Financial Tips for College Grads

Managing Credit Card Debt
1. Stop spending. Don't spend money you don't have. This will result in your owing more money. Use your credit card for emergencies only.

2. Educate yourself. Educate yourself about credit and your credit rights. Read as much information as you can about credit cards. Start by reading the credit card agreement or disclosure that was sent to you when you first received your credit card in the mail.

3. Setup a debt payoff plan. Setup a debt payoff plan to prioritize your bills. By using the debt snowball method you will be able to quickly pay off some of your debts. Start by paying off the smallest bills first, then use the money paid towards a previous bill and apply it to the next bill and continue this process until all your debts are paid.

4. Pay more than minimum monthly payment. If pay the minimum monthly payment you will end up paying 2 to 3 times what you actually charged due to the interest and finance charges that accrue on your balance. Try to send extra towards your balance each month.

5. Pay with cash. Pay for purchases with cash until your credit card balances are paid in full. If you pay for an item with a credit card you end up paying 112% the original cost of the item.

Investing in 401K's/IRAs
1. Start with your company's 401K as soon as you are hired for your first job. Do research to see what plan has the best options to help you achieve your retirement goals.

2. Start small. If you are not working setup your own IRA with at least $100 a month if you can afford it and then work you way up to saving 10% each paycheck towards your retirement.

3. Diversify. Control your risks by investing in various mutual funds that are a combination or low, medium and high risk to limit your losses.

4. Focus on long term growth. You have to be willing to leave your money untouched for the next 5 to 10 years. Otherwise you won't be able to see the benefits of your money growing.

Financial Planning
1. Plan for a family

2. Buy insurance – health, life, disability

3. Pay off those student loans and credit card debt

4. Plan for retirement early on, i.e. in your 20's

Find out if you will receive an Economic Stimulus Package Refund

Economic Stimulus Payments Information Center

Updated April 25, 2008
Starting in late April, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

Even though April 15 has passed, there is still time for retirees, disabled veterans and others who normally do not file a tax return to submit a 2007 form to receive an economic stimulus payment.

The IRS website has a calculator to determine if you will receive a refund.

The Basics
You can search for the following topics in the irs.gov Newsroom section
Basic Information on the Stimulus Payments
IRS Will Send Stimulus Payments Automatically Starting in May; Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate
Facts about the 2008 Stimulus Payments
More Information on Stimulus Payments Posted to IRS.gov; New Details for Recipients of Social Security, Veterans Benefits
Special Economic Stimulus Letters Reach Mailboxes in March
Special Economic Stimulus Payment Packages Go to Social Security, Veterans Recipients

Economic Stimulus Payment Calculator
A new online calculator will give you an estimate of the stimulus payment you may be due. Just answer a few questions and the calculator will do the rest.

Economic Stimulus Payment Schedule
Payments will start May 2. The last two-digits of your Social Security number and whether you opted for direct deposit into your financial account or a paper check will determine when you receive your payment.

Stimulus Payment Scenarios
What does it look like for you?
Married with Qualifying Children
Married without Qualifying Children
Married Filing Separately, with or without Qualifying Children
Single (Head of Household) with Qualifying Children
Single without Qualifying Children

You May Be Eligible Even if You Normally Do Not File a Tax Return
If you have at least $3,000 in certain types of income, you may be eligible for the economic stimulus payment. You also may be able to use a Free File - Economic Stimulus Payment. See the special types of benefits or income that qualify below:

Especially for Social Security Recipients
Information for people who receive retirement, disability or survivors' benefits
Especially for Veterans Affairs Recipients
Information for people who receive pension, disability and survivors' benefits
Especially for Railroad Retirement Recipients
Information for people who receive Tier 1 Railroad Retirement benefits
Especially for Low-Wage Workers
Information for people who receive a wages, salary, tips, etc. or who are self-employed
Especially for Military Combat Personnel
Information for members of the military serving in a combat zone

Frequently Asked Questions
We have the answers to your questions in Answers to Frequently Asked Questions

Rebate Scam Alert
Be aware that identity thieves are already pushing scams involving the stimulus payments. At least one telephone scam is making the rounds using the proposed rebates as bait. IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting, has more details.

Free Help Available with Free File
Free File is the fast, easy and free way to file your federal income tax return. If your adjusted gross income was $54,000 or less in 2007, you can use Free File to prepare and e-file your taxes online.

If you normally don't file a tax return but need to file one for 2007 solely to receive your economic stimulus payment, you may now select from the list of companies on the Free File - Economic Stimulus Payment page.

Information For Businesses
IRS To Issue Guidance on Special 50-Percent Depreciation Allowance
2008 Economic Stimulus Act Provides Tax Benefits to Businesses
News Releases, Audio Files, Fact Sheets and Legal Guidance

Check out the complete list of IRS-issued news releases, audio files, fact sheets and legal guidance related to the stimulus payments.

I Can't Pay My Taxes - What Should I Do?

The deadline for filing your taxes has passed but there is still hope for those who didn't file their taxes on April 15, 2008. Here are some options:

1. Request an extension and request the maximum extension time of 6 months
2. Setup an installment agreement

If you owe taxes this year and don't have the money to pay the taxes owed to either federal or state here are some options:

1. Pay by credit card
2. Apply for a bank loan to cover the entire amount of taxes owed
3. Using savings accounts, savings bonds, stocks, etc.
4. Take out a loan from your life insurance policy
5. Take out a home equity loan
6. Borrow money from family or friends
7. Consider getting a part-time job or work overtime at your existing job to earn money to pay back your income taxes
8. Request an Offer in Compromise based on economic hardship

Upcoming Events for April 2008

If you live in the DC/MD/VA area check me out at these upcoming events.

1. April 19, 2008, Credit and Debt Elimination Seminar, Borders, 8518 Fenton Street, Silver Spring, MD, 2pm
2. April 20, 2008, Bethesda Literary Festival, 4801 Bethesda Avenue, Bethesda, MD, 11-1pm
3. April 21, 2008, Interview w/Todd B - The Breakdown, Heaven 1580 AM, Lanham, MD, 8:30am
4. April 25, 2008, B. Dalton Booksigning, 50 Massachusetts Ave NE #112, Washington, DC, 4:30-6:30pm

7 Ways to Eliminate Debt

Reducing or eliminating your debt can see like an insurmountable task. You may feel like you can never get out of debt but you can. Other financial experts have been $100,000 to $1,000,000 in debt. I was $19,000 in debt making $21,000 a year and got myself out of debt. If we can do it you can too.

First, you have to admit you have a problem. Then you have to be committed to getting out of debt, just like you are committed to going to the gym, going to the hair salon or barbershop, or going shopping. Here are 7 ways to help you manage your credit card debt or any type of debt.

1. Stop spending. Don't spend money you don't have. This will result in your owing more money. Use your credit card for emergencies only.

2. Educate yourself. Educate yourself about credit and your credit rights. Read as much information as you can about credit cards. Start by reading the credit card agreement or disclosure that was sent to you when you first received your credit card in the mail.

3. Setup a debt payoff plan. Setup a debt payoff plan to prioritize your bills. By using the debt snowball method you will be able to quickly pay off some of your debts. Start by paying off the smallest bills first, then use the money paid towards a previous bill and apply it to the next bill and continue this process until all your debts are paid.

4. Setup a payment plan. Setup a payment plan with each of your creditors to pay off your debts. Be honest, humble and sincere. Identify any terms and negotiations you would like to make and stick to the terms.

5. Pay more than minimum monthly payment. If pay the minimum monthly payment you will end up paying 2 to 3 times what you actually charged due to the interest and finance charges that accrue on your balance. Try to send extra towards your balance each month.

6. Don't transfer balances. Transferring balances to another credit card may lower your credit score and there may be fees associated with transferring the balance. It is important to pay off the full balance before the introductory rate special ends because after the introductory rate ends the interest rate may drastically increase.

7. Pay with cash. Pay for purchases with cash until your credit card balances are paid in full. If you pay for an item with a credit card you end up paying 112% the original cost of the item.

Credit Repair Secret Gem - Account Reaging

Account re-aging can help you get back in good standing with your creditors and increase your credit score. Account re-aging means the creditor will no longer consider an account late and will no longer be reported on your credit report.

Creditors will re-age your account once you have established a history of making payments on time. A creditor may re-age a past-due account if you agree to enter a debt management plan. The revised payment plan can be negotiated between you and your creditor or with the help of a credit counseling service or a debt management company. If you use a debt management or debt consolidation program make sure they are a reputable company and get the agreement in writing.

An account is legally considered delinquent if a payment has not been received 30 days after the due date. Banks have 2 methods for reestablishing delinquent accounts: re-aging and a financial hardship program. In the financial hardship program, you are given a fixed payment amount, and reduced interest rate for a year. This helps reestablish trust with the bank. Re-aging helps you because:

It stops late fees and over limit fees and allows more of your monthly payment to go towards the principal. This shortens the time it takes to pay off your debt.
The creditor reports your account as current with the credit bureaus.
Although you still owe the debt you are no longer delinquent on the account.
For mortgage accounts that were previously late, if you have been current for the last 12 months, ask the lender to re-age your account. By doing this all the late payments over 12 months old will be removed from your credit report.

Federal regulations and creditor policies limit the number of times an account can be re-aged, so once you have re-aged an account continue making your payments on time. A creditor may only re-age an account once in a 12 month period and twice in a five year period for credit card accounts, and once in a five year period for other types of accounts. In June 2000, the Federal Financial Institutions Examination Council established new guidelines for issuers to follow when re-aging credit card accounts. To be considered for re-aging:
1. The borrower should demonstrate a willingness and ability to pay.
2. The credit card account should be at least 9 months old.
3. The borrower should make at least 3 consecutive minimum monthly payments or the equivalent amount.

If a creditor agrees to re-age an account, ask them to confirm the details in writing. If the company refuses put the details of your re-aging program in writing. Send a copy to your creditor by certified mail with a return receipt.
By re-aging an account, the company will remove all late payments and added interest, reduce the interest rate paid on the account, and bring your payments current. They will also report the payment arrangement to the 3 credit bureaus, Equifax, Experian and TransUnion and this will increase your credit score.

Protect Your Children From Identity Thieves

We all are aware of identity thieves preying on unsuspecting adults and opening new accounts in someone else's name. The statistics for identity theft are alarming. There are several measures in place to help reduce your chances of being a victim of identity theft such as: shopping online at secure websites, don't carry your SSN or birth certificate in your wallet, use a paper shredder to shred personal papers and store financial information in a secure location. You can also use services such as credit monitoring, credit freeze and fraud alerts.

However, a new segment of the population that is a victim of identity theft is children. According to the Federal Trade Commission in 2007, 2% or 1,246 consumers age 19 or under were victims of internet identity theft. In 2007 5% or 11,769 of all identity theft claims were for children ages 18 or under. Those may seem small numbers but complaints for children are increasing every year. If a child is 15 and is a victim of identity theft tries to apply for a credit card at age 18 severe damage would have occurred to their credit history and credit rating would be nearly impossible to catch the identity thief.

Some parents open accounts in their children's name because they have bad credit. Parents please don't do this, you put your child at risk for becoming a victim of identity theft and it also considered fraud to forge someone else's signature.

To protect your child from becoming a victim of identity theft take the following 10 precautions:

1. Don't provide your child's SSN unless absolutely necessary. If you don't feel comfortable providing your child's SSN ask if your child can be assigned an alternate identification number, most companies will oblige, if they refuse, press the issue or take your business elsewhere.

2. Do research by visiting a company's website or calling the company to find out their privacy policy and ask questions such as: how is customer information stored, what happens if customer information is breached, is customer information encrypted, what security measures are in place to ensure employees of the company do not leak customer information and ask why a child's SSN is needed? For government agencies you should feel more at ease providing the information but use cautious when doing business with non-government agencies.

3. Monitor your child's SSN - many times family members are the main culprits who steal a child's identity.

4. Store and lock your child's personal information in a secure location.

5. If you child is a junior, senior, II, or III use your child's full name including the middle name or middle initial to ensure that their name is not confused with a family member's who could potentially have bad credit.

6. If your child starts receiving junk mail visit the DMA Consumers Organization website and click on the Consumers section to have their name removed from junk mail lists.

7. Check your child's credit report from the 3 major credit bureaus, Equifax, Experian and TransUnion to ensure they have not been a victim of identity theft. If you child is under age 13 you can only get a copy of their credit report by mail as a measure to protect your child's identity.

8. When filling out paperwork for your child that requires providing their SSN or birth certificate don't say their SSN out loud and don't write the SSN down on a piece of paper. Request that the person you are supplying the information to, not repeat your child's SSN or date or birth out loud, i.e. if they are writing down the SSN on a form ask to see the form to see if the SSN was written correctly.

9. Educate your child about shopping online at secure websites.

10. Educate your child about providing their personal information on the internet such as first and last name, age, SSN, address, telephone number, etc. All of this information can be researched and linked to find a child's SSN or address by using phone or SSN matching programs.

Get a copy of your child's credit report at least once a year at www.annualcreditreport.com. Your child (if old enough or you) can also take an identity theft risk test to see if your child is at risk for identity theft at the IDTheftCenter Organization website.

How to Consolidate Debt

Many Americans are in debt and more are going into debt every day due to high cost of gas, food, clothing, utilities and housing. Many Americans don't have enough money to pay even basic necessities and have to resort to using a credit card to buy food and gas. This has caused many Americans to owe thousands of dollars in credit card debt. Luckily there are many options available to eliminate or reduce debt. One option that can be used to eliminate or reduce debt is debt consolidation. Debt Consolidation can be done on your own or by using a debt consolidation, debt management company or bank.

Debt Consolidation works by making one monthly payment to a debt consolidation company which is disbursed or divided among your creditors. This monthly payment is usually lower than the total of your individual creditor accounts.

Debt consolidation reduces the monthly bill, lowers your monthly interest rate and halts charging late fees. This can be done by: taking out a home equity loan, a home equity line of credit or a debt consolidation loan from your bank. There are other options for debt consolidation such as: refinance with cash out or refinancing your home for an amount greater than the amount you owe and using the extra cash to pay off debt.

Debt consolidation through a debt consolidation company usually requires payment of a setup fee and/or monthly fee. Using your home's equity will also require payment of fees for the home equity loan or home equity line of credit.

The benefits of using debt consolidation are: reduced monthly payments, reduced finance charges, elimination of harassing calls from creditors, convenience of sending in one monthly payment, pay debt down faster, and freedom from stress, worry, and anxiety causes by being in debt. Home equity loans can also provide tax benefits. However, use caution when consolidating debt.

The disadvantages of using debt consolidation are: the costs of the debt consolidation loan may not be less than what you are currently paying, you could get a higher interest rate if you have bad credit or no collateral to secure the loan, the debt consolidation will be listed on your credit report and may lower your credit score, your credit may become worse if you do business with a non-reputable company, you risk losing your home if you get a home equity loan and miss a payment or make late payments and you may have to pay points for taking out the home equity loan.

It is best to use cautious when considering debt consolidation. Comparison shop to find the best deal. Start with credit unions that have more favorable loans and terms and find the option that is right for you.

How to Repair Your Credit

Your credit is your financial identity - your financial DNA - your financial resume. Your credit is one of the most important aspects of your life and can help you or hurt you during the course of your life. Credit affects many aspects of your life such as applying for a job, applying for a home or apartment, or applying for a personal loan or credit. Don't be discouraged if you have bad credit. You can restore your credit and still achieve your financial goals.

The first step to repairing credit damage is by ordering a copy of your credit report from the three major credit bureaus, Experian, Equifax, and TransUnion. Review your credit reports with a fine tooth comb checking the following information for accuracy: name, address, phone number, SSN, date of birth, current and previous addresses, accounts, account numbers, open and closed dates, status of the account, owed amount, and payment history.

Once you have reviewed your credit report determine if you have any past due accounts. If you have bad credit due to the loss of a job, health issues, family issues or a disability let the creditor know right away. Call the creditor to setup a payment plan to pay back all debt owed. Determine the monthly amount you can afford, don't let the creditor determine the amount for you. If the creditor offers a settlement request that the credit list the account status as "paid" or "paid in full" instead of "settled" or "settled for less than full amount". If you account is listed as "settled" this will lower your credit score although the account was paid.

If you are currently unable to pay your debts due to unemployment and financial problems request a financial hardship and request a reduced monthly payment and reduced interest rate for a period of one year. During this time you will not be charged late fees and you be able to make your credit until your financial situation improves.

If you find errors on your credit report write a letter to the credit bureau that is reporting the error or request a dispute investigation online by visiting the credit bureau's website. Provide any supporting documentation to prove your claim. The credit bureau will respond to your letter within 30 days from the day of receipt. Keep copies of all correspondence sent and received in the event you need to reference it in the future. If you do not receive a response follow-up with a letter to the credit bureau to verify the updates were made. Order another copy of your credit report after 45 to 60 days have passed to verify the updates were made.

If you dispute an error and the credit bureau or company that listed the error refuses to update the information on your credit report you can write the credit bureau reporting the error and request that a one hundred word statement be added to your credit report for that account. This help increase your chances for approval in the future.

If you have an account that has a late payment history you can request that the company re-age the account once you have made consecutive payments on time for a period of 9 to 12 months. The delinquent (negative) payment history will be removed from your credit report which will increase your credit score.

Additional ways to repair damage to your credit are: keep your balances at 50% or below the credit limit, don’t open more than 1 new account in a 6 month period, don’t do business with “bad credit, no problem” companies, order your credit report each year, avoid foreclosure and bankruptcy, consolidate debt with caution, consult a professional, don't ignore past due bills and setup automatic bill payment to ensure bill are paid on time.

Protect your credit as your would your life, guard with care. "Money can generate wealth or generate debt, you make the choice."

Credit Card Blocking

Credit card blocking occurs when a business places a hold on your credit card sometimes for more than the total amount that is owed for a reservation such as a hotel or rental car. Some companies that use credit card blocking are Diners Club cards and Visa. When you use your credit card at registration for a hotel or to rent a car, the cashier will contact your credit card company and provide an estimated total of your bill. If the transaction is approved, then that amount is held in reserve. In addition to the actual cost of staying in the hotel or renting a car the clerk may add on reasonable "incidental" costs for items such as food or gasoline.

Some experts believe that credit card blocking is helpful because it makes sure you don't exceed your credit limit before checking out or returning a car. Using credit card blocking means that the company you receive these services from can be assured that your bill will be paid. If your balance is far enough below your limit you usually will not have a problem. Unfortunately, if your balance is near the credit limit, it may be an inconvenience by tying up credit that you may need and can cause a denied transaction for an item that is purchased after the block is placed.

If you pay the bill with the same credit card used when you checked in or returned the car, the purchase will replace the block usually in one or two days. However, if you pay using a different credit card or with cash the block may be held for up to 15 days after you've checked out. This happens because your credit card company was not notified that you used another form of payment and assumed they had to continue to hold that amount in reserve on your credit card. This can be avoided by asking the merchant to notify your credit card company and remove their block promptly. Here are 7 ways to protect yourself against credit card blocking:

1. Pay for a hotel or rental car with the same card you used at check-in.
2. Ask the merchant the amount that will be blocked, how they determined the amount blocked and the time period the block will be held.
3. Use two credit cards, one to make a reservation and one to pay the final bill.
4. Pay with cash.
5. If you pay using another method, ask the clerk to call the credit company and have the block removed. Get the clerk's name and ask for proof that the block was removed if possible. Also contact your credit card company to ensure the block was removed.
6. Pay for hotel reservations in full prior to check-in so that a block is not placed on your credit card. However, if a block is placed after arrival it will only be for a small amount to cover incidentals.
7. Complain to your state Congressman regarding credit card blocking.

Credit card blocking is not illegal as long as the amount blocked isn't above what the customer is likely to pay at the end of the transaction. Most consumers are not aware that it happens at all because the blocked amounts may not come close to their credit limits. Some businesses will remove a block at the consumer's request if they see the bill has been paid.

Credit card blocking ensures the business will get paid if the consumer does not pay the final bill and prevents the consumer from exceeding the credit limit before checking out of a hotel, returning a rental car or making another type of purchase.

To prevent credit card blocking: use the same credit card the reservation was made, pay down your credit card to allow room for extra items that you may need to purchase in addition to the reservation costs, ensure the block is removed from your credit card after the reservation amount is paid in full. For more information write to: Credit Card Blocking, Correspondence Branch, Federal Trade Commission, Washington, DC 20580.

Why You Need to Save

Many Americans today don't have a savings account or emergency fund. I heard on the news on recently that the Commerce Department reported that Americans spend all the money they have and personal savings rates reached the lowest level since the Great Depression.

Start you creating an emergency fund. Your emergency fund is your safety net, in case you get sick or lose your job you can use your emergency savings to hold you for a few months until you can find a new job.

Your emergency account should be separate from your checking or savings accounts and should only be used for emergencies such as an unexpected expense, unemployment, medical bills, etc.

An emergency fund should be enough savings to pay your bills for at least 3 to 6 months. Money for an emergency fund should be readily accessible and stored in a checking or savings account, preferably a high interest savings account such as Emigrant Direct or ING or a money market account where you can make money while saving money.

To determine how much money is needed to pay 3 to 6 months worth of your bills do an inventory and write down all your bills and expenses and the monthly amount spent for each. Calculate the total. Use this amount and multiple by 3 or 6 to determine the total amount you need to save in your emergency fund.

Make sure you do some comparison shopping before opening an account for your emergency fund to ensure that they are no minimum or other fees for accessing your account. A good source to use is Bankrate.com.

You can start off by contributing small amounts to your emergency fund until you are able to contribute more. Start off with a contribution of at least $20 a month to your emergency fund. Once you are able to contribute more to the fund do so. Make several short-term goals for your emergency fund. Once you have saved enough money to pay one bill pat yourself on the back. Then keep saving until you have enough to pay three bills and so on until you have enough saved to pay your bills and expenses for 3 to 6 months.

Once you have reached your emergency fund goal it is time to start developing some long-term goals such as an additional savings account and to start planning for retirement. A great site to learn about retirement planning is Morningstar.com and look under the Personal Finance section.

Having an emergency fund will ensure that you are on the road to becoming financially secure and will prevent you from going into debt when an unexpected tragedy happens or unexpected expenses arises. An emergency fund is the first step to getting out of and staying out of debt.

There are many organizations that provide emergency services for people such as the American Red Cross Emergency Assistance, Salvation Army Emergency Assistance Program and the United Way. The utility companies provide funds for people in need. You can use these funds to pay necessities and use money from your part-time job to pay other bills.

According to MSNBC.com, the savings rate of Americans declined to -5% in 2005, -1% in 2006 but has not risen to .6 in the second quarter of 2007. Consumers are spending over half of what they earn. The other 40% is spent on health insurance.

We no longer live in a society that promotes longevity and encourages stability. You must prepare for the future and a critical component of that is having a savings account. You may not know what the future holds but if you prepare your finances now, it will ease the burden of what tomorrow holds.

Instant Grati Syndrome

As a baby when you cried your mother or father came running to take care of you. As a toddler when you cried your parents hugged or talked to you until you stopped. As a teenager when you wanted something you talked really nice and sweet to your parents to get it. Throughout your life you may have received gratification instantly so as an adult it is only natural for you to believe that you should continue to receive this treatment. Unfortunately, this attitude affects every aspect of your life even your spending habits.

It can be difficult to resist the temptation of the instant gratification culture of America which I call the "instant grati factor". Advertisers make consumers believe everything can be obtained instantly by creating instant cereal, instant coffee, instant meals, instant messaging, instant credit card approval and online shopping. I have labeled this behavior as the "instant gratification syndrome" or "instant grati syndrome". To determine if you are a victim of "instant grati syndrome" ask yourself the following questions:

1. If you see an item online or in the store do you buy it immediately?
2. Do you buy an item even if you don't need the item or the item is not in your size?
3. Do you buy an item with your credit card even though you know you don't have the money to pay the bill when it arrives?
4. Do you get upset or defensive when someone questions your poor spending habits?
5. Do you rationalize your poor spending habits by saying things like "I work hard I deserve it", "Why can't I have it", "You are not my father, I can buy whatever I want", "I just had to have it", "I don't have to answer to you", "I want it now", or "I can buy it with my credit card"?
6. Is your home filled with unused items you purchased or items that still have the tags on them?
7. Do you go shopping with money already set aside to pay a bill?
8. Do you hide items you have purchased from your spouse, children or significant other?
9. Do you buy a new outfit every time you go to an event or gathering?

If you answered yes to any of these questions you are a victim of the "instant grati syndrome". Here are 6 ways to avoid the "Instant Grati Syndrome:"

1. Make being debt free your ultimate goal
2. Stop listening to the instant gratification messages
3. Live your life like an investor
4. Surround yourself with people who are investors or people who are in a better financial situation
5. Enjoy the little things in life
6. Stop being depressed

This behavior is difficult to change but it can be changed. Don't buy on impulse - think before you buy and determine if the item is a want or a need. Embrace the old values of working hard and saving your money to buy something. So the next time you buy something with a credit card ask yourself, am I a victim of the "instant grati" syndrome?

Instant Grati Factor and Instant Grati Syndrome Copyright © 2008 H.E. Freeman Enterprises

7 Ways for Journalists To Save Money

Being a journalist can involve a lot of travel to do interviews for newspapers, television or radio and can rack up many expenses that can occur at the last minute that may not be covered by your job. These expenses can make it difficult to make ends meet. To save money create a budget and look for ways to reduce expenses. Here are 7 ways for journalists to save money:

1. Travel Discounts. Comparison shop for discounts on parking or air, hotel and rental cars or buy as packages. Some companies that provide discount fares LongTermParking, HotDeals, SideStep, and Kayak. Sign up for online alerts with airlines to learn about their weekly specials. Search for fares early in the morning or on weekends. Check to see if they accept discounts for membership to Diner's Clubs, AAA, AARP, etc. This can save you $30 to $175 per transaction.

2. Supplies and Expenses. Shop for office supplies at Costco or online sites such as Amazon. Consider setting up a home office. You can write off a portion of your mortgage, and utility bills. If you do not have space for a home office consider using a telecommuting or telework center at companies such as Virtual Office Center, Regus or the World Environmental Organization and search for telecommuting sites. This can save you $50 to $100 per week in supplies, wear and tear on your car and gas.

3. Food. Pack you own drinks such as water and juice along with your favorite snacks. Search online for coupons to your favorite restaurants. Sign up for a free newsletter from restaurants to receive coupons. This can save you $30 to $200 per month.

4. Car Maintenance. Perform regular maintenance on your car by keeping your tires properly inflated and balanced which improves mileage. Save money on gas by using the lowest octane which is usually 87. Fill up your gas tank before going to work or in the evening when it is cool. This can save you $.05 to $.30 per gallon.

5. Insurance. Make sure you have health and disability insurance. If you need to see a doctor you won't have to worry about paying medical bills. If you become sick for an extended period of time you won't have to worry about how you will pay your bills. Contact eHealthInsurance for health insurance quotes. If you need disability insurance contact the Assurity company. This can save you $20 to $200 per month.

6. Use coupons. Use coupons to save money when shopping. Search for online coupons at sites such as Visit MyCoupons, CoolSavings, and CouponSurfer. This can save you $20 to $250 per month on your grocery bills and other household costs.

7. Go green. Try eco-friendly ways to save money. Visit sites such as Bankrate and search for ways to save money going green. This can save you $20 to $500 a month.

9 Reasons to Treat Your Household Finances Like a Business

There are many similarities between running a business and maintaining household finances. Both require constant updates and monitoring and both can leave you out in the cold and broke. Here are

1. Comparison Shop. (Get the Right Price) Shop around for the best price for the product or services you require to maintain your household. This increases your monthly household income and reduces expenses.

2. Reduce Expenses. Find ways to reduce expenses. Reducing expenses frees up money to pay for other items. Use coupons or shop at wholesales stores, have a yard sale or donate unused items to charity and write the amount off on your taxes.

3. Go above Break Even. Strive to go above the break even point. At the break even point your total monthly income equals your total monthly expenses including debt. Strive to rise above your break even point to eliminate debt and achieve your financial goals.

4. Create a Budget. (Personal Profit and Loss). Write a list of all of your monthly expenses and your monthly debts and write down you monthly net income. If you have any money left over use that to pay down your debts.

5. Take Action. Once you have identified the areas where you need to reduce expenses develop a plan to begin reducing them. This can be done by making small adjustments to your budget. Revise your budget after each major life change or event.

6. Pay Your Bills On Time. You will save money on late fees and improve your credit rating. It will also help you get approved for a loan. You can save a lot by paying your bills early. An early payment reduces your average daily balance and your finance charge. Always pay more than the monthly minimum payment.

7. Verify Statements. (Reconcile Statements) Verify all financial and creditor monthly statements to check for errors. Report errors immediately to reduce the impact to your account.

8. Monitor household supplies (Office Supplies) If your household supplies seem to need replacing often set limits on how much can be used or ration out supplies to change usage habits.

9. Create an Emergency Fund. (Petty Cash Fund) Use an emergency fund to buy small purchases or pay for unexpected expenses. By tracking small or unexpected expenses you will have greater control over all your expenses which can quickly add up.

6 Ways to Change Your Perspective to Get Out of Debt

I have visited several countries and states during my life. Visiting different states and countries has given me a greater perspective on my life and reminded me how grateful I am for what I have. If you are living above your means you need to change your perspective about your life. Changing your perspective will not get you out of debt overnight but will help you put things into perspective so you can see the value in eliminating your debt, managing your finances to plan for your future and restructuring your priorities in life. Many times we so get busy with life we sometimes lose our focus. One way to get out of debt is to change our focus. Here are 6 tips to change your personal finance perspective:

1. Visit another state (at least 2 or 3 states from where you currently live) and compare with your current state or city the cost of living, job salaries, health care, poverty levels, literacy levels, educational system, etc.
2. Volunteer at a foster home, senior citizen home, children's hospital, or a hospital with terminally ill patients. Talk to them and find out the things that are most important to them.
3. Make a financial contribution to a charity at least once a year.
4. Become a mentor.
5. Examine the reasons why you are living above your means and write down ways to correct your actions.
6. Set at least 3 long-term financial goals for yourself or your family, i.e. plan for retirement, setup a college fund for your children, start a business, etc. Set a date and develop an action plan to achieve those goals.


Copyright © 2008 H.E. Freeman Enterprises

5 Ways to Stop Living Paycheck to Paycheck

Americans are living above their means, drowning in debt and the problem is getting worse. Many Americans are foreclosing on their homes will be forced to live on the street because they are in so much debt. Many Americans spend their entire paycheck the same day of within a week of being paid. If you are living paycheck to paycheck here are 5 ways to improve your financial situation.

1. Direct deposit. Cashing checks at a check-cashing store costs on average anywhere from 1% to 5% of the amount of the check. If you do this each payday this is money that you are losing. Use direct deposit for free and save yourself some money.

2. Education. Go back to school to further your education or take training classes to expand your skills at your current job. This will put you in a better position to get a promotion at work or salary increase. That money can be used to create a savings account, plan for retirement, pay down debts and pay for necessary expenses.

3. Budget. Stop using your credit cards and pay for everything with cash. If you do not have enough money to pay for necessary expenses such as food, clothing, shelter, healthcare create a budget for yourself to determine your total monthly expenses and your total monthly income. Reevaluate your spending habits, reduce your expenses and various plans or cancel them (cable, phone, cell phone, internet, etc.). Shop at discount stores, outlets, use coupons, carpool, etc. to find extra money, which can be used to pay down debt.

4. Savings. You should enough money saved to pay at least 3 to 6 months worth of bills. The interest rate at banks right now is very low. Try opening a high interest online savings account such as www.emigrantdirect.com or www.ing.com which earns you on average 4 to 5% interest on your money. Then develop long-term savings goals such as planning for retirement, college education, homeownership, etc.

5. Seek Help. Don't feel like you are alone. Talk to friends, relatives or neighbors who have gone through similar situations. Go to the library or do research on the internet for various ways to reduce expenses, gain new skills, and shop on a budget. Some great websites are Budgetdial and Stretcher. In addition, many groceries stores teach classes on how to shop on a budget.


If you want to stop living paycheck to paycheck you have to change your mindset, take a leap of faith and focus on your financial goals. You can also watch financial shows on television or check out books at the library on personal finance, financial empowerment and other topics.

Upcoming Events

February Events

February 2008
Feb. 7, 2008, Credit Education Seminar, Reservoir High School, Fulton, MD, 7-11am
Feb. 9, 2008, Credit Repair and Debt Management System, Floyd's Gym, Clinton, MD, 1-3pm
Feb. 12, 2008, Interview on UDC Books, Washington, DC, 2pm
Feb. 18, 2008, Interview with Norm Goldman, Editor, BookPleasures.com
Feb. 18, 2008, Interview with Leah Betanhcourt, Internet Broadcasting
Feb. 20, 2008, Interview with Al Butler, 900AM WURD, Philadelphia, PA, 5pm
Feb. 23, 2008, Financial Literacy Seminar, Fellowship Baptist Church, Silver Spring, MD, 10-12pm
Feb. 26, 2008, Credit Repair Teleseminar with DCSG, Washington DC, 7pm
Feb. 29, 2008, Crystal Springs High School, Copiah County, Mississippi
Feb. 29, 2008, Crystal Springs Elementary School, Copiah County, Mississippi
Feb. 29, 2008, Meet and Greet at Pearl Public Library, Rankin County, Mississippi
Feb. 29, 2008, Booksigning at Richard Wright Library, Hinds County, Mississippi
Feb. 29, 2008, Book Discussion at Barnes & Noble, Madison County, Mississippi

Finance and Money Tips for Couples

Unmarried Couples
1. You can help out your partner but don’t take on their financial burdens
2. Don’t cosign a loan for your partner even if you are engaged
3. Determine how expenses and bills will be handled
4. Don’t get joint accounts

Engaged Couples
1. Examine each other’s spending habits and work towards a compromise
2. Don’t assume your future spouse wants to pay your debt
3. Be honest about your financial situation
4. Don’t keep secrets regarding your finances or purchases made – develop a plan to resolve the issue

Buying a Home
1. Get preapproved for a home
2. Shop around for the best rates
3. Determine the type of loan, ARM, 15 year, 20 year, 30 year

Married Couples or Newlyweds
1. Pay Off Debt
2. Participate in your company’s retirement plan or open an IRA
3. Create a budget
4. Get health, life and disability insurance
5. Get overdraft protection

Laws That Benefit Married Couples
1. Social Security
2. Veteran’s Benefits
3. Tax Laws (IRS) – married couples filing jointly can exclude up to $500,000 on the sale of their home on their taxes
4. Estate and Gift Tax

Books for Couples
1. Smart Couples Finish Rich – David Bach
2. Your Man and Your Money – Michelle Singletary
3. The Motley Fools’ Guide to Couples and Cash – Dayana Yochiim
4. The Big Payoff – Sharon Epperson
5. First Comes Love, Then Comes Money – Robert Gibson

5 Easy Steps to Eliminate Debt

Don't dwell on the financial mistakes you made last year. Hold your head up high even though you may be in debt. Think about how you can change your spending habits, eliminate debt and create a flexible spending plan for yourself. Here are 5 easy tips to eliminate debt on go on to lead a prosperous financial life:

1. Stop spending. Don't spend money you don't
have. This will result in your owning more money.

2. Take inventory. Write a list of all of your monthly
expenses and your monthly debts and write down
you monthly income (take home). If you have any
money left over use that to pay down your debts. If
not, find other ways to reduce your expenses and
gain extra money the money owed.

3. Reduce expenses. Find ways to reduce expenses.
Catch public transportation or carpool to work. Use
coupons or shop at wholesales stores. Have a yard
sale or donate unused items to charity and write the
amount off on your taxes.

4. Stop Credit Card Usage. Use your credit card for
emergencies only. Don't use your credit card to
purchase gas, food, clothing, etc. When using a
credit card instead of cash you end up paying 112%
more than the item is worth after finance charges
and other fees associated with credit card.

5. Educate yourself. Educate yourself about credit
and your credit rights. Read as much information as
you can about credit cards. Start by reading the
credit card agreement or disclosure that was sent to
you when you first received your credit card in the
mail. If you can't find it call you credit card company
and ask them to send you one. Read the agreement
carefully to find out what fees you could be charged,
the grace period and other important information.

Does This Describe You?

Does this article describe you, if so, it's time to scale back.
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/01/AR2008020103934.html?hpid=topnews


1. Create a flexible spending plan.
2. Reconcile receipts with monthly statements.
3. Identify at least financial goals (short-term and long-term).
4. Identify needs vs. wants and see what areas you can reduce expenses.

2008 Tax Refund Dates

Here is a list of IRS tax refund delivery dates.

Transmitted and IRSaccepted between IRS Direct Deposit Sent Paper Check Sent
01/11/2008 - 01/17/2008 (11am) 01/25/2008 02/01/2008
01/17/2008 - 01/24/2008 (11am) 02/01/2008 02/08/2008
01/24/2008 - 01/31/2008 (11am) 02/08/2008 02/15/2008
01/31/2008 - 02/07/2008 (11am) 02/15/2008 02/22/2008
02/07/2008 - 02/14/2008 (11am) 02/22/2008 02/29/2008
02/14/2008 - 02/21/2008 (11am) 02/29/2008 03/07/2008
02/21/2008 - 02/28/2008 (11am) 03/07/2008 03/14/2008
02/28/2008 - 03/06/2008 (11am) 03/14/2008 03/21/2008
03/06/2008 - 03/13/2008 (11am) 03/21/2008 03/28/2008
03/13/2008 - 03/20/2008 (11am) 03/28/2008 04/04/2008
03/20/2008 - 03/27/2008 (11am) 04/04/2008 04/11/2008
03/27/2008 - 04/03/2008 (11am) 04/11/2008 04/18/2008
04/03/2008 - 04/10/2008 (11am) 04/18/2008 04/25/2008
04/10/2008 - 04/17/2008 (11am) 04/25/2008 05/02/2008
04/17/2008 - 04/24/2008 (11am) 05/02/2008 05/09/2008
04/24/2008 - 05/01/2008 (11am) 05/09/2008 05/16/2008
05/01/2008 - 05/09/2008 (11am) 05/16/2008 05/23/2008
05/09/2008 - 05/15/2008 (11am) 05/23/2008 05/30/2008
05/15/2008 - 05/22/2008 (11am) 05/30/2008 06/06/2008
05/22/2008 - 05/29/2008 (11am) 06/06/2008 06/13/2008
05/29/2008 - 06/05/2008 (11am) 06/13/2008 06/20/2008
06/05/2008 - 06/12/2008 (11am) 06/20/2008 06/27/2008
06/12/2008 - 06/19/2008 (11am) 06/27/2008 07/04/2008
06/19/2008 - 06/26/2008 (11am) 07/04/2008 07/11/2008
06/26/2008 - 07/03/2008 (11am) 07/11/2008 07/18/2008
07/03/2008 - 07/10/2008 (11am) 07/18/2008 07/25/2008
07/10/2008 - 07/17/2008 (11am) 07/25/2008 08/01/2008
07/17/2008 - 07/24/2008 (11am) 08/01/2008 08/08/2008
07/24/2008 - 07/31/2008 (11am) 08/08/2008 08/15/2008
07/31/2008 - 08/07/2008 (11am) 08/15/2008 08/22/2008
08/07/2008 - 08/14/2008 (11am) 08/22/2008 08/29/2008
08/14/2008 - 08/21/2008 (11am) 08/29/2008 09/05/2008
08/21/2008 - 08/28/2008 (11am) 09/05/2008 09/12/2008
08/28/2008 - 09/04/2008 (11am) 09/12/2008 09/19/2008
09/04/2008 - 09/11/2008 (11am) 09/19/2008 09/26/2008
09/11/2008 - 09/18/2008 (11am) 09/26/2008 10/03/2008
09/18/2008 - 09/25/2008 (11am) 10/03/2008 10/10/2008
09/25/2008 - 10/02/2008 (11am) 10/10/2008 10/17/2008
10/02/2008 - 10/09/2008 (11am) 10/17/2008 10/24/2008
10/09/2008 - 10/16/2008 (11am) 10/24/2008 10/31/2008
10/16/2008 - 10/23/2008 (11am) 10/31/2008 11/07/2008

What to do With Your Extra IRS Tax Rebate

Approximately 117 million Americans will receive a tax rebate of $600 for individuals and up to $1200 for couples plus an additional $300 for each child. To qualify for the rebate you must have paid federal taxes in 2007 and have a valid social security number.

For individuals making over $75,000 and couples making over $150,000 the rebate will be reduced. If you owe back taxes the amount owed will be deducted from the rebate check. Americans who didn't earn enough to pay income tax but had an earned income of at least $3,000 would receive $300 for individuals and $600 for couples. Checks would be received 60 days after the legislation is finalized.

The government is hoping the checks with encourage Americans to spend their money to help jumpstart the economy. Unfortunately so many Americans are living paycheck to paycheck and are struggling to make end meets that for some the tax rebate check will not change their current financial situation. The focus of Americans is not let me go shopping, it is, "Where I am going to find enough money to go to work, pay for daycare, pay my mortgage"? The tax rebate money could results in responses like, "I needed this but I need more, a lot more."

Americans are losing their jobs almost monthly, companies are downsizing, the cost of gas is increasing, grocery prices are increasing while home prices are decreasing. Americans need long-term solutions. After the tax rebate is spent most Americans will be in the same financial situation as they were before receiving the tax rebate. Write your congressman and ask for a better solution to the recession.

Here are 5 tips to use your 2008 Bush tax rebate wisely.

1. Don't use the money to go shopping
2. Use the money to pay a debt or monthly expense
3. Open an emergency fund or savings account
4. Open an investment account
5. Buy basic necessities needed

15 Tips to Help File Your Tax Return

MSN created a list of 15 tips to help file your tax return, the tips are listed below.

Get Serious
Get Started
Get Organized
Get Informed
Get Help
Get Status
Get Adjusted
Get Itemized
Get Credit
Get Cash
Get Exemptions
Get Filed
Get Planning
Get Receipts
Get Real

A Spending Plan - Your Key to Making It in 2008

Many times when someone mentions a spending plan or budget people get nervous and run and hide. A spending plan is an essential component is getting out of debt and achieving many financial goals such as: start a savings account, paying for your children's college education, planning for retirement, planning for a family vacation, starting a business and more. Many economic experts state that we are in or almost in a recession. It is more important now in 2008 than ever to properly manage your finances and ensure you have an emergency fund to make it through these tough times.

A spending plan is simply a recording or documented list of all of your monthly expenses and monthly income. Once you record all of your spending for the month you can readily see what areas need to be addressed. A good guide for monitoring your monthly spending plan is as follows:

1. 35% of your monthly net income should be spent on housing (includes bills)
2. 10% of your monthly net income should go towards savings
3. 15% of your monthly net income should go towards transportation
4. 15% of your monthly net income should account for debt
5. 25% of your monthly net income should go towards other expenses

You can create your spending plan manually using pen and paper, a spreadsheet or using a software tool such as Quicken or Microsoft Money. Whatever method you use stick to it and use it every month.

Another component to making it through 2008 is to create an emergency fund or savings account. A savings account is not an investment account. A savings account is money that is available in the event an unexpected expense occurs. This will prevent you from using a credit card and will reduce stress that can be caused by having financial problems. In addition making a habit of saving money pays off in the long run because you will have money to buy things that you need and want without having to get a payday loan, cash advance or buying rent-to-own items.

A great way to save money without thinking about it is to deposit money directly into a savings account through your bank. This can be done by contacting the bank where you have direct deposit and request an additional amount of money be deposited into a bank savings account.

They are several vehicles that can help you save money such as: savings accounts, online accounts, money market accounts, money market funds and certificate of deposits (CDs). Do research and comparison shop for the bank that provides the best options for your savings goals.

Another component to making it in 2008 is to create financial goals. Your financial goals provide accountability and direction for your savings and how the money will be used. You can create short-term and long-term savings goals. A short-term goal can be to save $100 a month. A long-term goal can be to get out of debt. Whatever your goals stay focused on them and set a deadline date for each goal to help you stay on track with your spending plan.

Using the three components identified: creating a spending plan, creating financial goals, and creating a savings account will help you make it through 2008 with less stress and more financial security.

8 New Year's Commitments for 2008

Here are 8 New Year's Commitments that will improve your financial life, reduce stress, end fights regarding finances, and bring peace to your life.

1. Save Money - Create an emergency fund with enough to cover at least 3-6 months worth of bills. This will prevent you from getting into debt. For long-term goals create a savings account with a high interest rate and make plans to save for retirement.

2. Further Your Education - Take training classes or get a college degree to increase your skills set and salary. Plan to take at least one training course every year during your career to stay current with industry standards and technology advances.

3. Get Out of Debt – Get current on any late payments. Negotiate with creditors to setup payment plans and pay off debts older than 6 months. This will increase your credit score.

4. Get Your Financial House in Order – Organize financial papers and store in a centralized secure location. Backup financial documents and records saved on your personal computer. Use secure websites for processing transactions and storing personal information, i.e. bank accounts, automatic payments, etc. Organize your home office with file folders, file cabinets, etc. Make copies of all personal documents and store in a fire proof safe. Develop a will and designate or update beneficiaries for life insurance policies.

5. Trim Spending - Don’t live above your means. Buy needs more often than wants. Find ways to reduce expenses to help pay down your debts. Catch public transportation or carpool to work. Buy items or sale, use coupons, or shop at wholesales or thrift stores.

6. Limit Credit Card Usage - Use your credit card for emergencies only. Don't use your credit card to purchase gas, food or other everyday items. Keep credit card balances at 40% or below the credit limit. Pay balances off at the end of the month.

7. Develop a Flexible Spending Plan - Write a list of all of your total monthly expenses including debt and write down your total monthly income (net). If you have any money left over use that to pay down your debts. If you do not have any money left over look at the areas where you can reduce expenses.

8. Don't go into debt at Christmas - Don’t overextend yourself buying gifts at Christmas, buy gifts throughout the year to limit credit card usage and help spread costs for gifts over a period time. Even starting shopping in November will reduce costs and stress felt when shopping in December.

Copyright © 2008 H.E. Freeman Enterprises

Tax Tips for 2007

There are hundreds of tips that can save you money when filing your taxes. Here are 9 ways to save your money during the 2007 tax season.

1. Read the tax booklet that corresponds with your tax forms to make sure you are not overlooking any tax credits that you are eligible for.
2. Don't get a rapid refund or loan. These usually have high interest rates and may not be faster than if you just filed electronically.
3. If you owe don't file late, if you think you will need an extension request it now. You will save yourself headaches and money.
4. There are several free tax software available that you can use if you have access to a computer.
5. If you cannot afford to hire a tax preparer search for free tax filing services in your area, start with your local library or government tax authority.
6. Be aware of new tax tables for Federal and State for 2007.
7. If you have defaulted on your student loan and you are expecting a refund, chances are your tax refund will be taken to pay for your overdue student loans.
8. Make a donation to a charity, you have until December 31, 2007 to make donations.
9. Keep records of your tax forms for at least 3 years.
10. Enter accurate information on your tax forms to prevent being audited.

Copyright © 2007 H.E. Freeman Enterprises

10 Tips to Protect Your Identity During the Holiday Season

According to the 2006 Federal Trade Commission Identity Theft Survey Report, in 2005 8.3. million Americans were victims of some form of identity theft. According to the U.S. Federal Trade Commission, it takes 12 months, on average, for a victim of identity theft to notice the crime. In 2006, 10 million Americans were victims of identity theft. Here are 11 tips to protect your identity during the holiday season.

1. Don’t carry your SSN or other personal papers in your wallet or purse
2. Leave mail and other personal papers at home and store in a safe place
3. Check your mailbox regularly, hold mail during vacations
4. Shred personal information and mix in with other trash
5. Don’t use an ATM in a secluded area
6. Carry only the credit cards you know you will use
7. Shop online at secure websites, https or shttp
8. Create PINs that cannot easily be guessed
9. Verify all monthly statements with your receipts
10. Order your credit report at least once a year and verify all information
11. Beware of camera phones

Copyright © 2007 H.E. Freeman Enterprises

Credit Score Used by Insurers

Congress will began looking into where the insurance industry's use of credit score to determine a customer's insurance risk discriminate against certain groups of Americans.

Critics argue thta credit scoring models negatively impact minorities and low-income Americans.

A Federal Trade Commission study results indicated that credit-based scores are effective predictors of automobile insurance risk. Using credit scores is likely to lead to increased insurance payments for 64% of African Americans, 53% of Hispanics and 38% of non-Hispanic whites.

Four statees have banned insurers from using credit scoring outright: California, Maryland, Hawaii and Delaware.

6 Options If You Are Facing Foreclosure

Put away those credit cards and stop charging if you are facing foreclosure. Put yourself on a budget quickly and continue to monitor your finances until your other debts are paid off so you do not get into the same situation in the future. Whatever decision you make get it in writing from your lender. Consult a tax advisor to determine rules regarding foreclosure. Ask the lender if the foreclosure option chosen will be reported on your credit report. Here are 6 options to take if you are facing foreclosure.

1. Special Forbearance. When a lender arranges a repayment plan based on your current financial situation or and may provide a temporary reduction or suspension of your mortgage payments. You may qualify for this if you've recently experienced an involuntary reduction in income or an increase in living expenses.

2. Mortgage Modification. You may be able to refinance the debt and extend the term of your mortgage loan for the missed payments. This will help you catch up by possibly reducing the monthly payments to a more affordable level. You may qualify if you've recovered from a financial hardship and your net income is less than it was before the loan default.

3. Partial Claim. Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current, if you qualify.

4. Pre-Foreclosure Sale. This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating. If you're unable to afford the house long-term, you may sell the house yourself before the foreclosure sale date and save some of your equity.

5. Deed-in-lieu of Foreclosure. As a last resort, you may be able to voluntarily "give" your home back to the lender. This may help your chances of getting another mortgage loan in the future.

6. Short Sale. You can sell your house for less than what you currently owe on the mortgage loan. This is win-win for you and the lender. Your home does not have to go into foreclosure, you don't have to file bankruptcy and the process is much faster. The lender saves money without having to file foreclosure proceedings but does lose money by not getting the full price of the home during the sale. The buyer gets the house at a reduced price.

11 Tips to Cut Holiday Shopping Costs

Most Americans accumulate the greatest amount of debt during the December holiday season. The holidays should be filled with joy and laughter not anxiety, pressure or guilty about spending money during the holidays.

If you don't have the money to buy gifts be honest and tell the persons who are expecting gifts just that. If you have a small amount of buy to buy gifts buy what you can and don't use your credit card to buy gifts unless you have the money to pay the debt off in two or three months. Here are 11 tips to help you save money during holiday shopping.

1. Don't buy gifts on Christmas eve or the day before Christmas eve. Selection is limited and lines at the register are longer.
2. Buy Christmas or holidays gifts during store sales in October or November.
3. Spend less money on gifts this year than you did the previous year.
4. Visit local vendors, you can probably negotiate a good deal on the same items you will find in the department store.
5. Think of creative gifts to give that you can make yourself.
6. Visit the local dollar store to find gifts for children.
7. Get a part-time job until Christmas arrives if need money to buy gifts (this will prevent you from using that credit card).
8. Buy gifts throughout the year so you don't feel overwhelmed with buying all of your Christmas or holiday gifts at once.
9. If you have to buy gifts for several family members try doing a "secret Santa" or "grab bag" so only one family member has to buy a gift for one family member and set a limit on the amount spent. That way everyone gets a gift and you don't have to worry about buying several gifts.
10. Shop online, some companies waive shipping and handling fees during the holiday season.
11. Make getting out of debt one of your new year's resolutions.

Copyright © 2007 H.E. Freeman Enterprises

Instant Grati Syndrome

As a baby when you cried your mother or father came running to take care of you. As a toddler when you cried your parents hugged or talked to you until you stopped. As a teenager when you wanted something you talked really nice and sweet to your parents to get it. Throughout your life you may have received gratification instantly so as an adult it is only natural for you to believe that you should continue to receive this treatment. Unfortunately, this attitude affects every aspect of your life even your spending habits.

It can be difficult to resist the temptation of the instant gratification culture of America which I call the "instant grati factor". Advertisers make consumers believe everything can be obtained instantly by creating instant cereal, instant coffee, instant meals, instant messaging, instant credit card approval and online shopping. I have labeled this behavior as the "instant gratification syndrome" or "instant grati syndrome". To determine if you are a victim of "instant grati syndrome" ask yourself the following questions:

1. If you see an item online or in the store do you buy it immediately?
2. Do you buy an item even if you don't need the item or the item is not in your size?
3. Do you buy an item with your credit card even though you know you don't have the money to pay the bill when it arrives?
4. Do you get upset or defensive when someone questions your poor spending habits?
5. Do you rationalize your poor spending habits by saying things like "I work hard I deserve it", "Why can't I have it", "You are not my father, I can buy whatever I want", "I just had to have it", "I don't have to answer to you", "I want it now", or "I can buy it with my credit card"?
6. Is your home filled with unused items you purchased or items that still have the tags on them?
7. Do you go shopping with money already set aside to pay a bill?
8. Do you hide items you have purchased from your spouse, children or significant other?
9. Do you buy a new outfit every time you go to an event or gathering?

If you answered yes to any of these questions you are a victim of the "instant grati syndrome". Here are 6 ways to avoid the "Instant Grati Syndrome:"

1. Make being debt free your ultimate goal
2. Stop listening to the instant gratification messages
3. Live your life like an investor
4. Surround yourself with people who are investors or people who are in a better financial situation
5. Enjoy the little things in life
6. Stop being depressed

This behavior is difficult to change but it can be changed. Don't buy on impulse - think before you buy and determine if the item is a want or a need. Embrace the old values of working hard and saving your money to buy something. So the next time you buy something with a credit card ask yourself, am I a victim of the "instant grati" syndrome?

Instant Grati Factor and Instant Grati Syndrome Copyright © 2007 H.E. Freeman Enterprises

Home Buying Seminar in Upper Marlboro MD 10/13/07

Home Buying Seminar

October 13, 2007 - 10:00 am to 2:00 PM

16201 Tradezone Avenue, Suite 101 Upper Marlboro, MD 20774

Contact: Donnal Whitaker 240-354-9778

www.donnalwhitaker.com
dwhitaker@exitpowerhouse.com

Lunch Included

Free Appraisals

$50 Off Home Inspections

Raffle for $100 Home Depot Gift Card

6 Tips to Estimate Your Credit Score

Having a credit card is a great responsibility. Some of us use our credit wisely and some of us use credit unwisely. Credit is one the most important aspects of your financial future. You could have a sizeable savings account but have bad credit and may still get denied for a loan or credit card. At the other end of the spectrum, you could have no savings account and good credit and get approved for several loans or credit cards.

Here are 6 tips to help ensure you know your credit picture when applying for a loan or credit card.

1. Do you how many accounts you have the are currently late, i.e. 30, 60, 90 days or more?
2. Do you have any accounts have that were previously late, i.e. one or two years ago?
3. Do you have any open or closed accounts there were collection accounts, repossessions, judgments, or bankruptcies?
4. How many loans or credit card accounts you have opened in the past two years?
5. How many revolving and installment loans you have?
6. How many open credit card accounts you have?

If you answered question 1 you may have bad credit and need to quickly setup payment plans to get current on your late accounts. You can also open a secured line of credit or secured credit card to establish good credit. Your credit score could range anywhere from 350-500.

If you answered question 2 or 3 you may have bad credit and need to open a secured line of credit or secured credit card to establish good credit. Your credit score could range anywhere from 501-659.

If you answered questions 4, 5 or 6 you may have average or good credit depending on the amount of debt you owed and your credit limits. Your credit score could range anywhere from 620-700.

If you were not able to answer questions 1, 2 or 3 you probably have average to good credit as long as you have not made any late payments in the last 3-6 years. Your credit score could range anywhere from 650-750.

The most important thing to remember before applying for a credit card is to determine your total credit limit. Many of us including myself believed that your total credit limit was the credit limit on each credit card or line of credit. Your total credit limit is the credit limit on each credit card, i.e. if you have 3 credit cards, a Discover card with a credit limit of $5,000, a MasterCard with a credit limit of $7,000 and a Visa with a credit limit of $10,000, your total credit limit is $22,000 ($5,000 + $7,000 + $10,000).

This amount is factored in your debt-to-income ratio during the review process for approval of a loan because it is the amount of credit that you have available and could possibly use at any given time although you may never use it.

Also, determine what your total balance is for each open credit card. The total balance is your credit limit plus the current balance on your credit card, i.e. if you have a Discover card with a balance of $3,000, a MasterCard with a balance of $700, and a Visa with a balance of $5,000, your total balance on your open credit cards is $8,700.

This amount is one of the 5 factors used to determine your credit score and accounts for 30% of your credit score.

It is not a good habit to “max out” your credit cards because this may lower your credit score and can cause you to go over your credit limit and results in additional charges from your creditor between $29-$35.

If you have a MasterCard with a balance of $6,000 and a limit of $7,000 and a Visa with a balance of $9,000 and a credit limit of $10,000 you would be considered “max outed” because you have less than 10% of the credit limit available to spend.

Use credit cards sparingly and always make your payments on time. If you know you will be making a late payment contact your creditor immediately to setup a payment plan or arrangements to make a payment so your credit is not affected.

Copyright © 2007 H.E. Freeman Enterprises

Being In Debt

When we are in debt we are powerless. Creditors have the power. They have the power to:

1. Close our accounts
2. Send us threatening letters
3. Harass us on the phone
4. Search our neighborhood to find people who have our contact information
5. Garnish our checks
6. Take us to court
7. Ruin our credit
8. Increase our interest rate
9. Charge us outrageous late fees, over-the-limit fees and annual fees

When we are in debt and have bad credit we are at the mercy of the creditors and have to agree to their terms. We beg and plead and silently say "don't close my account", I still need to go shopping for things you can't afford. Don't take me to court, I know I don't have the money but I am trying to keep up with everyone else and look like I have money when I am really living paycheck to paycheck or am almost bankrupt.

We have to learn that everything has a price. What's your price? A nice pair of shoes, a Coach purse, a Hummer, a nice house in Bowie or Fairfax, designer clothes?

What are you willing to pay for those items? Will you sell your soul to buy that pair of Manolo Blahnik shoes that you just have to have.

Unfortunately in this economy many people are in debt due to loss of a job, medical expenses or health issues. I feel for these people who do not have enough money to buy basic necessities and have to use their credit cards to purchase those items.

Unmanageable debt can be prevented. Instead of buying an expensive house or car, but a modest house or car. Keep that for 3 to 5 years then you can upgrade once your financial situation improves.

Know the truth and think twice before you sign over your soul for that shiny new credit card.

Federal Minimum Wage Increased

On July 24, 2007, the Federal minimum wage increased to $5.85, a 9.3% increase over the current minimum wage. A employee paid the new minimum wage rate working full time will now earn approximately $12,618 annually.

Maxed Out Documentary

Maxed Out shows how the modern financial industry really works, explains the true definition of "preferred customer" and tells us why the poor are getting poorer and the rich getting richer. By turns hilarious and profoundly disturbing, Maxed Out paints a picture of a national nightmare which is all too real for most of us.

Maxed Out reveals the secrets of the new bank. John Ballew, a Midwestern banker whose neighborhood bank has been merged so many times he's lost count, tells us why suggestive selling is the primary qualification for working at a modern bank. Bud Hibbs, a well-known consumer advocate and the collection industry's enemy number one, explains why banks want us to be late. Liz Warren, a Harvard Professor who conducted the largest study of why Americans are going broke—at a rate higher than during the Great Depression—debunks the conventional wisdom that only "bad apples" declare bankruptcy. Liz's study proves that the bare necessities, not Prada shoes, are killing American families. A lifelong Republican, Liz's foray into the world of debt changed her politics and inspired a best-selling book: "The Two Income Trap".

Maxed Out reveals that the financial industry's best customers are the broke and the bankrupt. The most profitable niche of the industry is called "alternative" or "sub-prime"—euphemisms for a business formerly known as loan-sharking. They target those with less than perfect credit. From 2000-2002, Providian paid over $400 million to settle charges that it defrauded its customers. Soon after, a Providian director and the chairman of its compliance committee was appointed corporate crime czar by George W. Bush.

Maxed Out exposes the modern debt-style in all of its absurdities and contradictions. Nowhere are these more evident than in a journey with award-winning investigative journalist Mike Hudson, who travels to Mississippi, Pittsburgh, and New York City interviewing the victims of predatory lending scams. The most shocking discovery? The predators aren't boiler rooms or goodfellas. They are the nation's largest and most respected financial institutions! And they're not just preying on adults anymore. In 2001, FirstUSA hired two teenage high school students as walking billboards to make their cards seem "cool". FirstUSA also pioneered "partnerships" with colleges—paying them millions of dollars for access to their students' personal information, setting these kids up for ruin.

Maxed Out examines an industry that thrives on making people fail, then pursues them relentlessly to death's door. The film features a shocking interview with Bob and Chris—two idealistic entrepreneurs from Minneapolis whose "People First Recoveries" is buying bad debt all over the country in the hopes of huge profits. They're going to make "People First" a big success by being shockingly duplicitous. To get psyched up, Chris and Bob imagine themselves as "debt pirates", wrestlers and professional football players. The personal information at their disposal and the ways in which they are allowed to use it—calling people's neighbors and relatives to humiliate them into paying, for example—are nothing short of terrifying for us, fun for them.

Maxed Out delves into the heart of the information business. David Szwak, a prominent Shreveport attorney, reveals that 90 percent of credit reports—those forms that now determine whether we get a job, a home and insurance—have errors on them, yet the credit bureaus aren't doing anything to correct the situation. Why not? The more negative information, the higher the interest rate and the greater the industry's profits. If you dare challenge the industry, as did one woman whom the credit bureaus listed as "deceased", industry goons are dispatched to wear you down. Szwak also reveals a little known but troubling fact: the credit bureaus keep a special "V.I.P." list of prominent citizens whose reports are specially cleaned up. This protects the industry from legislative or judicial action and keeps those in power from knowing how flawed the credit system really is.

At times hilarious, at times deeply disturbing, Maxed Out forces us to face the consequences of our national debt addiction: the suicides, the ruined lives and, ultimately, the disappearance of the American middle class.

--Taken from http://www.maxedoutmovie.com/

10 Ways for Single Parents to Save Money

In 2006, according to the US Census Bureau, there were approximately 14 million single parents in the United States, and those parents are responsible for raising 21.6 million children. Eight three percent of single parents are mothers and 30.3 percent of all single parents receive public assistance.


Child care subsidies and public health insurance can help with closing the gap between low income and what it takes to make ends meet. Not all low-income families receive the benefits for which they are financially eligible. Families who receive multiple work supports can lose assistance before they reach self-sufficiency. Single parents often struggle with buying basic necessities and paying bills and usually live paycheck to paycheck. Single parents often do not have any savings and are in debt. Here are 10 easy ways for single parents to save money:



1. Buy a Used Car. Buy or trade in your current car for a used car with a cheaper note. This will either eliminate your car note or save you $50 to $200 a month on your car payment.

2. Use Coupons. Buy whatever items are on sale or buy items with coupons. This can save you $50 to $300 a month. There have been instances where shoppers had a total bill of $200 and ended up paying $5 using coupons and buying items on sale.

3. Buy Generic. Buy everything generic: household items, clothing, prescriptions, toiletries, dry goods, canned goods, paper products, etc. This will save you on average $5 to $50 a month.

4. Buy Washable Clothes. Buy clothes that do not require dry cleaning. This will save you on average $50 to $150 a month.

5. Image. Do you own hair and nails and buy your makeup from the drugstore such as CVS or Riteaid. This will save you on average $40 to $100 a month.

6. Gas. Buy regular gas for your car unless the owner's manual suggests otherwise. Find the cheapest gas in your neighborhood to purchase. This will save you on average $.05 to $.20 per gallon.

7. Shop at Discount Stores. Buy household items in bulk such as paper products, cleaning supplies at discount stores such as Target, Walmart, Costco, etc. This will save you on average $5 to $50 a month.

8. Reduce expenses. Reduce or cancel your cable plan, cell phone or internet service or get the cheapest plan available. This can save you $20 to $100 a month.

9. Buy groceries at superstores. Buy your groceries at superstores or wholesale stores such as Walmart, Costco, Sam's Club, etc. Buy nuts, grains, spices, legumes at wholesale or health food stores. This will save you $30 to $200 a month on processing costs charged at regular grocery stores.

10. Fun with Kids. Check your local library or newspaper to find free activities that you can do to with your kids. This can save anywhere from $5-$100 a month.


Copyright © 2007 H.E. Freeman Enterprises

My Book Expo America Experience

I just wanted to share with everyone my experience at Book Expo America. My first day there in New York NY on May 31, 2007 I attended a luncheon where I met Blair Underwood and got an autographed copy of his new book Casanegra. Later that evening I had the privilege of meeting and taking pictures with the supermodel Alek, Randall Cunningham and Walter Mosley. I also met Zane and talked with Lynnette Khalfani, author of Zero Debt and Zero Debt for College Grads. I also received advance copies of several books and releases of new books not yet on the market.

June 1, 2007 was the highlight of my trip. I caught up with my dear friend Heather Covington, NAACP Image Award Finalist for Literary Divas: The Top 100+ Most Admired African American Women in Literature. I had the pleasure of meeting Tony and Yvonne Rose owners of Amber Communications Publishing Company, Troy Johnson, Founder of AALBC, Dante Lee founder of blacknews.com, blackpr.com and blackstudents.com, Bernadette Standis, Thelma on Good Times and author of Situations 101. I also did a book signing and gave lots of good advice on how to repair your credit and get out of debt.

On June 2, 2007, I did a book signing and had the privilege of taking pictures of many legends in the African American publishing industry such as Tony Rose, Habi Madhubuti, Max Rodriguez Founder of QBR, Vickie Stringer owner of Triple Crown Publications, Relentless Aaron, Candice Dow, LL Cool J, Joel Freeman of the Freeman Institute, Zane and many more. In addition I met hundreds of other wonderful authors, journalists and publishers. I also had the privilege of doing a book signing and was able to give away all the books and promotional materials I brought with me. It was truly and great experience.

If you are an author I encourage you to attend Book Expo America. It is a great experience and one of the best networking events I have ever attended. I can't wait for next year. Hope to see you there!

http://www.bookexpoamerica.com

Support HR2269 to help cut college costs on 7/12/2007

Call Your Representative to Ask for a Yes Vote on HR 2669

Thursday morning July 12, 2007, the United States House of Representatives will vote on HR 2669, the College Cost Reduction Act of 2007.



Among other things, this legislation will cut interest rates on subsidized student loans in half over the next five years, limit the percentage of income students spend repaying loans, and expand both the eligibility and size of the Pell Grant program. These reforms make the College Cost Reduction Act of 2007 the single largest investment in higher education since the GI bill.

Help turn HR 2669 into Law: Call the House Today
www.yda.org/callthehouse

Already, thousands of Young Democrats have responded to our call to write letters to Washington asking for college affordability reforms. Now, as this vote hits the floor in the House, we need to add your voice (yup your actual voice) to our lobbying efforts.



Large private lenders and their Republican supporters will stop at nothing to kill this type of college affordability reform. Only with your help, and the help of your friends, can we ensure financial aid actually benefits students and families instead of corporations.



Please take the time to visit yda.org/callthehouse to learn more about HR 2669 and to call your member of Congress. The momentum coming out of a resounding victory on this legislation in the House will help ensure its passage in the Senate and send a message to the President that he must sign it into law.

Call the House Today: Support HR 2669

2.3 Million Consumer Financial Records Stolen

MSNBC.com

--------------------------------------------------------------------------------
2.3 million consumer financial records stolen
Former Fidelity National Information Services broker sold information
Updated: 10:29 a.m. ET July 3, 2007
JACKSONVILLE, Fla. - Fidelity National Information Services, a financial processing company, said Tuesday a worker at one of its subsidiaries stole 2.3 million consumer records containing credit card, bank account and other personal information.

The employee sold the information to an unidentified data broker who sold it to several direct marketing companies, but the data were not used in identity theft or other fraudulent financial activity, Fidelity said in a statement.

About 2.2 million records stolen from Certegy Check Services Inc. contained bank account information and 99,000 contained credit card information, Fidelity said.

“As a result of this apparent theft, the consumers affected received marketing solicitations from the companies that bought the data,” said Renz Nichols, president of St. Petersburg-based Certegy.

Fidelity said Certegy had asked a court in St. Petersburg to retrieve all the information from the employee and the marketing companies and to stop its use. It also said Certegy has contacted law enforcement officials.

Certegy will notify all affected consumers of the theft and has contacted major credit agencies, Fidelity said.

The employee, whose name was not released, was fired.


Taken from MSNBC