8 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. 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.

As a single parent you have to cover all the household expenses and when a financial crisis occurs it can be devastating to your family. Develop a support system to help you through this difficult time and develop a plan to reduce your expenses to pay off debts and pay for basic necessities. Here are 8 ways for single parents to save money:

1. Downsize. 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. Buy Generic. Buy everything generic: household items, clothing, prescriptions, toiletries, dry goods, canned goods, paper products, etc. This will save you on average $10 to $50 a month.

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

4. Personal Care. Do you own hair and nails and buy your makeup from the drugstore such as CVS or Riteaid. Watch, style and cut your child's hair. This will save you on average $40 to $100 a month.

5. 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 $10 to $50 a month.

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

7. 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.

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

5 Tips When Dating During a Financial Crisis

The recession has impacted several areas of American life. It has caused families to spend less money, downsize or downgrade their lifestyle, generate multiple streams of income and be more accountable with their spending including money spent on entertainment. Many sources say dating is recession proof but only for those who have lived below their means. For those who still continue to live off of their credit cards or live above their means dating has changed. Many daters are making cutbacks in their dating life when spending money on their dates.

Men who spend lots of money on their dates have been forced to rethink their approach to win a woman's heart. Money is not a measure of love and one should not fall in love with someone because of the things they can get or because of the lifestyle they can live.

Men have made cutbacks when dating due to the recession. Some men no longer offer kind gestures of sending a dozen roses on a frequent basis or offer to go to dinner a movie. You may just get movie or dinner but probably not at a fancy restaurant. Men have begun to be more creative in how to save money or show their dates they are interested. Instead of going out to eat a man may suggest cooking dinner at his house, or having lunch in a park. Unfortunately some men how gone too far and have no idea what it means to be a gentleman and be frugal.

I was talking to a friend recently who told me that she met a guy online and he stated he didn't want to waste time by chatting on email and really wanted to meet her. At first she was flattered until her date said he wanted to meet her (for the first time) in the parking lot at a neighborhood Safeway grocery store later that night. My friend was speechless. Needless to say she didn't go out on a date with that guy but that is an example of how some men make poor decisions when making cutbacks on dating during a financial crisis.

Here are 5 tips to follow when dating during a recession or other financial crisis:
1. Be honest

2. Don't change plans you made with your date on the way to pick her up discuss plan changes prior to meeting

3. If you suspect your date feels uncomfortable or is short on cash offer to split the bill. Sometimes men are afraid to admit they are having financial problems.

4. If you don't have money or your funds are limited due to the recession be honest with your date, she will understand but don't mislead her by saying you want to take her out and met her at a grocery store, parking lot or hotel. If you tell her you want to see her be specific about where you want to meet, i.e. at her house, at your house, a Starbucks, bookstore, park, etc.

5. If you are running late call before the time you were supposed to arrive or meet to let your date know and inform your date the time you will arrive.

8 Check Fraud Prevention Tips

The internet has allowed for an increase in identity theft and has resulted in many crimes being conducted on unsuspecting victims. The average number of fraudulent checks written daily is approximately 1.4 million or $27.3 million worth of fraudulent checks written everyday. According American Bankers Association Deposit Account Fraud Survey Report in 2006, attempted check fraud at banks was estimated at $12.2 billion.

There are many types of check fraud that occur every year. One such crime is check fraud. Check fraud includes check theft, check washing, counterfeit checks, and taking over a someone's checking account.

Check washing is a crime where thieves erase the ink on a check with chemicals usually found in common household cleaning products. The victim's check information is erased chemically or electronically which allows a thief to rewrite the amount of the check and the name of the payee. Check washing is very successful because many banks accept the check at face value due to the legitimacy of the signature.

A valid check is prepared for check washing by placing a protective seal over the signature line usually using a low adhesive tape or sticker. The check is held with tongs and placed in a pan usually containing acetone (nail polish remover), paint thinner or bleach. The solution dissolves standard ballpoint pen ink. Once the ink has dissolved completely from the check it is hung up to air dry. Here are 8 tips to reduce your checks from being check washed.

1. Don't leave outgoing mail in an unlocked mailbox especially on holidays and the weekends. Drop off outgoing mail in a regularly visited collection box or take it directly to the post office.

2. Don't leave post office boxes full, empty them frequently especially on the weekends.

3. Pick up newly ordered checks directly from your bank or have them delivered by postal mail.

4. Shred canceled checks.

5. Check bank statements immediately after receiving them.

6. Print a return address on all outgoing mail that contains a check. A forged signature can be traced.

7. Do not leave blank spaces on the payee or amount lines.

8. Use a blank water-based or gel pen. Use gel pens when writing checks to pay bills.

Upcoming Events

Visit me at these upcoming events.

September 2009
September 15, 2009, Interview with News Channel 8, Washington, DC, noon, news8.net
September 19, 2009, Panelist, Wisdom, Wealth and Wellness Program, Reginald Lewis Museum, 830 East Pratt Street, Baltimore, MD, 9:00-3:00pm
September 20, 2009, Montgomery County Financial Fair, Silver Spring, 12-3pm
September 25, 2009, Booksiging, Walden Books, CNN Center, One CNN Center, Atlanta, GA 2-4pm

October 2009
October 5-6, 2009, Financial Literacy Forum, Washington, DC, 8am-noon
October 21, 2009, Financial Seminar, Thurgood Marshall Center, Washington, DC, 7-9pm
October 28, 2009, National Savings Forum, Washington, DC, noon-3pm

Another Option for Money - Peer to Peer

Due to the recession many Americans are searching for various ways to get extra money to make ends meet, get out of debt, or buy items that they need or want. Many Americans now have bad credit because they got behind on their bills due to sickness, unemployment, reduction in hours or living above their means. Unfortunately because of their bad credit they can no longer go to traditional banks and get a loan or get approved for credit. Another option is peer to peer lending, social lending or person to person lending. Borrowers and lenders transact business without using a traditional bank over the internet.

Peer to peer loans can be obtained from several companies such as: Prosper (formerly Circle One), Zopa, Virgin Money, Lending Club that is available on Facebook, eBay's Microplace that provides (loans to people in other countries and PeerMint that provides loan to people in Canada, Australia and New Zealand.

They offer products similar to banks such as: are real estate loans, personal loans, business loans, debt consolidation, loans to pay off credit card debt and more. The average loan amount approved is $7,000. The lenders make money on loan origination fees instead of interest payments so they constantly need repeat or new users. Americans make 6 million peer to peer loans a year.

Loans are based on collateral, credit score and personal assets. Owning property and having equity in a property can be used as collateral for a loan. Your credit score has to be at least 620. Your chances of approval are also better if you have some money in the bank. If you default on the loan you lose your equity and/or your money in the bank.

There are two main types of lending models used: marketplace and the family or friend model. The marketplace model enables lenders to located borrowers and vice-versa. This model connects borrowers with lenders where the lender that is willing to provide the lowest interest rate wins the borrower's loan. The family and friend model is based on borrowers and lenders who already have a business relationship or business co-workers who formalize a personal loan.

Many of the sites password protect their data and are PCI compliant. If a lender suspects that one of their loans belongs to a person who has committed ID theft, they will work with law enforcement authorities to track down and prosecute anyone who has committed identity theft. However, there are risks to the lenders and borrowers both in terms of loan defaults and fraud.

Hope for Job Seekers

A credit score or FICO score developed by the Fair Isaac Company is used to determine if a consumer will pay their bills on time. It is using by most business when considering approval for a loan, credit card or service provided. A credit score is calculated using five main factors. Payment history accounts for 35% of your credit score, the total amount of debt owed accounts for 30%, the length of credit history (how long you have had credit) accounts for 15%, new credit (if you have opened any new accounts within the past 24 months) accounts for 10% and types of credit (revolving or installment) accounts for 10%.

Many employers use credit scores as a factor in hiring applicants but must have the applicant's permission before pulling their credit report and/or credit score. If you have bad credit you may not be hired for a job or may lose your job after being hired. In many cases potential applicants have bad credit due to a layoff, illness, medical bills or unfortunate circumstances but does not necessarily mean they can be bribed or will not be honest hard-working employee on a job.

For those of you who feel that using your credit as a factor in hiring is unfair you will be happy to know that Wisconsin State representative Kim Hixson recently authored a bill to have credit scores added to the list of discriminatory assessments in addition to race, gender, age, and disability which is prohibited under the Equal Employment Opportunity Act of 1972.

The bill called Assembly Bill 367 would remove individual credit history as a factor in hiring unless it was related to the job for which the applicant applied such as those who seek employment in the financial industries.

Contact your state representative and ask them to support representative Hixson's Assembly Bill 367. This will be one less thing for job seekers to worry about.

A Victory for Mortgage Borrowers

Many Americans shopping for a home experience obstacles such as: lenders or mortgage companies losing paperwork, administrative delays, unexpected errors on credit reports, unexpected fees and settlements costs, predatory lending, and unethical and deceptive practices. Buying a home is one of the most frustrating, scary and stressful processes in life. As the saying goes "only the strong survive" and only the strong are able to handle the pressure that is felt when trying to purchase a home.

The amount of paperwork provided to potential homeowners at settlement ranges on average from 30-70 pages of documents that must be read and signed. Although many homeowners neglect to read the paperwork which can hurt them in the future. Even if you take the time to read the paperwork, all of the technical jargon used is difficult to understand and it takes a lawyer to help you decipher the jargon.

Well, help is here. The Federal Reserve board implemented new rules that prohibit deceptive lending practices involving loans that are made on or after October 1, 2009 but unfortunately does not help those who were misled during the past two years.

The new rules require that disclosures must be provided in a timely manner, ensuring accurate appraisals are provided which will prevent a potential homeowner from borrowing too much money or overpaying for a home, handling of loan payments in a timely manner to prevent unnecessary late fees (in some instances borrowers are charged late fees although their payments were received on time), and inform borrowers about deducting late payment fees from their monthly mortgage payment.

Lenders will continue to be required to provide early disclosures to borrowers for loans to purchase a primary residence but will also have to provide early disclosures for refinances and home equity loans.
Additional protections include protecting subprime loan borrowers from receiving expensive mortgages by ensuring early disclosures of mortgage terms and costs and to verify the borrower's income, assets and other debts when offering a subprime loan.

A minimum of seven business days must pass between when a lender delivers the early disclosures to a borrower and closing. The borrower must receive a corrected disclosure at least three business days before the loan closing if the Annual Percentage Rate (APR) increases by a certain amount above what was previously disclosed to the borrower.

Starting October 1, 2009, Federal rules will ban several deceptive or misleading advertising practices. The rule prohibits any advertisement from indicating that a rate or payment is "fixed" when it can change. The new rule also requires advertisements to show all interest rates or payment amounts with equal spacing and in close proximity to any low promotional rate or payment.

Starting January 1, 2010, the Department of Housing and Urban Development (HUD) will require lenders and mortgage brokers to use the same form to provide good faith estimates of settlement costs and disclosures. It will also include changes to HUD's Uniform Settlement Statement (HUD-1 form) that will make it easier for borrowers to compare estimated costs to actual costs. HUD's rules will limit how much actual costs can increase above the estimates and hopes the new rules will each homeowner approximately $700 at closing.

Cash for Clunkers for Babies

The "Cash for Clunkers" Program developed by the Obama administration temporarily increased sales for auto dealers by pouring 3 billion dollars into the program. It was such a hit other industries are copying the idea. If you are thinking of having a baby or have one on the way, Toys "R" Us has stated a "Cash for Cribs" program which began on August 28, 2009 and ends on September 20, 2009. The program is available at all and Toys "R" Us and Babies "R" Us stores in the U.S.

According to Consumer Reports the average cost of a baby crib ranges from $100-$450+, the average cost of a stroller ranges from $50-$700, the average cost of a car seat ranges from $30-$300, the average cost of a high chair ranges from $70-$250+. Purchasing just these items for a newborn can add up to $1,700 and bout would cost you $1,020 after using the program. If you can save money on these items why not. Many studies report that buying used baby items and furniture are a risk and used items are not as stable as new items and can cause injury to a newborn baby.

The "Cash for Cribs" program applies to cribs, strollers, car seats, high chairs, bassinets, travel systems, and play yards. All you have to do is trade in a used item and you receive 20% off on any new purchase of baby item on the store's list (only certain items qualify for the discount). Currently there appears to be no limit on how many items you can trade in. Several manufacturers are participating in the program.

Also, less than 30% of all recalled products are turned in. This is a great way for consumers to turn in recalled items or trade in used items. Visit the Consumer Product and Safety Commission website for more information on product recalls and how to sign up for email alerts.

What Ben Bernanke and I Have in Common

Ben Bernanke and I have one thing in common; we were both victims of identity theft. His wife's purse was stolen last August which contained her checkbook, id and credit card and social security card. My purse was stolen last month and contained my driver's license, credit card, checkcard, checkbook and health insurance card. If the Federal Reserve Chairman was a victim of identity theft, what hope is there for the rest of us?

As a personal finance expert and financial planner I did everything I was supposed to do to protect myself from being a victim of identity theft. I checked my balances on a weekly sometimes daily basis; I verified my receipts with my monthly bank statements; I immediately called my bank when I found an error; paid cash for most items; only shopped at one website for online shopping; shred all my personal financial information; checked my credit report twice a year; did not sign up for recurring bill payments or automatic payment deduction, and did not sign up for online banking. Unfortunately with all of that I still became a victim. What does a customer do when they play by the rules and their bank turns against them?

Due to the recession, I thought surely banks are most concerned about keeping their existing customers and would be more willing to provide exceptional customer service. Boy was I wrong! I trusted my bank which shall remain nameless. I had been a customer since 1994 and stuck with them through hundreds of management changes, mergers, etc. I followed all of their guidelines for opening and maintaining my bank accounts which consisted of one personal checking and one business checking account.

However, when I became a victim of identity theft, all of that didn't matter, instead my bank treated me like a second class citizen, like they were not concerned, I should just suck it up and deal with it. I was in shock and appalled at the poor customer service I received. I called my bank for 3 weeks trying to get the stolen money credited bank to my account which was caused by a teller who ignored my account restriction and ignored bank policies for dealing with identity theft victims. The teller processed fraudulent checks on my account which prevented me from accessing the money in my account; I was unable to write checks to pay my bills which by this time were all late including my mortgage.

I had a separate online savings account which was linked to my checking account. I took money out of that account but had to wait several days to receive a check in the mail. I had to get money orders to pay all of my bills. I had other accounts at my local credit union but rarely used those accounts and had to reactivate those account. All of these things take time. Unfortunately my bills collector didn't want to hear that. In the past 13 years I have never paid my bills late except on a few rare occasions due to traveling. My bills are usually paid on time or before the due date.

After calling the President's Office of the bank I was finally able to get the money credited back to my account. I spoke with an executive assistant and began asking questions and she started getting a little snippy with me. Here I thought she would be really pleasant and would want to help me. Needless to say, the President's Office was not happy that a customer had called their office to complain and by 4pm that day I received a call from the Loss Management Department to inform me that the money was credited back to my account effective that day and the caller asked me what else I needed them to do. By this time I had already begun to file complaints against the bank with every state and federal agencies possible. I called my local news station, informed all my friends and associates, filed a complaint with the FTC, BBB and other agencies.


Here are 10 tips to follow if you are a victim of identity theft:
1. Contact your bank as soon as you become aware of the identity theft. You only have a limited amount of time to report the incident.

2. Immediately fill a police report. This will be helpful when contacting the credit bureaus, Experian, Equifax and TransUnion as well as when contacting all companies you do business with as proof of your claim of identity theft.

3. Place a fraud alert on your Experian, Equifax and TransUnion credit reports.

4. File a complaint with the Better Business Bureau, Federal Trade Commission, your state's Consumer Affairs or Attorney General's Office. If your complaint is against a particular bank branch fill a complaint with the FDIC and your state's banking authority.

5. If you SSN was stolen or comprised, contact the Social Security Administration to put a fraud alert on your SSN. Also, place an alert on your driver's license.

6. File a postal alert with the post office which can be online.

7. If you are a victim of check fraud, don't take no for an answer from your bank, demand that your bank credit the money back to your account within 24 hours. They can offer what is called a "provisional credit" until their investigation is complete. Ask to speak to a supervisor if you cannot get your requests resolved. Continue up the chain until you reach someone who will help you. If that fails write a letter to the President of your bank.

8. Reduce the usage of online banking, pay for more items with cash and use your debit/checkcard less often. It is easier to get money credited back to your account when using a credit card than when using a debit/checkcard.

9. Request a copy of the investigation findings from the police department and your bank.

I used to be a big proponent of opening a savings and/or checking account. I truly better that it was better to have your money in a bank than at home in a shoe box. I am starting to rethink that belief.

Common Budget Questions Answered

What's the most important thing you need to know about creating a budget?

Make your budget flexible. Some people make their budget too rigid and find it difficult to follow. Adding some wiggle room in your budget will make it easier to follow and make it easier to include savings in your budget and other financial goals, i.e. retirement planning, 529 plan, etc.

What are 3 tips for getting your budget back on track?

1. Write down the 3 reasons why you did not stick to your budget. Examining the reasons why you didn't stick to your budget will help you to resolve those issues and make it easier to begin using a budget.

2. Create a daily or weekly budget, get a receipt for everything you spend money on and log your receipts in your budget. You can use pen or paper or a software tool such as Quicken or Microsoft Money. You can keep all of your receipts in a shoebox, a plastic bag, and an envelope or desk drawer. This will help you to see quickly where your money is being spent and if you are spending too much money in one particular area, i.e. clothing, eating out, etc.

3. Use automatic paycheck deduction or free online bill payment to pay your bills. Using online bill payment helps you keep an accurate record of your spending. It can also help you to buy more needs (necessary items – food, non-designer clothing, shelter) instead of wants. It makes it easier to stick to a budget by using online bill payment or paycheck deduction because it you can't see the money it makes it less tempting to spend it.

What is one reason people don't stick to their budget?

A common reason people do not stick to their budgets is many people create a budget or spending plan but after a few weeks or a few months stop following it because you have to first admit that you need to change your spending habits. Having a budget requires discipline and provides accountability.

Safe Banks in 2009

A total of over 77 banks have closed in 2009 and counting. According to Dick (Richard Bove), a financial analyst for Rochdale Securities who has been the securities business since 1965 another 150 to 200 banks fail. In 2008, he was ranked by Zacks as the top financial analyst in the country.

He created a list called Bove's List which I talked about in my blog on July 20, 2008 entitled, "Check to See if Your Bank is on Bove's List". Some of the banks listed in his March 2008 report have closed or are still in financial trouble. Bove has identified 8 banks that he likes. The banks are: Bank of NY Mellon, Northern Trust, State Street, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JP Chase Morgan.

As a comparison, in 1987, the FDIC listed 1,575 problem banks and more than 10% of the banks were on the FDIC problem list. In 1987, 184 banks failed. The FDIC reports that number of troubled banks 252, soared during the fourth quarter of 2008 to the highest level since 1994.

BankUnited FSB is the largest bank failure in 2009 in terms of the percentage loss on failed bank’s assets. The two previous largest bank failures in the history of banking, in terms of loss to the FDIC, were Indy Mac Bank in July 2008 and American S&L in September 1988.

According to a Global Finance banks across the world were ranked. In the study 50 of the world's safest banks are identified. One bank in the US was listed in the top 20, Bank of NY Mellon (BK). Wells Fargo was also listed in the top 50 and in another report was listed as the best consumer internet bank. Other banks listed in the top 50 safest banks were US Bancorp and BB&T.

Here are 4 tips to help you research your bank's health.

1. If you bank has closed check the FDIC website to see if it is FDIC insured.

2. Move at least some of your money to a credit union or a smaller bank or banks such as PNC or BB&T that did not invest in the sub-prime mortgage loans.

3. Do research on your current banks and look at the earnings over the past two to three years as well as the number of branches that have closed.

4. Put your money in more than one bank. As your grandmother used to say "never leave all your eggs in one basket."

The following banks closed in 2009.

Guaranty Bank

CapitalSouth Bank

First Coweta Bank

ebank

Community Bank of Nevada

Community Bank of Arizona

Union Bank, National Association

Colonial Bank

Dwelling House Savings and Loan Association

Community First Bank

Community National Bank of Sarasota County

First State Bank

Mutual Bank

First BankAmericano

Peoples Community Bank

Integrity Bank

First State Bank of Altus

Security Bank of Jones County

Security Bank of Houston County

Security Bank of Bibb County

Security Bank of North Metro

Security Bank of North Fulton

Security Bank of Gwinnett County

Waterford Village Bank

Temecula Valley Bank

Vineyard Bank

BankFirst

First Piedmont Bank

Bank of Wyoming

Founders Bank

Millennium State Bank of Texas

First National Bank of Danville

Elizabeth State Bank

Rock River Bank

First State Bank of Winchester

John Warner Bank

Mirae Bank

MetroPacific Bank

Horizon Bank

Neighborhood Community Bank

Community Bank of West Georgia

First National Bank of Anthony

Cooperative Bank

Southern Community Bank

Bank of Lincolnwood

Citizens National Bank

Strategic Capital Bank

BankUnited, FSB

Westsound Bank

America West Bank

Citizens Community Bank

Silverton Bank, NA

First Bank of Idaho

First Bank of Beverly Hills

Michigan Heritage Bank

American Southern Bank

Great Basin Bank of Nevada

American Sterling Bank

New Frontier Bank

Cape Fear Bank

Omni National Bank

TeamBank, NA

Colorado National Bank

FirstCity Bank

Freedom Bank of Georgia

Security Savings Bank

Heritage Community Bank

Silver Falls Bank

Pinnacle Bank of Oregon

Corn Belt Bank & Trust Co.

Riverside Bank of the Gulf Coast

Sherman County Bank

County Bank

Alliance Bank

FirstBank Financial Services

Ocala National Bank

Suburban FSB

MagnetBank

1st Centennial Bank

Bank of Clark County

National Bank of Commerce

Another Option for Phone Service

According to White Fence Index, the average monthly landline phone bill ranges from $19.99 to $42.14 per month which equates to $239.88 to $505.68 a year. The national average for phone service is $31.80 per month. Many families spend thousands of dollars a year on utilities such as phone service.

You should always compare services with different companies to see which has the best options for you or your family. The top phone providers such as Verizon, AT&T, Comcast and Skype will now have some competition from Google. Google offers a free phone service called Google Voice which is only available by invite. This is a great way to save on phone service. You can subscribe by completing an online form and an invitation is sent to your email address.

Some of the features of Google voice are:

1. You can get a phone number that routes calls to your cell phone, work phone and home phone simultaneously.
2. You can call anywhere in the U.S. for free and international calls have very low rates.
3. You can get your voicemail transcribed into email or text messages.
4. You can make free conference calls which is helpful when making personal or business calls.
5. You can get voicemail on the internet.

Some additional features are: call record, 411 directory assistance, notifications, personal greetings, call screening, call block, distinct phone rings and call forwarding. The service works by calling your voicemail and you are then transferred to a dial tone where you can call any number in the U.S.

Here are 4 tips to help when comparison shopping for phone service:

1. Call your phone company and bundle services such as: internet, voice and phone.
2. Call your phone company every two to three months and ask about special or discounts they offer to reduce your monthly bill.
3. Read the terms and conditions, agreements and all information regarding the phone service you are considering.
4. Get tough and threaten to cancel your phone service if you are not happy with the service you are receiving and feel you deserve a better deal for being a long-time loyal customer.

An Easy Way to Receive Medical Services

Medical bills are one of the main reasons Americans file for bankruptcy. Many Americans opt out of buying health insurance due to the high premiums and co-payments. This can have a ripple effect on individuals and families.

Americans who do not have health insurance are generally not in good health, don't have a retirement account or disability insurance and can never afford to take off work to go for a doctor's visit. The U.S. spends the most on healthcare than any other country yet Americans are the most unhealthy people in the world. Forty-six million Americans are uninsured and this number continues to grow as the unemployment rate continues to soar.

Many Americans struggle for years trying to pay off high cost medical debt due to lack of health insurance or inadequate health insurance coverage. When a patient has health insurance there is a set limit that hospitals, doctors and other medical professionals can charge for services. Without medical insurance, a patient can be charged a higher amount for services and in some cases are charged multiple times for the same services.

If you do not have health insurance always ask for an itemized list of the services you received and make sure there are no duplicates. When you have health insurance many errors made in medical bills are caught by your health insurance provider and corrected before any remaining costs are submitted to the patient. Having health insurance also reduces the chances of patients receiving medical billing errors.

A unique way to pay back medical bills is to barter services. An increase in bartering for health care services has dramatically increased since the beginning of the recession. One company, ITEX Corp. has 24,000 members and promote approximately $1 million a month in health care bartering. Patients can exchange medical good and services for barter dollars but is usually limited to specific medical industries like dental or smaller doctor practices. These dollars can be used to pay for health care costs by a provider who belongs to the network.

There are approximately 400 exchanges in the United States. The barternews.com site provides listing by state. The networks charge membership and transaction fees. Here are 3 ways to ensure you are using a valid medical service provider when bartering for medical services:

1. Do research. Verify the medical provider is licensed.

2. Verify the agreement. Verify the agreement you establish with the medical provider in writing and make sure you understand the terms of the agreement.

3. Give back. Refer your medical provider to others on the network or by word of mouth to friends, relatives and co-workers, this can help you negotiate future services needed by the same medical provider.

5 Easy Ways to Protect Yourself from Mortgage Fraud

In 2008, mortgage fraud cost homeowners approximately $2.5 billion. According to the IRS, in 2008, there were 349 real estate fraud cases investigated and 136 convictions. There have been 2,268,108 foreclosures this year and counting. Over 360,000 foreclosures occurred in the month of July. Approximately 618,217 people have filed for bankruptcy so far this year.

Lawmakers are tyring to change the mortgage buying process to make it easier for homebuyers to understand the process and reduce fraud and corruption in the industry. Well, it's about time! The process would be revamped by the proposed new consumer protection agency called Consumer Financial Protection Agency.

Some of the things that would be eliminated are the use of fine print and the thousands of papers to read and sign. This would provide complete visibility for homebuyers into the mortgage process and ensure that homeowners purchase homes with no hidden fees, gimmicks or mortgages that they can't afford. Other things that would be eliminated under the revamped process are: complex mortgages that make mortgage companies the most money would be offered last, simpler less expensive mortgage would be offered to potential homebuyers first; prepayment penalties would be banned or restricted; mortgage brokers will be held accountable for accurately determining if a homeowner can afford to purchase a home; and better disclosures which includes identification of all fees associated with a mortgage loan.

This also sounds good but there is always a catch. Home buyers might have to pay more for their mortgage to ensure that mortgage companies don't lose any money by changing their processes. Previous proposals by some members of Congress for one-page mortgage forms have not been successful.

If you would like to see a change to the mortgage process contact your state congressman and depend easier, fairer mortgage loan processes. Here are 5 ways to protect yourself from mortgage fraud:

1. Go with your gut. Go with your gut instinct, if you feel like the deal is too good to be true or if you feel like something is not right with the loan, don't sign it.

2. Ask questions. Ask lots of questions; have everything explained to you prior or during settlement.

3. You can change your mind. If you sign the settlement papers and feel like you made a bad decision, you have 3 days to notify the mortgage company that you wish to cancel the loan.

4. Do research. Do lots of research on the home buying process before you go to settlement so that you are an educated homebuyer which also minimizes chances of fraud during your settlement. Visit the hud.gov website for great tips on the home buying process.

5. Take your time. This is one of the most important decisions of your life. Don't rush through the process. Don't let your emotions cause you to make a bad decision. Talk to family or friends who have bought a home and get advice which will help you learn from them their mistakes.

Should You Help A Relative

Due to the recession many Americans have exhausted all formal resources to borrow money and are looking to relatives for a bailout. Some relatives are able to help out my loaning money to needy families. The probability of a relative being able to pay back the money they borrowed from you is a lot lower than the probability that they will ask you for money again so decide if you want to be their personal bank or if you want to make them stand on their own two feet.

Here are some questions to consider before loaning money to a relative:
1. Decide if it will be a loan or a gift
2. Will you charge interest?
3. What are the consequences if they don't pay the money back?
4. Will the loan you give put your relative in a financial bid?
5. Is the loan for a legitimate reason?

Here are 11 tips when loaning money to relatives.

1. Keep your head above water. Don't go further into debt to help a relative, not even your mother. If you go into debt and lose your job, your mother can no longer get help and may are jobless and in mounds of debt with no one to help you

2. Ration out help. You can occasionally help relatives for emergency purposes but don't make it a habit because you will only hinder them instead of help them. Give a man a fish and he eats for a day, teach a man to fish and he eats for a lifetime.

3. Give advice. Give advice on how you got out of a financial crisis and become financially stable. Encourage them to develop better spending habits or seeking professional help.

4. Don't be a sucker. Don't fall for the tears, sobs and emotional pleas for help for relatives who do not manage their money wisely.

5. Ask for the address. If a relative asks for money to pay a bill and you want to help, ask them to give you the bill and you can send the money to pay the bill. If they refuse, they you know they wanted the money for something frivolous and didn't really need help.

6. Agree with your spouse. Work with your spouse to discuss the situation. If it is her family, then be sensitive to her needs. Take a stand. If your spouse advises you not to help a his/her relative listen to your spouse. They know their relatives better than you do.

7. Don't co-sign for relatives. You can’t control how other people spend their money. If they don't pay the bill, you are responsible for the debt and risk the chance of ruining your credit.

8. Direct them to social programs. Tell your relatives to seek help from their local church, American Red Cross. Visit www.bailafamilyout.com.

9. Assume you won't get the money back. Always assume that you won't get the money back. If makes it easier to loan the money.

10. Draw up a loan agreement. You can have your relatives sign a contract if you want to feel better about ensuring you will get your money back.

11. Consider other relatives. If you loan money to a relative and your other relatives find out they will want a loan too, be prepared to deal with the backlash if you don't lend money to all your relatives who ask for a loan.

Upcoming Events

If you live in any of the areas stop by to say hello. Visit my website hefreemanenterprises.com/events.html for more up-to-date information on upcoming events.

August 2009
August 17, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am
August 29, 2009, Booksigning, Urban Knowledge, Security Square Mall, 6901 Security Blvd., Baltimore, MD, 3-5pm
August 31, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am

September 2009
September 12, 2009, Booksigning, Borders, 921A Capital Center Boulevard, Largo, MD, 4-6pm
September 14, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am
September 19, 2009, Panelist, Wisdom, Wealth and Wellness Program, Reginald Lewis Museum, Baltimore, MD

Is Your Car a Clunker

The Cash for Clunkers, Clunkers or the official name Cash Allowance Rebate System (CARS) program was signed by President Obama in June and began on July 27, 2009. Vehicles purchased after July 1, 2009 are eligible for refund vouchers worth $3,500 to $4,500 on traded-in cars with a fuel economy rating of 18 miles per gallon or less (fuel-efficient). The program will expire on Nov. 1, 2009.

Details of the program were mapped out by the National Highway Traffic Safety Administration (NHTSA). Unfortunately, interest in the Clunkers program peaked on July 29, 2009, and demand has stalled according to a report from Edmunds.com. The report which discussed internet shopping data said if current trends continue auto purchases will fall back to pre-Cash for Clunker levels by August 20, 2009. The report also predicted auto sales will improve over the summer as customers shop for bargains before the new car models hit the showroom.

Many people are show interest in purchasing a new car but do not qualify for the rebates which are affecting car sales. The White House hopes the rebates will increase vehicle sales which are down 3-6 million from 2007 and 2008 sales.

Approximately 16,000 auto dealers signed up to participate in the program. A government hotline was setup and has handled over 45,000 calls from people seeking information. A website for the program http://www.cashforclunkers.com/index.htm has registered 1.5 million hits since August 7, 2009.

Some dealers said junkyards in their area are not prepared to handle the inventory of older cars expected to be scrapped. Other dealers said the 136-page instruction manual provided by the government is confusing. Some car buyers have been disappointed that their cars don't qualify for the program.

Reduce Spending or Downsize

Due to the recession many people have been forced to or voluntarily made adjustments to their lifestyle due to loss of income, unemployment, reduced hours, reduced benefits, etc. However, many others are still struggling with making changes to their lifestyle. Many Americans are stubborn and want a different result but refuse to make the necessary sacrifices required to survive the recession.

If you don't much money left over after you get paid you may need to reduce expenses and spending. Everyone should reduce spending no matter what your situation to ensure you live well below your means so that if a financial crisis occurs you can overcome it without having to make drastic changes.

It is better to reduce spending because it is much easier to scale back by making small adjustments to your life than to make drastic changes. People are better able to adjust to small changes than having to make drastic changes to their lifestyles.

You don't have to sacrifice quality just because you reduced spending. There are many discount and outlets stores that sell the same things that department stores sell at a much lower price. Also, you can shop at discount or wholesale stores to purchase groceries instead of the regular grocery stores. This can save you tons of money and you can still enjoy the same quality of life.

You should downsize:
1) if you were previously a two-income household and you are now a one-income and you have been unemployed for 2 months or more

2)if you are behind 2 months or more on your mortgage, car payment, utilities

3)if you owe late fees on all of your credit cards

4) if you owe so much in late fees or over-the-limit fees on your credit cards that you will never get caught up by just sending in the minimum monthly payment or are unable to make the minimum monthly payments

You should save at least 10% of your monthly income towards savings. If you are not currently saving you can start by saving at least $1 a day or $1 a week. If you can save more than do so. It may take a while and you may not feel it is worth the effort but after a few months you will have a savings account which helps to provide motivation for you to continue to save.

Put your money in a high interest online savings account and you will earn interest at a faster rate than putting your money in a traditional bank. You can then move your money to more long-term savings products.

5 Back to School Shopping Tips

Buying school supplies for your children to go back to school can be a stressful, anxious and costly task. Children want the latest gadgets and fads their friends have so they don't feel left out and because many can't say no to the peer pressure from their friends. Due to the recession, many stores are having great back to school sales. Take advantage of tax free days in your state to buy school supplies and school clothes for your children. My friend has two children and stated that she would only buy her children a few new outfits for school. Her children would have to suck it up and wear the clothes they wore last year.

Don't let your children pressure you into buying the latest fads or things they don't really need. Stick to your guns and only buy things that they absolutely need for school. This will also save you money. Talk with your children before going school shopping and set expectations. Let them know about your finances and what you are going to buy.

Have your children create a list of supplies that they are mandatory for school. Do an inventory to see if you have any school supplies left over from last year. Determine what clothes your children can still fit comfortably and make a list of things they need. Prioritize the list in three categories: Need Now, Need in 2-4 months, Need in 5-7 months, Need When School Ends. This will also help budget your money and help you find other ways to get supplies for school if you don't have the cash to get everything you need.

Here are 5 tips to save money when shopping for back to school supplies and clothing.

1. Sales: Go to yard sales and dollar stores during to find bargains on school supplies. Shop at wholesale stores like Costo, Walmart, Target, Walgreens or Sam's Club to get great discounts on school supplies.

2. Clothes. You can buy clothes from a thrift store, consignment shop or discount store such as Walmart or Target. Kids grow quickly and their clothes generally don't last or fit them throughout the entire school year. This will save you money and you kids will still remain fashionable. Buy clothes and shoes if possible at least one size too big so your kids can get more wear out of them.

3. Network: Mention to family, friends, co-workers and neighbors that you are going school shopping. They may be able to provide money savings tips for buying school supplies or may have extra supplies they can give to you for free.

4. Comparison Shop: Search the internet for reputable website that sell school supplies at a discount price and purchase items before school starts to get the best deals. Every few minutes of comparison shopping can save you $1-$9. Also shop at stores that honor competitor prices and coupons.

5. Budget: Create a budget for necessary school supplies (pens, paper, pencils, erasers, notebooks, composition notebooks, rulers, compass, etc.) and save some additional money for unexpected school expenses that may pop-up after school starts such as additional supplies need for classes, school trips, additional school supplies, etc.

Be Cautious During This Recession - Don't be a Victim

Crime is at an all time high due to the recession. You have to be even more cautious during these times. Many people who never thought they would be a victim have been robbed.

There is a theft crime that is occurring across the country where criminals scope out a particular area (gas stations, gym, grocery store, mall, etc.) and check cars to see if anything has been left in the car (purse, wallet, bags, clothing, phone, keys, etc.). They also check to see if a woman has left her purse in her car, puts it in the trunk of her car and if a man leaves his wallet in the car, etc.

Here are some tips to protect yourself:

1. Women you should carry your purse with you at all times

2. Do not put your purse on the seat or put your purse on the car floor

3. Lock your doors as soon as you get in the car

4. Lock your doors as soon as you get out of your car

5. Be aware of your surroundings

6. Don't talk to anyone who tries to lure you away from your destination (gas pump, store, etc.)

7. Don't leave your windows down in your car

8. If you are driving with the windows down be aware of your surroundings. Roll up your windows in your car and lock the doors if you are in a bad neighborhood or if you feel uneasy

9. Use your security club on your car ALL THE TIME

10. When you get in your car don't sit and fumble through your purse, make a phone call which sitting in a parked car, etc. Get in your car and drive off to your destination

11. Don't park your car in a secluded area or next to a truck, van or large vehicle.

12. If someone asks you to come over to their car for advise or to tell you something, don't go to their car. Stay near your car or call someone for help if something doesn't feel right.

Is Your Stubbornness Keeping You In Debt

Many people say that they don’t have any extra money to pay down debt and improve their financial situation because they are used to living a certain lifestyle and want to maintain that lifestyle. However, when they record all of their expenses or consult a financial advisor, financial coach or personal finance expert the picture changes.

Many people are in shock about how much money they actually spend and what they spend money on. The first step to overcoming a problem is admitting that you have a problem. The second step is developing a plan to overcome the problem. This is the step where many people have difficulty when it comes to finances because many people are stubborn and don’t want to make any changes.

Many people know they are in debt but don’t want to change their mindset or their lifestyle to do what it takes to improve their situation. Americans as so accustomed to instant gratification and buying on impulse it’s difficult to change that behavior especially when you were not taught about financial literacy in school or by your parents.

You can’t continue doing the same thing day after day expecting a different result. The only way to survive this recession is to make a change. It is a horrible feeling to be in debt, live paycheck to paycheck or be unemployed. I have experienced all of those and I vowed to myself not to be in those situations again or if I was, develop a plan to ease the burden during those difficult financial times.

Here are 5 tips to prevent your stubbornness from keeping you in debt:

Admit. Admit you have a financial crisis. Discuss with your spouse, partner and children about your situation, be honest. Once you admit you have a problem it is much easier to get or solve the problem.

Budget. Create a budget by recording all of your expenses and monthly income. List everything you spend money on during a month including variable expenses such as yearly or quarterly bills. Include monthly debt payments and loans in your budget. If you have 5% of your total income or less left each month you definitely need to adjust your spending.

Reduce. Reduce your expenses to free up extra money. Shop at discount or wholesale stores, get the cheapest cable, cell phone, satellite radio or internet services available or cancel them. Buy groceries in bulk. Shop for clothes at Target, Walmart, thrift stores or discount stores. Turn off lights and electronic devices if you are away from the room more than 20 minutes at a time.

Turn the tv off. If you or your family spends a lot of time watching tv, reduce the hours spent watching tv which will reduce your electricity bill. Go for a walk, play games with your family, read a book or find a new hobby.

Change your mindset. Many people have negative thoughts about money and this causes them to continue to be in debt and prevents them from being able to improve their financial situation. Eliminate the negative thoughts such as: “I will always be broke, I will always be in debt, I will die broke”, etc. These thoughts prevent you from being able to develop a plan to improve your financial situation.

Make one small change at a time and over a period of time your situation will improve. You will have less stress, less fights at home and you will be a role model to someone else by being able to give them advice on how to overcome a difficult financial situation.

How to Save Money on Dry Cleaning

According to the Census Bureau, Americans spend approximately $7.8 billion each year on dry cleaning. It is best to have expensive items such as drapes or winter coats cleaned in January, July, or August which are the off-peak times for dry cleaners. Dry cleaners one men's shirt can cost $1.50 to $5.00 to clean per week which can range from $78 to $260 a year for one suit a year. One women's suit can cost $5 to $10 to clean per week which can range from $260 to $520 a year for one suit a year.

Dry cleaners and the products they use may be bad for the environment. Dry cleaners use a product called Perchloroethylene, also known as tetrachloroethylene, perc, or tetrachloroethene. It is a cleaning agent that is toxic and causes several harmful side effects such as dizziness, fatigue, headaches, sweating, and unconsciousness. Long-term exposure can cause liver and kidney damage or cancer. Here are four ways to save on dry cleaning are:

1) Do-it-yourself kits

2) Wash clothes with dry clean tags in cold water on a gentle cycle using Woolite and hang dry (do not twist or wring the water out from the clothes) unless it is suede, leather, or rayon

3) Don't take clothes to the dry cleaners after every wear, clothes can be worn 3 to 4 times if there are no stains or odors

4) Wash by hand

5) Purchase a home steamer with at least 1200 watts

5 Social Media Marketing Tips

According to Sharon Harvey Rosenberg, author of Frugal Duchess: How to Live Well and Save Money, “It’s not so much that we waste money. Rather, we spend money and don’t realize where we’re spending it". It will take more effort to gain new readers and buzz about your book due to the recession but done by using low cost promotional efforts such as social media marketing. Here are 5 tips to Maximize Social Media Marketing.

1. Create a Marketing Budget. Identify all your expenses, business needs and wants. Determine what things are needed to keep your business running and things you would like to get for your business but are not necessary to keep it running.

2. Reduce Spending. Participate in low-cost or free promotional services. Use free press release services, participate in free author promotions, discussion forums and message boards, and create a newsletter, blog, a website or page to promote your book.

3. Create a Book Fund. Use the fund to pay for unexpected business expenses which reduces credit card usage, keeps down debt and increases cash flow.

4. Generate Additional Income. Create different products such as teleseminars, downloadable audio files, an ebook, etc. based on your book and use your social media networks to promote them.

5. Treat your book like a business. Create a 30 second elevator speech, hire staff, create a slogan and logo, and identify the benefits of purchasing your book and post on your social media networks.

The current recession has reminded business owners how important it is pay down debt and keep a constant cash flow. Using these tips will help create buzz about your book and generate sales.

Helps for Home Owners

They are several mortgage programs available but you have to do your homework, find out the guidelines and don't take no for an answer. Be persistent and ask questions to get the help you need. Over 1 million Americans have filed for foreclosure thus far and millions more are facing foreclosure. Demand assistance by contacting the programs below or your state congressman for assistance.

Some of the programs available are:

1. The Bank of America Mortgage program offers a payment extension for a few months but depends on your lender, how much you owe and your current payment status. Repayment plans if you fall below on your payments you can catch up on missed payments
2. The Making Home Affordable Program
3. The National Homeownership Retention program which allows Countrywide customers to refinance through the FHA Hope for Homeowners program, or with a variable ARM. Call 800-669-6607 for more information.

When calling make sure you have your most recent mortgage statement because you may be asked to provide your loan number, loan balance and other information which will help speed up the process for processing your request.

Additional assistance is available with social agencies such as the Salvation Army, American Red Cross and Good Will which provides counseling, emergency cash and other social program.

Help for Disputing Credit Report Errors

Agencies that enforce the rules and regulations of the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) and the Federal Trade Commission (FTC) have proposed new rules to promote the accuracy and integrity of information provided to consumer credit reporting agencies (CRAs or credit bureaus) and to allow customers to dispute errors directly with them.

Sometimes credit report errors can be major. Major errors can cause a consumer's credit score to drop anywhere from 50-150 points. Seventy-five percent of credit reports contain at least one major mistake. This will greatly help consumers who have been victimized by employers, mortgage companies and banking industry professionals due to errors on their credit report they were unable to get corrected.

Under the newly proposed rules, data furnishers to CRAs must develop practical policies and procedures to ensure that the information they are providing is accurate. The new rules outline instances when further details may be necessary to keep the information that CRAs provide from creating misleading impressions about a consumer's creditworthiness.

Under the new rules, instead of filing a dispute only with CRAs, consumers can now take their complaint directly to furnishers, and furnishers are required to investigate the complaint.

If you currently have errors on your credit report that you have not been able to resolve file a written complaint with the FTC against the CRA and data furnisher. Make sure you provide supporting documentation to support your complaint.

Student Loan Help is Finally Here

The Income Based Repayment (IBR) is a new program created by Congress which reduces student loan payments based on your income similar to the Sallie Mae graduated payment program and was a result of the College Cost and Reduction Access Act of 2007. Annual student loan payments under IBR are capped at 15% of the borrower's income (adjusted gross income minus 150% of the poverty level for the borrower’s family size).

The IBR went into effect on July 1, 2009. Graduating seniors of the Class of 2009 are eligible for IBR within 2 months of graduation. Those who previously graduated or graduated before IBR took effect will have to wait to become eligible for IBR.

All federal student loans are eligible for the IBR program including subsidized and unsubsidized Federal Stafford loans; Federal Grad PLUS loans and Federal Direct Consolidation loans.

Another option to help pay federal student loan debt is loan forgiveness. Only Federal Direct loans (including Federal Direct Consolidation loans) are eligible for student loan forgiveness for public service.

Beginning October 1, 2007, borrowers who have Federal Direct loans may begin counting time in public service. Borrowers who have already consolidated their loans outside of Federal Direct must wait until July 1, 2008 to be eligible to "reconsolidate" into Federal Direct and begin counting time in public service.

For more information visit the Finaid website or Department of Education website.

Are We Really in a Recession

I went to a few events this weekend and kept asking myself, are we really in a recession. In a recession how are people supposed to act. Should they live on a budget, stay at home all the time, only go out for special occasions, cut back on a few items, or live like there is no tomorrow and worry about the consequences later.

This weekend I saw many people spending lots of money and wondered, can they really afford to spend that money or are did they just get caught up in the frenzy of the 4th of July holiday and advertiser sales. How will they feel when reality hits and they receive that credit card bill or when they go to work on Monday and don't have any money to get to work or pay that unexpected bill that comes in the mail next week. These are just some of the things I pondered while I was out.

All of my friends and family know I am frugal, not cheap, I like nice things but if I can buy something at a cheaper price why not? I don't spend too much money on myself during the week, just $1.59 for grits Monday through Friday which equals to about $7.95 a week.

I also got caught up in the revelry and while out with several friends picked up the tab, not to show off, but merely as a kind gesture to those who have supported me with my business and who continue to support me and because I am blessed. I felt good knowing that because I live on a budget, only have my mortgage payment, my car is paid for, have a savings account and a retirement account I can at any time splurge on anything I choose because I live well below my means. I don't have to panic because when I receive my credit card statement because whatever charges are on there I can pay them off. I won't cringe on Monday morning because I still have money in my pocket and I don't have creditors calling my house harassing me.

I also have health, life and disability insurance which helps if you get sick or are unable to work for an extended period of time due to illness. This eases the burden of the high costs of medical care and ensures that you don't go into debt due to illness and prevents you from filing for bankruptcy due to high medical costs.

I hope everyone enjoys this holiday weekend. I wonder how you will you feel on Monday - depressed because you spent all of next week's money this weekend or will you feel happy because you are aware of your reality and spent your money wisely this weekend.

5 Ways to Make Your Money Last

Forty-percent of Americans live above their means. Seventy percent of Americans live paycheck to paycheck. Hopefully the recession has taught Americans a valuable lesson – you have to live below your means and plan for the future. Many Americans spend their entire paycheck within a week of being paid. Other Americans are financially immature and buy whatever they want and think about the consequences later. The only way to survive the recession and survive any future financial crisis is to change your spending habits. Here are 6 ways to make your money last.

1. Reduce. Reduce your expenses and live below your means. Buy more needs vs. wants. Don't buy something if you can't afford it or if you can't pay off the credit card balance within 3 to 6 months. Save your money to buy the item later or use lay-a-way.

2. Budget. Stop using your credit cards and pay cash for everything. 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. Shop at discount stores, outlets, use coupons, carpool, etc. to find extra money which can be used to pay down debt.

3. Direct deposit. Stop cashing checks. 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 giving away and could be using. Use direct deposit for free and save yourself some money.

4. Savings. You should have enough money saved to pay at least 6-9 months worth of bills. Open a high interest online savings account such as Emigrant Direct or the ING Orange Account which earns you on average 2 to 3% interest on your money. Then develop long-term savings goals such as planning for retirement, college education, homeownership, etc.

5. Seek Help. 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 Budget Dial or The Stretcher. Some grocery stores such as Whole Food teach classes on how to shop on a budget.

If you want to make your money stretch you have to change your mindset. Watch financial shows on television or check out books at the library on personal finance, financial empowerment and other topics to help make your money last longer.

Should You Lease

Some businesses are losing sales and are considering filing for bankruptcy or dissolving their business due to the recession. However, many businesses are thriving with increased sales and taking advantage of consumers needs. One such example is companies that provide rent-to-own merchandise.

Many of these companies are doing more advertisements to attract customers. Aaron's has 1,575 stores and had 1st Quarter 2009 sales of 474 million. Rent-A-Center also known as Rentway had 1st Quarter 2009 sales of 728.2 million. Just think if half of those customers changed their lifestyle and their spending habits and paid down their debt which helps to increase your credit score, that money could be used to start a savings account, start a retirement account, purchase a home or more importantly buy items with cash. Instead of going to a rent-a-center store to buy a tv you could go to Best Buy, comparison shop online at Amazon.com or go to a thrift store to get a good deal.

Many rent-a-center stores know how to find their customers and customize advertisements to attract the customers they are looking for. Managers sometimes attend local events with customers to help them determine if a customer has lost their jobs. Some stores also ask for references to determine if the customer will make their monthly payments. Some managers attend their customer's churches, get to know their customer's backgrounds, talk to their employers or ask about their financial status. All of this information is used to help make a sale and ensure that customers can continue to make their monthly payments.

Purchasing items from rent-a-center store can cost you 2 to 3 times the original cost of the item and in some cases the items are used or could be damaged. You can prevent all of this by only buying items that you can afford. Here are 5 ways to help find the best deal without having to lease a purchase.

1. Research. Do research on the item you wish to purchase. If you are looking for a tv, look for customer reviews or ask family or friends what brand they purchased and if they are happy with their purchase. Use that information to help find a brand the meets your requirements so you are able to make a wise purchase based on quality not merely on price.

2. Compare. Do comparison shopping at different stores – thrift stores, outlet stores, discounts stores or online. Spend at least 20 minutes comparison shopping. For every 5-10 minutes spent comparison shopping you save $1-$9. You can also buy used items to save money.

3. Buy Later. If you see something you want to buy but don't have the cash or have bad credit, save your money and then go purchase the item. If you absolutely have to have the item when you see it wait a few days, then go back to the store. See if the item is marked down or ask a sales clerk when the item will go on sale. Then compare that price with other stores to get the best deal.

4. Use competitors. Go to a store and comparison shop. Then go to a competitor store and tell them you found a cheaper price at their competitors store and ask them to match that price or offer a lower price. Some stores do this such as the Room Store, Target, Wal-Mart, etc. See which store gives you the best deal.

5. Needs vs. wants. You should buy more needs instead of wants. There should be a balance, if you are buying more items that you want then reevaluate your spending habits. Only buy items that you can pay cash for or that are within your budget. That designer purse or designer pair of jeans is not a need. The only 3 basic needs are food, clothing and shelter, and I'm adding a 4th - one prescriptions.

Used is the new "new" and "new" is the new "old".

6 Tips to Buy A Home

June is National Home Ownership Month. When owning a home you need to create a budget or spending plan to help manage your finances to make sure you can stay in your home for as long as you like and reduce the chances of filling for bankruptcy or foreclosure.

Your mortgage payment should be no more than 38% of your total monthly income. This will ensure that you do not live above your means and have extra cash to pay for unexpected expenses and reduce the chances of using a credit card and going into debt.

Before you buy a home you need to prepare for the home buying process. Estimate your monthly mortgage payment. Subtract the difference of the estimated monthly mortgage payment and your current rent (if you pay rent). The advantages of renting are:

1. No costs associated with maintenance except for condos
2. Easier to maintain
3. Reduced financial responsibility

The disadvantages of renting are:

1. No tax benefits
2. No equity
3. No say in rental increases

Here are 6 tips to help you buy a home.

1. Find the best loan
2. Use home buying programs
3. Find a home and make an offer
4. Get a home inspection
5. Shop for homeowners insurance
6. Prepare for settlement and closing

What Did You Buy Today - A Need or a Want

Advertisers make consumers believe anything can be bought instantly with the swipe of a credit card and lure consumers into store with false advertisements, sales and other gimmicks to buy things they can't afford or simply don't need. Most Americans buy more of things they want instead of more of things they need which leads to bad credit, late fees, bad spending habits, maxed out credit cards and filing for bankruptcy.

A need is something you have to have to survive – food, clothing (non-designer and shelter). A want is everything else, something you would like to have but don't really need. Create a list of things you buy and identify each item as a need or want. If you have more wants in your list then you need to change your spending habits and buy less of the items in the want column. Here are 5 tips to consider when shopping to help think in terms of needs vs. wants.

1. Do you convince yourself that the item you purchased is a need when it really is something you want?
2. Do you rationalize that you work hard everyday and deserve nice things and you should be able to buy whatever you want?
3. Do you buy an item with your credit card even though you know you don't have the money to pay the credit card bill when it arrives?
4. Do you go shopping with a credit card or with cash?
5. Do you buy more of things you want instead of things you need?

Buying more wants than needs can cause you to live above your means and leads to bad spending habits. Now is the time to develop good spending habits and reduce money spent on things you want. Buying wants should be done in moderation and only when you have the cash to buy the item. This will also help you to have a balanced budget. So, the next time you go into a store and pick up an item to buy ask yourself – is this a need or a want?

Upcoming Events

June 2009
June 10, 2009, Michael Baisden Radio Show, Affordable Education for College Students, 4:05pm CST/5:05PM EST
June 17, 2009, Maverick Media Radio Show with S.B. Redd, 10pm
June 22, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am

July 2009
July 6, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am
July 8, 2009, Financial Panelist, Cathy Hill Show
July 20, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am
July 31, 2009, National Black Book Club Conference, Financial Seminar and Booksigning, Atlanta Marriott Marquis, Atlanta, GA

August 2009
August 1-2, 2009, National Black Book Club Conference, Financial Seminar and Booksigning, Atlanta Marriott Marquis, Atlanta, GA
August 3, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am
August 4, 2009, Credit Seminar, CAAB, 1801 K Street, NW, Washington, DC, 6:30-8:00pm
August 17, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am
August 31, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am

September 2009
September 12, 2009, Booksigning, Borders, 921A Capital Center Boulevard, Largo, MD, 4-6pm
September 14, 2009, Financial Contributor, Sheena Caroll Show, GEMS Bahamas, 6:30am
September 19, 2009, Panelist, Wisdom, Wealth and Wellness Program, Reginald Lewis Museum, Baltimore, MD

What the CARD ACT Means For Consumers

The Credit Card Accountability, Responsibility, and Disclosure Act (CARD) has been floating around Congress for several years. In 2005 it was called S499 but died, in 2007 it was called HR1461, in 2008 it was called S3252 and it was finally approved on May 22, 2009 by President Obama as S414.

The Act provides the most significant changes to the credit card industry since 1969. President Obama stated the act will "restrict practices he says contributed to consumers' financial problems during the recession. We're not going to be giving people a free pass and we expect consumers to live within their means and pay what they owe. But we also expect financial institutions to act with the same sense of responsibility that the American people aspire to in their own lives."

The Act is a huge win for consumers and college students who have been victims of the unfair practices of credit card companies. A few highlights of the Act are:

1. Banning unfair rate increases
2. Prevents fee traps
3. Requires easy explanation of disclosures
4. Statements will tell consumers how long it will take to pay off a balance by making only the
minimum monthly payment
5. Eliminate credit card rate hikes
6. Provide credit card agreements online
7. Consumers will be mailed statements 21 days before the due date
8. Payment dates will no longer be shifted
9. Consumer approval required for over-the-limit transactions
10. Restrictions on interest rates and credit cards offered to college students under age 21 without
verifying employment or getting parent's permission

Unfortunately the Act does not put a cap on credit card interest rates so interest rates can still increase but consumers will have to be notified before the rate increase becomes effective.

This Act will provide a more level playing field allowing consumers to shop around for the best deal and hopefully offer a more competitive market instead of the market being dominated by a few top banks and credit card companies.

Make sure you read everything that comes in the envelope with your statement each month and if you don't understand something contact the credit card company right away. If you feel you are being a victim of unfair practices notify the company and file a complaint with the Federal Trade Commission or your state Consumer Affairs Office.

The credit card companies are waiting for you to mess up or throw away something that you should have read, don't let them win.

Your New Best Friend - A Budget

Many people don't know how to create a budget or spending plan and don’t know where to start. The first step to getting out of debt is by creating a budget. Creating a budget shows accountability for your spending and shows you how much you have coming in and how much you have going out. It identifies your SEO – what you spend, what you earn, and what you owe.

Make your budget flexible so you have "wiggle" room for unexpected expenses. If you don't have an emergency fund or savings to cover those unexpected expenses you can see right away what areas in your budget you need to reduce spending instead of using a credit card to pay for those unexpected expenses. Most people don't think about how much money they spend per week or per month but when you see all of your expenses written down it provides greater insight into your spending habits.

The first step is to determine if there are some areas where you are spending too much money, you want to have a balanced budget and make sure you don't spend too much money in any one area of your budget. Develop financial goals for yourself when creating your budget. Financial goals encourage you to work towards reaching that goal and provides a sense of accomplishment when the goal is met. Some examples of financial goals are: pay off a credit card, buy a home, take a vacation, etc.

Being debt free is hard work, requires discipline and reduces your anxiety and stress about your financial situation. Many things are possible when you are debt free and live on a budget. Determine if you want to live the rest of your life as a borrower or as a lender. It's up to you!

Another Reason to Use Cash

Over the Memorial Day Weekend, one million Starbucks customers were overcharged. Those overcharged used their debit cards were charged twice. Their receipts were correct but the money was taken out of customers bank accounts twice. Starbucks has since reimbursed most customers but some customers have not yet been reimbursed.

This event is even more reason why it is so important to verify your bank accounts. The fee for an overdrawn bank account ranges from $29-$35 depending on the bank. Also, you risk the chance of having the overdrawn account reported on your credit report which can lower your credit score. It is better to pay for items with cash instead of using a debit or credit card for everyday purchases. Here are 4 ways to ensure you are not overcharged when using a debit card.

1. Read the agreement. Read the policy agreement for your debit card to determine the course of action if you are overcharged on your account.

2. Reconcile. Verify your bank accounts weekly if not daily. Keep all of your receipts and verify them with your monthly statements to check for errors.

3. Use like a credit card. Use your debit card for occasional purchases or for unexpected expenses.

4. Pay with Cash. Pay for items with cash. You don't have to worry about having an overdrawn account. This also helps you to be more accountable and spend less frequently. There is something about a swiping a card that makes consumers want to spend.

7 Reasons to Pay On Time

The recession has caused many Americans to become unemployed; the current unemployment rate is 9.4%. Being unemployed has a domino effect, many Americans lost their homes, their health insurance coverage, cars, stability, spouses, their pride and more.

Loss of a job also causes Americans to make late payments, overdraw on their accounts and search for unconventional ways to make ends meet. For those Americans who had not made late payments, you may be rewarded.

I have one credit card with my credit union and have been a member for over 10 years. I recently lost my credit card and while reporting my lost credit card I was asked if I wanted a credit limit increase. This was done without a credit check my limit was increased $1,000. I have not made a late payment in over 10 years that may be a rare thing in this economy. I was happy to be rewarded for being a good customer and my credit limit is still under $10,000. Here are 7 benefits of paying your credit card bills on time.

1. Fees. If you pay your credit card balances in full each month you don't have to pay finance charges or late fees which saves you money.

2. Credit score. If you pay your credit card bills on time this helps to increase your credit score over time.

3. Bank relationship. Paying your credit card bills on time helps to maintain a good relationship with your credit card company and they will be more willing to work with you if you have a financial crisis in the future.

4. Discounts. Paying your credit card bills on time will afford you rewards such as: credit limit increases, a decrease in interest rates, discounts, incentives, promotions, and other offers.

5. Options. Paying your credit card bill on time allows you to choose from various payment options: online, automatic deduction, by mail, or over the phone. When making late payments you have to send your payment overnight or pay over the phone which will cost you more money.

6. Future. Paying your credit card bills on time makes you look more favorable if you wish to buy a home in the future.

7. Reduces stress. Paying your credit card bills on time prevents creditors calling you asking for a payment and reduces the stress or worry about how you will make your payments.

5 Ways to Keep Debt Manageable

Many people live above their means, shop on impulse or have no idea how much debt they owe. We are a debt loving society and because of our bad spending habits many Americans haven't gotten into so much debt they do see any way out. The first step to getting out of debt is to admit that you have a problem. Then you need to make some sacrifices. Change doesn't happen overnight and getting out of debt won't happen overnight either. Here are 5 ways to keep your debt manageable.


1. Create a spending plan or budget
2. Pay balances in full each month
3. Use automatic deduction or online bill payment
4. Use your credit card like a debit card
5. Pay loans off in 3 years or less
6. Pay mortgage loans off early

If You Can't Pay Ask for Forgiveness

Many college students are struggling to pay back student loan debt due to lower paying jobs and difficulty in finding a job in this economy. The average college student graduates with over $20,000 in student loan debt and many also have credit card debt.

It can take an entire lifetime to pay back student loan and credit card debt if you just send in the minimum monthly payment. Some common solution are to live below your means, work multiple jobs, work overtime or live at home with your parents for as long as possible. However, there is another alternative, student loan forgiveness programs.

High school math and science teachers, and elementary and high school special education teachers who agree to work in low-economic areas for five years can get up to $17,500 forgiven in Stafford loans. The teachers have to teach full time for five consecutive years.

Visit the U.S. Department of Education website and complete the Cancellation and Deferment Option for Teachers form to see if you qualify.
The Office of Personnel Management (OPM) offers a Federal Student Loan Repayment Program the allows any federal agency to forgive up to $10,000 annually for your federal student loans up to a maximum amount of $60,000. For further details call OPM at 202-606-1800 or visit their website.


You can do volunteer work by joining the AmeriCorps, Peacecorps, or Vista. You can also get a job in a public service industry such as military service, public health, social work, emergency management, government, public safety, law enforcement, public interest law services, or child care.

If you have a Perkins loan you can have the loans discharged if you served in the U.S. Armed Forces. If you served in a hostile area or war area you can get fifty percent of your Perkins loans forgiven. More information about student loan forgiveness programs can be found at the FinAid website.

6 Tips for College Grads

You graduated from college and received your diploma. Now what! Now you have to face reality and face the real world. First, get a job. Next, figure out what to do with your money but don't spend it all. Forty-percent of Americans live paycheck to paycheck and seventy percent of Americans live above their means. It can be tempting to buy on impulse and spend your money on everything you see but slow down and pace yourself. Here are 6 tips to help you live below your means and stay out of debt.

1. Setup a debt payoff plan. Setup a debt payoff plan to prioritize your bills including student loans and credit card debt. 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.

2. 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.

3. 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.

4. 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.

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

6. Buy insurance – health, life, disability. Many Americans go into debt due to medical bills and lack of insurance. Get at least basic health, life and disability coverage. Coverage is cheaper for individuals.

FERA - A Huge Victory for Homeowners

President Obama signed the the Fraud Enforcement and Recovery Act (FERA) on May 20, 2009. The act gives the federal government more tools and authority to track fraud that caused millions of homeowners to lose their homes to foreclosure and caused millions of Americans to lose their jobs. Over 13 million Americans are unemployed and over 1.2 million Americans have lost their homes to foreclosure in 2009.

Many Americans were victims of fraud in the financial industries. The Act will target those financial institutions that are regulated or insured by the government and private companies that are not. The act will expand the Department of Justice’s ability to prosecute crimes resulting from the mortgage process.

The legislation amends the major fraud statute to protect the funds distributed under the TARP and the Recovery Act. The Act will provide more money to hire employees to investigate and prosecute fraudulent behavior. The Act will also create a Financial Crisis Inquiry Commission to investigate the financial methods used that led to the recession to ensure that we do not encounter this type of financial crisis in the future.

8 Tips for Credit Card Protection Plans

Credit card protections plans are sold to consumers as a safety measure to help consumers when in reality it is just another money making tool for credit card companies. The credit card companies make hundreds of millions of dollars a year and the recession is just another easy way for credit card companies to scare consumers into purchasing a protection plan. You also have to be careful about credit card protection plans scams. Here are 8 Tips for to consider when purchasing a Credit Card Protection Plan.

1. Credit card protection plans are similar to insurance plans used to insure credit card accounts. Some plans may or may not charge a fee to "protect" your credit card account. Read the agreement carefully before signing or ask the company for an explanation of the terms of the plan. The protection plan exempts you from payments, interest and fees and does not affect your credit score.

2. Plans usually require you to be under age 65 to enroll and be employed full-time. The plan covers crises such as: disability, unemployment, theft coverage, or if you are nable to make the payments. However, coverage is not available in every state. Verify if the plan covers self-employed workers and those who work less than 30 hours per work. Over-the-limit and past due accounts may not be eligible for coverage.

3. The price of the plans varies from state to state but usually ranges from $.35 - $.95 per $100 of your account balance. This adds up quickly when including the monthly finance charge, any late fee, over-the-limit fee or annual fee.

4. This can make it difficult to pay down the balance because the plan fee is added to the finance charge. Instead of your minimum monthly payment being applied to the principal or finance charge on your account it will be applied to the: plan fee and finance charge which will make your balance go down at a slower rate especially if you have a high credit card balance.

5. If you already have home, car, or life insurance, you may already have enough coverage. If you don't carry a balance on the credit card you may not be eligible for coverage.

6. The length of time to process claims can take up to 30 days and usually the claim payment is applied later which can cause your payment to be late. If you file a claim you cannot make charges after the claim is filed because they are not covered during the claim period. Claim payments are made based on the amount owed on the account at the time the claim is made.

7. Your maximum liability on a credit card is $50 per card, and if you report a lost or stolen credit card right away it is zero so it doesn't make sense to purchase a protection plan.

8. You can create an inventory of all of your credit and debit cards and list the following information for each: account number, mailing address, toll-free number, and interest rate. Review your credit card statement each month to verify all charges and check for errors.

7 Tips to Lower Costs at the Gas Pump

The average gas price is $2.32 a gallon for regular gas. The recession is still taking on a toll on Americans and gas prices add an additional burden to struggling families. The highest gas price is in San Francisco California at $2.89 a gallon. The lowest gas price is in Cottonwood Arizona. If you are looking for ways to reduce costs at the gas pump and plan on doing any road tips this summer here are 6 ways to help keep money in your pocket.

1. Carpool. If gas prices are hurting your pocket, start carpooling. Offer to pick up co-workers or friends who work near your job. Charge enough money to cover the increasing costs of gas and car maintenance. You can also use carpooling services if you don't want to drive and join a carpool with neighbors or co-workers.

2. Drive steady. Maintaining a constant speed reduces the amount of gas needed to rev up the engine to go faster and will keep you from filling up more often. It is also better for the environment.

3. Generic Tires. Buy standard or generic brand tires. This will improve gas mileage and save you money when buying new tires. Standard tires also provide a better ride especially on the highway.

4. Regular Maintenance. Perform regular maintenance on your car at the scheduled intervals, make sure you get regular tune-ups, oil changes, check tire pressure, air filters, and check your tires for wear. This will improve gas mileage and save you money in the future.

5. Use fresh air. Roll down the windows instead of using the car air conditioner to save on gas usage.

6. Consolidate. Combine nearby trips on the same day to reduce gas usage.

7. Downgrade. Trade in your luxury car for a cheaper car or ditch your gas-guzzler for a more fuel-efficient car. This will save your money which can be used to pay down debt or pay for necessary household expenses.

How Bank Bailout Money Was Used for Lobbying Congress

Congress is considering credit card legislation to help consumers. However some members of Congress believe that the banking and financial industries have too much influence on members of Congress. Unfortunately the banking industries does have a great influence on Congress which is not good for consumers. Some banks increased the amount of money spent on lobbyists last year including Wells Fargo and Bank of New York Mellon Corp.

Some of the top recipients of contributions from companies receiving TARP money are members of Congress who chair committees tasked with regulating the financial industry and overseeing the effectiveness of TARP program including Senator Chris Dodd, chairman of the Senate Committee on Banking, Housing and Urban Affairs who received $854,200 from the companies in the 2008 election. Senator Max Baucus, chair of the Senate Finance Committee received $279,000.

Members of the Senate Finance Committee and House Financial Services Committee and Senate Committee on Banking, Housing and Urban Affairs, received $5.2 million from TARP recipients in the 2007-2008 election cycle.

The 300 or so companies that have been received aid from TARP, 26 of them paid lobbyists $76.7 million to represent them on Capitol Hill in 2008. The 161 companies approved for TARP money gave $37.5 million to federal candidates, parties and committees in the 2007-2008 election.

Bank of America spent $14.5 million towards campaign contributions for Congress, received $45 billion from the bailout and spent $8.78 million on lobbying. Citigroup was also one of the top companies that spent the most, $12.5 on lobbying expenses and campaign contributions, and received $50 billion from the bailout. American Express spent $3.79 million and M&T Bank spent $10,000 on lobbying.

The top 10 companies that received the $700 billion bailout spent $9.5 million on federal lobbying during the first 3 months of the 2009. Citigroup Inc. and JPMorgan Chase & Co. spent over $1 million in lobbying. Bank of America Corp spent $660,000 in lobbying, Wells Fargo $700,000 in lobbying, PNC Financial Services Group, spent $135,000, and U.S. Bancorp spent $170,000 on lobbying.

Write your state congressman and representative and voice your opinion about the banking and financial industry lobbyists.

Fighting Teens for A Job

According to USA Today, there will be fewer jobs than last summer which was recorded as the worst teen unemployment market in six decades, in a report from the Northeastern University Center for Labor Market Studies.

June-August 2008, 32.7% of teens worked which is a decrease from 45% in 2000, according to seasonally adjusted data from the U.S. Bureau of Labor Statistics. Unemployment for 16-to-19-year-olds was 21.5% in April.

Teen workers are disadvantaged because most employers will hire adults because they feel they require less training. Laid off adults are getting jobs such as: cashiers, babysitter, valet car parker, and amusement park workers.

U.S. theme parks will hire about 500,000 seasonal employees, about the same as last year, according to an estimate from The International Association of Amusement Parks and Attractions.

According to a report by Junior Achievement, 18% of 12-to-17-year-olds are working alongside more adults and former retirees. They are also looking for work in low paying industries such as hospitality and retail. Many overqualified laid off adults are looking for jobs that pay minimum wage, above or below minimum wage such as Summer Lifeguard positions.

Another group affected by the economy are adults in their 20s work are unable to find jobs in the career fields and are forced to work jobs that they did as teenagers. Many teens are looking for summer employment to pay for college or other expenses.

Employers are seeing record numbers of applicants. Workers from previous seasons are coming back to get their old jobs back because there are not as many options available this summer. Many employees are documenting record setting turnouts at job fairs with an increase in applicants and an increase in hopefully job seekers.

Here are 5 tips for teens looking for work:
1. Contact youth organizations
2. Use the internet to search for jobs
3. Go to youth job training center to gain skills that are in demand
4. Talk to your school counselor or former counselor to learn about any possible job opportunities or job leads
5. Do volunteer work which can sometimes lead to a paid job
6. Join organizations like Junior Achievement, Americorps or Peacecorps

Here are 5 tips for adults looking for work:
1. Get up at the same time you did when you were working, no later than 8am, get dressed and be ready in case a prospective employer calls for an interview
2. Attend free networking functions
3. Tell everyone you know or come in contact with that you are looking for a job
4. Lower your standards for employment such as salary, job title, etc. You may have to take a pay cut to get a job but it is better than not having a job. Your ultimate goal is to get a job in your same field making approximately the same amount of money you did when you were unemployed but don't limit yourself
5. Visit job training center to learn new skills, you should have at least 2 skills that are in demand
6. Contact staffing firms or apply for temp-to-perm work