul, she says. "But you also have to ask yourself some questions," she says, "such as what are you doing with the difference in money you spend on the mortgage (only $1,045 vs. $1,500 in rent)? That money may also be able to be invested. Do you have property taxes? That creates more costs. Do you have assessments? How much is maintenance on your home? Is homeowner's insurance more than renter's insurance?"

Answering those questions will help you make up your own mind about what qualifies as good debt.

Regardless of where financial experts stand on what's good debt and bad debt, all agree working to pay it off as quickly as possible is a good idea.

"One thing that never backfires is paying down your debt," Bach says. "It is the safest, simplest investment you can make."

Source

AICCCA's Tax Time 2-step

2011-03-04T10:02:00.000-05:00

Emancipation Day in the District of Columbia will be celebrated on April 15 this year, giving Americans across the nation reason to dance as that means the income tax filing deadline has been extended to April 18. However, the day is still quickly approaching so the Association of Independent Consumer Credit Counseling Agencies encourages consumers who have yet to prepare for tax day to start planning and saving now.

"The first step for consumers who anticipate owing taxes is to learn the amount of their liability," said Dave Jones, president, AICCCA. "The next step is determining what they will need to do in order to pay their tax bill."

AICCCA offers consumers a tax time 2-step program leading up to and beyond April 18:

2 Steps to take now:

Determine your liability. The sooner you have this information the better. Sit down soon to either calculate your taxes or have your taxes reviewed by a tax professional. If you're still using a paper 1040 form, consider tax software that will help you identify all qualified deductions.

Establish a weekly savings target. If you owe money, take a hard look at your budget and see if you can squeeze out money for taxes. Start by eliminating expensive meals, vacations and other discretionary expenses. Afterwards, look for ways to save on necessities like food, utilities and clothing. Inquire about overtime opportunities at work. Take a second job until your tax bill is paid. Hold a garage sale and sell those items you no longer need to apply the money to your tax bill.

2 Steps to take on tax day:

File on time. Filing later than April 18 will cost you in IRS-imposed penalties for late filing. Putting off filing because you don't have the money to pay will only increase the amount you will ultimately owe if you fail to file on time. If you need more time, the IRS does accept extensions on filing through April 18. Keep in mind that a filing extension is not a payment extension. You will likely have to make at least a partial payment on April 18.

Research your credit options carefully. If you find you must borrow some or all of the tax due, be sure to compare interest rates and terms to find the option that is right for you. These include a bank loan, an IRS installment plan and an IRS approved credit card. You'll pay interest on a bank loan, a processing fee and interest on an IRS installment plan and convenience fees plus interest to credit card companies. If you decide to use a credit card, be sure to have a plan to pay off the card as soon as possible.

2 Steps for the rest of the year:

Review W4 withholdings. Whether you receive a tax refund or must send a tax payment, you should review your W4 form annually. If you receive a large tax refund every year, you are effectively giving Uncle Sam an annual interest free loan. Earn interest income on that money yourself by increasing the number of withholdings. On the other hand, if you consistently owe taxes, you should lower the number of withholdings or have your employer take an additional amount each pay period for taxes if you already claim zero on your W4.

Ask for help. If you are at a loss as to how you will pay your taxes or would like help budgeting so you will not be in the same position next year, contact an AICCCA member office at 866-703-8787 or www.aiccca.org for help.

Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit http://www.aiccca.org/.

Source

Are YOU Smarter Than a High School Student

2011-02-17T16:46:00.000-05:00

If you need to brush up on your financial skills, Debthelper.com is the one to call. Our credit counseling service is FREE. Call us today. No excuses! 800-920-2262.

U.S. TREASURY DEPARTMENT

OFFICE OF PUBLIC AFFAIRS

OBAMA ADMINISTRATION RELEASES ‘EDUCATOR TOOLKIT’

FOR THE 2011 NATIONAL FINANCIAL CAPABILITY CHALLENGE

Toolkit Includes Ready-to-Use Lesson Plans on Budgeting, Saving, Investing, and Other Critical Skills That Will Help Students Build Secure Financial Futures

WASHINGTON – The Obama Administration released a new “educator toolkit” with lesson plans that teachers can use to help students prepare for the upcoming 2011 National Financial Capability Challenge. The Challenge, which will include a voluntary online exam for high school students that begins as of March 7, helps teach young Americans about saving, budgeting, investing, and other important skills critical to building a strong financial future. The highest scoring students on the exam will be recognized through a national awards ceremony in Washington, DC and other high-scorers will receive official award certificates.

“Empowering students with the knowledge they need to make smart financial choices about saving, budgeting, and investing for the future is good for the long-term strength of our economy,” said Treasury Secretary Tim Geithner. “It will help ensure that young people have the skills they need to achieve financial security, and that will help us continue to build this recovery on a strong and sustainable foundation.”

“Our students need to graduate high school ready for college and career if they’re going to compete in a global economy,” said U.S. Education Secretary Arne Duncan. “Incorporating financial literacy, through Treasury’s online educator toolkit or other significant learning materials, will encourage students to make smart long-term investments, such as preparing to pay for college.”

The educator toolkit, which is available online starting today at http://www.challenge.treas.gov/toolkit, covers five core competencies of financial education: earning, spending, saving, borrowing, and protecting against risk. It includes a collection of lesson plans from the Federal Reserve, the Federal Deposit Insurance Corporation, and non-profit organizations that are designed to help teach students important financial skills, such as developing a personal spending plan, balancing checking and savings accounts, understanding the costs of benefits of buying insurance, using credit wisely, minimizing exposure to identity theft, and making smart investments in their future through education.

Additionally, for the first time, this year’s educator toolkit will include interactive online lessons and Spanish-language materials. The toolkit can be used not only to help prepare students for the Challenge’s online exam, but also for year-round classroom instruction on financial capability.

More than 76,000 students and 2,500 educators in all 50 states participated in last school year's National Financial Capability Challenge. This year’s exam will be available online between March 7 and April 8, 2011. Educators can administer the exam to their students at any time during that window. To register for the Challenge, educators should visit http://www.challenge.treas.gov between now and April 8.

The Challenge is one of many important steps the Obama Administration has taken to help empower Americans through improved financial capability. In November, the Administration unveiled a new coordinated National Strategy for Financial Literacy to help guide the ongoing efforts of the federal government and private organizations to empower Americans with the financial skills they need to strengthen their long-term economic security and stability. Additionally, the Administration established the President’s Advisory Council on Financial Capability to provide advice on how to maximize the effectiveness of existing private and public sector efforts, and to identify new approaches to increase financial capability.

In November, the Federal Deposit Insurance Corporation, National Credit Union Administration, and U.S. Department of Education announced a new partnership to encourage schools and financial institutions to work together to increase students’ financial capability, access to federally-insured deposit accounts, and savings. And just last month, Treasury launched a pilot program to offer safe, convenient and low-cost financial accounts for the electronic delivery of federal tax refunds to those Americans with limited or no access to traditional banking services.

Valentine's Day on a Budget

2011-02-13T11:57:00.002-05:00

Holidays are notorious for being a call for spending and Valentine’s Day is no exception, but there’s no need to spend buckets of money to empress your honey. Follow these tips and you’ll have a successful Valentine’s Day without blowing your budget.

Check out the oddest of places- The dollar store may not seem like the ideal place to pick up Valentine’s gifts, but you may be in for a big surprise. I went to the dollar store with the intentions of just getting a gift bag, but I found so much more! I bought my Valentine’s cards (that were simple, but sentimental and half the price of regular cards), tissue paper, and some yummy chocolate for my roommates. At the checkout I even spotted single red roses! My roommate and I were in such disbelief that we had to ask and the cashier assured us that the roses were real! In the end, the dollar store may not seem like the first place you would want to start your shopping, but just because the items are inexpensive that doesn’t mean they’re of cheap.

Try the outdoors- If you’re having nice weather, try packing a picnic instead of eating out. You can still have multiple courses without going to a restaurant and paying big bucks for it. Make everything prior to your outing, pack it up and tell your honey that you two are going to go for a little outing. Not only will you get brownie points for surprising her, who wouldn’t want a homemade meal created by the one you love?! Also, if the weather isn’t the best where you’re at, an indoor picnic can be just as romantic! Set out a blanket and some pillows and sit by the fireplace or watch the rain fall.

Here are some super easy recipes to get you started:

Chickpea Salad
California Club Sandwich or Lobster Club Sandwich
Raspberry Cake Bars

Lunch anyone?- If you and your Valentine would rather eat out, lunch time specials allow you to dine for a deal. Restaurants will either throw in a free salad bar or soup before your entrée, or some places offer a two for special that may include an appetizer, entrée and a dessert to share. If dinner is a more feasible option, try looking up places that are offering Valentine’s specials. These can be similar to the midday menu in which they may offer a free dessert or other incentives.

In the end, Valentine’s Day isn’t about the gifts or the deals, but showing the ones closest to you that you care for them. So if nothing else, be sure to say the one phrase that costs nothing by means everything….I love you.

Thrifty Mom

2011-02-12T13:49:00.000-05:00

Quick tips and a recipe each week to help save you money!

Thrifty Tip of the Week
Pack your families lunches and for further savings use plastic compartment washable lunch boxes so you aren't throwing away plastic bags or containers!

Deal of the Week
Large Shrimp $5.99 a lb.

Recipe of the Week
These shrimp rolls are perfect for a quick weeknight meal especially in the summer!

http://www.marthastewart.com/recipe/shrimp-roll

Motivational Quote of the Week
‎"The world is a great mirror. It reflects back to you what you are. If you are loving, if you are friendly, if you are helpful, the world will prove loving and friendly and helpful to you. The world is what you are."  Thomas Dreier,  Author

Action Plan for the Week
Call Debthelper today and get your finances under control!
www.debthelper.com

The Recession and Your Kids: The Stress They May be Hiding

2011-02-10T16:10:00.003-05:00

The recession is putting stress on families all over the country, but what you may not know is that it is affecting your kids and their behavior.

Although children are supposed to be carefree, seeing the worry and stress of their parents can take a major toll on them. In one Ohio school, ten year old Leah Kehler confided in her teacher about her fears that her family would have to move due to her father being laid off. Another child in that class even went to school with tape holding her broken glasses together.

These situations and many like them are happening everyday in schools and are causing children to behave unusually. Some may act out in school or become more quiet and introverted. Though these behaviors are difficult to observe, there are ways that, as a parent, you can help mend the situation.

Identify the feeling: Since children are not used to feeling so much stress or stress specifically related to home life, help them to identify the feeling. Most children are not even sure what the words stress or anxiety mean, so it is difficult for them to classify an emotion they don’t know the name for. Try asking your child why they may be looking more upset lately and why. Then, help them to understand that this is not the easiest of times, but as a family you will help each other through it and let them know you’re there for support.

Make the time: Sometimes it can be difficult to pick up on your child’s anxiety when you are caught up in your own stress and kids may be hesitant to ask for your time when they see you are surrounded by so much chaos. Make sure to put some time aside everyday to ask about school and friends and then try to delve into deeper issues from there. This works best when you are doing an activity together, such as playing catch or while setting the table for dinner.

Be honest: Though it is not necessary to lay out every detail of the situation, tell kids that you may be eating out less or may not make as many trips to the toy store as usual. It may be difficult for children to understand at first, but if they maintain the same expectations that they had before the recession it will only be harder to keep up with their belief. In addition, money that would be spent on treats could go toward daily necessities, such as groceries.

Encourage teamwork: Some current financial situations may require one or both parents to get an extra job, meaning that kids may have to help more around the house. First, always assign chores that kids can do easily so when finished they are always left with a feeling of accomplishment. Also, try and make chores fun. Organize a team of kids versus adults and have a race. Or try a chore chart and when a chore is done a sticker gets put by your child’s name or the task that they accomplished.

Overall, always reassure your children of your unconditional love for them. Be sure to let them know that you care and have their best interest in mind. This along with the tips above should lead to a happier, less stressful home.

Sources:
The New York Times

Guide to help children cope with the recession

KidsHealth.org

The Hardest Hit Program is Now Accepting Applications

2011-02-02T09:52:00.002-05:00

The "hardest hit" program is for unemployed and underemployed homeowners.

The money can be used to make mortgage payments for up to 18 months or to make a delinquent loan current. It goes directly to the lenders and does not need to be paid back unless the home is sold within five years or the homeowner goes into foreclosure.

Those who qualify may receive up to 35-thousand dollars.

For more information click here.

ONE END OF YEAR SURPRISE TOO MANY

2011-01-19T17:05:00.001-05:00

Considering Debt Settlement?

Expect a 1099 at the end of the year that the settlement is completed. This fact is given to anyone who calls and inquires about debt settlement vs a Debt Management Program. It always manages to get an astonished: “I did not know that!” Yes, The IRS treats your settled debt as income, thus you are liable for the taxes on the "INCOME".

How Your New Year’s Resolution can become Your Holiday Bonus

2011-01-12T13:49:00.003-05:00

With the start of the New Year comes the popular tradition of making New Year’s Resolutions. Popular resolutions include eating healthier and getting more exercise, but how about financially related ones?

Last semester I would go to the bagel shop on campus and get a smoothie or bagel, sometimes both. And while I was waiting for my order, I would make excuses for myself as to why it was ok that I was spending money I knew could have gone to better use. I didn’t realize how much I was spending on those seemingly simple “treats” for myself until I looked over my portfolio while do my online banking.

It turns out that in one month’s time period I had spent just over 18 percent of my money on dining out. I thought to myself that this information couldn’t be true, but while going through my bank statements I added it all up and I was spending an extra five to ten dollars per week on a simple bagel and smoothie!

So one of my top priority New Year’s Resolution is to diligently watch my finances, and not for a week or month, but to really stick with it all year long. If I avoid the bagel shop, at the end of the year I could have an extra $520 in my pocket to use towards groceries, school expenses or just to put towards building my savings account.

I feel that as consumers, we automatically think that when we get some extra money in our pockets that we need to go out and spend it immediately.

It’s not that treating ourselves is necessarily a bad thing; however, we need to bring back the concept of paying ourselves first. Instead of taking a trip to the bagel shop, maybe sit down and look over your savings account first. Is the amount really where you want it to be? And don’t forget to include your spouse in these evaluations as well.

In the end, keeping track of your bank summaries and seeing what can be cut out over the months could just end up being a winter bonus from yourself at the end of the year.

For more money saving solutions, check out Debthelper.com or call one of our certified credit counselors. Their help is at no charge to you. 1-800-920-2262.

Starting the New Year Off Right!

2010-12-21T13:05:00.007-05:00

Spending 101

One of the best ways to make sure your daily spending habits don't overwhelm your life goals is to create a spending plan.

People hate budgets because they seem confining. But a realistic spending plan is the very tonic many need right now.

Creating a Spending Plan Tips:

· Establish realistic habits
· Set obtainable financial goals
· Find ways to save or hide money from yourself.

How to do it:
· Track your spending. Write everything down for at least one month.
· Use a formula you will follow to determine how much you can save.
· Use the money you saved to create a saving account.

Savings tips:
· Cut coupons
· Shop for values
· Involve family members
· Be responsible spenders

Do you need help?
· Are you having problems paying your bills?
· Are you aware of the debt resolution options you have?
· Can you commit to a program? Ask for it.

Help is Here:
Credit Card Management Services, Inc. d.b.a. Debthelper.com is an IRS Approved 501c3 Non-Profit Florida Corporation dedicated to our mission of providing compassionate and professional, financial counseling and education in an ethical manner with efficient, timely and problem-solving client support.

Debthelper.com partners with those who create opportunities for people to live in affordable homes, improve their lives and strengthen their communities.

http://www.debthelper.com/ is ISO: 9001 Certified as audited by BVI is licensed, bonded and insured to provide quality debt management services as governed by its Code of Practice and Best Practices through its membership with the Association of Independent Consumer Credit Counseling Agencies.

Debthelper.com adheres to the National Industry Standards for Homeownership Education and Counseling and is a partner with the Florida Housing Finance Corporation. Debthelper.com is a proud member of the Southeast Florida Better Business Bureau. We offer education and counseling on:

Pre-Filing Credit Counseling for Bankruptcy*
Pre-Discharge Education Courses, also known as a Personal Financial Management Instructional Courses, for Bankruptcy*
Credit Report Education (offering a broad view of what you should look out for on your credit report)
Budgeting and Spending Plans
Debt Management Programs
Consolidation Programs
HUD Approved Comprehensive Housing Counseling
Reverse (HECM) Mortgage Counseling
Foreclosure Counseling
First Time Home Buyers Educational Courses

And More Financial Rescue Options Since being formed in 1996, we have helped guide tens of thousands of people out of financial difficulty.

Located in West Palm Beach, Debthelper.com serves clients in almost every state in the union. Our multilingual, multinational team is different from many other agencies as we put the client first whether or not they join one of our programs.

Debthelper.com Certified Personal Finance Counselors counselors strive to get to the root of the counseling issues and once and for all, help to seek their resolution.

Don't Lose Your Money in a FSA/HSA

2010-12-16T08:44:00.002-05:00

A End of Year Reminder Shared From:
Simon Orthodontics

If you have funds set aside in a flexible spending account (FSA) or healthcare saving account (HSA), now is the time to pay off an existing balance or begin new treatment for you or a child so you don't lose any of that money. Generally, these plans do not let you rollover unused dollars to the next benefit year.

http://debthelper.com/

Need a Job?

2010-12-03T14:42:00.001-05:00

Now Accepting Part Time, Day, Evening and Weekend Shift Positions for Customer Service... Tell a friend. Fax resume to 561-844-0406

Thrifty Mom

2010-12-02T08:08:00.001-05:00

Quick tips and a recipe each week to help save you money!

Thrifty Tip of the Week
If you wear contact lenses do not use the FREE cases that come with the solution. They are very deep and use double the solution as other cases on the market! Very tricky but now you can beat the system!

Deal of the Week
Salmon Fillets @ $8.99 a lb.
This isn't really a bargain per se but it does not appear to be going down in price!

Recipe of the Week
I know that fish can be one of the scarier things to cook, but this salmon comes out perfect every time.

http://allrecipes.com//Recipe/salmon-with-lemon-and-dill/Detail.aspx

Motivational Quote of the Week
"Gratitude can transform common days into thanksgivings, turn routine jobs into joy, and change ordinary opportunities into blessings." William Arthur Ward, 1921-1994, Writer

Action Plan for the Week
Call Debthelper today and get your finances under control!
www.debthelper.com

A BBB Accredited business since 10/26/1998

2010-11-24T18:31:00.002-05:00

Credit Card Management Services, Inc.

A BBB Accredited business since 10/26/1998.
BBB Rating A+

BBB issues Reliability Reports on all businesses, whether or not they are BBB accredited. If a business is a BBB Accredited Business, it is stated in this report.
BBB Accreditation
This company has been a BBB Accredited business since October 1998. This means it supports BBB's services to the public and meets our BBB Accreditation standards.

BBB Rating
Based on BBB files, this business has a BBB Rating of A+ on a scale from A+ to F.

Business Contact and Profile
Name: Credit Card Management Services, Inc.
Phone: (800) 920-2262
Fax: (866) 561-2622
Address: 4611 Okeechobee Blvd., #114

West Palm Beach, FL 33417
Google Map
Website: http://www.debthelper.com
Original Business Start Date: November 1996
Principal: Mr. Paul Donohue, President
Type of Business: Debt Consolidation Services, Credit Counseling and Management Services
BBB Accreditation: This organization is a BBB Accredited business.
Additional DBA Names: Debthelper.com

Business Management
Additional company management personnel include:
Raj Bhavsar
Mohan Lal Wani - Manager

Additional Locations and Phone Numbers
Additional Phone Numbers
Tel: (561) 472-8000

Additional Fax Numbers
Fax: (561) 844-0406

Customer Complaint History
When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.
BBB processed a total of 4 complaints about this company in the last 36 months, our standard reporting period. Of the total of 4 complaints closed in 36 months, 0 were closed in the last year.
Sales Practice Issues
Resolved
4 - Company addressed the complaint issues. The consumer failed to acknowledge acceptance to BBB.

Government Actions
BBB has no information regarding government actions at this time.

Advertising Review
BBB has no information regarding advertising review at this time.

BBB Copyright and Reporting Policy
As a matter of policy, BBB does not endorse any product, service or business.

BBB Reliability Reports are provided solely to assist you in exercising your own best judgment. Information in this BBB Reliability Report is believed reliable, but not guaranteed as to accuracy.

BBB Reliability Reports generally cover a three-year reporting period. BBB Reliability Reports are subject to change at any time.
If you choose to do business with this business, please let the business know that you contacted BBB for a BBB Reliability Report.
ID: 17000563
Report as of November 24, 2010 16:30
Copyright© 2010 Better Business Bureau

Debthelper.com will be at the Living My Life Expo

2010-11-23T08:56:00.000-05:00

Palm Beach County Convention Center

Start Your Personal Growth Revolution!

Living My Life Expo South Florida’s largest lifestyle consumer event of the year challenging you to “Start Your Personal Growth Revolution,” December 10th-12th, 2010 at the Palm Beach County Convention Center, is the only place to find the largest variety of products and services to feed your mind, body and soul for just $5.00!

Companies such as Debthelper.com, Humana, CarePlus Health Care, American Cancer Society, Habitat for Humanity, Leukemia & Lymphoma Society, ADT Security Systems, AT&T, Barbara Brennan School for Healing, David Lerner Associates, Lang Realty, Hospice by the Sea, South Florida Dance Industries, Gold Rush America, AGS Promotions, Center for Pranic Healing of South Florida, Living is So Big, Inc. and many more are set to present at Living My Life Expo.

See live radio appearances from your favorite DJs and win FREE tickets from our Exclusive Platinum Radio Sponsors: WILD 95.5, KOOL 105.5, and NewsRadio 1290 WJNO. Silver Sponsors: Access Medical Laboratories, DG Advertising, and The Palm Beach Post will also exhibit at the expo.

BE THERE!

2010-11-16T08:58:00.001-05:00

Debt denial = i'm not in debt i just owe people money

Thanksgiving Dinner Debthelper Style

2010-11-11T16:40:00.002-05:00

Submitted by: Kira @ Tip Hero
Turkey time is almost here. Time to prepare for some serious cooking and serious food comas. While Thanksgiving is really about people coming together to give thanks and enjoy each other's company, there are definitely some costs that you need to prepare for if you plan on having a traditional(ish) holiday. Here are some tips to help you along the way:

Food Shopping Tips:

•Look Out for Weekly Sales: one item you need may be on sale this week, but other items may be on sale the following week. Don't feel like you have to take one big "Thanksgiving shopping trip." Check a few items off of your Thanksgiving list each time you go to the store before the big day.

•But Don't Wait Until the Last Minute: create your menu early so that you can go shopping as early as possible. You'll save money by hitting the supermarkets before the week of Thanksgiving and you won't find yourself running to the convenience store for that forgotten can of cranberry sauce.

•Larger Turkeys Are Cheaper: you'll figure out what to do with the leftovers!

•Buy Frozen: even Emeril will tell you that there is no quality difference between fresh and frozen turkey. The price of frozen turkey is absolutely cheaper (save 30-40%), however. Just make sure you give that bird plenty of time to thaw before Thanksgiving Day!

•Get Your Turkey for Free: many supermarkets offer a free turkey if you spend a certain amount of money during a promotional period. Check out circulars and grocery flyers from around your area.

•Buy Seasonal: use fall produce to save some money on sides and such for dinner.

The Big Day Cooking Tips:

•Multitask: utilize your oven for as many items as possible at the same time to save on energy costs. Throw other sides in while the turkey is cooking. If you have a few pies that can be cooked at around the same temperature, throw them all in while the oven is hot.

•Ditch the Appetizers (or at Least Minimize): Thanksgiving dinner is usually more food than anyone can finish. You don't want people to fill up on the appetizers. So save some money and just prepare a few light hors d'oeuvres to start with if you do appetizers at all.

•Start Cooking Early: do as much as you can the night before! This won't save you money, per se, but will save you a lot of stress! Here are 8 great recipes that you can prepare the night before.

•Pot Luck to the Rescue: if you're hosting dinner, then have everyone bring their own dish. Just make sure you know what everyone is bringing beforehand so you don't end up with 2 of the same dish. You'll spend less money and less time cooking, allowing you to focus on that turkey!

•Take Inventory of What You Have: you could even do this before you create your menu. Take stock of what you already have in your pantry and see how much of your meal can be created with its contents. Also, you may find canned veggies or a box of stuffing that could come to your aid.

•So You Want to Cook the Whole Meal?: at least have guests bring dessert!

Source

Thrifty Mom

2010-11-04T09:33:00.000-04:00

Quick tips and a recipe each week to help save you money!

Thrifty Tip of the Week
If you can afford a large separate freezer it is absolutely worth the investment! With all that room, you will always be able to buy meats on sale and take advantage of the BOGO offers on frozen food.

Deal of the Week
Medium White Shrimp at $5.99 a pound.

Recipe of the Week
Shrimp can be a little costlier than other seafood and meats but this recipe makes it worth it!

http://www.tasteofhome.com/Recipes/Shrimp-Monterey

Motivational Quote of the Week
"No one is in control of your happiness but you; therefore, you have the power to change anything about yourself or your life that you want to change."
Barbara DeAngelis, Author

Action Plan for the Week
Call Debthelper today and get your finances under control!
www.debthelper.com

Thrifty Mom

2010-10-23T12:53:00.000-04:00

Quick tips and a recipe each week to help save you money!

Thrifty Tip of the Week
Use the plastic containers you get from take-out food for your leftovers at home! They work just as well as the more expensive plastic containers you have to purchase!

Deal of the Week
Asparagus at $2.49 a pound

Recipe of the Week
My kids would never eat asparagus until I cooked it like this! Now it is a favorite vegetable!

http://www.marthastewart.com/recipe/oven-roasted-asparagus

Motivational Quote of the Week
“Life is not a matter of holding good cards, but of playing a poor hand well.”
― Robert Louis Stevenson

Action Plan for the Week
Call Debthelper today and get your finances under control!
www.debthelper.com

NeighborWorks America and Direct Lending Family Launch New Online Mortgage Origination System, Bring National Pricing to Local Nonprofits

2010-10-19T22:24:00.002-04:00

October 19, 2010

Contact:

Douglas Robinson, 202-220-2360
Tammy Butler (Direct Lending Family), 847- 844-7711

NeighborWorks America and Direct Lending Family Launch New Online Mortgage Origination System, Bring National Pricing to Local Nonprofits

Washington, D.C. – NeighborWorks America, the nation’s premier community development intermediary and Direct Lending Family, a technology company committed to simplifying the mortgage origination process for nonprofit organizations, have teamed up to create NeighborWorks Mortgage Source, an online mortgage origination and pricing platform.

Direct Lending Family and NeighborWorks see this alliance as a national alternative to traditional local or regional lender options of most nonprofit mortgage originators. The national system reaches more than 100 lenders and state housing finance agency mortgage options giving consumers working with a nonprofit originator the greatest opportunity to obtain the best mortgage for their needs, no matter where they live.

“This is a fantastic development for nonprofit mortgage lending,” said Marietta Rodriguez, national director of homeownership and lending at NeighborWorks America. “By enabling NeighborWorks organizations to access the most diverse mortgage choices available around the country, we are able to help more homebuyers get the right mortgage for the long-term, at the best cost possible.”

While on the surface the Direct Lending platform appears similar to other multiple-lender internet services, Tammy Butler, CEO of Direct Lending Family says that conclusion is incorrect.

“The only similarity between NeighborWorks Mortgage Source and other online multiple-lender platforms is the fact that they are both online. Mortgage Source does not sell personal information to multiple lenders, does not let predatory mortgage products get into the system and provides the client with a complete and unbiased underwriting of their personal financial situation at a lower cost to the consumer than the national average.” said Butler.

Butler noted that NeighborWorks Mortgage Source is designed specifically to take into account during the underwriting process the possibility of multiple sources of cash to close, a typical situation when dealing with nonprofit mortgage originations which may see a homebuyer come to the table with funds from their own accounts and grants from as many as half a dozen other sources.

Importantly, homebuyers coming to NeighborWorks for mortgages go through its homeownership advisory services first, which in the past have shown to be very effective at lowering relative delinquency and foreclosure rates because of the NeighborWorks emphasis on obtaining the right loan at the right time and within the present budget.

“The homebuyers with whom NeighborWorks does business often are not traditional borrowers, but want traditional pricing,” said Rodriguez. “The flexibility of Direct Lending’s platform recognizes this and delivers for the many homebuyers that traditional underwriting overlook and who NeighborWorks helps achieve sustainable homeownership every day.”

Emery Federal Credit Union, Cincinnati works behind the scenes of NeighborWorks Mortgage Source. As the lender and fulfillment center for the mortgage loans, Emery funds and closes hundreds of millions of dollars in originations annually, making it a strong and vital partner in NeighborWorks Mortgage Source.

“We’re excited by the alliance with Direct Lending and NeighborWorks,” said Dennis Straw “Credit unions are nonprofit, community-based financial organizations and Emery’s participation in NeighborWorks Mortgage Source is an extension to the financial service we do already for employees of more than 260 companies.”

“With Mortgage Source, community-based organizations have access from their offices to a powerful mortgage origination tool. This is a tremendous advance for community development mortgage lending and an important tool for improving the sustainability of neighborhoods as we come out of this housing crisis,” said Rodriguez.

About NeighborWorks America
NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network ― more than 235 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals.

2010-10-16T01:19:00.001-04:00

...before borrowing money from a friend, decide which you need more....yana m chpolansky

Thrifty Mom

2010-10-13T05:26:00.000-04:00

Quick tips and a recipe each week to help save you money!

Thrifty Tip of the Week
Publix offers free antibiotics so make sure when you are at the doctor you request one of these! You can find the list on their website!

Deal of the Week
Deli Pre-Sliced Sweet Ham
Buy One, Get One Free

Recipe of the Week
I discovered this recipe early on in my marriage and especially love it because you can prepare a batch and freeze them for a quick weeknight meal!

http://allrecipes.com//Recipe/hot-ham-and-cheese-sandwiches/Detail.aspx

Motivational Quote of the Week
"When you find yourself stressed, ask yourself one question: Will this matter five years from now? If yes, then do something about the situation. If no, then let it go."
Catherine Pulsifer
Writer

Action Plan for the Week
Call Debthelper today and get your finances under control!
www.debthelper.com

5 Ways to Cope with Debt Stress

2010-10-07T12:00:00.002-04:00

Don't ignore the problem
It won't go away and the longer you leave it, the worse it gets. Get in touch with your creditors straight away and explain your difficulties. Explain your hardship situation in writing and back it up with a detailed personal budget.

Outlining your income and outgoings and showing your creditors how much you can afford to pay them every month. Contact everyone you owe money to. If you make arrangements to pay some creditors but not others, you could run into difficulties again.

If the first person you deal with is unhelpful, ask to speak to someone more senior who may be able to agree to your offer of payment.

Be wary of borrowing more money
Don't borrow money to pay off your debts without thinking carefully. Get advice first. You should be particularly wary of taking out a loan secured on your house to consolidate the debts you already have.

If you turn unsecured loans into a mortgage you could lose your house if you don't keep up the payments.

Consolidation loans mean borrowing more money, over a longer period and will mean more interest to pay. This could make your situation worse in the long run.

Adopt a wise strategy
Make sure you tackle your priority debts first. Priority debts are those that could lead to you losing your home, being evicted, having your gas or electricity cut off, or lead to fines.

This means you should make sure you have made arrangements to pay your essential household bills such as your mortgage or rent, loans secured on your home, tax and utilities before making offers to pay unsecured credit debts.

Your debt situation may get a lot worse if you miss payments on your mortgage to keep up to date with a credit card.

Maximize your income
Make sure you are claiming all the benefits you are able to: Could you claim Tax Credits? Are you sick or have a disability? You may be eligible for income. If you have lost your job, or are off work because of illness, check whether your payments were covered by payment protection insurance.

Contact the credit company if you are not sure. Make sure all adults in your household are contributing to the household bills. You may also be able to save money by switching to better deals on a range of goods and services.

Contact Us
Look into a debt management plan which saves you money on interest and reduces your monthly payments on credit cards.

CHECKING YOUR BENEFITS

Everyone:
http://www.govbenefits.gov/

Senior specific:
http://www.benefitscheckup.org/

Contact Debthelper.com at 1-800-920-2262 for more debt help.
http://www.debthelper.com/

We enable anybody with an unsecured debt problem to manage and control it themselves. Simple. Act now!

How Debthelper.com Does Halloween

2010-10-04T12:10:00.003-04:00

candy, candy, candy, candy, candy, sale on candy, candy, candy, candy on sale
http://www.debthelper.com

2010-09-09T13:31:00.001-04:00

remember when express mail used to be 12.90?

2010-09-04T17:00:00.001-04:00

:) Happy Labor Day Weekend... go easy on the relaxing part... it's cheaper

2010-09-03T09:19:00.001-04:00

why can't your mortgage debt disappear when your bank does...ugh

Thrifty Mom 6

2010-08-28T11:03:00.003-04:00

Quick tips and a recipe each week to help save you money!

Thrifty Tip of the Week
Utilize your library! Besides getting books, audio books and movies for pleasure, you can use your library to learn how to cook, learn a language or anything else you can think of! The self-improvement section is usually excellent as well!

Deal of the Week
Chuck Short Ribs $4.99 a lb.

Recipe of the Week
These short ribs melt in your mouth! Definitely an example of what a crockpot does best!

http://www.tasteofhome.com/Recipes/Barbecued-Beef-Short-Ribs

Motivational Quote of the Week
"The world is a great mirror. It reflects back to you what you are. If you are loving, if you are friendly, if you are helpful, the world will prove loving and friendly and helpful to you. The world is what you are."
Thomas Dreier
Author

Action Plan for the Week
Call Debthelper today and get your finances under control!
www.debthelper.com

2010-08-26T15:08:00.001-04:00

happy hour taxi ride home $50... dui...$1500 to $15000

2010-08-25T18:13:00.001-04:00

so i just saw a man in a hot pink shirt... see he coulda saved a lot not buying that

2010-08-25T18:12:00.001-04:00

found a way to save money today.... don't buy stuff... duh

The Team is Saving Clients Money

2010-08-24T12:07:00.002-04:00

Approximately 2400 new clients used Debthelper.com last month alone....

do they know something you might want to?

Call us today 800-920-2262

Elizabeth Warren gets her own rap video

2010-08-17T14:06:00.000-04:00

Elizabeth Warren gets her own rap video

Finally, something for the good guys...

2010-08-11T09:57:00.005-04:00

FHA LAUNCHES SHORT REFI OPPORTUNITY FOR UNDERWATER HOMEOWNERS

Effort designed to encourage principal write-downs for responsible borrowers

WASHINGTON - In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this

year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth.

Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain 'underwater' non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.

The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because their local markets saw large declines in home values.

Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.

"We're throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined," said FHA Commissioner David H. Stevens.

"This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product."

Today, FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA's refinance program is voluntary and requires the consent of all lien holders.

To be eligible for a new loan, the homeowner must:

owe more on their mortgage than their home is worth and
be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500.
The property must be the homeowner's primary residence.
And the borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance,
bringing that borrower's combined loan-to-value ratio to no greater than 115%.
In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent.

Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.

To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens.

To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
For more information on FHA Short Refinance option, read FHA's mortgagee letter

Source: HUD.gov

The Link Between your Things and Happiness

2010-08-09T16:56:00.006-04:00

The recession certainly has made people view money and materiel objects differently, but one couple decided to change the way they live….permanently.

Tammy Strobel and her husband, Logan Smith started to downsize and give away items in their home, but when Tammy came across a challenge of living with just 100 personal items, a whole new version of downsizing came along.

Tammy and her husband moved out of their two bedroom apartment, sold their car and now ride bikes, and moved into a 400 square foot studio apartment. In addition, between her toiletries and her wardrobe, Tammy truthfully owns just 100 items.

Though this may seem a little drastic to some, turning to this style of simple living enhanced Tammy and Logan’s life drastically. Since there has been a cut in their living expenses and the money they spend, Tammy hasn’t found the need to work as often. This gives her more time to spend outside and volunteer, too.

That isn’t the most beneficial change this lifestyle has given them, however. Between selling their home and cutting their living expenses, Tammy and Logan have freed themselves from the $30,000 debt they once owed.

They, like many others through this recession, are finding out that less might actually mean more, especially more happiness. And a recent study agrees with this theory!

“New studies of consumption and happiness show, for instance, that people are happier when they spend money on experiences instead of material objects, when they relish what they plan to buy long before they buy it, and when they stop trying to outdo the Joneses,” stated an article from the New York Times.

Also, spending money on experiences means you’re more likely to spend time with friends or loved ones and are able to make memories, something you can’t exactly get from a trip to the store buying a new outfit.

In the end, you don’t need to make the extreme change that Tammy and Logan did, but cutting back may help financially and positively add to your health emotionally.

To read the full article click here.

And to find out more about the benefits of buying less, watch The Story of Stuff and visit their website .

Source:
The New York Times

How the Hospital’s Worst Nightmare can become Your Discount

2010-08-06T15:30:00.005-04:00

Everyone knows that a trip to the emergency room can cost a pretty penny. But what if you could get you could get a discount form the hospital?

You can!!

According to a survey done by the Consumer Reports National Research Center, only 31% of Americans have attempted to negotiate lowering their bill even though there is a 93% success rate of lowering the cost at least one time!

Many hospitals will give you a discount on your bill, there are just a few keys things you need to know.

1. Don’t be afraid: A hospital’s worst nightmare is that a patient will refuse to pay and that they will end up getting no money at all. It actually happens more than you might think and is another reason your bill is so high. If the hospital can increase your bill to make up for another patient’s refusal to pay, they will. This may send you into a state of shock when you receive your bill, but in the end it helps you to negotiate. The secret hospitals don’t want consumers to know is that they would rather negotiate and give you a discount than not get any money at all.

2. Ask a lot of questions: Call or go to the hospital’s financial department and ask one of the employees’s to explain the bill to you. Hospitals are counting on you to be confused so they can get away with charging you higher amounts for common items, like gloves and aspirin.

3. If you can pay the bill in full: Do it! Most hospitals will give a bigger discount to patients who are willing to pay in full right then and there. Phil Villarreal, a contributing editor for Consumerist.com, was able to shed $1,000 off the cost of his daughter’s birth. He called the hospital and asked if he could receive a 25% discount if he was willing to pay them over the phone, and they agreed!

4. Explain your situation: When are talking to the hospital’s bill center employee, let them know you aren’t trying to run off and not pay, you simply need to decrease the cost a little. If you are unable to pay in full, make your case about setting up a payment plan. If they suggest a monthly cost that is still too high, ask them to bring it down a little. If there is hesitation on the hospital’s part, let them know that if the monthly payments are lower you are more likely to pay on time, every month, without fail.

5. Be Hasty: Getting a discount will be much harder to get if you don’t contact the bill payment center soon after receiving your bill. This shows the hospital that you are taking initiative. Also, some hospitals pass the record of unpaid bills to a collection agency which could hurt other areas of your financial life.

Although hospital bills can be cryptic, don’t let the confusion or amount of the bill intimidate you to the point where you don’t take action.

For additional information and tips on lowering your hospital bill, read this article from the New York Times.

Sources:
The New York Times
US News and World Report
Yahoo! Finance

The New Crime Against Your Children

2010-08-05T20:27:00.006-04:00

Identity theft is already a rampant crime that is not only difficult to prosecute, but difficult to recover from, as well. What’s worse is that thieves are finding ways to steal from the people you love the most…your children.

Online businesses are finding ways to get a hold of Social Security numbers, especially those belonging to children, due to the fact that kids don’t really need to use their Social until they are much older. This form of theft is also beneficial for crooks because parents may not know the damage that was done until it’s too far too late.

The crime works like this: The online business obtains the number and will then sell it under a different name. Then, the buyer of the number usually uses it to create a fake credit profile for themselves and eventually build immense amounts of debt. In the end, the scheme not only hurts your child and their future, it creates a whole new problem for the nation’s credit system.

“If people are obtaining enough credit by fraud, we’re back to another financial collapse,” according to the Assistant U.S. Attorney of Kansas City, Linda Marshall.

Another difficulty with this form of theft is that the numbers aren’t directly identified as Social Security numbers when the thieves are using them. Instead, they are listed under CPNs. This lets the numbers operate as credit protection or credit privacy numbers.

Furthermore, because this form of theft is so difficult to detect, millions could be affected and not know it. As of April of this year, 43.4 million or 25.5% of Americans have a credit score lower than 599. This threatens their chances of acquiring loans because it indicates to lenders that the circumstances are too risky.

An even more unfortunate component of this crime is that there aren’t any extra measures parents can take to protect their child’s Social Security number. All a parent can do is contact the credit bureaus to see if there has been a credit file linked to your child’s number.

If you or someone you know is the victim of a crime that has caused debt, the counselors at debthelper.com may be able to help. Call 1-800-920-2262 today.

Source:
The Palm Beach Post

Save Money When Back to School Shopping

2010-08-04T16:50:00.000-04:00

Back to school normally means a shopping trip that can quickly overtax your wallet. This single shopping excursion can have a major impact on your budget if it gets out of hand. There are a few ways to save money and still provide your children with the experience and excitement of getting ready for school. This can actually be a great opportunity to have fun with the kids and introduce them to creative budgeting.

Create a Checklist

The all important checklist is your ticket to saving money on back to school supplies. You can find pre-made checklists online and at many local discount and dollar stores. Use a generic checklist as your basic template and tailor it to meet your child’s specific school supply needs. Next, divide the checklist into two sections. One section of your checklist is for supplies that are one time only purchases such as backpacks, lunch boxes, rulers, protractors, mini-staplers, safety scissors, and binders. The second section of your checklist should be for items that will need to be restocked throughout the school year such as paper, erasers, pencils, notepads, and crayons. By separating the list into two categories you can be sure to stock up on items that will need to be purchased again when you find a good deal.

Where to Buy Back to School Supplies

Your first back to school shopping experience should be at home. Find as many of the supplies on your list from around your house. You probably already have a bunch of cool pencils, erasers, crayons and other school treasures that can be found in various places around the house. You might even want to make a game of it with the kids, a kind of scavenger hunt with a prize at the end. Grab your checklist and check off all of the school supplies you find. You don’t need to buy what you already have.

Before you venture out to the nearest mall, pull all of the sale ads you can find to get an idea of the prices at various stores. Make a few notes on your checklist – which store is offering what supply at the best price. Now is also the time to make use of the two sections of your checklist. You do not need to buy large quantities of supplies that need to be restocked at regular intervals. Keep these supplies down to a minimum.

The first store you should visit is the neighborhood discount and/or dollar store. Go through the store with your shopping list and compare the prices of the sale ads to those of the dollar store. Purchase all of the items on your list at the dollar store if the prices are better than the sale ads for other stores. A word of extreme caution – do not over buy! Dollar stores normally have really great prices and it’s easy to fall into a shopping frenzy. Only buy what is on your list – avoid impulse shopping.

You may also want to wait a week or two after school starts for supplies your child doesn’t need immediately. Many school supplies are significantly discounted once school starts. This is the time you might want to stock up for the year. Keep all of your school supplies well organized so you know exactly where they are when you need them.

Back to School Clothes Shopping

Once again your checklist is the best way to ensure you get everything your child needs and still manage your budget. Find out if the school has a specific dress code before you start your clothes shopping and take that into account when developing your checklist. Next, go through all of your child’s clothes and find out what still fits and what needs to be purchased. Clothes that no longer fit should be donated or traded at the local thrift or consignment shop. You might even receive cash or store credit at some of these stores to help stretch your shopping dollars. Or you can have a garage sale and make a few extra dollars to help with your back-to-school expenses. Your child can look like a million bucks for less if you shop wisely.

Clothes can be a little trickier than school supplies as children may have their own ideas of what’s trendy. If they absolutely must have the latest teen idol on their shirt you can agree to one or two trendy shirts and still stay within budget. Use the same principle of mix-and-match for your child like you do for your own wardrobe you’ll be able to save money and please the kids. A few pairs of pants or jeans in neutral colors that can be matched with various trendy shirts will meet your child’s need to be fashionable while saving you money. Pants are typically not as noticeable as shirts so spend your money where it will have the most effect.

Try a few alternative shopping strategies before heading for the local mall. It might be kind of fun to go through the racks of your local thrift and consignment stores. You can also make a day of shopping and treasure hunting at the nearest swap meet or neighborhood garage sales. Another fun way to shop is online. Sit down in front of the computer with the kids and make up a wish list. You might even find some great deals in your own living room.

Finally, consider shopping throughout the year for both supplies and clothes. Keep your checklists updated and spread your school-related expenses out over time. You can stay on top of the latest trends, look for the best deals, and save money in the long run. At the very least, back-to-school expenses won’t hit your wallet with a huge wallop at one time.

Save on Textbooks

Finally, for your older child’s back to college needs, you can save a lot of money carefully shopping for textbooks. It’s no surprise that college textbooks are one of the biggest scams around. You buy a book to use for a semester only to take it to the bookstore to sell it back and guess what? You only get a fraction of what you paid while the bookstore just jacks the price back up to almost full retail and sells them to the incoming students. College students can literally spend a thousand dollars a year or more on textbooks so being able to save even 20% each year could mean hundreds of extra dollars in your pocket.

One of the easiest ways to save is to buy your textbooks at a place such as TextbookX. Here you’ll find new and used textbooks and general books up to 90% off retail prices. Even better, you’ll get free shipping on orders over $49. Once you’re done with your textbooks you can resell them, but don’t just go to your local college bookstore. If you have a little extra time you can sell them to a place like TextbookX, Amazon, eBay, or even throw up an ad in your local Craigslist page and take out the middleman completely.

Source

Tips for Tipping: Is the Recession Changing the Rules?

2010-08-02T16:07:00.006-04:00

Tipping is one of those awkward social requirements that can sometimes make people a little frazzled. Leave a bad tip for bad service or be merciful and remember the wait staff and how your tip fuels their livelihood?

Tipping used to be a relatively easy process. Do a little math, recall how quickly you got your refills and there was that magic number. Nowadays, people are factoring in the Great Recession and are finding ways to shave off costs from their bill. This isn’t just causing confusion, its causing some pretty lousy tips too.

Also, since many restaurants are offering specials and discounted prices, what do you tip? Do you leave a tip based on what the total of your bill is or what you would have paid had your entrée not been on the specials menu? Let’s go back to the beginning and see if we can sort it out from there.

Tips, which actually stands for “To Insure Proper Service,” originated during the Middle Ages in Europe and came to the U.S. even before our independence in 1776. Due to age of the practice, most everyone grows up viewing tipping as a social requirement and for good reason too! About 90 percent of a waiter’s paycheck comes from the tips a restaurant’s patrons leave!

A friend of mine from college has a job for which the majority of her pay comes from tips. If the customers’ tip well, she ends the night with a heavier wallet, if not then she is financially strapped for the week ahead. We were talking about her new job one day when she flat out admitted that she wasn’t the best tipper before she got her job. That has now changed significantly.

Tips also make a difference for my step-sister who works at a coffee shop. She sometimes makes up to an extra $20 a shift because the money customers leave in the tip jar. This only brings up another question. Am I required to put money in tip jars?

I usually don’t leave a tip in the jar (sorry baristas) and find that, thankfully, I don’t get too many judgmental stares. The way I see it, a coffee shop employee's paycheck doesn’t depend on whether or not there is money in the tip jar, it just acts as a bonus.

Another industry where tipping makes a big difference is the beauty industry. Generally, I will tip at least $3 when I get my eyebrows done, and try to tack on $5 when I get a manicure. The way I see it, cosmetologists not only have to deal with some sore sights (one word: toenails!), if you don’t tip them at all you might want to watch out next time the hot wax comes out!

Overall, don’t make tipping too difficult for yourself or too depressing for the person serving you. Here are a few simple tips to take away:

- Most cell phones have tip calculators built in, use it!
- Use good judgment and fairness when it comes to nontraditional areas that don’t have set percentage expectations.
- If you get bad service, maybe leave a 14-15 percent tip instead of 20, but don't be too brutal.
-And, as Nicholas Demeda once said, "If you can afford to dine out, you can afford to tip well."

Sources:
The Palm Beach Post
Bay Area Bites

Recession Requires Prescription as Americans Cut Visits

2010-07-29T16:12:00.003-04:00

The one area of American life that was thought to be recession proof isn’t any longer. More and more people are cancelling doctor’s appointments or skipping doses of prescription medication to avoid paying the increasing out of pocket costs.

In one telling but discouraging survey done by the American Optometric Association, 36 percent of Americans are cutting back on seeing their doctors because of the recession. More specifically, 63 percent are skipping visits to their dentist, 59 percent aren’t visiting their primary care physicians, and 52 percent are skipping the eye doctor’s office.

Doctors’ are worried that if patients don’t make their different annual appointments that it will end up costing more in the end, physically and financially. One physician, Dr. Glenn Nemec, a family doctor at the Monticello Clinic said “that about a dozen of his patients have been hospitalized in the last three months as a result [of stopping their prescription medications].” Recently one patient of Dr. Nemec’s was even hospitalized for a bleeding ulcer after he stopped taking his preventative medicine.

The numbers are quite powerful as they show who is being affected. When the statistics are being grouped by ethnicity, 49 percent “[of Hispanics] indicated they are visiting doctors less often, compared with African Americans (36 percent) and Caucasians (33 percent).” When broken down by gender, women are going to the doctor’s less at 38% versus the 32% percent of men skipping.

Another, factor of skipped doctor’s visits may have to do with the federal program Cobra. This program was extended to cover 65% of the cost of the coverage and allowed the unemployed to keep their insurance for up to 15 months. However, many have met their limit and have had to drop the program. In addition, people that have been unemployed since the end of May don’t qualify for the subsidies.

Skipping the doctor’s office may seem like an easy way to save some money right now, but in the long run it can lead to serious health problems that might require a trip to the hospital.

There are other options rather than visiting your primary care physician, however. For instance, many urgent care centers are becoming more popular because you don’t necessarily need an appointment and in some instances the costs for procedures, such as a check up, can be cheaper than if you visited your normal doctor.

In addition, the American Optometric Association is offering basic eye health screenings and services for those who qualify, and they encourage people to call them at 1-800-766-4466 for more information.

Sources:
AOA survey
Minneapolis Star Tribune
Wall Street Journal

Senior Homeowners Save Up to $26,326.47 on Reverse Mortgage Costs

2010-07-29T09:46:00.000-04:00

Senior Homeowners Save Up to $26,326.47 on Reverse Mortgage Costs

Palm Beach Duffy's Rollsback Prices

2010-07-28T17:01:00.001-04:00

The American Dream Moves to Asia??

2010-07-28T16:42:00.003-04:00

With the U.S, job rate at 9.5 percent, Britain at almost 8 percent and Spain at a discouraging 19.9 percent, a growing number of people from Europe and the U.S. are moving to Asia in pursuit of a job and a more prosperous life.

Asian unemployment rates are not only at remarkable lows, Hong Kong is at 4.6 percent and Singapore is at 2.2 percent, there seems to be a continuous stream of jobs for Westerners.

The array of white collar positions range from areas in architecture and engineering to marketing and sales. In addition, there seems to be an always expanding market for hospitality and luxury goods.

Though there is an absence of previously offered perks, such as housing allowances and financial assistance to pay for child care, that doesn’t look like it is stopping applicants. According to a recruiting firm in Hong Kong named Ambition, resumes from the U.S. and Europe have jumped 20-30 percent, making up 2/3 of every 600 resumes they receive!

Making a new life halfway around the world may not be easy, but it’s certainly not impossible. One woman, Shahrzad Moaven, lived in London and had a public relations job, but jumped at the opportunity to move to Hong Kong. She now has a job as the communications director at the jeweler Carnet.

Moaven said of the experience, “Back in London, there were fewer resources for P.R. events or advertising. Here, everyone is expanding and spending on marketing activities. That makes my job here a lot more interesting.”

Getting a job in an area where the population and competition is growing can be difficult, however. Business owners are looking for employees that stand out from their fellow applicants. In addition, supervisors want an employee that is already familiar with the culture and language, and most importantly want to hire someone with contacts to bring to their business.

Overall, moving to Asia may be a risk but it could pay off big. Keep in mind however that many caution against using this move as a quick get rich plan. A change this drastic requires sufficient consideration and needs to be viewed as a long term commitment.

Source:
NY Times

Financial Infidelity and Your Marriage

2010-07-26T15:44:00.006-04:00

Financial infidelity may be more of a problem than you think. A recent survey done by CESI Debt Solutions shed some light on what couples are hiding from each other, and it’s not only surprising, but may cause you to raise some questions of the financial honesty of your marriage.

Here are some of the facts they found: Of the people surveyed, 80% of married couples spent money that their spouse was unaware of. In addition, almost 18.5% of the people have secret credit cards!

The numbers are a little alarming, but don't panic just yet.

If you are not married, sit down with your future spouse and talk to them about everything financial. Calculate how much debt you each have, your number of credit cards, how much is in savings, and how these costs stack up against your yearly salaries. Keep in mind that one of the most important elements to this conversation is understanding. Of the people surveyed, 43% said they kept their spending a secret because they wanted to avoid an argument.

If you are already married, have the same conversation but bring into account monthly expenses that you both share, such as utility bills, mortgage/rent and so on.

If you discover that you and your partner have drastically different spending and saving styles, make sure it doesn’t drive a wedge between you. Instead, work out a compromise so you can each spend without the guilt or secrecy and without getting into further debt.

For instance, talk over the idea of opening separate savings or checking accounts, as well as keeping a joint account. This allows you to both to have some freedom, and still be able to pay the bills through your joint account.

Also, keep having financial conversations on a weekly or bi weekly basis, and definitely talk and do your monthly calculations before the bills are due. This way, you know how much you need to save and are allowed to spend next month.

If you need help sorting through your debt, contact the debt counselors at DebtHelper.com or call 800-920-2262.

And to see more statistics that the survey found out visit the Forbes website.

Source:
Forebes.com

Thrifty Mom 5

2010-07-22T10:05:00.003-04:00

Quick tips and a recipe each week to help save you money!

Thrifty Tip of the Week
Wait for things to go on sale - no matter how much you want them! In this case, procrastinating on hurricane supplies and waiting for the sale paid off!

Deal of the Week
Hurricane Supplies ...
Chef Boyardee ... Peter Pan Peanut Butter ... Nutrigrain Cereal Bars ... Campbell's Chunky Soup ... all Buy One Get One Free ...

Recipe of the Week
Whenever the hurricanes have rolled in the meat had to be cooked - use it or lose it as they say! These foil packets instructions show how to work with a protein and anything else you might have in the fridge!

http://www.associatedcontent.com/article/38799/classic_camping_food_foil_packet_meals.html?cat=22

Motivational Quote of the Week
Kindness is an inner desire that makes us want to do good things even if we do not get anything in return. It is the joy of our life to do them. When we do good things from this inner desire, there is kindness in everything we think, say, want and do.
- Emmanuel Swedenborg

Action Plan for the Week
Call Debthelper today and get your finances under control!
www.debthelper.com

“The Great Recession”: Not As Bad As You Think

2010-07-20T17:12:00.005-04:00

Although the current recession presents obvious financial problems for many Americans and is affecting other markets worldwide, the comparisons between this economic crisis and the Great Depression tend to be more misleading and perhaps dramatic, than accurate.

A few examples of this would be the unemployment rate. During the Great Depression the unemployment rate was 25%. Today, during the “Great Recession,” as it is being called, the unemployment rate is about 9.5%.

Another example would be the percentage of bank failures. Between January 1930 to March 1933, a massive 50% of banks failed, compared to 0.6% that occurred between December 2007 and May 2009.

Though both of these economic downfalls are unfortunate in their own ways, there are several notable differences between the two collapses.

First, one reason for the Great Depression is that banks failed. Deposits were not insured then and this caused the banks to collapse and people to lose their savings. Also, any banks that did survive failure didn’t give out loans, which prevented them from losing more money, but made life difficult for people desperate for financial assistance.

Though bank failure isn’t impossible today, there are agencies such as the Federal Deposit Insurance Corporation, or FDIC, which insure a customer’s money in banks for at least $250,000.

Next, because people simply couldn’t afford to buy anything but the necessary items, purchases went down significantly and so did the need to manufacture goods. This slowed production which caused the great amount of layoffs that made the unemployment rate soar to 25%.

Today, people may not be purchasing an excessive amount of unnecessary items, but people haven’t stopped buying altogether.

In addition, according to the Bureau of Labor Statistics employment in a variety of areas has actually increased recently. Employment in mining, manufacturing, transportation and warehousing have all increased. Additionally increases in retail, professional and business services and healthcare have also been recorded. In general, in the month of June alone, over 206,000 jobs were added to these various areas.

Overall, though this economic crisis is difficult and may require a more rigorous way of handling your finances, it certainly isn’t the downfall that was the Great Depression.

What do you think of the comparisons of this recession to the Great Depression? Share your thoughts and comments below!

Sources:
Bureau of Labor Statistics
Current Employment Stats
FDIC Website
CNN Money
merinews

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