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Our News
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| [05-30-2008] |
| By Carey Denman, American Center for Credit Education |
According to a recent report released by the National Foundation for Consumer Credit and MSN money, at least one-third of Americans have no non-retirement savings. This means that roughly 76 million Americans don’t have any money set aside to deal with the inevitable mishaps that life dishes out. So what happens if you’re among those millions and the car needs a new water pump, the roof starts leaking, or the water heater conks out? Without savings, you’ll probably have to resort to using a credit card. And what happens when the credit card bill comes due? If you thought the $300 car repair was expensive, just think about how much more you’ll be spending on credit card interest if you don’t pay off the card in full.
Living life on the financial edge is a precarious, not to mention stressful, place to be, but you don’t have to continue teetering there. Even a small financial cushion, say $500, is a good place to start. But starting is often the most difficult obstacle there is to saving. Here are a few ideas to jumpstart your savings plan and to help you tuck away that first $500.
Make it Automatic. It’s not surprising that we’re less likely to spend (or miss) what we don’t see. That’s why an automatic transfer from your checking to your savings account can help you reach your savings goals. Start with $25 every two weeks and you’ll have your $500 socked away in ten months. Increase this amount to $50 and you’ll have $1200 saved in a year. You may even try giving yourself a “raise” by adjusting your tax withholding, which can boost the amount you take home each month. Again, have this amount automatically transferred to a savings account.
Save All Windfalls. Tuck away that dividend check from the propane or insurance company, the gift money from your parents, a tax refund, or, yes, your economic stimulus payment. While it may be fun to blow this money on that new Wii, a miter saw, or dinner at a restaurant that doesn’t have a dollar menu, you should remember that the “high” you feel now will fade. The security you get from having money in the bank is much more likely to last.
Kick Your Habits To the Curb. Call them vices. Call them habits. We’ve all got at least one, and chances are you’ll be able to save money—in some cases a lot of money—by stopping whatever it is you’re doing. Maybe it’s smoking, daily stops at Starbucks, or buying lottery tickets. Could you put the kibosh on Satellite television, magazine subscriptions, or eating out? You’ll be the best one to evaluate what are commonly called spending leaks. Finding them and plugging them is an effective way to find cash to save.
Keep Your Goal at the Forefront. Write your savings goal on an index card and tuck in inside your wallet. By doing this, you’ll be reminded of your goals whenever you make a purchase. You can use your card to help you make decisions about flexible expenses, such as groceries and gas too. Cutting convenience foods, maybe even buying less meat, will allow you to shave money from your food bill. Seeing your goal while you’re at the pump might encourage you to park the car more often and ride your bike or to organize a carpool.
American Center Credit Education—ACCE
Carey Denman
acce@acce-online.com
605-348-3104
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| [05-15-2008] |
| By Carey Denman, American Center for Credit Education |
I often catch myself holding my breath at the gas pump, watching as the numbers rise: $15, then $26, then $48, hoping that maybe I’ll squeak in under $50. But these days, I’m more likely to see the numbers stopping somewhere around $65, and that’s for our minivan.
Now I’ve begun holding my breath at the checkout line in the grocery store as well, and with good reason it would seem. According to the U.S. Department of Agriculture, food costs are expected to rise nearly 5% in 2008. This follows a 4.2% increase in 2007. The price of eggs has soared nearly 30% this year, and milk and flour have risen more than 13%. This translates into some discomfort, maybe even anxiety, as I try to make wise buying decisions for my family of five.
I know, nevertheless, that action should trump anxiety. Here are three practical things we’re doing right now to lessen the sting of growing food costs.
Shopping with a Calculator. Yep. We’ve become one of those families that hogs the aisle with two carts, calculator in hand, comparing the cost per unit on food items. With three children in diapers, we had become accustomed to doing the math for cost per diaper, but admittedly we did this only occasionally while grocery shopping. More and more supermarkets are making this type of information readily available for cost conscious shoppers, but not always. We’re sometimes surprised by the results of our own calculations. Bulk items and no-name brands aren’t always the best value. Neither are juices from concentrate or the larger can of store brand mandarin oranges we typically buy.
Using a Price Book. Our favorite brand of canned spaghetti sauce is on sale for $2, but does the sale price translate into savings? In other words, is $2 likely to be the best price I can get for this particular brand of sauce? A price book helps us to know when we’re getting a good deal and when it might be best to wait. Here’s how it works. We carry a small notebook with sections devoted to dairy products, meat, dry goods, and produce. When an item is on sale, we write down the price in the appropriate section, so we have a “control” so to speak. The next time we flip through sale flyers or come across a product on sale in the store, we’re able to look at what we spent the last time on the item. If we score a better price on that item, we record the new price, which then becomes the benchmark for future buying decisions. This method takes some time and effort, but it relieves the pressure of knowing whether we’re making the best use of our grocery budget. It also allows us to compare costs between various grocery stores.
Buying in Bulk and Preparing Food in Advance. When we know we’re scoring a good deal on something such as parmesan cheese, strawberries, or fresh chicken breasts (with the help of our price book), we load up on these items. The key to maximizing our savings and avoiding waste is to make a plan for using them. Grating the parmesan cheese and repacking it into two-cup servings makes it easy to pull one serving out of the freezer the next time I make lasagna or garlic bread. We eat all the fresh strawberries we can, and when we can no longer stand them, I wash, hull, and freeze them to use for making yogurt smoothies, scones, or syrup. As for the chicken breasts, I trim all the fat and repackage them for freezing. To some of the packages, I add an easy marinade, such as one with soy sauce, honey, orange zest, and chopped chives or scallions. I can then pull out a package to thaw and marinate in the refrigerator overnight. Throw in a few fresh or frozen vegetables in a skillet along with the chicken and steam some rice for a fast and healthy meal.
These tactics certainly aren’t the only ones you can take to tackle rising food prices, but I encourage you to find those that work best for you and your family. After all, I’ve learned that holding my breath at the checkout gets me nowhere.
American Center Credit Education—ACCE
Carey Denman
acce@acce-online.com
605-348-3104
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| [04-25-2008] |
| By Carey Denman, American Center for Credit Education |
An allowance can serve as a useful tool for teaching children how to handle money responsibly, but experts agree that giving money arbitrarily can actually be counterproductive. In other words, an allowance is only as effective as the system and context in which you place it. The system that you set up will depend on a number of factors, including the age of your children, the number of children in your family, and the amount you can comfortably afford to give your children each week. Hashing out the particulars can be easier when you follow a few general guidelines.
First, avoid giving money to your children on a whim while on a trip to the mall or supermarket—doing so can undermine the discipline an allowance can impart. Instead, give children a set weekly allowance at home and explain what they will be responsible for purchasing with their own money. For preschoolers, this may be their own pack of gum, a small toy, or movie that they wish to buy. Older children may decide to use their allowance on a night out at the movies or on lunch with friends. Within this system, children can learn to make trade-offs, anticipate spending needs, and will begin to understand that instant gratification is not always best—or even possible.
Once the system for giving an allowance is in place, then it becomes easier to teach children about the value of saving. The key to doing this well is to help children learn this value without forcing them to set a certain amount of their allowance each month. If a child is forced to save money, he or she can end up resenting the process. On the other hand, when experience is the teacher, a child who does not have enough money to purchase something he or she desires can begin to see how saving for the item is worthwhile. Younger children may benefit from a clear glass jar with a picture of the desired item taped on the outside; this will allow them to see their money grow and to remind them of their goal. You may want to discuss written goals with older children. In both cases, children can begin to see money as a tool to getting more of the things they want.
Children will gain the most value from receiving an allowance when they can make their own decisions about how to spend their money. In your view, a new video game, skateboard, or piece of plastic costume jewelry may be a waste of money, but a child who is free to choose can learn to prioritize his or her wants. While you may highlight other choices for your child, resist allowing your own feelings to steer purchases. No doubt, your children will make numerous “money mistakes,” but these can prove valuable financial lessons, particularly when you make it a point to discuss these lessons with your children.
American Center Credit Education—ACCE
Carey Denman
acce@acce-online.com
605-348-3104
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| [04-08-2008] |
| By Carey Denman, American Center for Credit Education |
It’s only just spring, but summer will be here before you know it, and perhaps more than any other season, summer seems to slip through fingers like hot sand. So fleeting is summer, in fact, that it’s easy to find yourself lamenting all those should-haves and longing for just a few more balmy days. The key to getting the most out of your summer is to plan and budget for lots of fun. And the sooner you get to both of these—the planning and the budgeting—the more joy you’ll be able to squeeze into those few short months of summer.
Dream up Some Fun. What is it that you enjoy most or that evokes fair-weather fond memories? Love heading to the lake or lounging by the pool? Why not plan to buy a public pool pass or get an annual park pass, making for quick and easy access to your favorite spot? If camping’s your bag, start searching for budget-friendly sites. How about finally planning those block party, landscaping around your patio, or building a tree house for your children or grandchildren? Yearning to spend a lazy day on a houseboat or pontoon with your extended family? Maybe you want to hit all the local attractions that you’ve never taken the chance to explore, go to your state fair, or indulge your love of all things celestial and buy that telescope you’ve been eyeing for months. Devote some time to thinking about ways to drink in all the best of the season.
Make a Plan. Set aside an evening and chronicle your top summer wishes, writing them down in a place where you can and your family can review them. If you have small children, have them draw pictures that reflect their summer wishes. Older children can search for and clip pictures from magazines. Once you narrow down your summer goals, do some research yourself or assign tasks to older children to see just how much it will cost to turn those summer desires into reality. For example, if you plan to frequent the public pool, check on the price of an annual pass, calculating how many trips to the pool that it will take to make a pass worth your while. Draw up plans for the tree house or check out books from the library for an existing plan. Head to a local home center with plans in hand and generate a complete material list. Don’t forget to factor in the cost of things such as material delivery and the little details such as nails and paint. Search online sites and local stores for telescopes. Whatever your goals, make sure you know how much they will cost you.
Find the Money. You might be thinking that all the fun is found in the dreaming and the planning. But believe it or not, finding the money through budgeting can be just as rewarding. You see, putting a goal in writing and having a plan to achieve it makes it much more likely that you’ll get what you desire. Plus, you’ll relish your goal that much more when you know that you don’t have to worry about paying for it later. Take the total cost of your goal and sit down again, this time to brainstorm ways to save for it. Could you pick up an extra shift a couple of times a month? How about putting all your loose change in a “summer fun” jar? Pack your lunch instead of eating out, discontinue your movie subscription, or have a garage sale, setting aside the money you save or make into a special summer fund. Be creative and work together with your family to grow your money. Most of all enjoy the process of reaching your goals.
American Center Credit Education—ACCE
Carey Denman
acce@acce-online.com
605-348-3104
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| [03-14-2008] |
| By Carey Denman, American Center for Credit Education |
While summer break is still a few months away, it isn’t too early to begin encouraging your teenager to begin looking for a summer job. Some of the most rewarding and interesting positions are competitive, and getting a jump on the search will help to ensure your teen can land the job he or she wants.
The right summer job can do more than provide your teen with a paycheck. It can help to develop character, sharpen a skill, or clarify a career interest, among many other benefits. And for a young person in high school, those teenage summer jobs become the backbone for building a resume. Working at a fast food restaurant or the local pool can certainly provide valuable experience, but consider how conducting field research for the U.S. Department of Agriculture, working in a corporate office, or performing in children’s theater program would benefit your teen now and in the future.
Starting early is essential, but so is looking for jobs in the right place. Go beyond help wanted signs and classified ads in the local paper. High school guidance counselors typically have the inside scoop on job opportunities. College career centers often post job openings and internship opportunities on their websites that could be applicable to your teen. And many local Chambers of Commerce keep listings of all businesses and services that can serve as a guide to conducting a job search. Family friends and others in your work or social circle can be good sources as well, so make it a point to mention that your teenager is searching for a summer job.
Defining an interest can also aid in developing a job search strategy. Help your teen consider what he or she enjoys and brainstorm ways to look for a job in this area. For example, the teen who is a theater buff may want to talk with his or her high school drama teacher or contact community theater groups about potential job openings. An avid outdoor enthusiast may want to consider working for a city parks and recreation department or at a nearby national park. If your child loves animals, he or she may want to work at an animal shelter or pet store. In many cases, a company or organization may have openings that haven’t been advertised; your teen won’t know until he or she asks.
Following her passion landed Nora Coon a book deal when she was just 16 years old. After working as an intern at a publishing house, Coon published Teen Dream Jobs: How to Find the Job You Really Want Now! In her book, Coon breaks down the process of finding a dream job into easy-to-follow steps. Her advice includes everything from nailing down an interest to offering practical steps to finding, applying, and interviewing for jobs.
Check out Coon’s book or What Color Is Your Parachute for Teens: Discovering Yourself, Defining Your Future by Richard Nelson Bolles and Carol Christen for more practical advice on helping your teen find a meaningful summer job.
American Center Credit Education—ACCE
Carey Denman
acce@acce-online.com
605-348-3104
The material in this transmission is provided for personal, non-commercial, educational, and informational purposes only. CCCS/ACCE makes no representations or warranties with respect to the accuracy or completeness of the contents of this transmission and assumes no responsibility for errors, inaccuracies, omissions, or any inconsistency herein. You should consult a professional where appropriate.
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| [03-04-2008] |
| Contact: Tom Hufford 260-432-8200 1-800-432-0420 |
Consumer Credit Counseling Service Offers Concrete Tips on How to Reach the Millionaire Zone
Fort Wayne, IN – Whether to live the lifestyle of the rich and famous, or simply to have financial security, becoming a millionaire is the stuff of which dreams are made.
What many don’t realize is that the millionaire status is entirely within their reach, and it doesn’t involve winning the lottery or inheriting a fortune. It is something much less exciting, and much more of a sure thing.
Time is money’s best friend, and by beginning to save and invest at an early age, you can expect fantastic returns. As a matter of fact, if you begin investing $200 per month at age 25, and continue to do so until age 65, assuming the historical stock market return of eight percent, you will have a nest egg worth $650,000.
Add in retirement savings at work. A 401(k) retirement vehicle uses pre-tax dollars, often matched by the employer, to form the employee’s retirement portfolio. Fully maximizing contributions is the goal, but let’s stay conservative with a $200 total monthly contribution ($100 from the employee and $100 from the employer), and apply the same assumptions as above to equal another $650,000 at age 65.
Here’s the formula: $300 per month conservatively invested for 40 years equals well over $1 million. It sounds simple. But we know that Americans are poor savers. Perhaps even more concerning is that many have no room in an already stretched budget for contributing to savings, either independently or at work.
CCCS not only supports the concept of saving and investing, but considers it a critical part of any sound financial plan,” says Tom Hufford, President “The long-term benefits far outweigh any short-term sacrifices.”
To find the money to begin saving and investing, consider the following tips from the CCCS. Remember, small changes add up to big savings. Select the ones that you can implement long-term, and you’ll be on your way to the millionaire zone.
· The very best way to save money is to have it deducted from your paycheck. You can’t spend what you don’t have.
· Get organized. Know where your money is going by tracking every cent you spend.
· When you receive any windfall money (raise, bonus, gift, etc.) pretend it never happened. Instead, increase your retirement contribution.
· Review your W-4 at work; making sure the correct number of withholding allowances is selected. The average federal income tax refund has been averaging well over $2,000 in recent years. That means the consumer could have had an extra $200 in his pocket each month all year long. There’s no reason to give Uncle Sam an interest-free loan.
· Examine every spending category, and cut 10 percent from each. You can’t reduce your fixed expenses such as rent or mortgage, car payment, etc, but you can painlessly cut 10 percent from the other categories such as groceries, clothing, gasoline, gifts, utilities, etc.
· Pay cash for everything. Paying with cash makes us think before we spend. Paying with plastic intentionally distances us from our spending.
· Only spend paper money. At the end of each day, put all of your change into a jar. After a month, you’ll have between $30 and $50 in your jar.
· Commit to saving $5 each workday. The incentive to pare a little money out of each day’s spending is that you can look forward to living on your normal budget over the weekend. If you’re married, each person only has to carve $2.50 out of his or her daily routine to find $100 extra each month.
· Drinking water when eating out is estimated to save 20 percent off the total bill.
· If you are paying for a storage building, go through those items and sell what you no longer need. Then, do the same at home. You’ll make money off of the items you don’t use, and you’ll save on the cost of storage.
· Never make a late payment. The average credit card holder has seven credit cards. Late fees are in the $40 range. Paying late on each card once each year means you’ve thrown almost $300 out the window needlessly.
· Eliminate all unnecessary banking expenses. Look for a free checking and sign up for free online bill paying. Never use an ATM that charges you. This can be accomplished by banking with an institution with many branches in areas near where you live or work.
· Review your cell phone plan to make sure it fits your calling pattern, and that you aren’t paying for features you don’t use. If you have a run-away cell phone bill each month, control your spending by purchasing only prepaid cell phone plans.
· Consider doing away with your land phone. At the very least, review your long distance plan. If you also have a cell phone with national long distance, you may be duplicating the need.
· Research bundling of services such as land phone, cell phone, cable TV, and Internet. The company benefits by having all of your business, and you benefit through the savings they pass on to you.
· Cut back on your cable package. Even the most basic packages have plenty of channels to watch.
To make saving easy by finding hidden money in your budget, contact CCCS of Northeastern Indiana 260-432-8200.
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About CCCS of Northeastern Indiana
About the NFCC
The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior and build capacity for its members to deliver the highest quality financial education and counseling services. NFCC members annually help more than two million consumers through close to 900 community-based offices nationwide. For free and affordable confidential advice through a reputable NFCC member, call1-800-388-2227, (en Español 1-800-682-9832) or visit www.nfcc.org.
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| [02-23-2008] |
| By Mike LeClear, Consumer Credit Counseling Service of N.E. Indiana |
Make it a priority to start your emergency fund. Even if you can only afford to save $20.00 a month you are better off then with no monthly savings. Use a portion of your income tax refund to jump-start your emergency fund. If you are paid weekly you will receive four extra paychecks during the year. If you are paid bi weekly you will receive two extra paychecks. Deposit your extra paychecks in your emergency fund.
Other ways to start and add to your emergency fund include reducing eating out costs, cable and cell phone “extra” charges. Most people have the money in their budget to start an emergency fund but the problem is most people don’t have an emergency fund.
One of the most important financial tips you will ever receive in your life is to have an emergency fund savings account so stop procrastinating and start yours today!
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| [02-15-2008] |
| By Carey Denman, American Center for Credit Education |
The nation has been abuzz with talk about stimulus payments: how much to expect, when to expect it, and advice on what to do with it. Now that official approval has been given for the payments, you may be wondering if you must do anything in order to receive your money.
According to the IRS, most eligible individuals will have to do nothing more than file a 2007 tax return to receive their economic stimulus payment. The IRS will use information on your 2007 tax return to determine your eligibility and to calculate the amount of your payment. Beginning in May, stimulus payments will be directly deposited if you selected this option when filing your 2007 tax return. Payments will be mailed to you if you did not opt for direct deposit of your federal return.
If you have no tax liability (because you receive Social Security benefits or veterans’ disability compensation or are considered a low-income worker, for example) you are still eligible to receive a payment if you had at least $3000 of qualifying income. According to the IRS, qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits, and earned income. The IRS emphasizes that even if you may not be normally required to file a tax return because you do not meet the filing requirement, you must still file a 2007 return in order to receive a stimulus payment.
The IRS will continue sending payments to eligible recipients until December 31, 2008, but if you should move after filing your 2007 tax return, it’s essential to file a change of address card with the U.S. Postal Service to ensure that your payment is delivered to you.
You can expect to receive two informational notices in the mail regarding the stimulus payments. If you receive a call or e-mail from someone claiming to be from the IRS, this is a scam and you should not provide any personal financial information. If you feel as though you have been a target of one of these scams, you can report it to phishing@irs.gov.
American Center Credit Education—ACCE
Carey Denman
acce@acce-online.com
605-348-3104
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| [01-30-2008] |
| American Center Credit Education—ACCE |
Around this time every year, tax preparation offices spring to life, most of them heralding “instant refunds” through slick advertisements. But before you race into a tax preparation office, W2s in hand, you should understand that these “instant refunds” are really nothing more than very costly loans, known as Refund Anticipation Loans, or RALs.
As the name suggests, RALs anticipate your total refund from the IRS and provide you with a loan for that amount. Fees for RALs can run you anywhere from $30 to $125, but the more important number to consider is the annual percentage rate you’re shelling out for that fast cash—typically anywhere from 40 to as high as 500 percent. Add to this that consumers who receive a tax refund have already allowed the federal government to use their money, interest-free, now only to pay fees to get their money back. And in reality, a RAL will only allow you to get your refund a few days earlier than if you file your return electronically and opt for direct deposit. (Tax payers who file electronically can usually expect a refund in 10 days or less.)
When you pay fees for products and services that you could otherwise obtain without charge, you are in effect, stealing from yourself. What could you have done with that $50 or $125 spent for that RAL? Could this have been a cushion in your checking account, money you spend to pay down a nagging debt, a little something to tuck away for those inevitable moments that life serves up, or funds to help you reach your goals?
The bottom line is that in resisting the urge for fast cash this tax season, you end up with more cash in your pocket to do more of the things you want to do, including funding your dreams.
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| [12-17-2007] |
| By: Mike LeClear, Consumer Credit Counseling Service of N.E. Indiana |
Get organized. It’s time to get rid of the shoebox full of financial papers and buy your self a file folder. Start filing your financial statements.
Determine your monthly net or take home pay. List all your regular sources of monthly income. If you are paid weekly, you will receive four “extra” paychecks per year. If you are paid bi-weekly, you will receive two “extra” paychecks per year. Do not count the “extra” paychecks as part of your monthly net income. Use your “extra” paychecks for periodic expenses or use them to start or add to your emergency fund.
Figure your basic living expenses. Start with the easy expenses such as your house/rent and car payments. List your monthly utility payments. Estimate your monthly food, medical, gasoline, recreation and miscellaneous expenses.
Start tracking your actual monthly living expenses. You will need to track your actual living expenses for two to three months to come up with realistic amounts. One of the biggest “budget busters” that you will need to track is how much you spend at Wal-Mart, Meijers, etc. You will be amazed how much you actually spend at Wal-Mart compared to what you think you spend.
List your outstanding debts. It’s time to face your financial giants.
Budget for periodic expenses. Not many people actually save for car repairs, license plates, clothing, and Christmas gifts. Most people charge these types of expenses. If Christmas costs you about 1,000 a year you need to start saving $80.00 a month for next Christmas. If you can’t save monthly for periodic expenses then use those “extra” paychecks for your periodic expenses or save a large portion of your tax refund.
If your expenses exceed your income you need to either increase your monthly income or reduce your monthly living expenses. If you receive a large federal income tax refund each year chances are you are claiming zero exemptions on your W-4 withholding form with your employer. An easy way to increase your monthly take home pay is to increase the number of exemptions that you claim on your W-4. I would advise you to seek tax advise before you change your exemptions or you can check out http://www.kiplinger.com/tools/withholding/ for an Easy-to-Use Tax Withholding Calculator.
Most of us have a lot of “fluff” in our budget that we could reduce if we had to. Start tracking how much you actually spend on restaurant/fast food, recreation, cable/internet, etc then reduce your spending in these type of areas that you have control over.
Start an emergency fund. Even if you can only save $20.00 a month, that amount is better then zero.
If you need help with your budget, contact Consumer Credit Counseling Service of N.E. Indiana at 1-800-432-0420 or 260-432-8200. www.financialhope.org
Consumer Credit Counseling Service of N.E. Indiana is a non-profit community service organization committed to helping people with financial problems. Established in Fort Wayne in 1965, CCCS has helped thousands of individuals and families gain control of their finances through confidential budget counseling, debt management programs, housing counseling and financial education.
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| [11-02-2007] |
| Contact: Nick Jacobs (301) 576-2537 |
Silver Spring, MD – The National Foundation for Credit Counseling’s (NFCC) Mortgage Reality CheckSM indicates that homeowners in this country may be at a significant risk of jeopardizing their homes and financial well-being.
The Mortgage Reality CheckSM is a self-diagnostic test designed to help homeowners assess their understanding of their financial situation as it relates to their home and mortgage products and suggests next steps if necessary.
After completing the test, consumers are given an assessment in one of three colors:
Red: Immediate advice or counseling assistance is recommended.
Yellow: Suggestion to review the responsibilities of homeownership.
Green: Not at an immediate risk.
By no means a scientific study, the data compiled by the NFCC is solely indicative of the answers provided by the 1,089 visitors to HousingHelpNow.org who have completed the Mortgage Reality CheckSM test between October 1 and October 31, 2007. Overall, 67% were red, 18% yellow, and 15% green.
Other data shows that:
• 55% are having trouble sleeping at night because they are worried about their financial situation;
• 46% have skipped paying some bills in order to have enough money to pay others;
• 26% have received letters and/or phone calls from creditors, mortgage brokers, or a foreclosing lender;
• 28% owe more on their mortgage than their house is worth;
• 40% believe that refinancing their mortgage will solve their problems.
The findings that 40% believe that refinancing will help eliminate their financial problems and 28% owe more than their house is worth, when placed side by side, conjure a very troubling picture for the American consumer. It further indicates, in all likelihood, that the current housing and mortgage crisis is very likely to get much worse before it gets better.
More…
NFCC Mortgage Reality Check News Release, page 2
The HousingHelpNow.org Web site is just one of the NFCC’s enhanced counseling and education effort in communities across the country targeted at assisting homeowners who may be at risk of losing their homes. The NFCC network of nonprofit, community-based agencies has nearly 1,000 offices and more than 1,200 certified housing counselors who are ready to assist consumers avoid foreclosure now.
Consumers can receive immediate assistance by calling (866) 557-2227, an NFCC toll-free hotline that will connect them with an NFCC-certified housing counselor.
Individuals in need can also receive assistance by logging onto: www.HousingHelpNow.org.
A Spanish version of HousingHelpNow.org and of the Mortgage Reality CheckSM is available at www.nopierdastuhogar.org.
For more than 50 years the NFCC has provided consumers with sound financial advice as the recognized leader in financial education and counseling services, assisting more than two million consumers a year. Housing counseling is a core service of nearly all NFCC member agencies and most are HUD-approved housing counseling services.
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The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior and build capacity for its members to deliver the highest quality financial education and counseling services. NFCC members annually help two million consumers through nearly 1,000 community-based offices nationwide. |
| [10-27-2007] |
| By Carey Denman, American Center for Credit Education |
Your New York strip at a local eatery is like shoe leather. Your hardwood floors, that cost nearly $7 a square foot to install, are buckling. Your new ergonomic office chair literally falls to pieces just six months after you’ve purchased it. You’re dissatisfied. What should you do?
It can be easy to take one of two approaches when you’re unhappy with a company’s product or service: grumble and become upset or ignore the problem altogether because you fear facing it head on will be too difficult or eat up too much of your time. Of course, neither one of these approaches will produce much of anything. And as Angie Hicks, founder of www.angieslist.com, points out, you aren’t doing yourself or your purveyor any favors if you merely grumble and don’t speak up about poor service.
Instead, she suggests that you meet a situation head on and that you take specific steps to ensure that your complaint is heard. As hard as this can be, you need to keep in mind that learning to complain effectively can be important to your financial health. After all, who wants to pay for something that’s not living up to its promise?
First, Hicks recommends that you document all conversations and keep any and all paperwork related to your complaint. Hold onto receipts, invoices, and contracts so that they are available for future reference.
Second, she encourages consumers to complain in-person when possible. She points out that it’s easy to ignore phone messages, e-mails, and letters. When you’re face-to-face with a manager or business owner, you are more likely to get results. Of course, this is often not possible, in which case, you should never settle for speaking with a consumer service representative if he or she isn’t willing to help you resolve your problem. Ask for the customer service manager when necessary, and be certain to send a follow-up letter that details your complaint and what transpired during the conversation.
Next, she emphasizes that you need to respect the service provider. When you feel disgruntled, even wronged, it can be easy to let your emotions rise high. Nevertheless, when you remain calm and clearly state the problem, you’re much more likely to get a positive response.
And lastly, Hicks reminds consumers to be assertive. When you file a complaint, state the problem clearly and have a prospective solution in mind. Suppose you have poor food or service at a restaurant. Ask to speak with the manager and explain what the specific problems were. Then you might propose a discount on all or part of your entrée or ask about a certificate to use at a future visit. If the thought of being so direct makes your knees quiver, take heart, you can learn to hone your assertiveness skills.
American Center Credit Education—ACCE
Carey Denman
acce@acce--online.com
605-348-3104
The material in this transmission is provided for personal, non-commercial, educational, and informational purposes only. CCCS/ACCE makes no representations or warranties with respect to the accuracy or completeness of the contents of this transmission and assumes no responsibility for errors, inaccuracies, omissions, or any inconsistency herein. You should consult a professional where appropriate.
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| [08-06-2007] |
| By Carey Denman, American Center for Credit Education |
In a culture of fast food, same-day loans, instant messaging, and one-click shopping, life can whir by at a frenetic pace. If we aren’t careful, we can end up living our lives on autopilot, barely pausing to see anything more than what is immediately at hand.
An experiment staged at Washington DC's L'Enfant Plaza Train Station during the morning's rush hour illustrates just how prevalent our tunnel vision has become. For nearly an hour, violinist Joshua Bell, considered one of the greatest musicians of our time, played his multimillion dollar 1713 Stradivarius.
More than a thousand people passed Bell that morning—only seven of that thousand seemed to notice. When some of the commuters who passed by were later interviewed, many of them didn't even recall hearing music. It’s not surprising that so few people actually heard Bell. We live busy lives that require much of us, but if we can slow down and learn to live more deliberately, we can experience a greater sense of satisfaction and happiness.
What does it mean to live deliberately? There is no one size fits all approach to deliberate living, but spending your time and money consciously and focusing your energies on what you most value is a good place to start.
Resist Unnecessary Purchases
The next time you put something in your cart at a shopping center or mall, go to buy something online, or head to any retail outlet, ask yourself a few questions. Is this an impulse buy? Am I simply purchasing this item because it’s on sale or because I’m seeking a “retail high?” Is it something that I will have for a long time and that will enhance my life? Would I rather spend the money on something more meaningful? Taking the time to ask such questions will help you to consider what matters most to you and will likely help you to keep more money in your pocket.
Consider Where You Spend Your Time
Do you race breathlessly from one obligation to the next? Is your life full of activities and events that does nothing more than keep you busy? Are your children enrolled in activities that bring more fatigue than fulfillment? Being mindful of how you spend your time is just as important as paying attention to how you spend your money. Devoting time to something because you feel guilty or obligated only robs you of joy and causes unnecessary stress. Evaluate where and how you spend your day and look for ways to free up time to do more of the things you enjoy.
Challenge yourself to slow down, so that like Henry David Thoreau, you will learn how to “suck out all the marrow of life.”
American Center Credit Education—ACCE
Carey Denman
acce@acce--online.com
605-348-3104
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| [07-24-2007] |
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We've all heard news reports about computer hackers who steal confidential information about consumers from business or government agencies. That's an open door to identity theft, which costs businesses and consumers a reported $53 billion per year, according to Consumers Union, a nonprofit consumer advocacy group.
A big chunk of those losses—about $16 billion—happens when identity thieves open new credit using someone else's good name.
Fortunately, a new Indiana law championed by AARP lets Hoosiers protect their credit reports from prying eyes.
That's good news because fewer eyes mean fewer opportunities for crooks to open new accounts in your name or boost existing lines of credit.
The bottom line: More peace of mind for Hoosier consumers.
AARP Indiana worked closely with state lawmakers to pass the security freeze law, which takes effect Sept. 1. We'd like to thank Sen. Gary Dillon, of Pierceton, and Rep. Joe Micon, of West Lafayette, who worked the entire legislative session to pass this simple law.
Here's how it works:
Starting this September, you can send the three major consumer reporting agencies a letter telling them to protect ("freeze") your credit report and credit score.
Within 10 days of your written request, the agencies will mail you a four-digit personal identification number (PIN).
You can use the PIN any time you want to apply for new credit or access your credit report. But without the PIN, an identity thief won't be able to access your credit report.
By law, placing a security freeze will not hurt your credit rating.
Also by law, this is a free service. Indiana is the only state to make this service free for everyone, even people who have not been victims of identity theft.
That makes Indiana a leader.
The law will get even better in 2009. By then, consumers will be able to request a security freeze by telephone or e-mail. You'll also be able to "thaw" the freeze by phone or e-mail whenever you want to release your credit report to a business or other organization.
Until then, written requests will be necessary. Here are the names, addresses, Web addresses and toll-free phone numbers of the three credit reporting agencies that dominate the industry:
Equifax
PO Box 740256
Atlanta, GA 30374
(800) 685-1111
Experian
PO Box 9595
Allen, TX 75013
(888) 397-3742
TransUnion
PO Box 2000
Chester, PA 19022
(800) 888-4213
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| [07-09-2007] |
| By Carey Denman, American Center for Credit Education |
Numbers matter—both in our personal lives and in the financial world. A person’s cholesterol level can have a profound influence on his or her overall health and longevity. Universities use a prospective student’s standardized test scores to assist in making admissions decisions. And lenders, insurance companies, landlords, employers, and others may use a number known as your credit score to determine whether you receive credit, get insurance, rent the apartment, and even get a job.
Your credit score is a three-digit number that packs a lot of punch. For lenders and others interested in your “financial resume,” your credit score predicts the likelihood that you will pay your debts on time. The higher your score, the more likely you are to be approved for loans and to receive favorable loan rates.
Because your credit score can influence so many areas of your life, it’s essential that you protect to it. The best way to do this is to ensure that you pay all of your bills on time and in full. Just one late payment and your credit score can take a serious hit.
According to a recently released report by Experian Consumer Direct, a credit card payment that is more than 30 days late can lower your credit score by as much as 20 points. The stakes rise, however, if you’re late with an automobile payment. One late payment can lower your score by nearly 100 points. Experian Consumer Direct reports that the national average credit score for consumers with no late auto payments is 703, while the average score for consumers with at least one late payment is 605. If that auto payment goes 90 days delinquent, the average credit score drops another 25 points to 580.
What exactly would such a drop mean for you as a consumer the next time you went to get an automobile loan? On a 60-month auto loan of $25,000, a person with a credit score of 703 might expect to pay about 5.8% in interest, making his or her monthly payment $481. On the other hand, a person with a credit score of 605 could plan on paying interest of around 15.5%, which would bring his or her payment to $601 a month on the same loan. All told, the person with credit score of 703 would pay approximately $3,886 in interest, while the individual with the score of 605 would pay $11,078 in interest over the life of the loan. That’s a $7,192 difference on a future loan for just one late payment. (Rates and scores may vary by lender.)
For more information on Experian’s National Score Index study, visit http://www.nationalscoreindex.com.
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| [05-18-2007] |
| By Carey Denman, American Center for Credit Education |
Take the soaring price of gasoline and add the rising cost of a gallon of milk and green leaf lettuce. Sprinkle in some periodic expenses, such as annual eye exams and pet care. Add a little dash of something, say, increased postage rates. Mix this up and what do you get? A case of budget indigestion and a family that’s probably feeling squeezed.
“Weathering the storm” is a natural response when your budget is tight, and you may find it difficult to think about anything beyond paying your monthly bills. When your most immediate financial needs are pressing, you might feel as though you don’t have the freedom to do things such as save for retirement, set aside money for your goals, or pay anything more than the minimum monthly payment on your debts.
Saving for goals and retirement, even paying down debt, is possible—even if your budget is tight. The key is to think small—just $25 a month to start. You may be wondering just how to free up $25, or you may believe that $25 is so insignificant that it’s hardly worth the effort.
Let’s tackle both of these objections. The average household can typically and often easily squeeze an extra $25 dollars out of the budget by identifying what are known as spending leaks. Spending leaks are like shirts; they come in a variety of sizes and we all have at least one. They run the gamut from pit stops to the coffee hut for a latte to lottery tickets from the convenience store. They can be fantasy football and gardening magazines, cell phone features, lunches out, extra movie channels with your cable package, or any other thing you spend money on unconsciously.
Identifying your spending leaks doesn’t mean you’re destined to a life of deprivation. Buy fresh ground coffee beans and make your own at home, or stop for two lattes each week instead of five. This can easily free up more than $25 each month. Enjoy your favorite magazines from the quiet comfort of the library. Keep your cable but consider dropping the extra movie channels. The point is to evaluate where your money is going and to consider places where you may be spending it unconsciously.
Okay, so if you’ve freed up an extra $25, just how much good is it going to do you? Consider that a credit card with $2000 balance and an interest rate of 18% will cost you $2615.43 in interest and that it will take you 222 months, or 18 and half years, to pay off the balance in full. Add just another $25 a month to your payment, and you will pay $573.36 in interest and pay off your credit card in just under 3 years.
Take the same $25 and put it into a 401K each month. With an average return of 6% over 20 years, you will have saved $11,551. Of course, this amount won’t leave you lounging poolside for the rest of your years, but the point is to consider how even a small amount can make a difference. Instead of feeling stuck because your budget is tight, seeing your money grow can motivate you to find ways to increase your contribution. You might have the opportunity to invest a windfall or you might try committing to investing any bonuses, raises, or commissions that you get.
Other goals beyond paying down debt and saving for retirement can also become a reality when you build a nest egg with your $25 a month. In a year’s time, you will have saved $300 that you can use to create a cushion in your checkbook, start an emergency fund, or buy something you or your family might enjoy: a trampoline, an iPod, patio furniture, camping gear, a set of golf clubs, a new drill, or a potting bench.
Don’t let a tight budget leave you feeling powerless—even $25 a month can make a significant difference in your financial life. When you see a balance declining or an account growing, no matter how slowly, count this as progress and use this momentum to find other ways to get what you desire.
American Center for Credit Education—ACCE
Carey Denman
acce@acce-online.com
(605) 348-3104
The material in this transmission is provided for personal, non-commercial, educational, and informational purposes only. ACCE makes no representations or warranties with respect to the accuracy or completeness of the contents of this transmission and assumes no responsibility for errors, inaccuracies, omissions, or any inconsistency herein. You should consult a professional where appropriate.
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| [04-27-2007] |
| By Carey Denman, American Center for Credit Education |
Not everyone feels comfortable crunching numbers; in fact, the notion can be downright intimidating for some, particularly when it comes to personal finances. If numbers tend to make your head swim, it can be easy to rely on someone else’s word, rather than on calculating the bottom line for yourself. This can leave you vulnerable to those who may wish to take advantage of your trusting nature or can cause you to spend more than is necessary on a financing deal.
One simple formula can leave you feeling more empowered and can help you to evaluate offers you receive. This formula can also be useful in making buying decisions; you can consider whether the item you desire is worth the additional money you will have to pay in interest.
You can use the following formula for calculating simple interest. Take the amount you wish borrow (the principal) and multiply it by the rate of interest the lender will charge you. Then multiply this figure by the total number of years of the loan (or time). The formula looks like this: I=Prt (Interest = Principal x Rate x Time).
To put this formula to work, let’s say that you see an advertisement on television for a new car. |
| [01-20-2007] |
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| Would you like to increase your financial literacy from the comfort of your home? Our new FREE "Money in Motion" personal finance class will help you do just that. Just call our office or e-mail us to obtain your User ID and password. Then login at our website (www.financialhope.org) and you'll be on your way to a brighter financial future. 260-432-8200 or 800-432-0420 |
| [01-20-2007] |
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| To help you prepare for the most important purchase of your life, CCCS offers the self-study program "MAKE YOUR MOVE". The workbook and a one-on-one consultation provided to each participant meets both HUD and FANNIE MAE guidelines. Call for details about this FREE program. 260-432-8200 or 800-432-0420. |
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