Most Americans spend the greatest amount of money and go into debt during the December holiday season. This year get a jumpstart on holiday shopping and start shopping in October. When shopping for gifts during the holidays, many shoppers are filled with anxiety, pressure or guilt about spending money during the holidays.
If you don't have the money to buy gifts be honest with yourself first, then with your family and friends. The holidays about not about spending money, they are about spending time with family and friends. If you have a small amount of buy to buy gifts buy what you can and don't use your credit card to buy gifts unless you have the money to pay the debt off in two or three months.
Here are some reasons why you shouldn't spend money this holiday: 1) you owe more than $5,000 in debt, 2) you are not a homeowner, 3) you do not have a savings account, 4) you do not have a retirement account or have a low balance, 5) you owe more on your home or car than what it is worth, 6) you have bad credit, 7) you are considering filing for bankruptcy or foreclosure, 8) you live with your parents.
Here are 5 ways to help you save money during holiday shopping.
1. Visit the local dollar store to find gifts for children.
2. Visit local vendors, you can probably negotiate a good deal on the same items you find in the department stores.
3. Think of creative gifts to give that you can make yourself.
4. If you have to buy gifts for several family members try doing a "secret Santa" or "grab bag" so only one family member has to buy a gift for one family member and set a limit on the amount spent. That way everyone gets a gift and you don't have to worry about buying several gifts.
5. Shop online, some companies waive shipping and handling fees during the holiday season.
Friday, October 01, 2010
Tuesday, September 28, 2010
How to Dispute a Parking Ticket
Since the recession, many major cities have increased the number of parking tickets generated per month. Just this morning, I was at home and saw a parking enforcement officer driving down my residential street looking to give tickets to residents who were parked in front of their homes. Parking tickets can range from $15 to $150 depending on where you park and where you live. You should always pay yourself first and make money for yourself instead of making someone else rich.
When parking on any street read the signs carefully to ensure you don't violate them. Take a picture of the sign in the event you get a parking ticket. If there is no sign read the parking meter sign. Take a picture of the parking meter and a picture of your parked car showing that no parking sign was present.
In some cases, fraudulent parking tickets are written and drivers pay these tickets without investigating to ensure the ticket is valid. I have experienced this myself parking in Washington DC. I parked at 10:30pm at a parking meter that ended at 10:00pm. I received a ticket at 11:00pm stating that I parked in a no parking zone. How can a parking meter be installed in a "No Parking Zone"? Here are 6 ways to dispute a parking ticket:
1. Call to dispute the ticket the next day after you received the ticket to try to find out why you received the ticket. Be pleasant and the agent may dismiss the ticket. If not, dispute the ticket by mail along with your documentation.
2. Verify the ticket is valid by verifying the location, date/time, car make and model, tag number, date of registration, type of registration, registration expiration date, description of the car, VIN, meter number, and violation reason which should match the posted parking sign. If any of this information is incorrect you can dispute the ticket.
3. Search for the traffic laws applicable in your city and make sure you have followed them and reference the law in a non-offensive way when disputing the ticket.
4. Dispute the ticket by writing a letter and provide all the facts including: the make and model of your car, the date and time when the violation occurred, a valid explanation why you feel you were not at fault, list any parking signs and parking meter signs you saw, and identify any errors on the parking violation along with digital photos which is much harder to be denied. Staple all the documentation together putting the letter on top and the photos behind the letter.
5. Request a hearing within 30 days from the date of the ticket. Bring all evidence and photos and witnesses with you and hope the officer doesn't show up.
6. If you dispute a ticket and are unhappy with the decision you can request an appeal. Rewrite the original letter and be even more pleasant in the letter. End the letter by stating that if they still stand by the original decision you request that the fine be reduced.
Remember, the regular laws may not apply when a city government is experiencing a financial crisis. If you do go into the city take public transportation or catch a cab to prevent the risk of getting a parking ticket.
When parking on any street read the signs carefully to ensure you don't violate them. Take a picture of the sign in the event you get a parking ticket. If there is no sign read the parking meter sign. Take a picture of the parking meter and a picture of your parked car showing that no parking sign was present.
In some cases, fraudulent parking tickets are written and drivers pay these tickets without investigating to ensure the ticket is valid. I have experienced this myself parking in Washington DC. I parked at 10:30pm at a parking meter that ended at 10:00pm. I received a ticket at 11:00pm stating that I parked in a no parking zone. How can a parking meter be installed in a "No Parking Zone"? Here are 6 ways to dispute a parking ticket:
1. Call to dispute the ticket the next day after you received the ticket to try to find out why you received the ticket. Be pleasant and the agent may dismiss the ticket. If not, dispute the ticket by mail along with your documentation.
2. Verify the ticket is valid by verifying the location, date/time, car make and model, tag number, date of registration, type of registration, registration expiration date, description of the car, VIN, meter number, and violation reason which should match the posted parking sign. If any of this information is incorrect you can dispute the ticket.
3. Search for the traffic laws applicable in your city and make sure you have followed them and reference the law in a non-offensive way when disputing the ticket.
4. Dispute the ticket by writing a letter and provide all the facts including: the make and model of your car, the date and time when the violation occurred, a valid explanation why you feel you were not at fault, list any parking signs and parking meter signs you saw, and identify any errors on the parking violation along with digital photos which is much harder to be denied. Staple all the documentation together putting the letter on top and the photos behind the letter.
5. Request a hearing within 30 days from the date of the ticket. Bring all evidence and photos and witnesses with you and hope the officer doesn't show up.
6. If you dispute a ticket and are unhappy with the decision you can request an appeal. Rewrite the original letter and be even more pleasant in the letter. End the letter by stating that if they still stand by the original decision you request that the fine be reduced.
Remember, the regular laws may not apply when a city government is experiencing a financial crisis. If you do go into the city take public transportation or catch a cab to prevent the risk of getting a parking ticket.
Saturday, September 25, 2010
How to Avoid Parking Tickets
There has been a significant increase in the number of parking tickets written this year in several cities across the country. Many cities and counties have used the money obtained from parking fines to offset budget cuts and revenue shortfalls.
Some may feel the parking meter maids are criminals who run around cities giving fraudulent tickets. Others feel they are just doing their job based on pressure from their supervisors to meet quotas and generate revenue. The New York City government generates approximately $1.6 million daily from parking ticket revenue. In Chicago, a total of 1,345 parking tickets were written between June 21 and July 14, 2010. Montgomery County Maryland collected $8.1 million in ticket revenue thus far t his fiscal year.
Washington DC trained 25 new officers for the 2010 summer season and "Summer is our peak season for issuing tickets," according to Bill Howland, director for the Department of Public Works. "We're hoping to have some of these folks ready so they can issue more tickets." In Boulder Colorado parking meter maids are required to write an average of 900 tickets a month. Collections from parking tickets in Maywood Illinois increased 55% from last fiscal year. Here are 8 ways to avoid getting a parking ticket:
1. Keep change in your car at all times. If you regularly park in areas with meters, put more than enough money in the meter, at least 20 minutes extra than the current time. Some parking meters move their watches up 15-20 minutes to write fraudulent tickets.
2. Read the information on the parking meters including the hours in effect and any restrictions.
3. Read the parking signs for any restrictions with available times the space is to be used for parking. Check for permanent and temporary signs. If you park at a space with a parking meter and a parking sign follow the parking sign to be safe.
4. Be sure your vehicle registration and tags are clearly displayed on your car and are current.
5. Get a receipt when parking on a parking lot with an attendant. Receipts must be placed visible in the front windshield to avoid getting a ticket or being towed.
6. Don't park near fire lanes, bus zones, intersections, handicapped spaces, snow emergency routes, near schools or corners.
7. "No Stopping" and "No Parking" are not the same. You can stop in a no parking zone for up to five minutes to load and unload a passenger, but cannot in a no stopping zone which will result in getting a ticket even if the car is occupied.
8. When parking in parking lots or parking garages be sure to park in spaces that have lines on both sides of the parking space.
Some may feel the parking meter maids are criminals who run around cities giving fraudulent tickets. Others feel they are just doing their job based on pressure from their supervisors to meet quotas and generate revenue. The New York City government generates approximately $1.6 million daily from parking ticket revenue. In Chicago, a total of 1,345 parking tickets were written between June 21 and July 14, 2010. Montgomery County Maryland collected $8.1 million in ticket revenue thus far t his fiscal year.
Washington DC trained 25 new officers for the 2010 summer season and "Summer is our peak season for issuing tickets," according to Bill Howland, director for the Department of Public Works. "We're hoping to have some of these folks ready so they can issue more tickets." In Boulder Colorado parking meter maids are required to write an average of 900 tickets a month. Collections from parking tickets in Maywood Illinois increased 55% from last fiscal year. Here are 8 ways to avoid getting a parking ticket:
1. Keep change in your car at all times. If you regularly park in areas with meters, put more than enough money in the meter, at least 20 minutes extra than the current time. Some parking meters move their watches up 15-20 minutes to write fraudulent tickets.
2. Read the information on the parking meters including the hours in effect and any restrictions.
3. Read the parking signs for any restrictions with available times the space is to be used for parking. Check for permanent and temporary signs. If you park at a space with a parking meter and a parking sign follow the parking sign to be safe.
4. Be sure your vehicle registration and tags are clearly displayed on your car and are current.
5. Get a receipt when parking on a parking lot with an attendant. Receipts must be placed visible in the front windshield to avoid getting a ticket or being towed.
6. Don't park near fire lanes, bus zones, intersections, handicapped spaces, snow emergency routes, near schools or corners.
7. "No Stopping" and "No Parking" are not the same. You can stop in a no parking zone for up to five minutes to load and unload a passenger, but cannot in a no stopping zone which will result in getting a ticket even if the car is occupied.
8. When parking in parking lots or parking garages be sure to park in spaces that have lines on both sides of the parking space.
Wednesday, September 22, 2010
A Free Way to Get Out of Debt
If you are struggling with debt and don’t know where to turn try consulting self-help books such as my book, “How to Get Out of Debt: Get an “A” Credit Rating for Free by Harrine Freeman, published by Adept Publishers. My self help book talks about personal finance topics such as:
1. Warning Signs of Bad Credit
2. How to Create a Spending Plan
3. Life After Bankruptcy
4. Women and Their Credit
5. Increasing Your Credit Score
6. Keeping Good Credit
7. Dealing with Creditors
8. Identify Theft
My book also contains sample budget spreadsheets and sample letters to setup payment plans with creditors and fix errors on your credit reports. My book also contains tons of resource information listed by state as well as information on your rights as a consumer.
My book has been previously featured in Essence, Black Enterprise, Ebony magazines, Market Watch, Wall Street Journal, the Michael Baisden Show, Yahoo.com, Bankrate.com, and Creditcards.com.
My book is available at all major bookstores (Borders, Barnes & Noble, Walden Books, B. Dalton). For more information about my company visit hefreemanenterprises.com.
1. Warning Signs of Bad Credit
2. How to Create a Spending Plan
3. Life After Bankruptcy
4. Women and Their Credit
5. Increasing Your Credit Score
6. Keeping Good Credit
7. Dealing with Creditors
8. Identify Theft
My book also contains sample budget spreadsheets and sample letters to setup payment plans with creditors and fix errors on your credit reports. My book also contains tons of resource information listed by state as well as information on your rights as a consumer.
My book has been previously featured in Essence, Black Enterprise, Ebony magazines, Market Watch, Wall Street Journal, the Michael Baisden Show, Yahoo.com, Bankrate.com, and Creditcards.com.
My book is available at all major bookstores (Borders, Barnes & Noble, Walden Books, B. Dalton). For more information about my company visit hefreemanenterprises.com.
Sunday, September 19, 2010
Last Minute Summer Energy Savers
Labor Day usually signals that summer is coming to an end. Temperatures start to drop and children are back in school getting homework assignments and writing reports. This summer however is a little different.
Temperatures are still in the 80-90's and appear to stay that way for the next few weeks which is not good news for homeowners and their electricity and cooling costs. Here are 8 quick tips to save money in the last few weeks of summer which can help offset some of the high energy bills we paid during this hot summer.
1. Appliances. Limit the use of the microwave. Purchase a portable grill such as the George Foreman grill or similar devices which reduces the amount of time it takes to cook food. Try drying clothes using full loads or air drying clothes to save money. Buy energy efficient appliances and light bulbs to save on energy costs. Wash clothes in warm or cold water and rinse in cold water.
2. Electronics. Turn off all electronics and appliances when not in use. If you have multiple televisions in your home this adds up in electricity costs when running them at the same time. If you are out of the room for more than 20 minutes turn off all electronics.
3. Computers. Turn off your computer when not in use or leave it in standby mode. Energy Star has free energy efficient programs for computers that will help reduce energy usage.
4. Oven cooking. Using the oven when it's hot outside will make it harder to keep your home cool. Try cooking on top of the oven to save money on electricity.
5. Thermostat. Set your air conditioner thermostat to 78 degrees F and keep it there. If you need additional cooling use a portable fan or ceiling fans. Don't place lamps, televisions or computers near your thermostat. The thermostat can sense the heating coming from the appliances and will run longer than necessary.
6. Lights. Don't turn lights on if your home gets natural sunlight. Keeping lights off also keeps your home cool. Turn lights on only when necessary.
7. Insulate. Seal any cracks or leaks around and inside your home and insulate your attic floor. Install storm windows to save on energy costs.
8. Refrigerator. Keep your refrigerator at 38 - 40 degrees F. Keep your freezer at 5 degrees F.
Temperatures are still in the 80-90's and appear to stay that way for the next few weeks which is not good news for homeowners and their electricity and cooling costs. Here are 8 quick tips to save money in the last few weeks of summer which can help offset some of the high energy bills we paid during this hot summer.
1. Appliances. Limit the use of the microwave. Purchase a portable grill such as the George Foreman grill or similar devices which reduces the amount of time it takes to cook food. Try drying clothes using full loads or air drying clothes to save money. Buy energy efficient appliances and light bulbs to save on energy costs. Wash clothes in warm or cold water and rinse in cold water.
2. Electronics. Turn off all electronics and appliances when not in use. If you have multiple televisions in your home this adds up in electricity costs when running them at the same time. If you are out of the room for more than 20 minutes turn off all electronics.
3. Computers. Turn off your computer when not in use or leave it in standby mode. Energy Star has free energy efficient programs for computers that will help reduce energy usage.
4. Oven cooking. Using the oven when it's hot outside will make it harder to keep your home cool. Try cooking on top of the oven to save money on electricity.
5. Thermostat. Set your air conditioner thermostat to 78 degrees F and keep it there. If you need additional cooling use a portable fan or ceiling fans. Don't place lamps, televisions or computers near your thermostat. The thermostat can sense the heating coming from the appliances and will run longer than necessary.
6. Lights. Don't turn lights on if your home gets natural sunlight. Keeping lights off also keeps your home cool. Turn lights on only when necessary.
7. Insulate. Seal any cracks or leaks around and inside your home and insulate your attic floor. Install storm windows to save on energy costs.
8. Refrigerator. Keep your refrigerator at 38 - 40 degrees F. Keep your freezer at 5 degrees F.
Thursday, September 16, 2010
Recent Student Loan Updates
There have been several updates in 2010 in the financial industry for credit cards, debit cards, gift cards and now student loans. Interest rates have been slightly lowered for some federal student loans. Verify your statement to see if your student loan has been affected by the recent updates effective on July 1, 2010.
Subsidized undergraduate loans that are disbursed between July 1, 2010 and June 30, 2011 the interest rates have been lowered to 4.5%. Subsidized graduate, unsubsidized and PLUS loans that are disbursed between July 1, 2010 and June 30, 2011 the interest rates remain unchanged at 6.80% and PLUS loans remain unchanged at 7.90% for Direct Loans and 8.50% for FFEL loans.
Variables rate for unsubsidized and subsidized loans in repayment or forbearance for loans disbursed between July 1, 2010 and June 30, 2011 the interest rates have been lowered to 2.47%. Variables rate for unsubsidized and subsidized loans for student in school, in grace period or in deferment for loans disbursed July 1, 2010 and June 30, 2011 the interest rates have been lowered to 1.87%.
PLUS loans for parent and graduate students for all loan statuses for loans disbursed between July 1, 2010 and June 30, 2011 the interest rates have been lowered to 3.27%.
If you are a student attending college outside of the United States, your school is now able to participate in the Direct Loan Program.
The Federal Family Education Loan (FFEL) Program has been retired and will not provide any more loans as of July 1, 2010. All new Consolidation, Stafford and PLUS Loans will be provided by the Department of Education under the Direct Loan Program.
Students who have previously received a federal student loan from a private lender under the FFEL Program will have to complete a new promissory note to receive loans under the Direct Loan Program. Check with the financial aid office at your school for more information.
Subsidized undergraduate loans that are disbursed between July 1, 2010 and June 30, 2011 the interest rates have been lowered to 4.5%. Subsidized graduate, unsubsidized and PLUS loans that are disbursed between July 1, 2010 and June 30, 2011 the interest rates remain unchanged at 6.80% and PLUS loans remain unchanged at 7.90% for Direct Loans and 8.50% for FFEL loans.
Variables rate for unsubsidized and subsidized loans in repayment or forbearance for loans disbursed between July 1, 2010 and June 30, 2011 the interest rates have been lowered to 2.47%. Variables rate for unsubsidized and subsidized loans for student in school, in grace period or in deferment for loans disbursed July 1, 2010 and June 30, 2011 the interest rates have been lowered to 1.87%.
PLUS loans for parent and graduate students for all loan statuses for loans disbursed between July 1, 2010 and June 30, 2011 the interest rates have been lowered to 3.27%.
If you are a student attending college outside of the United States, your school is now able to participate in the Direct Loan Program.
The Federal Family Education Loan (FFEL) Program has been retired and will not provide any more loans as of July 1, 2010. All new Consolidation, Stafford and PLUS Loans will be provided by the Department of Education under the Direct Loan Program.
Students who have previously received a federal student loan from a private lender under the FFEL Program will have to complete a new promissory note to receive loans under the Direct Loan Program. Check with the financial aid office at your school for more information.
Monday, September 13, 2010
How to Negotiate Student Loan Interest Rates
The hardest debt for college graduates to get rid of is student loan debt. Trying to find out who you owe, how much you owe, your interest rate and monthly payment can be a nightmare.
If you defaulted on your loan, it is even harder to get information about your loan especially if you account have been forwarded to a collection agency. It takes a lot of perseverance and patience to navigate through the student loan maze but you can negotiate the terms of your loan. Here are some easy ways to negotiate your student loan interest rate.
Strategies for Negotiating
1. You may be eligible for an interest rate reduction if you consolidate your loans.
2. You can refinance your loan to get a lower interest rate if you have good credit.
3. You can request a loan modification if you are unable to make monthly payments for certain reasons such as: job loss, medical bills, reduced wages or hours or emergencies.
4. You can pay interest-only payments over a period of time and ask the lender to shorten the length of the loan.
How to Negotiate
1. You can request that the company lower your interest rate if you have made payment on time for one to two years or more and your loan is not in default because their main goal is to keep your loan from defaulting.
2. Remain in constant contact with your student loan lender and make payments on time. If you are unable to make payments setup a payment arrangement with your lender. Make sure your information on file with the lender is current. Don't ignore letters sent to you regarding your student loan.
3. Establish a relationship with at least one person at the lender company and remain in contact with that person when handling your loan. It helps to have an additional person at the lender company to work with; either their supervisor or co-worker in the event the person gets promoted or leaves the company.
4. Many private loan companies will lower your interest rate if you setup automatic payments. Sallie Mae does this and has another program that links your Upromise account to your Sallie Mae account which also lowers your interest rate.
Other Options
1. When looking for jobs ask about student loan forgiveness programs. If you work in the medical or judicial fields, for the federal government, non-profit or low-income areas you are eligible for a student loan forgiveness program that may pay 25% or more of your student loan each year. For more information visit finaid.com.
2. Work a full-time and a part-time job or 2 full-time jobs to pay down the student loans. The highest interest is accrued during the first two to five years of the loan so the more interest you pay on the loan during that time the faster your balance will go down and the less money you will owe over the life of the loan.
3. Live at home after graduation for at least two years to save money and put most of your earnings toward your student loans. During this time try to double, triple or quadruple your loan payments. After about six months you will be able to see your balance go down each month. If you are unable to live at home after graduation rent out a room or cheap apartment and stay there for at least two years.
4. Don't buy a car, catch public transportation. If you absolutely need a car because there is no public transportation near your job then buy a cheap used car that is in good condition.
5. Keep expenses to a minimum and buy more needs vs. wants. If possible, continue to pay down your student loan debt until your balance is paid in full.
6. Delay going to graduate school if you have student loans. Pay off your student loans before going to graduate school because it will be harder to pay off two loans instead of just one.
7. Get a job with an employer that will pay for you to go to graduate school.
Your Credit Score
1. Damaging your credit score by defaulting on your loan to get a lower interest rate is not worth it for several reasons: you end up owing more on your loan due to the missed payments and accrued interest, you damage your credit rating which can take years to fix and you will not be eligible for student loans in the future, you damage your relationship with the loan company.
2. If you receive an interest rate reduction it may only be temporary because it is harder now to get interest rate reduction due to defaulted loans. You will have to provide proof that you are unable to pay the loan, i.e. budget, paycheck stub, tax forms, etc.
3. There are instances where you can settle on a defaulted less for less than the principal amount but it may take months or years of fighting with the loan company. You will have to document a financial hardship, i.e. paystubs or W2 forms, provide documentation of where you obtained money to pay for the settlement and provide a reasonable explanation of why they should accept the settlement amount.
If you defaulted on your loan, it is even harder to get information about your loan especially if you account have been forwarded to a collection agency. It takes a lot of perseverance and patience to navigate through the student loan maze but you can negotiate the terms of your loan. Here are some easy ways to negotiate your student loan interest rate.
Strategies for Negotiating
1. You may be eligible for an interest rate reduction if you consolidate your loans.
2. You can refinance your loan to get a lower interest rate if you have good credit.
3. You can request a loan modification if you are unable to make monthly payments for certain reasons such as: job loss, medical bills, reduced wages or hours or emergencies.
4. You can pay interest-only payments over a period of time and ask the lender to shorten the length of the loan.
How to Negotiate
1. You can request that the company lower your interest rate if you have made payment on time for one to two years or more and your loan is not in default because their main goal is to keep your loan from defaulting.
2. Remain in constant contact with your student loan lender and make payments on time. If you are unable to make payments setup a payment arrangement with your lender. Make sure your information on file with the lender is current. Don't ignore letters sent to you regarding your student loan.
3. Establish a relationship with at least one person at the lender company and remain in contact with that person when handling your loan. It helps to have an additional person at the lender company to work with; either their supervisor or co-worker in the event the person gets promoted or leaves the company.
4. Many private loan companies will lower your interest rate if you setup automatic payments. Sallie Mae does this and has another program that links your Upromise account to your Sallie Mae account which also lowers your interest rate.
Other Options
1. When looking for jobs ask about student loan forgiveness programs. If you work in the medical or judicial fields, for the federal government, non-profit or low-income areas you are eligible for a student loan forgiveness program that may pay 25% or more of your student loan each year. For more information visit finaid.com.
2. Work a full-time and a part-time job or 2 full-time jobs to pay down the student loans. The highest interest is accrued during the first two to five years of the loan so the more interest you pay on the loan during that time the faster your balance will go down and the less money you will owe over the life of the loan.
3. Live at home after graduation for at least two years to save money and put most of your earnings toward your student loans. During this time try to double, triple or quadruple your loan payments. After about six months you will be able to see your balance go down each month. If you are unable to live at home after graduation rent out a room or cheap apartment and stay there for at least two years.
4. Don't buy a car, catch public transportation. If you absolutely need a car because there is no public transportation near your job then buy a cheap used car that is in good condition.
5. Keep expenses to a minimum and buy more needs vs. wants. If possible, continue to pay down your student loan debt until your balance is paid in full.
6. Delay going to graduate school if you have student loans. Pay off your student loans before going to graduate school because it will be harder to pay off two loans instead of just one.
7. Get a job with an employer that will pay for you to go to graduate school.
Your Credit Score
1. Damaging your credit score by defaulting on your loan to get a lower interest rate is not worth it for several reasons: you end up owing more on your loan due to the missed payments and accrued interest, you damage your credit rating which can take years to fix and you will not be eligible for student loans in the future, you damage your relationship with the loan company.
2. If you receive an interest rate reduction it may only be temporary because it is harder now to get interest rate reduction due to defaulted loans. You will have to provide proof that you are unable to pay the loan, i.e. budget, paycheck stub, tax forms, etc.
3. There are instances where you can settle on a defaulted less for less than the principal amount but it may take months or years of fighting with the loan company. You will have to document a financial hardship, i.e. paystubs or W2 forms, provide documentation of where you obtained money to pay for the settlement and provide a reasonable explanation of why they should accept the settlement amount.
Friday, September 10, 2010
Paying Taxes by Credit or Debit
The recession has caused many Americans to rely on credit cards to pay for basic necessities including debts owed such as taxes. The IRS allows taxpayers to pay taxes with a debit or credit card. If you owe taxes and will not be able to pay the debt via a payment plan or cannot borrow money to pay the taxes owed, your only other option may be to pay with a credit card.
Some taxpayers pay with their taxes with a debit or credit card just for the convenience – others because they neglected to take out enough money during the year to pay their taxes or did not have enough deductions to get a refund. Here are some pros and cons about paying your taxes with a credit card or debit card.
Paying With a Credit Card
Pros
1. Convenience. You can pay by phone, internet, efile through IRS or IRS approved service providers
2. The IRS website is safe and secure – you cannot ensure safety and security on other websites
3. You may be able to earn miles, points or rewards from your credit card company
4. You can pay using Visa, MasterCard, Discover or American Express
5. You can pay taxes for forms 1040/ES/X, 4868, 5329 for individuals and can pay taxes for forms 940, 941, 943, 944, 945, 1041, 1065 for businesses
6. You can make partial payments or setup an installment agreement
7. The filing fee is tax deductible
8. You can make a payment less than $100,000 via the IRS website, larger payments must be made through OPC or Link2Gov
Cons
1. You have to pay a fee when paying via a service provider (fees range from 1.95-2.35% of amount owed)
2. An immediate release of a federal tax lien is not provided
3. Payments made through service provider or credit card company may fail
4. Depending on the interest rate charged on your credit card, if you don’t pay the card balance off within a few months you will end up paying more money than the taxes owed to the IRS
5. Be aware of scam companies appearing as service providers
Paying With a Debit Card
Pros
1. Convenience. You can pay by phone, internet, efile through IRS or IRS approved service providers
2. The IRS website is safe and secure – you cannot ensure safety and security on other websites
3. The is a flat fee charged per transaction
4. You may earn rewards from your debit card company
5. You can make a payment less than $100,000 via the IRS website, larger payments must be made through OPC or Link2Gov
6. You can pay taxes for forms 1040/ES/X, 4868, 5329 for individuals and can pay taxes for forms 940, 941, 943, 944, 945, 1041, 1065 for businesses
7. You can make partial payments or setup an installment agreement
8. The filing fee is tax deductible
9. Don't have to worry about paying penalty charges, late fees or interest if paid in full
10. Can make a payment less than $100,000 via the IRS website, larger payments must be made through OPC or Link2Gov
Cons
1. Have to pay a flat fee when paying via a service provider (fees range from $3.89-$3.95)
2. Immediate release of a federal tax lien is not provided
3. Payments made through service provider or credit card company may fail
4. Be aware of scam companies appearing as service providers
Some taxpayers pay with their taxes with a debit or credit card just for the convenience – others because they neglected to take out enough money during the year to pay their taxes or did not have enough deductions to get a refund. Here are some pros and cons about paying your taxes with a credit card or debit card.
Paying With a Credit Card
Pros
1. Convenience. You can pay by phone, internet, efile through IRS or IRS approved service providers
2. The IRS website is safe and secure – you cannot ensure safety and security on other websites
3. You may be able to earn miles, points or rewards from your credit card company
4. You can pay using Visa, MasterCard, Discover or American Express
5. You can pay taxes for forms 1040/ES/X, 4868, 5329 for individuals and can pay taxes for forms 940, 941, 943, 944, 945, 1041, 1065 for businesses
6. You can make partial payments or setup an installment agreement
7. The filing fee is tax deductible
8. You can make a payment less than $100,000 via the IRS website, larger payments must be made through OPC or Link2Gov
Cons
1. You have to pay a fee when paying via a service provider (fees range from 1.95-2.35% of amount owed)
2. An immediate release of a federal tax lien is not provided
3. Payments made through service provider or credit card company may fail
4. Depending on the interest rate charged on your credit card, if you don’t pay the card balance off within a few months you will end up paying more money than the taxes owed to the IRS
5. Be aware of scam companies appearing as service providers
Paying With a Debit Card
Pros
1. Convenience. You can pay by phone, internet, efile through IRS or IRS approved service providers
2. The IRS website is safe and secure – you cannot ensure safety and security on other websites
3. The is a flat fee charged per transaction
4. You may earn rewards from your debit card company
5. You can make a payment less than $100,000 via the IRS website, larger payments must be made through OPC or Link2Gov
6. You can pay taxes for forms 1040/ES/X, 4868, 5329 for individuals and can pay taxes for forms 940, 941, 943, 944, 945, 1041, 1065 for businesses
7. You can make partial payments or setup an installment agreement
8. The filing fee is tax deductible
9. Don't have to worry about paying penalty charges, late fees or interest if paid in full
10. Can make a payment less than $100,000 via the IRS website, larger payments must be made through OPC or Link2Gov
Cons
1. Have to pay a flat fee when paying via a service provider (fees range from $3.89-$3.95)
2. Immediate release of a federal tax lien is not provided
3. Payments made through service provider or credit card company may fail
4. Be aware of scam companies appearing as service providers
Tuesday, September 07, 2010
30 Ways to Pay Off Debt
Over 1,000,000 Americans have foreclosed on their homes this year. Over 750,000 Americans have filed for personal bankruptcy and the numbers continue to rise. If you are lucky enough to have a job and are in debt, get out of debt as soon as possible.
There is no longer job security and Americans have to plan for their future which includes eliminating debt, saving and investing. It took a long time to get into debt and will take a long time to get out of debt – but with patience, sacrifice and dedication you can live a debt free life. Here are 30 ways to pay off debt now and become debt free.
1. Stop using your credit cards.
2. Pay cash for all purchases until you pay off all of your debt.
3. Empty the change from your car, sofa, wallet, purse and pockets into a jar each day. Every 3 months deposit the money into your bank account. Use that money to pay down debt.
4. Track your spending daily or weekly until you pay off at least 75% of your debt.
5. Downgrade or downsize – move into a smaller and less expensive home or apartment. Trade in your luxury car for a car with no note or a cheaper car payment.
6. Pay additional money or your mortgage payment or car loan. Even an extra $10 a month will make a difference.
7. Setup automatic paycheck deductions to pay bills or use online banking.
8. Setup a debt payment plan with your creditors.
9. Use any raises, bonuses, commissions to pay down debt.
10. Create a budget or spending plan and buy more needs vs. wants.
11. Stop eating out – bring your lunch to work and eat at home.
12. Sell items not used within the past 6 months or more on eBay or Craigslist.
13. Donate items that did not sell to charity and write off on your taxes.
14. Hide your credit cards or cut them up, especially department store cards which usually have the highest interest rates.
15. Cancel your cable service, use internet service at the library and get the cheapest cell phone plan available.
16. Always pay your bills on time or before the due date.
17. Get current on late payments – pay off collection accounts, tax liens and judgments as soon as possible.
18. Get current on student loans to avoid collection fees, loss of a tax refund or garnishing your paycheck. Visit finaid.com for information on student loan forgiveness programs.
19. Start with the smallest bill first and pay it off. Take the money used for that monthly payment and put towards the next bill to pay debt down faster.
20. Evaluate your insurance policies to make sure you are properly covered and look for ways to reduce your monthly premiums: increase deductible, eliminate uninsured motorists' coverage, bundle services, etc.
21. Get at least basic health insurance to reduce medical costs, stop smoking, exercise and eat a healthy diet to keep medical costs low.
22. Skip the Starbucks and bring coffee from home or drink tea.
23. Skip drinking sodas and juices and drink more water.
24. Keep your thermostat at 68 degrees Fahrenheit in the winter and 76-78 degree Fahrenheit in the summer to keep heating and cooling costs down.
25. Shop at outlet stores, discounts stores or consignment stores for groceries and clothing.
26. Cancel magazine and newspaper subscriptions.
27. Don't go on any vacations until you are completely out of debt.
28. Turn off electronics and appliances when not in use for 20 minutes or more. Unplug all large electronics and appliances when not in use to save money on energy costs.
29. Review your credit reports from Equifax, Experian and TransUnion to look for errors and to find out about any debt you were not aware of.
30. Don't lend money if you can't afford to. Ask others who owe you money to pay you back.
There is no longer job security and Americans have to plan for their future which includes eliminating debt, saving and investing. It took a long time to get into debt and will take a long time to get out of debt – but with patience, sacrifice and dedication you can live a debt free life. Here are 30 ways to pay off debt now and become debt free.
1. Stop using your credit cards.
2. Pay cash for all purchases until you pay off all of your debt.
3. Empty the change from your car, sofa, wallet, purse and pockets into a jar each day. Every 3 months deposit the money into your bank account. Use that money to pay down debt.
4. Track your spending daily or weekly until you pay off at least 75% of your debt.
5. Downgrade or downsize – move into a smaller and less expensive home or apartment. Trade in your luxury car for a car with no note or a cheaper car payment.
6. Pay additional money or your mortgage payment or car loan. Even an extra $10 a month will make a difference.
7. Setup automatic paycheck deductions to pay bills or use online banking.
8. Setup a debt payment plan with your creditors.
9. Use any raises, bonuses, commissions to pay down debt.
10. Create a budget or spending plan and buy more needs vs. wants.
11. Stop eating out – bring your lunch to work and eat at home.
12. Sell items not used within the past 6 months or more on eBay or Craigslist.
13. Donate items that did not sell to charity and write off on your taxes.
14. Hide your credit cards or cut them up, especially department store cards which usually have the highest interest rates.
15. Cancel your cable service, use internet service at the library and get the cheapest cell phone plan available.
16. Always pay your bills on time or before the due date.
17. Get current on late payments – pay off collection accounts, tax liens and judgments as soon as possible.
18. Get current on student loans to avoid collection fees, loss of a tax refund or garnishing your paycheck. Visit finaid.com for information on student loan forgiveness programs.
19. Start with the smallest bill first and pay it off. Take the money used for that monthly payment and put towards the next bill to pay debt down faster.
20. Evaluate your insurance policies to make sure you are properly covered and look for ways to reduce your monthly premiums: increase deductible, eliminate uninsured motorists' coverage, bundle services, etc.
21. Get at least basic health insurance to reduce medical costs, stop smoking, exercise and eat a healthy diet to keep medical costs low.
22. Skip the Starbucks and bring coffee from home or drink tea.
23. Skip drinking sodas and juices and drink more water.
24. Keep your thermostat at 68 degrees Fahrenheit in the winter and 76-78 degree Fahrenheit in the summer to keep heating and cooling costs down.
25. Shop at outlet stores, discounts stores or consignment stores for groceries and clothing.
26. Cancel magazine and newspaper subscriptions.
27. Don't go on any vacations until you are completely out of debt.
28. Turn off electronics and appliances when not in use for 20 minutes or more. Unplug all large electronics and appliances when not in use to save money on energy costs.
29. Review your credit reports from Equifax, Experian and TransUnion to look for errors and to find out about any debt you were not aware of.
30. Don't lend money if you can't afford to. Ask others who owe you money to pay you back.
Saturday, September 04, 2010
How to Pay Defaulted Student Loans
Student loan debt is one of the hardest debts to pay off. Many Americans pay on their student loans well into their adult life. If your student loans go into default, it can take a while to get them into good standing. You risk having your tax refund taken, your paycheck garnished or being taken to court.
Federal loans have more regulations and programs to help account holders pay their student loan debt. Private loans are not as regulated and offer very few programs or none at all depending on the company to help account holders pay their student loan debt. You cannot include federal or student loans in bankruptcy. Here are 9 ways to get current on defaulted student loans.
Private loans
1. Offer a good faith payment or a lump sum payment to use as negotiation to request that any fees or finance charges be waived. Also, request that your payment history is updated on your credit report.
2. Refinance. After paying your loan on time for at least two years you can comparison shop and sell the loan to another loan servicer or bank for a better interest rate.
3. When private loans go into default they are usually forwarded to a collection agency which may not be as willing to work with you to setup a payment plan. Negotiate and offer a payment plan that you know you will be able to afford each month. If they refuse to accept your payment plan you may have to provide documentation such as a budget or paystub to support your payment plan.
4. You may be charged fees by the collection agency but no more than 18.5% of the outstanding principal and interest.
5. If you are in the military and are on active duty there are limits on interest accrual.
6. If the collection agency is not adhering to the Fair Debt Collections Practices Act file a complaint against the company with the Federal Trade Commission.
7. You can consolidate loans to use the student loan forgiveness (or public service forgiveness) programs.
8. Ask for a copy of the collection agency's business license, proof that they have a legal right to collect on the student loan and proof that you owe the amount stated on the letter you received.
9. If the school you attended closed or you withdrew from school you may be eligible for a partial refund by completing an unpaid refund discharge application form.
Federal loans
1. After making payments on time for 9-10 months, your loan will be placed in good standing (rehabilitated) and you will be eligible for various programs such as deferment, forbearance and student loan forgiveness.
2. Determine how much you can afford to pay each month. This may require that you create a budget and reduce some expenses to ensure you make the payments each month.
3. If your loan has not been sent to a collection agency, send a payment to the Department of Education's Payment Center.
4. You can consolidate your loans into one loan which will put your loan in good standing.
5. Don't consolidate federal loans into private loans because you will no longer be eligible for deferment, cancellation, forbearance or income-based payment plans.
6. You can consolidate your federal loans into the Direct Loans government consolidation program.
7. If you default on a Direct Loan you must make 3 payments or agree to pay the loan using the Income Contingent Repayment Plan (ICRP) or Income Based Repayment Plan (IBR). If you sign up for the ICRP or IBR you do not have to make 3 payments before applying for consolidation.
8. You can only consolidate a Direct Loan once.
Federal loans have more regulations and programs to help account holders pay their student loan debt. Private loans are not as regulated and offer very few programs or none at all depending on the company to help account holders pay their student loan debt. You cannot include federal or student loans in bankruptcy. Here are 9 ways to get current on defaulted student loans.
Private loans
1. Offer a good faith payment or a lump sum payment to use as negotiation to request that any fees or finance charges be waived. Also, request that your payment history is updated on your credit report.
2. Refinance. After paying your loan on time for at least two years you can comparison shop and sell the loan to another loan servicer or bank for a better interest rate.
3. When private loans go into default they are usually forwarded to a collection agency which may not be as willing to work with you to setup a payment plan. Negotiate and offer a payment plan that you know you will be able to afford each month. If they refuse to accept your payment plan you may have to provide documentation such as a budget or paystub to support your payment plan.
4. You may be charged fees by the collection agency but no more than 18.5% of the outstanding principal and interest.
5. If you are in the military and are on active duty there are limits on interest accrual.
6. If the collection agency is not adhering to the Fair Debt Collections Practices Act file a complaint against the company with the Federal Trade Commission.
7. You can consolidate loans to use the student loan forgiveness (or public service forgiveness) programs.
8. Ask for a copy of the collection agency's business license, proof that they have a legal right to collect on the student loan and proof that you owe the amount stated on the letter you received.
9. If the school you attended closed or you withdrew from school you may be eligible for a partial refund by completing an unpaid refund discharge application form.
Federal loans
1. After making payments on time for 9-10 months, your loan will be placed in good standing (rehabilitated) and you will be eligible for various programs such as deferment, forbearance and student loan forgiveness.
2. Determine how much you can afford to pay each month. This may require that you create a budget and reduce some expenses to ensure you make the payments each month.
3. If your loan has not been sent to a collection agency, send a payment to the Department of Education's Payment Center.
4. You can consolidate your loans into one loan which will put your loan in good standing.
5. Don't consolidate federal loans into private loans because you will no longer be eligible for deferment, cancellation, forbearance or income-based payment plans.
6. You can consolidate your federal loans into the Direct Loans government consolidation program.
7. If you default on a Direct Loan you must make 3 payments or agree to pay the loan using the Income Contingent Repayment Plan (ICRP) or Income Based Repayment Plan (IBR). If you sign up for the ICRP or IBR you do not have to make 3 payments before applying for consolidation.
8. You can only consolidate a Direct Loan once.
Wednesday, September 01, 2010
Why You Need Insurance
September is National Insurance Month and according to the Chicago Tribune, 70 million Americans are underinsured and sixty percent of full-time workers are uninsured. A study by Harvard University researchers found that 50% of all bankruptcy filings were partially the result of medical expenses. Many people go into debt and have bad credit due to unpaid medical bills. If you become unemployed or you become ill you could end up in mounds of debt or lose your home to foreclosure. If you are employed you should have at least basic health insurance no matter what your salary. Three benefits to having insurance:
1. Protects against harm to something or someone
2. Can be used to reimburse for a loss that occurs
3. Saves you money in the future
There are several types of insurance available: life, health, auto, fire, home, dental, flood, disability (short term and long term), and many more. The 3 most important types of insurance everyone should have are: disability, life and health.
Disability insurance is used if you have a short-term or long-term medical condition that prevents you from working and ensures that you still continue to receive a paycheck, usually at least 60% of your salary. Life insurance is used if a family member dies. Health insurance is needed if you require medical treatment or preventive care.
If your employer does not provide health, life or disability insurance you can purchase insurance on your own. When buying insurance comparison shop to find the best rate. Go to eHealthInsurance to get quotes on affordable health insurance.
If you need health insurance for your children visit the Insure Kids Now site. For information on disability insurance visit the Assurity company's website. If you cannot afford to purchase health insurance make sure you get enough rest, eat well and exercise. Try to get a part-time job to pay for health insurance premiums.
If you cannot afford to purchase additional types of insurance such as home owner's insurance, auto or fire insurance, you can save money by purchasing bundled packages for several insurance policies with the same company such as insuring multiple cars with the same insurance company or ask for discounts to save money.
Having insurance will save you money in the future and help you get over any financial crisis you may experience.
1. Protects against harm to something or someone
2. Can be used to reimburse for a loss that occurs
3. Saves you money in the future
There are several types of insurance available: life, health, auto, fire, home, dental, flood, disability (short term and long term), and many more. The 3 most important types of insurance everyone should have are: disability, life and health.
Disability insurance is used if you have a short-term or long-term medical condition that prevents you from working and ensures that you still continue to receive a paycheck, usually at least 60% of your salary. Life insurance is used if a family member dies. Health insurance is needed if you require medical treatment or preventive care.
If your employer does not provide health, life or disability insurance you can purchase insurance on your own. When buying insurance comparison shop to find the best rate. Go to eHealthInsurance to get quotes on affordable health insurance.
If you need health insurance for your children visit the Insure Kids Now site. For information on disability insurance visit the Assurity company's website. If you cannot afford to purchase health insurance make sure you get enough rest, eat well and exercise. Try to get a part-time job to pay for health insurance premiums.
If you cannot afford to purchase additional types of insurance such as home owner's insurance, auto or fire insurance, you can save money by purchasing bundled packages for several insurance policies with the same company such as insuring multiple cars with the same insurance company or ask for discounts to save money.
Having insurance will save you money in the future and help you get over any financial crisis you may experience.
Sunday, August 29, 2010
What the United Continental Merger Means For You
The United Continental merger will make United the largest airline in the country. Both companies combined serve over 144 million customers each year. The frequency of flights may be reduced and some flights may be eliminated. There may be fewer flights between small cities.
There should be improvements in flight schedules. United has hubs in New York, Los Angeles, Chicago and Houston. Continental has hubs in San Francisco, Denver, Washington, DC and Cleveland.
Frequent flier programs already allow customers to use miles on both airlines. If you are a member of Continental’s airport club program you can use United's club programs. Both airlines use the same credit card program. Business travelers locked into corporate contracts may see higher prices.
Continental’s pilots are paid more than United’s so United’s pilots are expecting pay raises. Some jobs may be lost due to the merger due to the logistics of business mergers which usually involve cutting costs and reducing redundancy.
According to Joe Brancantelli on Portfolio.com, don't be concerned with what you hear in the media about the merger. I would add that you wait about a month or two after the merger has been finalized, then watch for comments on updates to their services. Here are some other tips from Brancantelli.
1. Learn the airport jargon, listen to how airline employee talk to each other. Ask the agent, “Where’s the equipment?” The agent will go to the computer and find out where your plane is and when it will arrive. If the plane is already at the gate ask the agent, “When are we scheduled to push back?” This means when will the plane take off. If you want an upgrade ask, “How are the loads today?” This means how many empty seats do you have and the agent will let you know your number on the upgrade wait list. This will be to your advantage because you will not be viewed as the average customer and they will inclined to provide you with more information.
2. Remove your business card tags. Replace with business tags with tags with your home address on all baggage you check-in at the airport. After mergers some unhappy bag handlers may mysteriously misplace bags with business tags because they are most likely to complain about service.
The merger reduces the depth of airline competition which may cause an increase in airfares, however the airlines assure passengers that fares won't be affected, we will have to wait and see.
There should be improvements in flight schedules. United has hubs in New York, Los Angeles, Chicago and Houston. Continental has hubs in San Francisco, Denver, Washington, DC and Cleveland.
Frequent flier programs already allow customers to use miles on both airlines. If you are a member of Continental’s airport club program you can use United's club programs. Both airlines use the same credit card program. Business travelers locked into corporate contracts may see higher prices.
Continental’s pilots are paid more than United’s so United’s pilots are expecting pay raises. Some jobs may be lost due to the merger due to the logistics of business mergers which usually involve cutting costs and reducing redundancy.
According to Joe Brancantelli on Portfolio.com, don't be concerned with what you hear in the media about the merger. I would add that you wait about a month or two after the merger has been finalized, then watch for comments on updates to their services. Here are some other tips from Brancantelli.
1. Learn the airport jargon, listen to how airline employee talk to each other. Ask the agent, “Where’s the equipment?” The agent will go to the computer and find out where your plane is and when it will arrive. If the plane is already at the gate ask the agent, “When are we scheduled to push back?” This means when will the plane take off. If you want an upgrade ask, “How are the loads today?” This means how many empty seats do you have and the agent will let you know your number on the upgrade wait list. This will be to your advantage because you will not be viewed as the average customer and they will inclined to provide you with more information.
2. Remove your business card tags. Replace with business tags with tags with your home address on all baggage you check-in at the airport. After mergers some unhappy bag handlers may mysteriously misplace bags with business tags because they are most likely to complain about service.
The merger reduces the depth of airline competition which may cause an increase in airfares, however the airlines assure passengers that fares won't be affected, we will have to wait and see.
Thursday, August 26, 2010
How to Protect Yourself From Debt Collectors
The Federal Trade Commission (FTC) defines a debt collector as any person who regularly collects or attempts to collect a debt owed including a creditor who uses a third party to collect a debt.
Consumers should learn their rights regarding credit and debt collection to prevent harassment, prevent paying additional fees or money that is not owed and to protect their credit. The main act that protects consumers regarding debt collection is the Fair Debt Collection Practices Act (FDCPA) which can be found on the FTC website at ftc.gov/os/statutes/fdcpajump.shtm.
The FDCPA covers individuals, families and debt owed for medical bills, mortgages, car loans and personal credit cards. The act does not cover debts business debts owed. A debt collector can only contact you between 8am and 9pm. They can contact you at any number you provided on your credit card or loan application unless you tell them in writing or over the phone to stop contacting you at that number. A debt collector can contact other people to get your contact information if they are unable to find you or do not get a response from you. They are prohibited from contacting third parties more than once.
According to CNN Money the number of complaints against debt collectors threatening to use violence or using violence increased by more than 50% since 2009 to 2,517. Complaints against debt collectors using abusive language increased to 35% in 2009.
Debt collectors cannot ask for more money than what is owed, threaten violence, legal actions, jail, job loss, or property seizure. A debt collector must sent a written letter stating how much you owe within 5 days from the first time they contact you and must include the name of the original creditor owed, and the process to follow if you feel you do not owe the debt.
If you feel you do not owe the debt, send a written response with a return receipt within 30 days of receiving the letter requesting proof that you owe the debt. A debt collector cannot contact you again until proof has been sent. Here are some highlights of what debt collectors cannot do:
Debt collectors cannot: harass you with threats of violence or publish your name, use profanity, make obsessive phone calls, make false statements or send false documentation, misrepresent the amount owed or the company they work for, cannot state you will be arrested if you don't pay your debt, may not give credit information about you to anyone including a credit reporting company, may not collect fees or other charges on top of the amount owed unless the contract states so or contact you by postcard.
If you do not pay a debt owed, a creditor or debt collector can: sue you or garnish your wages. However, debt collectors cannot obtain garnishments from: social security, SSI or veterans, military, railroad retirement, foreign service or disability benefits, merchant seamen wages or FEMA disaster assistance.
If you feel a debt collector has violated the FDCPA you can sue them in a federal or state court within one year from the date the law was violated. If you win, the judge can require the debt collector to pay you for damaged incurred up to $1,000. Complaints can be filed against a debt collector with the FTC.
Consumers should learn their rights regarding credit and debt collection to prevent harassment, prevent paying additional fees or money that is not owed and to protect their credit. The main act that protects consumers regarding debt collection is the Fair Debt Collection Practices Act (FDCPA) which can be found on the FTC website at ftc.gov/os/statutes/fdcpajump.shtm.
The FDCPA covers individuals, families and debt owed for medical bills, mortgages, car loans and personal credit cards. The act does not cover debts business debts owed. A debt collector can only contact you between 8am and 9pm. They can contact you at any number you provided on your credit card or loan application unless you tell them in writing or over the phone to stop contacting you at that number. A debt collector can contact other people to get your contact information if they are unable to find you or do not get a response from you. They are prohibited from contacting third parties more than once.
According to CNN Money the number of complaints against debt collectors threatening to use violence or using violence increased by more than 50% since 2009 to 2,517. Complaints against debt collectors using abusive language increased to 35% in 2009.
Debt collectors cannot ask for more money than what is owed, threaten violence, legal actions, jail, job loss, or property seizure. A debt collector must sent a written letter stating how much you owe within 5 days from the first time they contact you and must include the name of the original creditor owed, and the process to follow if you feel you do not owe the debt.
If you feel you do not owe the debt, send a written response with a return receipt within 30 days of receiving the letter requesting proof that you owe the debt. A debt collector cannot contact you again until proof has been sent. Here are some highlights of what debt collectors cannot do:
Debt collectors cannot: harass you with threats of violence or publish your name, use profanity, make obsessive phone calls, make false statements or send false documentation, misrepresent the amount owed or the company they work for, cannot state you will be arrested if you don't pay your debt, may not give credit information about you to anyone including a credit reporting company, may not collect fees or other charges on top of the amount owed unless the contract states so or contact you by postcard.
If you do not pay a debt owed, a creditor or debt collector can: sue you or garnish your wages. However, debt collectors cannot obtain garnishments from: social security, SSI or veterans, military, railroad retirement, foreign service or disability benefits, merchant seamen wages or FEMA disaster assistance.
If you feel a debt collector has violated the FDCPA you can sue them in a federal or state court within one year from the date the law was violated. If you win, the judge can require the debt collector to pay you for damaged incurred up to $1,000. Complaints can be filed against a debt collector with the FTC.
Monday, August 23, 2010
Saturday, August 21, 2010
Tuesday, August 17, 2010
Are You Still Using Checks
I still use checks and according to MSN Money I am one of a few who still do. My first preference is using money orders. Your personal information is passed around as many times as we breathe air during a 24 hour period which puts you at an increased risk for identity theft.
Whole Foods has begun refusing checks as payment in some of their stores and has plans to expand the policy to other stores. Banana Republic also began a no check writing policy that went into effect in the fall of 2009.
I liked it when you had to go to a bank to make transactions and the only means of payment was writing a check or using a credit card. I use electronic transactions such as a debit card or credit card but prefer to pay for items with cash.
I don't like being forced to use a particular payment method such as the automated check system that scans your check and accesses your account immediately. This prompted me to start using money orders again, that way I don't have to worry about anyone accessing my bank account. I don't do online banking and don't setup automated payments.
I know checks are going to be retired but I am holding on for dear life and will continue to use them until I am forced to use another method of payment.
Some consumers are afraid or uncomfortable using ATM and debit cards. Others, are hesitant to use them for fear of becoming a victim of identity theft. I wonder, if those who write checks now will no longer be able to write checks in the future and don't want to use a debit card or credit card, what payment method will banks provide for them? Only time will tell what the future holds.
If you are a check writer like me, write your congressman and request that businesses accept checks as a form of payment. I will be writing my letter right along with you.
Whole Foods has begun refusing checks as payment in some of their stores and has plans to expand the policy to other stores. Banana Republic also began a no check writing policy that went into effect in the fall of 2009.
I liked it when you had to go to a bank to make transactions and the only means of payment was writing a check or using a credit card. I use electronic transactions such as a debit card or credit card but prefer to pay for items with cash.
I don't like being forced to use a particular payment method such as the automated check system that scans your check and accesses your account immediately. This prompted me to start using money orders again, that way I don't have to worry about anyone accessing my bank account. I don't do online banking and don't setup automated payments.
I know checks are going to be retired but I am holding on for dear life and will continue to use them until I am forced to use another method of payment.
Some consumers are afraid or uncomfortable using ATM and debit cards. Others, are hesitant to use them for fear of becoming a victim of identity theft. I wonder, if those who write checks now will no longer be able to write checks in the future and don't want to use a debit card or credit card, what payment method will banks provide for them? Only time will tell what the future holds.
If you are a check writer like me, write your congressman and request that businesses accept checks as a form of payment. I will be writing my letter right along with you.
Saturday, August 14, 2010
Next Week's Credit Card Changes
You have heard of all the changes that were outlined in the CARD act of 2009 that went into effect February 22, 2010.
Well, credit card companies were forced to make additional changes that affect consumers which go into effect August 22, 2010. Here is a highlight of some of the changes developed by the Federal Reserve that may affect you.
1. If you make a late payment credit card companies can only change up to $25 for fee unless one of your last 6 payments was late or they can provide justifiable cause that the costs it incurs as a result of a late payment require charging more than $25. If you repeatedly make late payments you can be charged a higher fee but no more than $35.
2. You cannot be charged a late payment fee greater than your minimum monthly payment. This also applies to over-the-limit-fees.
3. You will no longer be charged inactivity fees for not using your credit card.
4. You will not be charged more than one fee for multiple offenses such as a late payment and over-the-limit. Some consumers were being charged multiple fees which made it impossible to stay current on their monthly bills.
5. Credit card companies must explain in detail any rate increases and must reevaluate your interest rate every six months. This will be helpful for those who made late payments in the past but are now current on their payments. If the evaluation determines that you can receive a lower interest rate, it must be applied within 45 days after the evaluation.
Well, credit card companies were forced to make additional changes that affect consumers which go into effect August 22, 2010. Here is a highlight of some of the changes developed by the Federal Reserve that may affect you.
1. If you make a late payment credit card companies can only change up to $25 for fee unless one of your last 6 payments was late or they can provide justifiable cause that the costs it incurs as a result of a late payment require charging more than $25. If you repeatedly make late payments you can be charged a higher fee but no more than $35.
2. You cannot be charged a late payment fee greater than your minimum monthly payment. This also applies to over-the-limit-fees.
3. You will no longer be charged inactivity fees for not using your credit card.
4. You will not be charged more than one fee for multiple offenses such as a late payment and over-the-limit. Some consumers were being charged multiple fees which made it impossible to stay current on their monthly bills.
5. Credit card companies must explain in detail any rate increases and must reevaluate your interest rate every six months. This will be helpful for those who made late payments in the past but are now current on their payments. If the evaluation determines that you can receive a lower interest rate, it must be applied within 45 days after the evaluation.
Wednesday, August 11, 2010
Over 10 million cars have been recalled since January 2010. Toyota recalled over 8.5 million cars; Jaguar recalled 5,000 cars; Honda recalled approximately 384,000 cars and General Motors recalled 1.3 million cars.
If your car has been recalled you should be contacted by mail by the manufacturer. However, if you have not, you can find recall information on the internet at sites such as: Carfax, Environmental Protection Agency or National Highway Traffic Safety Administration. Most cars that are recalled are repaired free of charge by your local dealership. Here are 5 tips if your car is recalled.
1. Don't panic. Some recalls are not safety hazards but you should take you car to the dealership to have the repairs done just to be safe.
2. Verify notification. If you receive a notice that you car has been recalled take your car to any dealership in your area that sells your particular car make and model. Recall notices are valid as long as the car is less than 10 years old.
3. Get a second opinion. Get a second opinion on repair costs before taking it to the dealer in case they suggest additional repairs that they will not cover.
4. Used Cars. If you bought a used car and repairs were made a sticker will be displayed inside the car.
5. Check annually. If you did not receive a notice that you car was recalled, ask other people who own your same type of car to notify you if they hear about recalls. Also, search the internet periodically to see the list of recent car recalls.
If your car has been recalled you should be contacted by mail by the manufacturer. However, if you have not, you can find recall information on the internet at sites such as: Carfax, Environmental Protection Agency or National Highway Traffic Safety Administration. Most cars that are recalled are repaired free of charge by your local dealership. Here are 5 tips if your car is recalled.
1. Don't panic. Some recalls are not safety hazards but you should take you car to the dealership to have the repairs done just to be safe.
2. Verify notification. If you receive a notice that you car has been recalled take your car to any dealership in your area that sells your particular car make and model. Recall notices are valid as long as the car is less than 10 years old.
3. Get a second opinion. Get a second opinion on repair costs before taking it to the dealer in case they suggest additional repairs that they will not cover.
4. Used Cars. If you bought a used car and repairs were made a sticker will be displayed inside the car.
5. Check annually. If you did not receive a notice that you car was recalled, ask other people who own your same type of car to notify you if they hear about recalls. Also, search the internet periodically to see the list of recent car recalls.
Sunday, August 08, 2010
Upcoming Debit Card Changes
Starting August 15, 2010 if you overdraw on your bank account, your transaction will be declined and you will not be charged overdraft fees if you did not previously opt-in by July 1, 2010.
However, this rule does not apply to checks or automatic bill payments. You will still be charged overdraft fees for these transactions if you account is overdrawn. Standard overdraft services your bank provides will cover the transaction by charging a flat fee of $20-$35 each time you overdraw your account.
If you have an overdraft protection service your bank will provide a line of credit that is linked to your savings account to cover transactions when you overdraw your account. Banks will charge you a fee each time you overdraw your account.
Using your bank's overdraft protection service may be less expensive than using the standard overdraft service. Use caution because some banks report overdrawn accounts on your credit report.
If you did not opt in by July 1, 2010, it may not be too late. If you have been a good customer of your bank, contact them and ask if you can still opt-in to their debit card program.
However, this rule does not apply to checks or automatic bill payments. You will still be charged overdraft fees for these transactions if you account is overdrawn. Standard overdraft services your bank provides will cover the transaction by charging a flat fee of $20-$35 each time you overdraw your account.
If you have an overdraft protection service your bank will provide a line of credit that is linked to your savings account to cover transactions when you overdraw your account. Banks will charge you a fee each time you overdraw your account.
Using your bank's overdraft protection service may be less expensive than using the standard overdraft service. Use caution because some banks report overdrawn accounts on your credit report.
If you did not opt in by July 1, 2010, it may not be too late. If you have been a good customer of your bank, contact them and ask if you can still opt-in to their debit card program.
Thursday, August 05, 2010
How to Save Money on Your Cable Bill
The average price for cable television per month is $75. Cable bills increase on average 5% per year. This is due to higher fees that cable companies have to pay the FCC, competition from other cable companies, loss of advertising dollars, higher technology costs and to makeup for the loss of subscribers each year.
Customers would have better accepted the higher costs if the cable companies sent out a survey to ask customers what technologies they would like and how much more they would be willing to pay. Instead, customers were forced to accept new technologies and higher prices.
If you feel like you are paying too much for cable or satellite tv or are frustrated by the service you receive there is hope. There are several free content websites available such as hulu.com and low fee content websites such as Apple's iTunes.
I liked analog cable and don't really care about high definition, blu-ray and fiber optics. I just want to be able to see a clear picture and don't need a picture that is so clear you can see a pimple on someone's face.
I purchased a television a few months ago and had cable installed. I wanted to see if my cable bill would be reduced. It was, by $8. Incredible. I heard good things about Netflix and am in the process of comparing Netflix options and movie selections with the number of movies I watch per week because I mostly watch movies or informational shows.
If you want to eliminate your cable bill you will not have as many channel options but it will save you a lot of money which can help everyone in this economy whether you are sinking in debt or not. Most U.S. homes can receive at least one local television station over the air and approximately 80% can watch 5 or more stations over the air.
The picture quality is clear largely in part due to the digital tv conversion that was completed last year and will still be able to see HD programming. HDTV is more expensive for local stations to produce so they may show non-HD during the day and switch to HD at night. To view the stations over the air you will need an antenna and an HDTV with a built in HDTV tuner or integrated HDTV. If you tv does not have this feature you can buy a separate HDTV tuner that connects your existing HDTV to an antenna.
For shows that you cannot see with your antenna, go on the internet to see if you can view them. Some of the shows may have commercials but it is worth it to watch them for free. If you use hulu.com you can watch shows for free and watch past seasons of your favorite shows. Hulu can be viewed on your computer, Play Station, Wii, iPhone and Xbox. You can watch unlimited shows for only $9 a month and you can cancel whenever you want.
Some sports channels can be viewed on the internet such as MLB.tv. You can also purchase single shows from Amazon.com and iTunes soon after they air on tv. You can also stream video from your computer to your tv if your computer has on output that works with a tv. Netflix allows you to watch as many movies as you want per month for only $9 and you can also cancel at anytime. Watch out cable tv, your subscribers are moving to free tv.
Customers would have better accepted the higher costs if the cable companies sent out a survey to ask customers what technologies they would like and how much more they would be willing to pay. Instead, customers were forced to accept new technologies and higher prices.
If you feel like you are paying too much for cable or satellite tv or are frustrated by the service you receive there is hope. There are several free content websites available such as hulu.com and low fee content websites such as Apple's iTunes.
I liked analog cable and don't really care about high definition, blu-ray and fiber optics. I just want to be able to see a clear picture and don't need a picture that is so clear you can see a pimple on someone's face.
I purchased a television a few months ago and had cable installed. I wanted to see if my cable bill would be reduced. It was, by $8. Incredible. I heard good things about Netflix and am in the process of comparing Netflix options and movie selections with the number of movies I watch per week because I mostly watch movies or informational shows.
If you want to eliminate your cable bill you will not have as many channel options but it will save you a lot of money which can help everyone in this economy whether you are sinking in debt or not. Most U.S. homes can receive at least one local television station over the air and approximately 80% can watch 5 or more stations over the air.
The picture quality is clear largely in part due to the digital tv conversion that was completed last year and will still be able to see HD programming. HDTV is more expensive for local stations to produce so they may show non-HD during the day and switch to HD at night. To view the stations over the air you will need an antenna and an HDTV with a built in HDTV tuner or integrated HDTV. If you tv does not have this feature you can buy a separate HDTV tuner that connects your existing HDTV to an antenna.
For shows that you cannot see with your antenna, go on the internet to see if you can view them. Some of the shows may have commercials but it is worth it to watch them for free. If you use hulu.com you can watch shows for free and watch past seasons of your favorite shows. Hulu can be viewed on your computer, Play Station, Wii, iPhone and Xbox. You can watch unlimited shows for only $9 a month and you can cancel whenever you want.
Some sports channels can be viewed on the internet such as MLB.tv. You can also purchase single shows from Amazon.com and iTunes soon after they air on tv. You can also stream video from your computer to your tv if your computer has on output that works with a tv. Netflix allows you to watch as many movies as you want per month for only $9 and you can also cancel at anytime. Watch out cable tv, your subscribers are moving to free tv.
Monday, August 02, 2010
New Mortgage Rules That May Affect You
New mortgage rules will affect those who previously qualified for the sub-prime mortgage loans. The new rules will require borrowers who qualify for riskier loans to pay higher fees and interest rates.
Lenders are now required to make qualified loans to borrowers with elimination of interest-only loans, terms no longer than 30 years. Borrowers with bad credit who cannot qualify or afford these types of loans will have to apply for non-qualified mortgages which will allow for terms longer than 30 years with higher interest rates. Lenders can still offer loans with higher rates in the first five years.
The new laws are causing Fannie Mae and Freddie Mac to implement restrictive rules that are preventing millions of borrowers with good mortgage payment history from being able to refinance at the current low interest rates.
This reaction by Fannie Mae and Freddie Mac may result in additional foreclosures if borrowers are unable to pay their mortgage and unable to refinance. This rule should be looked at again and should be done on a case-by-case basis for borrowers.
Write your congressman and voice your opinion about the new mortgage laws. If you are having trouble refinancing your home contact NACA at naca.com or HUD at hud.gov.
Lenders are now required to make qualified loans to borrowers with elimination of interest-only loans, terms no longer than 30 years. Borrowers with bad credit who cannot qualify or afford these types of loans will have to apply for non-qualified mortgages which will allow for terms longer than 30 years with higher interest rates. Lenders can still offer loans with higher rates in the first five years.
The new laws are causing Fannie Mae and Freddie Mac to implement restrictive rules that are preventing millions of borrowers with good mortgage payment history from being able to refinance at the current low interest rates.
This reaction by Fannie Mae and Freddie Mac may result in additional foreclosures if borrowers are unable to pay their mortgage and unable to refinance. This rule should be looked at again and should be done on a case-by-case basis for borrowers.
Write your congressman and voice your opinion about the new mortgage laws. If you are having trouble refinancing your home contact NACA at naca.com or HUD at hud.gov.
Friday, July 30, 2010
How to Save Money At Starbucks
Americans love drinking coffee but love drinking Starbucks even more. Americans have even become addicted to Starbucks. Americans who never drank coffee now go to Starbucks to drink coffee or some variation. The Starbucks marketing team is great to have that kind of affect on people but how has it affected you?
For the past several years Starbucks has dominated the coffee industry but now have a little competition from companies like McDonalds and Dunkin Donuts. This is especially true now during the slow economy. Americans are most conscious of their spending and some are making a great effort to live below their means and reduce their spending on extra treat such as Starbucks.
In January 2010, Starbucks increased their prices in certain areas and customers are not happy about the price hikes. Some customers have skipped the Starbucks and opted for coffee from Starbucks competitors.
Some Starbucks lovers are buying their Starbucks from other retailers such Safeway, Kroger, Walmart, Target, CVS as or online at sites such as discountcoffee.com or amazon.com.
The average price of one cup of Starbucks coffee costs $5.50 and in one year that equals to $1,375. If you buy a complex or specialty coffee with extras you could pay up to $9 for one cup. What would you do with that extra money?
Although Starbucks now offers an instant coffee for $1 you can still get coffee cheaper at the grocery store or buying in bulk at discount stores such as Costco or Sams Club. If you buy coffee from the grocery store a 27.8 ounce can of ground coffee can range from $7.39 to $10.99. Costco sells 18 – 2.5 ounce bags of coffee or 45 ounces for $42.03. Compare that with 1-12 ounce bag of Starbucks ground coffee for $9.99. If you love coffee here are some ways to save money.
1. Regular Coffee – Drink regular coffee instead of Starbucks. Remember what you did BS (before Starbucks) - you drank regular coffee. People seem to be addicted to Starbucks as though they never drank regular coffee. Unless you have several shares of Starbucks stock which earns more money each than you spend a month at Starbucks skip it. Every once in a while splurge on a cup of Starbucks but don’t make it a daily habit.
2. Short Cappuccino (Short Cap) – Order a short cap which is only available by request. It is smaller and costs less than the “Tall” Cappuccino.
3. Starbucks Regular – Buy the Starbucks coffee instead of a latte. You can save approximately $1.50.
4. Pairing – Starbucks sometimes offer customers options when purchasing a latte and a desert. Ask about their "pairing" specials. You can save approximately $1.00-$1.40.
5. Substitute Latte – Order 1-2 shots of expresso or macchiato in a large cup and fill with milk. You can also use half-n-half instead of milk in the macchiato. You can save approximately $.50-$1.20.
For the past several years Starbucks has dominated the coffee industry but now have a little competition from companies like McDonalds and Dunkin Donuts. This is especially true now during the slow economy. Americans are most conscious of their spending and some are making a great effort to live below their means and reduce their spending on extra treat such as Starbucks.
In January 2010, Starbucks increased their prices in certain areas and customers are not happy about the price hikes. Some customers have skipped the Starbucks and opted for coffee from Starbucks competitors.
Some Starbucks lovers are buying their Starbucks from other retailers such Safeway, Kroger, Walmart, Target, CVS as or online at sites such as discountcoffee.com or amazon.com.
The average price of one cup of Starbucks coffee costs $5.50 and in one year that equals to $1,375. If you buy a complex or specialty coffee with extras you could pay up to $9 for one cup. What would you do with that extra money?
Although Starbucks now offers an instant coffee for $1 you can still get coffee cheaper at the grocery store or buying in bulk at discount stores such as Costco or Sams Club. If you buy coffee from the grocery store a 27.8 ounce can of ground coffee can range from $7.39 to $10.99. Costco sells 18 – 2.5 ounce bags of coffee or 45 ounces for $42.03. Compare that with 1-12 ounce bag of Starbucks ground coffee for $9.99. If you love coffee here are some ways to save money.
1. Regular Coffee – Drink regular coffee instead of Starbucks. Remember what you did BS (before Starbucks) - you drank regular coffee. People seem to be addicted to Starbucks as though they never drank regular coffee. Unless you have several shares of Starbucks stock which earns more money each than you spend a month at Starbucks skip it. Every once in a while splurge on a cup of Starbucks but don’t make it a daily habit.
2. Short Cappuccino (Short Cap) – Order a short cap which is only available by request. It is smaller and costs less than the “Tall” Cappuccino.
3. Starbucks Regular – Buy the Starbucks coffee instead of a latte. You can save approximately $1.50.
4. Pairing – Starbucks sometimes offer customers options when purchasing a latte and a desert. Ask about their "pairing" specials. You can save approximately $1.00-$1.40.
5. Substitute Latte – Order 1-2 shots of expresso or macchiato in a large cup and fill with milk. You can also use half-n-half instead of milk in the macchiato. You can save approximately $.50-$1.20.
Tuesday, July 27, 2010
What the Financial Reform Means for You
President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection financial reform bill on July 21, 2010. President Obama stated that there will be no more tax-funded bailouts for the financial industry.
The law permits the FDIC to borrow taxpayer money from the Treasury temporarily to help cover the costs of closing large banks that would have to pay the Treasury back over time. The law will allow the government to eliminate and split up companies that may weaken or threaten the economy.
The law will require regulators to look for risks in the financial system and will create an independent consumer protection agency, the Bureau of Consumer Financial Protection within the Federal Reserve to write and enforce new regulations regarding credit and lending.
Companies will have to meet tougher standards. However, there will still be different standards for different types of companies: for credit unions, thrifts, state-chartered banks, etc. The law will require the Treasury department to monitor insurance companies which are currently regulated by the insurance commission of each state.
The law will make the Office of the Comptroller of the Currency the only regulator for U.S. based banks with branches in more than one state. Previously, the Office of Thrift Supervision oversaw these banks.
The law will require banks to have more capital (money that is readily available) and regulators will decide how much capital banks must have to cover unexpected losses.
The law will require that brokers offering personalized investment advice must act in clients' best interests. The law will hold brokers to the same standard that financial advisers already must meet.
The law will allow regulators to monitor credit card companies and banks. The law will require credit bureau agencies to be more accountable. The law will allow regulators to limit the fees retailers pay when consumers make purchases with debit cards. The law will allow the Bureau of Consumer Financial Protection to write rules and eliminate products it feels are unsafe, such as interest-only mortgages. Investors will be able to sue agencies for ignoring risks.
The law will let shareholders of public companies to provide input on the pay packages for top executives. They will be able to vote to approve or disapprove of pay packages. The law will ban bonuses for brokers which were based on the cost of a mortgage. Brokers gave borrowers higher rates and mortgages even when lower rates were available based on credit history.
The law will require that lenders verify that a borrower can afford their mortgage and may be fined if they fail to review a borrowers' income and credit history.
The law permits the FDIC to borrow taxpayer money from the Treasury temporarily to help cover the costs of closing large banks that would have to pay the Treasury back over time. The law will allow the government to eliminate and split up companies that may weaken or threaten the economy.
The law will require regulators to look for risks in the financial system and will create an independent consumer protection agency, the Bureau of Consumer Financial Protection within the Federal Reserve to write and enforce new regulations regarding credit and lending.
Companies will have to meet tougher standards. However, there will still be different standards for different types of companies: for credit unions, thrifts, state-chartered banks, etc. The law will require the Treasury department to monitor insurance companies which are currently regulated by the insurance commission of each state.
The law will make the Office of the Comptroller of the Currency the only regulator for U.S. based banks with branches in more than one state. Previously, the Office of Thrift Supervision oversaw these banks.
The law will require banks to have more capital (money that is readily available) and regulators will decide how much capital banks must have to cover unexpected losses.
The law will require that brokers offering personalized investment advice must act in clients' best interests. The law will hold brokers to the same standard that financial advisers already must meet.
The law will allow regulators to monitor credit card companies and banks. The law will require credit bureau agencies to be more accountable. The law will allow regulators to limit the fees retailers pay when consumers make purchases with debit cards. The law will allow the Bureau of Consumer Financial Protection to write rules and eliminate products it feels are unsafe, such as interest-only mortgages. Investors will be able to sue agencies for ignoring risks.
The law will let shareholders of public companies to provide input on the pay packages for top executives. They will be able to vote to approve or disapprove of pay packages. The law will ban bonuses for brokers which were based on the cost of a mortgage. Brokers gave borrowers higher rates and mortgages even when lower rates were available based on credit history.
The law will require that lenders verify that a borrower can afford their mortgage and may be fined if they fail to review a borrowers' income and credit history.
Saturday, July 24, 2010
Where to Find a Job
The unemployment rate has dropped to 9.5% which indicates that 14.6 million Americans are still out of work. In some cases those who previously worked one job now have to work two or three jobs to make ends meet if they want to survive in this economy.
Others are sitting back waiting for a job to magically appear or are in denial believing that they will be able make the salary they previously did or close too it. Still others have lived above their means – bought overpriced home, luxury cars, and lived the fairy tale lifestyle they dreamed of and are now paying the price.
Americans who have always lived below their means do not feel the effects of the recession as much others but are aware that wanting certain luxuries in life comes with a price - unless you are wealthy which is defined as being able to live comfortably for at least five years without working.
According to a Manpower survey more employers plan to increase hiring efforts starting in July 2010. The areas that have the most promising job opportunities are: Washington DC, Greenville, SC and San Antonio TX. Other areas that have promising job opportunities are: Syracuse, Buffalo, Rochester, Albany, Troy, NY; Memphis, TN; Milwaukee, Madison, WI; Wyoming, Grand Rapids, MI; Houston, El Paso, Baytown, TX; Carlisle, Harrisburg, Wilkes, Philadelphia, Camden, Wilmington, PA; West Des Moines, Des Moines, IA; Baton Rouge, LA; New Jersey; Delaware; Maryland; Salt Lake City, UT; Raleigh, NC; Alexandria, Arlington, VA and West Virginia.
Detroit Michigan which was hit hard by the auto industry failure and Las Vegas, Nevada have the least promising job opportunities.
According to the Conference Board, in May, Washington DC was the only area where the number of job vacancies was greater than the number of unemployed residents. The management consulting firm Accenture plans to hire 7,000 people in the U.S. and an additional 43,000 worldwide by August 31, 2010.
To improve your chance of getting hired: do research on the company, ask questions at the interview, take training classes or get a college degree. The job market is much more competitive now and you will have to do more than just have good interview skills to get hired.
Others are sitting back waiting for a job to magically appear or are in denial believing that they will be able make the salary they previously did or close too it. Still others have lived above their means – bought overpriced home, luxury cars, and lived the fairy tale lifestyle they dreamed of and are now paying the price.
Americans who have always lived below their means do not feel the effects of the recession as much others but are aware that wanting certain luxuries in life comes with a price - unless you are wealthy which is defined as being able to live comfortably for at least five years without working.
According to a Manpower survey more employers plan to increase hiring efforts starting in July 2010. The areas that have the most promising job opportunities are: Washington DC, Greenville, SC and San Antonio TX. Other areas that have promising job opportunities are: Syracuse, Buffalo, Rochester, Albany, Troy, NY; Memphis, TN; Milwaukee, Madison, WI; Wyoming, Grand Rapids, MI; Houston, El Paso, Baytown, TX; Carlisle, Harrisburg, Wilkes, Philadelphia, Camden, Wilmington, PA; West Des Moines, Des Moines, IA; Baton Rouge, LA; New Jersey; Delaware; Maryland; Salt Lake City, UT; Raleigh, NC; Alexandria, Arlington, VA and West Virginia.
Detroit Michigan which was hit hard by the auto industry failure and Las Vegas, Nevada have the least promising job opportunities.
According to the Conference Board, in May, Washington DC was the only area where the number of job vacancies was greater than the number of unemployed residents. The management consulting firm Accenture plans to hire 7,000 people in the U.S. and an additional 43,000 worldwide by August 31, 2010.
To improve your chance of getting hired: do research on the company, ask questions at the interview, take training classes or get a college degree. The job market is much more competitive now and you will have to do more than just have good interview skills to get hired.
Wednesday, July 21, 2010
Tax Cuts and How They Affect You
President Bush implemented tax cuts several years ago and some of those tax cuts you have enjoyed in the past will end this year.
Currently the standard deduction in 2010 for married couples is $11,400 which is twice that for single filers, $5,700. In 2011, the standard deduction for married tax filers will be reduced to approximately $10,000 which may cause higher taxes for lower and middle income couples.
There are currently 6 tax rate brackets as defined by the IRS: 10%, 15%, 25%, 28%, 33%, and 35%. A proposal is set in place to reduce the rate brackets to five: 15%, 28%, 31%, 36%, and 39.6% which will cause all Americans to pay more in taxes in 2011 if implemented.
The current federal rate on long-term capital gains (an increase in the value of an investment or real estate that gives it a higher worth than the purchase price and the gain is not realized until the asset is sold. A capital gain may be short-term or long-term and must be claimed on your taxes) is 15%.
In 2011, a phase-out rule could eliminate up to 80% of income for itemized deductions for charitable donations, state and local taxes and mortgage interest for those in the higher income brackets. The phase-out rules begin for those filers who have adjusted income over $170,000.
In 2011, another phase-out rule will cause some filers to lose out on personal exemption deductions if your adjusted gross income exceeds $250,000 for joint filers; $168,000 for single filers or $210,000 for head of household.
In 2011, the maximum rate on gains will increase to 20%. The maximum rate on dividends (a distribution of a portion of a company's earnings to its shareholders) will increase to 39.6%.
Filers in the 10% and 15% tax bracket get a break this year and get a 0% rate on long-term gains and dividends. However in 2011, they will pay 10% on long-term gains and 15% and 28% on dividends.
Be sure to visit the IRS website to learn about all the tax cuts and how they will affect you and your family to be sure you don't owe money at the end of the year and are not missing out on some deductions.
Currently the standard deduction in 2010 for married couples is $11,400 which is twice that for single filers, $5,700. In 2011, the standard deduction for married tax filers will be reduced to approximately $10,000 which may cause higher taxes for lower and middle income couples.
There are currently 6 tax rate brackets as defined by the IRS: 10%, 15%, 25%, 28%, 33%, and 35%. A proposal is set in place to reduce the rate brackets to five: 15%, 28%, 31%, 36%, and 39.6% which will cause all Americans to pay more in taxes in 2011 if implemented.
The current federal rate on long-term capital gains (an increase in the value of an investment or real estate that gives it a higher worth than the purchase price and the gain is not realized until the asset is sold. A capital gain may be short-term or long-term and must be claimed on your taxes) is 15%.
In 2011, a phase-out rule could eliminate up to 80% of income for itemized deductions for charitable donations, state and local taxes and mortgage interest for those in the higher income brackets. The phase-out rules begin for those filers who have adjusted income over $170,000.
In 2011, another phase-out rule will cause some filers to lose out on personal exemption deductions if your adjusted gross income exceeds $250,000 for joint filers; $168,000 for single filers or $210,000 for head of household.
In 2011, the maximum rate on gains will increase to 20%. The maximum rate on dividends (a distribution of a portion of a company's earnings to its shareholders) will increase to 39.6%.
Filers in the 10% and 15% tax bracket get a break this year and get a 0% rate on long-term gains and dividends. However in 2011, they will pay 10% on long-term gains and 15% and 28% on dividends.
Be sure to visit the IRS website to learn about all the tax cuts and how they will affect you and your family to be sure you don't owe money at the end of the year and are not missing out on some deductions.
Sunday, July 18, 2010
6 Ways to Save Money on School Supplies
It's that time of year again. You have to think about buying school supplies for your children which can be stressful and costly. Children are not aware of how much things cost and want the latest gadgets their friends have so they don't feel left out. Many stores are having great back to school sales.
Don't let your children pressure you into buying things they don't really need. This year try to buy more needs vs. wants and explain to your children that the family has to stuck to a budget and may not be able to buy extra things that they previously were able to get.
Buy things that they absolutely need for school. Talk with your children before going school shopping and set expectations. Let them know what you are going to buy so they won't be disappointed or thrown a tantrum when you refuse to buy something they want.
Have your children create a list of mandatory supplies that are needed 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 6 tips to save money when shopping for back to school supplies and clothing.
1. Tax Free: Take advantage of tax free days in your state to buy school supplies and school clothes for your children.
2. Sales: Go to yard sales and dollar stores to find bargains. Shop at wholesale stores like Costo, Walmart, Target, Walgreens or Sam's Club to get great discounts.
3. 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.
4. 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.
5. Comparison Shop: Search the internet for reputable websites that sell school supplies at a discount price and purchase items before school starts to get the best deals. Shop at stores that honor competitor prices and coupons.
6. Budget: Create a budget for mandatory 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 needed for classes, school trips, etc.
Don't let your children pressure you into buying things they don't really need. This year try to buy more needs vs. wants and explain to your children that the family has to stuck to a budget and may not be able to buy extra things that they previously were able to get.
Buy things that they absolutely need for school. Talk with your children before going school shopping and set expectations. Let them know what you are going to buy so they won't be disappointed or thrown a tantrum when you refuse to buy something they want.
Have your children create a list of mandatory supplies that are needed 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 6 tips to save money when shopping for back to school supplies and clothing.
1. Tax Free: Take advantage of tax free days in your state to buy school supplies and school clothes for your children.
2. Sales: Go to yard sales and dollar stores to find bargains. Shop at wholesale stores like Costo, Walmart, Target, Walgreens or Sam's Club to get great discounts.
3. 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.
4. 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.
5. Comparison Shop: Search the internet for reputable websites that sell school supplies at a discount price and purchase items before school starts to get the best deals. Shop at stores that honor competitor prices and coupons.
6. Budget: Create a budget for mandatory 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 needed for classes, school trips, etc.
Thursday, July 15, 2010
Ignoring a Debt May Land You in Jail
It is not a crime to owe company money unless it's the IRS. Laws such as the Fair Debt Practices Collection Acts were implemented to protect consumers from scandalous, immoral and illegal practices of companies but recently these laws have been bypassed and courts and now sending consumers to jail for owing a debt. Companies are increasingly using the courts to send consumers to jail. This is another example of companies abusing the system and getting away with it.
One woman in Minnesota was arrested after visiting with her mother because she missed a court hearing for an unpaid debt. Arrest warrants against debtors have jumped 60% over the past 4 years. Not every warrant results in an arrest, but in Minnesota many debtors spend up to 48 hours in cells with criminals.
Attorneys for consumers state that these type of arrests are increasing in many states, including Illinois, Indiana, Arkansas, Arizona and Washington, fueled by a slow economy, high consumer debt and a growing collection industry that buys outstanding debts any means possible to get the money owed. Getting locked up for an outstanding arrest warrant related to a debt depends on where you live, laws vary state by state and enforcement is inconsistent.
Some consumers have to remain in jail until they come up with the minimum payment for the debt. Debt collectors are abusing the legal system and using it to intimidate people and the legal system is allowing it. Debt collectors feel that they are doing nothing wrong.
If the consumer has been unable to pay the bill previously, they certainly won't be able to get the money to pay the debt after being sent to jail. You are sent to jail for the arrest warrant for not appearing in court, not because you owe a debt. Consumers are not charged with a crime but could be held in a jail cell with criminals.
Unfortunately, taxpayers are paying the bill for arresting and putting consumers in jail for outstanding debts. In Minnesota some judges set bail for the amount owed to the debt collector and in some cases for those who owed as less than $90.
Debt Equities LLC, Portfolio Recovery Associates and Unifund CCR Partners, Inc, Encore Capital Group, Resurgence Financial, Capital One Bank, Lakes Gas Co., Forest Lake Propane and Debt Equities are some of the largest companies that follow this practice. In some cases, consumers after receiving a notice to appear in court are required to fill out a financial disclosure to list all of their bank accounts and any assets which allows debt collectors to garnish their paycheck or bank accounts.
In many cases the debts are more than 4 or 5 years old and are purchased from companies for a few pennies on the dollar. Automated phone dialing systems are used to contact the consumers. Debt collectors cannot tack on extra fees and interest to the original debt owed unless the state law allows it. Telling a consumer that they will go to jail for failing to pay a debt is a violation of the Fair Debt Collection Practices Act.
In many cases, paperwork is not properly filled out and consumers are not notified that they have an outstanding arrest warrant which is against the law. You must be properly notified of the warrant. When you get to court be sure to let the judge know that you were never notified of the outstanding arrest warrant and the case should be thrown out of court. If not, seek legal advice.
One company that is trying to change legislation against debt collectors is Legal Aid. Contact your state congressman to ask them to change the laws to prevent creditors and debt collectors from sending consumers to jail for failing to pay an outstanding debt. Here are 6 tips to avoid getting a warrant and what to do if you receive one.
1. Read documents sent from collectors. You may not remember if you owe the debt or not but you can request a "debt validation" and the company by law is required to provide proof that you owe the debt. One you receive proof, work with the company to setup a payment plan. Don't provide the company with a check or bank account information because they will use this to garnish your paycheck.
2. Summons. If you get a summons to appear in court this means that you are being sued by a debt collector or creditor. The summons can be hand delivered or sent by mail and does not require that it is filed in court first.
3. Respond promptly. Respond promptly to a summons either admitting or denying the debt and providing proof to support your response. Send the information to the company who sent the summons and send a copy to the court clerk along with the case number. Send both copies certified mail with a return receipt.
4. Admittance. If you admit to the debt, and are unable to make the court date, don't ignore it. Ask to have the date changed. Make sure you get a letter in writing with the new date, if not, contact the court prior to the original date to make sure they know you responded to the notice.
5. Statute of limitations. Know the rights for collecting money on outstanding debts by finding out the statute of limitations in your state. In some states, debt collectors cannot request judgments after 5 or 6 years.
6. Seek legal advice. If you are unable to hire a lawyer, ask the clerk of the court about volunteer or pro bono attorneys who can specialize in collection account cases to assist you.
One woman in Minnesota was arrested after visiting with her mother because she missed a court hearing for an unpaid debt. Arrest warrants against debtors have jumped 60% over the past 4 years. Not every warrant results in an arrest, but in Minnesota many debtors spend up to 48 hours in cells with criminals.
Attorneys for consumers state that these type of arrests are increasing in many states, including Illinois, Indiana, Arkansas, Arizona and Washington, fueled by a slow economy, high consumer debt and a growing collection industry that buys outstanding debts any means possible to get the money owed. Getting locked up for an outstanding arrest warrant related to a debt depends on where you live, laws vary state by state and enforcement is inconsistent.
Some consumers have to remain in jail until they come up with the minimum payment for the debt. Debt collectors are abusing the legal system and using it to intimidate people and the legal system is allowing it. Debt collectors feel that they are doing nothing wrong.
If the consumer has been unable to pay the bill previously, they certainly won't be able to get the money to pay the debt after being sent to jail. You are sent to jail for the arrest warrant for not appearing in court, not because you owe a debt. Consumers are not charged with a crime but could be held in a jail cell with criminals.
Unfortunately, taxpayers are paying the bill for arresting and putting consumers in jail for outstanding debts. In Minnesota some judges set bail for the amount owed to the debt collector and in some cases for those who owed as less than $90.
Debt Equities LLC, Portfolio Recovery Associates and Unifund CCR Partners, Inc, Encore Capital Group, Resurgence Financial, Capital One Bank, Lakes Gas Co., Forest Lake Propane and Debt Equities are some of the largest companies that follow this practice. In some cases, consumers after receiving a notice to appear in court are required to fill out a financial disclosure to list all of their bank accounts and any assets which allows debt collectors to garnish their paycheck or bank accounts.
In many cases the debts are more than 4 or 5 years old and are purchased from companies for a few pennies on the dollar. Automated phone dialing systems are used to contact the consumers. Debt collectors cannot tack on extra fees and interest to the original debt owed unless the state law allows it. Telling a consumer that they will go to jail for failing to pay a debt is a violation of the Fair Debt Collection Practices Act.
In many cases, paperwork is not properly filled out and consumers are not notified that they have an outstanding arrest warrant which is against the law. You must be properly notified of the warrant. When you get to court be sure to let the judge know that you were never notified of the outstanding arrest warrant and the case should be thrown out of court. If not, seek legal advice.
One company that is trying to change legislation against debt collectors is Legal Aid. Contact your state congressman to ask them to change the laws to prevent creditors and debt collectors from sending consumers to jail for failing to pay an outstanding debt. Here are 6 tips to avoid getting a warrant and what to do if you receive one.
1. Read documents sent from collectors. You may not remember if you owe the debt or not but you can request a "debt validation" and the company by law is required to provide proof that you owe the debt. One you receive proof, work with the company to setup a payment plan. Don't provide the company with a check or bank account information because they will use this to garnish your paycheck.
2. Summons. If you get a summons to appear in court this means that you are being sued by a debt collector or creditor. The summons can be hand delivered or sent by mail and does not require that it is filed in court first.
3. Respond promptly. Respond promptly to a summons either admitting or denying the debt and providing proof to support your response. Send the information to the company who sent the summons and send a copy to the court clerk along with the case number. Send both copies certified mail with a return receipt.
4. Admittance. If you admit to the debt, and are unable to make the court date, don't ignore it. Ask to have the date changed. Make sure you get a letter in writing with the new date, if not, contact the court prior to the original date to make sure they know you responded to the notice.
5. Statute of limitations. Know the rights for collecting money on outstanding debts by finding out the statute of limitations in your state. In some states, debt collectors cannot request judgments after 5 or 6 years.
6. Seek legal advice. If you are unable to hire a lawyer, ask the clerk of the court about volunteer or pro bono attorneys who can specialize in collection account cases to assist you.
Monday, July 12, 2010
15 Ways to Save on Energy Costs This Summer
Summer time is one of the most expensive seasons when it comes to energy costs. No two summers are ever the same. This summer has turned out to be a hot one. Many people who are without air conditioning are making frequent trips to the doctor and emergency room from heat exhaustion, dehydration and dizziness. Even if you stay in doors you can still get dehydrated by not drinking enough fluids. Besides trying to keep your body cool, you also need to keep your home and car cool. If you don't have air conditioning in your car try to get it. This helps keep your body temperature cool and prevents accident due to heat stroke when driving.
Another way to stay cool is by doing periodic checks on your air conditioning in your home or condo to make sure it is working properly. Nothing is more miserable than being in a hot home. Here are 15 ways to save on energy costs this summer and stay cool.
1. Limit use of the oven. Using the oven in the summer time will make it harder to keep your home cool. Try cooking on top of the oven to save money on electricity. There are tons of recipes that help you prepare foods normally cooked in the oven on top of the oven.
2. Microwave. Limit the use of the microwave. Food loses its taste and nutrients when cooked or warmed up in the microwave. Purchase a portable grill such as the George Foreman grill or similar devices which reduces the amount of time it takes to cook food.
3. Dryer. Try drying clothes using full loads or air drying clothes to save money.
4. Electronics. Turn off all electronics when not in use. A color television uses 100-300 kilowatts per year. If you have multiple televisions in your home this adds up in electricity costs. If you are out of the room for more than 20 minutes turn off all electronics.
5. Computers. You can turn off your computer when not in use or leave it in standby mode. Energy Star has free energy efficient programs for computers that will help reduce energy usage.
6. Thermostat. Set your air conditioner thermostat to 78 degrees F. Don't adjust the air conditioner to try and cool off your home faster because this only uses more energy. If you need additional cooling use a portable fan or ceiling fans. Don't place lamps, televisions or computers near your thermostat. The thermostat can sense the heating coming from the appliances and will run longer than necessary.
7. Blinds. Keep blinds and curtains closed during the summer to block the sun rays coming into your home. When the sun goes down, open your windows to cool your home naturally. Turn your air conditioner thermostat down during this time. Once the outside temperature starts to rise again adjust your thermostat to keep your home cool.
8. Lights. Don't turn lights on if your home gets natural sunlight. Keeping lights off also keeps your home cool. Turn lights on only when necessary but don't sit in the dark unless you really want to.
9. Plant trees. Plant shade trees in your yard to help save on energy costs.
10. Insulate. Seal any leaks or cracks around and inside your home and insulate your attic floor.
11. Windows. Install storm windows to save on energy costs.
12. Garbage Disposal. Run cold water in your garbage disposal which helps get rid of grease.
13. Appliances. Buy energy efficient appliances and light bulbs to save on energy costs.
14. Refrigerator. Keep your refrigerator at 38 - 40 degrees F. Keep your freezer at 5 degrees F.
15. Washing clothes. Wash clothes in warm or cold water and rinse in cold water. Warm or cold water gets whites just as clean as hot water.
Another way to stay cool is by doing periodic checks on your air conditioning in your home or condo to make sure it is working properly. Nothing is more miserable than being in a hot home. Here are 15 ways to save on energy costs this summer and stay cool.
1. Limit use of the oven. Using the oven in the summer time will make it harder to keep your home cool. Try cooking on top of the oven to save money on electricity. There are tons of recipes that help you prepare foods normally cooked in the oven on top of the oven.
2. Microwave. Limit the use of the microwave. Food loses its taste and nutrients when cooked or warmed up in the microwave. Purchase a portable grill such as the George Foreman grill or similar devices which reduces the amount of time it takes to cook food.
3. Dryer. Try drying clothes using full loads or air drying clothes to save money.
4. Electronics. Turn off all electronics when not in use. A color television uses 100-300 kilowatts per year. If you have multiple televisions in your home this adds up in electricity costs. If you are out of the room for more than 20 minutes turn off all electronics.
5. Computers. You can turn off your computer when not in use or leave it in standby mode. Energy Star has free energy efficient programs for computers that will help reduce energy usage.
6. Thermostat. Set your air conditioner thermostat to 78 degrees F. Don't adjust the air conditioner to try and cool off your home faster because this only uses more energy. If you need additional cooling use a portable fan or ceiling fans. Don't place lamps, televisions or computers near your thermostat. The thermostat can sense the heating coming from the appliances and will run longer than necessary.
7. Blinds. Keep blinds and curtains closed during the summer to block the sun rays coming into your home. When the sun goes down, open your windows to cool your home naturally. Turn your air conditioner thermostat down during this time. Once the outside temperature starts to rise again adjust your thermostat to keep your home cool.
8. Lights. Don't turn lights on if your home gets natural sunlight. Keeping lights off also keeps your home cool. Turn lights on only when necessary but don't sit in the dark unless you really want to.
9. Plant trees. Plant shade trees in your yard to help save on energy costs.
10. Insulate. Seal any leaks or cracks around and inside your home and insulate your attic floor.
11. Windows. Install storm windows to save on energy costs.
12. Garbage Disposal. Run cold water in your garbage disposal which helps get rid of grease.
13. Appliances. Buy energy efficient appliances and light bulbs to save on energy costs.
14. Refrigerator. Keep your refrigerator at 38 - 40 degrees F. Keep your freezer at 5 degrees F.
15. Washing clothes. Wash clothes in warm or cold water and rinse in cold water. Warm or cold water gets whites just as clean as hot water.
Friday, July 09, 2010
The BP Oil Spill and Gas Prices
British Petroleum (BP) is one of the largest oil companies in the world. For now, many economists say that the BP oil spill will not have an impact on gas prices. The oil rig that exploded was an explanatory rig and the current oil supply is high which is an indicator that gas prices will not increase. However, the oil spill could interfere with shipping lanes by disrupting the ability of oil tankers to get crude oil to refineries.
The oil spill could slow the growth of offshore oil exploration and drilling which could have significant price impacts in the future. Stricter regulations that could be imposed in the future could also slow the pace of growth of offshore drilling and increases gas prices in 2011.
Oil is produced at a rate of 200,000 gallons a day. The oil spill will not affect our oil reserves because it would take 208 years to deplete the U.S. oil supply. The Obama Administration has currently banned deep-water drilling which could decrease the current oil supply.
Our existing oil reserves contain more than 362 million barrels and each barrel contains approximately 42 gallons of oil. Oil refineries in the U.S. are running at 88% capacity so oil is not affected right now. There is also a large supply of foreign oil.
Oil prices will probably increase at the end of 2010 or the beginning of 2011 as a result of the current oil spill because output will decrease.
The BP oil spill has hurt its 10,000 distributors of gas most of which are independent dealers. BP plans to give distributors a discount which in turn will trickle down to independent dealers. If you are concerned about gas prices you could buy a hybrid or electric car such as the Toyota Prius, Chevrolet Volt or Ford Transit Connect Electric van.
The oil spill could slow the growth of offshore oil exploration and drilling which could have significant price impacts in the future. Stricter regulations that could be imposed in the future could also slow the pace of growth of offshore drilling and increases gas prices in 2011.
Oil is produced at a rate of 200,000 gallons a day. The oil spill will not affect our oil reserves because it would take 208 years to deplete the U.S. oil supply. The Obama Administration has currently banned deep-water drilling which could decrease the current oil supply.
Our existing oil reserves contain more than 362 million barrels and each barrel contains approximately 42 gallons of oil. Oil refineries in the U.S. are running at 88% capacity so oil is not affected right now. There is also a large supply of foreign oil.
Oil prices will probably increase at the end of 2010 or the beginning of 2011 as a result of the current oil spill because output will decrease.
The BP oil spill has hurt its 10,000 distributors of gas most of which are independent dealers. BP plans to give distributors a discount which in turn will trickle down to independent dealers. If you are concerned about gas prices you could buy a hybrid or electric car such as the Toyota Prius, Chevrolet Volt or Ford Transit Connect Electric van.
Tuesday, July 06, 2010
How the BP Oil Spill Affects the Seafood Industry
Those living in the south have for years enjoyed getting fresh seafood year around. Since the BP oil spill in April that has changed dramatically. The Gulf of Mexico provides 67% of the U.S. oyster supply. Louisiana is the country's top producer of shrimp and oysters which ships out 30% of the seafood in 48 states. More than 80% of all seafood purchased in the US is imported most of which is farm raised. Fishing, shrimping and harvesting oysters has been banned in the Gulf of Mexico.
The oil spill has caused a decrease in the supply of seafood and an increase in costs. Since the supply has been decreased, oysters have been obtained from other areas but cost more. The oil spill has caused supply that was locally bought to now be sold out of state causing some suppliers to use frozen seafood instead of fresh seafood.
This has caused unemployment for many fishermen, processing plans, seafood markets, grocery stores and restaurants. Some oysters have been removed from the menus in New Orleans and surrounding area restaurants.
Some fish packing houses in Virginia get their oysters from the Gulf of Mexico which due to the oil spill supply has decreased by 60%. Oyster prices of seafood retailers have increased and in some cases have doubled in price. Shrimp prices have also increased.
In North Carolina, vendors are estimating that prices of mackerel may increase up to 300% or $20 a pound by the end of this summer.
Effects of the oil spill have even reached our nation's capital, Washington DC. Some restaurants will increase their raw bar surcharge by up to $3, especially for restaurants that promote Cajun, Louisiana dishes or Gulf seafood.
Some restaurants have not been affected and are still able to maintain their seafood supply but the scare of the oil spill has caused some consumers to skip going out to eat. Many seafood restaurants near the Gulf of Mexico and surroundings areas have had to change their menus and offer items such as steak, chicken and beef instead of seafood.
Oyster prices from the Gulf Mexico have jumped to $55-$80 a gallon. In Mississippi, prices for oysters and shrimp vary daily. The price of shrimp has jumped from $4.99 to $5.99 a pound and oysters have jumped fro $15.99 to $18.99 a pound. Fisheries off the coast of Louisiana, Mississippi and Alabama are closed while some off the coast of Texas and Florida remain open.
Some shrimp boat captains are leasing their boats to BP to help clean up the oil spill which is also a reason why less shrimp are being harvested.
Hopes remains for the seafood retailers who can get their supply from the Northern states such as Alaska and Boston. Consumers will also have to be concerned about price-gouging by vendors trying to take advantage of the oil spill. The oil spill will affect the seafood industry for many years. The shrimp and oyster harvest for next year is may already be damaged.
The oil spill has caused a decrease in the supply of seafood and an increase in costs. Since the supply has been decreased, oysters have been obtained from other areas but cost more. The oil spill has caused supply that was locally bought to now be sold out of state causing some suppliers to use frozen seafood instead of fresh seafood.
This has caused unemployment for many fishermen, processing plans, seafood markets, grocery stores and restaurants. Some oysters have been removed from the menus in New Orleans and surrounding area restaurants.
Some fish packing houses in Virginia get their oysters from the Gulf of Mexico which due to the oil spill supply has decreased by 60%. Oyster prices of seafood retailers have increased and in some cases have doubled in price. Shrimp prices have also increased.
In North Carolina, vendors are estimating that prices of mackerel may increase up to 300% or $20 a pound by the end of this summer.
Effects of the oil spill have even reached our nation's capital, Washington DC. Some restaurants will increase their raw bar surcharge by up to $3, especially for restaurants that promote Cajun, Louisiana dishes or Gulf seafood.
Some restaurants have not been affected and are still able to maintain their seafood supply but the scare of the oil spill has caused some consumers to skip going out to eat. Many seafood restaurants near the Gulf of Mexico and surroundings areas have had to change their menus and offer items such as steak, chicken and beef instead of seafood.
Oyster prices from the Gulf Mexico have jumped to $55-$80 a gallon. In Mississippi, prices for oysters and shrimp vary daily. The price of shrimp has jumped from $4.99 to $5.99 a pound and oysters have jumped fro $15.99 to $18.99 a pound. Fisheries off the coast of Louisiana, Mississippi and Alabama are closed while some off the coast of Texas and Florida remain open.
Some shrimp boat captains are leasing their boats to BP to help clean up the oil spill which is also a reason why less shrimp are being harvested.
Hopes remains for the seafood retailers who can get their supply from the Northern states such as Alaska and Boston. Consumers will also have to be concerned about price-gouging by vendors trying to take advantage of the oil spill. The oil spill will affect the seafood industry for many years. The shrimp and oyster harvest for next year is may already be damaged.
Saturday, July 03, 2010
Financial Reform - Keep Your Fingers Crossed
Your complaints have been heard. On June 30, 2010, the House approved a bill to implement financial reform. The bill authorizes financial industry regulators to impose restrictions on large financial companies that are in trouble and will create a way for the government to liquidate failing companies that will be at no cost to taxpayers, which is very similar to the process the FDIC uses for liquidating banks that have failed.
Regulators would have more options to impose restrictions on the largest financial companies which could help smaller banks have more competitive advantages. The Senate will vote on the bill after the July 4th recess. If the bill is passed this will be a historic moment in the financial industry.
To ensure the Senate passes the bill contact your senators at www.senate.gov/general/contact_information/senators_cfm.cfm. You can also thank you your house of representatives for passing the bill at www.house.gov/.
Regulators would have more options to impose restrictions on the largest financial companies which could help smaller banks have more competitive advantages. The Senate will vote on the bill after the July 4th recess. If the bill is passed this will be a historic moment in the financial industry.
To ensure the Senate passes the bill contact your senators at www.senate.gov/general/contact_information/senators_cfm.cfm. You can also thank you your house of representatives for passing the bill at www.house.gov/.
Wednesday, June 30, 2010
Don't Go Overboard on Independence Day
Summer is here. The weather is beautiful and everyone wants to enjoy it. All of the advertisers have increased their advertisements and hope to lure you to the store to spend money that you may or may not have.
This holiday season resist the temptation. Many times items that are on sale or not really a bargain. Try buying items off-season and only when the item is 30% off or more. Sales for 10-20% off are not worth your time. Also, do comparison shopping to see if you can find the item for a cheaper price at another store on online. If you absolutely have to go shopping here are some tips to help you save money.
1. Don't wait until the day before the holiday to go shopping. Lines at the register are longer and the selection of items is limited. Try shopping a week in advance or early in the morning.
2. Create a budget or shopping list and only buy the things you absolutely need.
3. If you are having a picnic or cookout ask friends and family to bring a dish to help cut downs on costs.
4. Visit local vendors to purchase meats, fruits and vegetables which will be much cheaper than the department store.
5. Resist temptation. This holiday season try not to go to the department stores or malls. I know it will be hard but take time out to enjoy being with family and friends. Try finding some free events to attend instead of going shopping. Your pocketbook will be happy you did.
This holiday season resist the temptation. Many times items that are on sale or not really a bargain. Try buying items off-season and only when the item is 30% off or more. Sales for 10-20% off are not worth your time. Also, do comparison shopping to see if you can find the item for a cheaper price at another store on online. If you absolutely have to go shopping here are some tips to help you save money.
1. Don't wait until the day before the holiday to go shopping. Lines at the register are longer and the selection of items is limited. Try shopping a week in advance or early in the morning.
2. Create a budget or shopping list and only buy the things you absolutely need.
3. If you are having a picnic or cookout ask friends and family to bring a dish to help cut downs on costs.
4. Visit local vendors to purchase meats, fruits and vegetables which will be much cheaper than the department store.
5. Resist temptation. This holiday season try not to go to the department stores or malls. I know it will be hard but take time out to enjoy being with family and friends. Try finding some free events to attend instead of going shopping. Your pocketbook will be happy you did.
Sunday, June 27, 2010
Prepaid Credit Cards
Many Americans struggle with managing their finances either through credit cards, debits cards or bank accounts. Another option that is available for those who do not have bank accounts, have bad credit or who have a hard time managing their money is the prepaid credit card.
A prepaid credit card allows you to have your paycheck, unemployment or benefits loaded onto a credit card which can be used like a debit or checkcard. The credit cards work like prepaid telephone calling cards.
A prepaid credit card eliminates check cashing fees, checks lost in the mail and provide easy access to your money. You can add additional money to your card at various locations based on the company you signed up with. There is no credit check or other requirements to obtain a prepaid credit card.
Several companies such as Western Union, Account Now, Visa, MasterCard or the American Express Pass for teens offer prepaid credit cards. You can also comparison shop on sites like creditcards.com or bankrate.com to find the right prepaid credit card for you.
Your credit card cash balance works like a credit limit on a traditional credit card. You will not be charged a fee for overdrawing your account. There is no minimum balance and free direct deposit. Some companies also offer online banking and bill payment. You will never be charged late fees or interest. However, you may be charged registration fees or other charges for using the prepaid credit card. Extra fees may also be charged for adding additional money to the credit card outside of your regular deposits.
Prepaid credit cards help control your spending. You can control over your spending limits and are great option for teens or college students. Once you activate the card you are able to start using it. Each time you make a purchase the amount is automatically deducted from your credit card balance. This forces you to keep track of your balance so you will never go over your limit because you can only spend the money you have on your card.
Be sure the company reports your payment history on your credit report to help establish your credit history or improve your existing credit history.
A prepaid credit card allows you to have your paycheck, unemployment or benefits loaded onto a credit card which can be used like a debit or checkcard. The credit cards work like prepaid telephone calling cards.
A prepaid credit card eliminates check cashing fees, checks lost in the mail and provide easy access to your money. You can add additional money to your card at various locations based on the company you signed up with. There is no credit check or other requirements to obtain a prepaid credit card.
Several companies such as Western Union, Account Now, Visa, MasterCard or the American Express Pass for teens offer prepaid credit cards. You can also comparison shop on sites like creditcards.com or bankrate.com to find the right prepaid credit card for you.
Your credit card cash balance works like a credit limit on a traditional credit card. You will not be charged a fee for overdrawing your account. There is no minimum balance and free direct deposit. Some companies also offer online banking and bill payment. You will never be charged late fees or interest. However, you may be charged registration fees or other charges for using the prepaid credit card. Extra fees may also be charged for adding additional money to the credit card outside of your regular deposits.
Prepaid credit cards help control your spending. You can control over your spending limits and are great option for teens or college students. Once you activate the card you are able to start using it. Each time you make a purchase the amount is automatically deducted from your credit card balance. This forces you to keep track of your balance so you will never go over your limit because you can only spend the money you have on your card.
Be sure the company reports your payment history on your credit report to help establish your credit history or improve your existing credit history.
Thursday, June 24, 2010
Debit and ATM Cards Changes on July 1st
Under the CARD Act of 2009, for new accounts opened on or after July 1, 2010, your bank can no longer charge overdraft fees for debit and ATM transactions unless you opt-in. If you open a new account before July 1, 2010 your bank will consider you an existing customer and you will receive a notice about your bank's overdraft services.
You can grant permission by opting in to the overdraft notice your bank sends you. If you decide to opt-in you can cancel at any time. If you do not opt-in before the deadline you can opt-in in the future.
For existing accounts if you do not opt-in by August 15, 2010, your bank's standard overdraft services won't apply to your debit and ATM transactions and future transactions will be declined when you don't have enough money in your account, and you will not be charged an overdraft fee.
Currently, for standard overdraft services your bank will cover the transaction by charging a flat fee of $20-$35 each time you overdraw your account.
If you have an overdraft protection service your bank provides a line of credit that is linked to your savings account to cover transactions when you overdraw your account. Banks charge a fee each time you overdraw your account.
However, using the overdraft protection service may be less expensive than using the standard overdraft service. Keep in mind that some banks report overdrawn accounts on your credit report so it may be wise to sign up for overdraft protection.
The new ATM and debit card overdraft guidelines do not affect checks or automatic bill payments.
You can grant permission by opting in to the overdraft notice your bank sends you. If you decide to opt-in you can cancel at any time. If you do not opt-in before the deadline you can opt-in in the future.
For existing accounts if you do not opt-in by August 15, 2010, your bank's standard overdraft services won't apply to your debit and ATM transactions and future transactions will be declined when you don't have enough money in your account, and you will not be charged an overdraft fee.
Currently, for standard overdraft services your bank will cover the transaction by charging a flat fee of $20-$35 each time you overdraw your account.
If you have an overdraft protection service your bank provides a line of credit that is linked to your savings account to cover transactions when you overdraw your account. Banks charge a fee each time you overdraw your account.
However, using the overdraft protection service may be less expensive than using the standard overdraft service. Keep in mind that some banks report overdrawn accounts on your credit report so it may be wise to sign up for overdraft protection.
The new ATM and debit card overdraft guidelines do not affect checks or automatic bill payments.
Monday, June 21, 2010
Save Money on Summer Vacation
We work hard all year long and we all live for summer vacation. Many Americans love to travel during the summer and family vacations usually begin during the Memorial Day holiday. The economy the past few years has made it difficult for many families to take a summer vacation.
Many airlines have increased prices and gas prices are high again this summer. If you can afford to take a vacation without hurting your budget and will still be able to pay all of your bills when you get back, then definitely take a vacation. Here are 5 ways to save money during summer vacation.
1. Plan ahead. Plan in advance to save money to go on vacation without using your credit card to pay for it.
2. Talk to others. Talk to friends and neighbors about their vacations and find out how they planned their vacation, i.e. ask about any discounts or sales they know about, inexpensive restaurants, shops, etc.
3. Act fast. When you see or hear about sales or discounts you have to move quickly to capitalize on the deal because they usually don't last long.
4. Shop around. Shop around to find the best deals. Visit websites like hotwire.com, priceline.com, kayak.com or hotels.com to find cheap rates for hotel, airfare and cruises.
5. Shop before you leave. Buy traveler's checks which can quickly be replaced if lost. If your credit card is stolen you may not have another credit card available to purchase any necessities. Buy toiletries and other necessities before traveling.
If you want to take a vacation and cannot afford it, here are 5 simple things to do in the meantime:
1. Camp out in your backyard.
2. Take a road trip and go camping a few hours or at a local camp park.
3. Visit local caverns.
4. Spend the day at a water park or amusement park.
5. Go sightseeing in your local area.
Many airlines have increased prices and gas prices are high again this summer. If you can afford to take a vacation without hurting your budget and will still be able to pay all of your bills when you get back, then definitely take a vacation. Here are 5 ways to save money during summer vacation.
1. Plan ahead. Plan in advance to save money to go on vacation without using your credit card to pay for it.
2. Talk to others. Talk to friends and neighbors about their vacations and find out how they planned their vacation, i.e. ask about any discounts or sales they know about, inexpensive restaurants, shops, etc.
3. Act fast. When you see or hear about sales or discounts you have to move quickly to capitalize on the deal because they usually don't last long.
4. Shop around. Shop around to find the best deals. Visit websites like hotwire.com, priceline.com, kayak.com or hotels.com to find cheap rates for hotel, airfare and cruises.
5. Shop before you leave. Buy traveler's checks which can quickly be replaced if lost. If your credit card is stolen you may not have another credit card available to purchase any necessities. Buy toiletries and other necessities before traveling.
If you want to take a vacation and cannot afford it, here are 5 simple things to do in the meantime:
1. Camp out in your backyard.
2. Take a road trip and go camping a few hours or at a local camp park.
3. Visit local caverns.
4. Spend the day at a water park or amusement park.
5. Go sightseeing in your local area.
Friday, June 18, 2010
You Can Still Find a Job
With the unemployment rate at 9.7% many Americans have still having trouble looking for employment. Many Americans are unable to find jobs for many jobs: bad credit, competition, decision to relocate and other factors. In addition, many companies have gone under, slashed staff and/or benefits and hours and others are hanging on by a thread. Well, there is hope.
Many companies have survived the recession and are hiring. If you are still looking for employment be sure to contact these companies as well as the federal and state and local governments. Some of the major companies that are hiring:
Wal-Mart which currently has 2 million employees
PepsiCo who also hire hourly and commission-based employees
NetApp
Amazon
Abbott Laboratories who employs almost 70,000 employees
Netflix
Perrigo Company which is the world's largest manufacturer of over-the-counter drugs and generic prescription drugs
VistaPrint
Here are 5 tips to help you get hired for these companies.
1. Update your resume. Be sure your resume is up-to-date and brief. Don't bring a 5-10 pages resume; it will be thrown in the trash. Highlight major accomplishments and ways you've helped your current and previous employers such as: saving money, gaining new customers, helping large volumes of users, etc.
2. Review your credit report. Get a copy of your credit report from annualcreditreport.com and check for any errors or late payments. If you still owe debt on late payment accounts contact your creditors right away to setup payment arrangements and to get errors fixed. Many employers check your credit report when considering you for employment.
3. Update and practice your interview skills. Dress professionally, get a fresh haircut, and make sure your nails and clean and neat. Be prepared to respond to questions that ask how you would deal with difficult people or situations, provide examples of how you've overcome a difficult situation at work and examples of how you've helped your team or co-workers. Explain how you can use your skills to help them grow achieve their goals. Make sure you visit the company's website to learn about what they do. Also, bring a list of questions at least 3 to ask on the interview.
4. Follow instructions. If you are given any instructions prior to the interview make sure you follow the exactly. Don't be too eager and ruin your chance for an interview by failing to follow the instructions.
5. Bring supporting documentation. Along with your resume bring any documentation that lists you as the author of articles, technical reports, etc. to support your experience and skills. If you are a web developer bring your laptop and show some of the websites you have developed. If you are a technical writer or editor bring some writing samples.
Do whatever you can to give yourself an edge over the competition. Don't answer the questions too fast and don't provide information that you were not asked. After the interview send a thank note to all the persons you interviewed with. Don't be afraid to follow-up by email a week after the interview.
Many companies have survived the recession and are hiring. If you are still looking for employment be sure to contact these companies as well as the federal and state and local governments. Some of the major companies that are hiring:
Wal-Mart which currently has 2 million employees
PepsiCo who also hire hourly and commission-based employees
NetApp
Amazon
Abbott Laboratories who employs almost 70,000 employees
Netflix
Perrigo Company which is the world's largest manufacturer of over-the-counter drugs and generic prescription drugs
VistaPrint
Here are 5 tips to help you get hired for these companies.
1. Update your resume. Be sure your resume is up-to-date and brief. Don't bring a 5-10 pages resume; it will be thrown in the trash. Highlight major accomplishments and ways you've helped your current and previous employers such as: saving money, gaining new customers, helping large volumes of users, etc.
2. Review your credit report. Get a copy of your credit report from annualcreditreport.com and check for any errors or late payments. If you still owe debt on late payment accounts contact your creditors right away to setup payment arrangements and to get errors fixed. Many employers check your credit report when considering you for employment.
3. Update and practice your interview skills. Dress professionally, get a fresh haircut, and make sure your nails and clean and neat. Be prepared to respond to questions that ask how you would deal with difficult people or situations, provide examples of how you've overcome a difficult situation at work and examples of how you've helped your team or co-workers. Explain how you can use your skills to help them grow achieve their goals. Make sure you visit the company's website to learn about what they do. Also, bring a list of questions at least 3 to ask on the interview.
4. Follow instructions. If you are given any instructions prior to the interview make sure you follow the exactly. Don't be too eager and ruin your chance for an interview by failing to follow the instructions.
5. Bring supporting documentation. Along with your resume bring any documentation that lists you as the author of articles, technical reports, etc. to support your experience and skills. If you are a web developer bring your laptop and show some of the websites you have developed. If you are a technical writer or editor bring some writing samples.
Do whatever you can to give yourself an edge over the competition. Don't answer the questions too fast and don't provide information that you were not asked. After the interview send a thank note to all the persons you interviewed with. Don't be afraid to follow-up by email a week after the interview.
Tuesday, June 15, 2010
Bad Credit May Not Affect Employment
The current unemployment rate is 9.7% and the economy gained 431,000 jobs in the month of May. This is promising although many Americans who are trying to find employment had to take drastic pay cuts or continue to remain unemployed. With the federal minimum wage at $7.25 any job looks promising right now.
The competition is stiff; those who made $100,000 or more are competing for entry or middle level jobs or jobs that are usually slated for college students accepting pay of $50,000 or less. Some Americans are working multiple low-paying jobs to try to make ends meet. Others have just given up looking for work altogether.
If you have bad credit it is a major factor that will determine if you get hired for a job or not. Having bad credit makes it difficult to get a job nowadays. If you know you have bad credit it is best to be upfront and let the potential employer know. Also, let them know the reason why you have bad credit and how you plan to fix your bad credit.
Many employers are no longer looking at just your resume, your interpersonal skills or your attire, if you have good credit and do go on the interview you have a better chance of getting hired than someone with the same qualifications and bad credit.
Previously when looking for a job, credit history was not a factor but recently due to the recession employers are scrutinizing candidates even more using credit as a factor for employment. Many industries are looking at your credit history including government agencies, police, fire department, banking industries. Many candidates do not realize that their bad credit will prevent them from getting a job or in some cases get them fired from a job.
It seems unfair that a company would simply disregard your experience, personality and interview skills simply because you have bad credit. Companies should focus on what you have to offer and not the mistakes you made or circumstances that affected your personal life and credit history. Employers see having a bad credit score as a reason to commit fraud or take bribes. In a few minor instances this may be the case, but overall Americans just want to work and pay their bills.
Since hiring can be discriminatory, one way companies can discriminate is by using credit scores. However, employers cannot refuse hiring you simply because of your credit but that is not always the case. Federal law prohibits this practice but there are really no protections in place to help candidates who have proof of companies who violate this law and usually can't afford to hire a lawyer to help them win their case in court.
Many Americans have complained about this practice and their complaints were heard. Nineteen states 19 states including Pennsylvania, Hawaii, Washington, Ohio, California, and the District of Columbia and South Carolina are considering passing legislation to prevent companies from using credit as a factor in hiring candidates for employment. Only two state legislatures Oregon and Illinois passed the law.
However, a win for consumers is that many credit card companies are banks are not weighing credit scores as much as before because the FICO score can make a mistake and classify a consumer as a bad risk when they are a good risk. Companies are now realizing what consumers knew all along, that the FICO score system is flawed and needs to be revised to accommodate the new credit card laws and current economic situation. Contact your congressman to demand states stop this unfair practice https://writerep.house.gov/writerep/welcome.shtml.
The competition is stiff; those who made $100,000 or more are competing for entry or middle level jobs or jobs that are usually slated for college students accepting pay of $50,000 or less. Some Americans are working multiple low-paying jobs to try to make ends meet. Others have just given up looking for work altogether.
If you have bad credit it is a major factor that will determine if you get hired for a job or not. Having bad credit makes it difficult to get a job nowadays. If you know you have bad credit it is best to be upfront and let the potential employer know. Also, let them know the reason why you have bad credit and how you plan to fix your bad credit.
Many employers are no longer looking at just your resume, your interpersonal skills or your attire, if you have good credit and do go on the interview you have a better chance of getting hired than someone with the same qualifications and bad credit.
Previously when looking for a job, credit history was not a factor but recently due to the recession employers are scrutinizing candidates even more using credit as a factor for employment. Many industries are looking at your credit history including government agencies, police, fire department, banking industries. Many candidates do not realize that their bad credit will prevent them from getting a job or in some cases get them fired from a job.
It seems unfair that a company would simply disregard your experience, personality and interview skills simply because you have bad credit. Companies should focus on what you have to offer and not the mistakes you made or circumstances that affected your personal life and credit history. Employers see having a bad credit score as a reason to commit fraud or take bribes. In a few minor instances this may be the case, but overall Americans just want to work and pay their bills.
Since hiring can be discriminatory, one way companies can discriminate is by using credit scores. However, employers cannot refuse hiring you simply because of your credit but that is not always the case. Federal law prohibits this practice but there are really no protections in place to help candidates who have proof of companies who violate this law and usually can't afford to hire a lawyer to help them win their case in court.
Many Americans have complained about this practice and their complaints were heard. Nineteen states 19 states including Pennsylvania, Hawaii, Washington, Ohio, California, and the District of Columbia and South Carolina are considering passing legislation to prevent companies from using credit as a factor in hiring candidates for employment. Only two state legislatures Oregon and Illinois passed the law.
However, a win for consumers is that many credit card companies are banks are not weighing credit scores as much as before because the FICO score can make a mistake and classify a consumer as a bad risk when they are a good risk. Companies are now realizing what consumers knew all along, that the FICO score system is flawed and needs to be revised to accommodate the new credit card laws and current economic situation. Contact your congressman to demand states stop this unfair practice https://writerep.house.gov/writerep/welcome.shtml.
Saturday, June 12, 2010
Checks vs Money Orders
Approximately 17 million Americans are unbanked or do not have a bank account. This numbers includes those who use check cashing retailers, liquors stores to cash checks or use money orders. Many of these Americans have bad credit, little to no savings or just don’t trust the banking industry.
I used to write checks to pay my bills but after electronic check processing became available I was very uneasy using checks to pay my bills. After becoming a victim of identity theft by check in July 2009 I decided to begin paying my bills using money orders. I still use checks to make some payments but will switch to paying bills 100% by money orders until my the industry forces me to do otherwise.
Choosing to pay by money order is a personal choice since I bank with a local credit union. I have been a customer of the credit union for several years and am happy with the service I receive; however, I am very uneasy with someone accessing my checking account electronically. This can increase errors made on your account, increase your chances of being a victim of identity theft. Until more security measures are put in place in the banking industry for consumers I will continue to use money orders.
On average I would spend $3.90 on postage for each check written per month. If I write ten checks I would spend $3.90 per month in postage. If I use money orders to pay my bills the cost of each money order is $.39 so it would cost me $7.80 ($3.90 + $3.90) to pay 10 bills each month. Using money orders have advantages and disadvantages:
Advantages
1. Reduces my chances of becoming a victim of identity theft by limiting exposure to my checking account.
2. If you frequently use a credit card to pay bills or frequently pay overdraft charges you will save money by using money orders.
3. You may become more disciplined in your spending habits because you will limit your use of your credit card, check card or debit card to make purchases which allow you to spend more money than you have.
4. Is the best option if you do not have a bank account.
5. If you have a checking account your bank may allow you to get a money order for no fee.
6. Purchasing a money order from the US Postal Services provides security protections such as the Ben Franklin images on the left side and the amount of the money order listed in two locations.
Disadvantages
1. Obtaining a single money order has limits in some cases up to $1,000 depending on the issuer. To get money order for larger amounts may require an id and will require purchasing multiple money orders.
2. Increases the time to process your payment if the money order is mailed out of state which on average can take anywhere from 2-15 business days to process.
3. Your account cannot be credited immediately once payment is received (because your checking account is not accessed).
4. If you lose your cash your bank will not replace it.
5. You will incur more expenses by using money orders.
6. If will be more difficult to dispute your payment history and you won't have a receipt of payment because the money order stub does not list who the money order was payable to.
I used to write checks to pay my bills but after electronic check processing became available I was very uneasy using checks to pay my bills. After becoming a victim of identity theft by check in July 2009 I decided to begin paying my bills using money orders. I still use checks to make some payments but will switch to paying bills 100% by money orders until my the industry forces me to do otherwise.
Choosing to pay by money order is a personal choice since I bank with a local credit union. I have been a customer of the credit union for several years and am happy with the service I receive; however, I am very uneasy with someone accessing my checking account electronically. This can increase errors made on your account, increase your chances of being a victim of identity theft. Until more security measures are put in place in the banking industry for consumers I will continue to use money orders.
On average I would spend $3.90 on postage for each check written per month. If I write ten checks I would spend $3.90 per month in postage. If I use money orders to pay my bills the cost of each money order is $.39 so it would cost me $7.80 ($3.90 + $3.90) to pay 10 bills each month. Using money orders have advantages and disadvantages:
Advantages
1. Reduces my chances of becoming a victim of identity theft by limiting exposure to my checking account.
2. If you frequently use a credit card to pay bills or frequently pay overdraft charges you will save money by using money orders.
3. You may become more disciplined in your spending habits because you will limit your use of your credit card, check card or debit card to make purchases which allow you to spend more money than you have.
4. Is the best option if you do not have a bank account.
5. If you have a checking account your bank may allow you to get a money order for no fee.
6. Purchasing a money order from the US Postal Services provides security protections such as the Ben Franklin images on the left side and the amount of the money order listed in two locations.
Disadvantages
1. Obtaining a single money order has limits in some cases up to $1,000 depending on the issuer. To get money order for larger amounts may require an id and will require purchasing multiple money orders.
2. Increases the time to process your payment if the money order is mailed out of state which on average can take anywhere from 2-15 business days to process.
3. Your account cannot be credited immediately once payment is received (because your checking account is not accessed).
4. If you lose your cash your bank will not replace it.
5. You will incur more expenses by using money orders.
6. If will be more difficult to dispute your payment history and you won't have a receipt of payment because the money order stub does not list who the money order was payable to.
Wednesday, June 09, 2010
Move Over Netflix There's a New Sheriff in Town
Many Americans have found dozens of ways to save money and reduce their expenses. One expense for many families is going to the movies. For a family of 4, a movie night can cost anywhere from $50-$80. Many Americans have resorted to renting DVD's instead of going to the movie theater.
Netflix has dominated the market in DVD rentals putting other retail stores out of business. Netflix has a larger inventory of movies and pays postage for each DVD rental.
A new company called Redbox owned by Coinstar has emerged to give Netflix some competition. You get a free rental when you open an account with Redbox. Redbox has over 20,000 locations nationwide where you can rent and return movies. You can rent a movie online or pick it up at a Redbox location for just $1.
There is a catch. There are limits on the number of rentals you can get at one time. If you are using a credit card for the first time you can rent 2 DVDs, existing customers can rent or purchase up to 5 DVDs.
You have to return the DVD rental by 9:00pm the same day but if you want to rent a movie longer you will pay an additional fee plus tax. The inventory of movies includes releases that are completed.
The Redbox is a tall red kiosk and can can be found at various McDonald’s restaurants as well as Wal-Mart stores, pharmacies, grocery stores, and other locations.
New DVD releases are added to the Redbox kiosks each Tuesday.
Redbox is now the largest operator of DVD rental kiosks and carries about 700 movies in each kiosk. Check out Redbox and let me know what you think.
Netflix has dominated the market in DVD rentals putting other retail stores out of business. Netflix has a larger inventory of movies and pays postage for each DVD rental.
A new company called Redbox owned by Coinstar has emerged to give Netflix some competition. You get a free rental when you open an account with Redbox. Redbox has over 20,000 locations nationwide where you can rent and return movies. You can rent a movie online or pick it up at a Redbox location for just $1.
There is a catch. There are limits on the number of rentals you can get at one time. If you are using a credit card for the first time you can rent 2 DVDs, existing customers can rent or purchase up to 5 DVDs.
You have to return the DVD rental by 9:00pm the same day but if you want to rent a movie longer you will pay an additional fee plus tax. The inventory of movies includes releases that are completed.
The Redbox is a tall red kiosk and can can be found at various McDonald’s restaurants as well as Wal-Mart stores, pharmacies, grocery stores, and other locations.
New DVD releases are added to the Redbox kiosks each Tuesday.
Redbox is now the largest operator of DVD rental kiosks and carries about 700 movies in each kiosk. Check out Redbox and let me know what you think.
Sunday, June 06, 2010
Another Way to Save Money Online
Many consumers nowadays are trying to find more ways to save money. One way consumers save money is by shopping online. There are also many comparison shopping websites such as Nextag and Bizrate. Well the latest trend in online shopping is penny auctions. Penny auctions allow consumers to shop for products for pennies on the dollar. The most popular penny auction website is QuiBids.com.
QuiBids works similar to eBay and auctions off brand new items such as HDTVs, digital cameras, iPads, and more for discounts up to 85% off the retail price. But, there is a catch. Users of the website have to pay to participate in these auctions.
Users pay $.60 to place a bid which runs by a clock timer. Each time a bid is placed time is added to the clock so users can determine if they would like to continue bidding. This fee allows QuiBids to sell their products at a cheaper price like digital cameras for under $60.
Users also have a "buy it now" option which allows all of the money paid towards bids they did not win to go towards the item they wish to purchase with the "buy it now" option.
The website allow consumers to buy products that they normally wouldn't be able to afford in this economy. The website is gaining popularity by word-of-mouth advertising.
Registering for a bid is rather easy. Once you register you choose the auction you want to participate in, place your bid and see what happens.
QuiBids works similar to eBay and auctions off brand new items such as HDTVs, digital cameras, iPads, and more for discounts up to 85% off the retail price. But, there is a catch. Users of the website have to pay to participate in these auctions.
Users pay $.60 to place a bid which runs by a clock timer. Each time a bid is placed time is added to the clock so users can determine if they would like to continue bidding. This fee allows QuiBids to sell their products at a cheaper price like digital cameras for under $60.
Users also have a "buy it now" option which allows all of the money paid towards bids they did not win to go towards the item they wish to purchase with the "buy it now" option.
The website allow consumers to buy products that they normally wouldn't be able to afford in this economy. The website is gaining popularity by word-of-mouth advertising.
Registering for a bid is rather easy. Once you register you choose the auction you want to participate in, place your bid and see what happens.
Thursday, June 03, 2010
Findings Deal May Be Possible At Walmart
I used to shop at Target faithfully and then I heard about WalMart and how they slash prices. Over the past few years Walmart stopped slashing prices altogether or reduced the amount of price cuts they offered customers.
When that happened I went back to shopping at Target and so did other consumers. Well, WalMart must have noticed because they are going back to slashing their prices, but don't get too excited, it's not on all items, just a select few.
WalMart has slashed prices on ketchup and Coke soda.
They are now selling ketchup for $1 per bottle and cases of Coke soda for $4. The price slashes began just before the Memorial Day weekend and more price slashes are expected through the summer on 22 foods and other products which should provide consumers with an average savings of 30 percent.
This is a risky move for a nationwide chain in this economy when many businesses are raising prices to stay afloat. WalMart hopes the price slashes will bring customers in droves to their stores.
Consumers have also complained about products that are now discontinued. WalMart heard your cry. They are now restoring hundreds of discontinued items such as soups and laundry detergent. WalMart is also focusing advertising basic items such as underwear and socks.
Previous and current WalMart customers are now comparison shopping to see which stores or online website has the best deal which is hurting stores like WalMart and Target.
Wherever you shop look for the best bargain and the best quality. You may be able to find the item you are looking for at WalMart or one of their competitors but at least you have the option of shopping around.
When that happened I went back to shopping at Target and so did other consumers. Well, WalMart must have noticed because they are going back to slashing their prices, but don't get too excited, it's not on all items, just a select few.
WalMart has slashed prices on ketchup and Coke soda.
They are now selling ketchup for $1 per bottle and cases of Coke soda for $4. The price slashes began just before the Memorial Day weekend and more price slashes are expected through the summer on 22 foods and other products which should provide consumers with an average savings of 30 percent.
This is a risky move for a nationwide chain in this economy when many businesses are raising prices to stay afloat. WalMart hopes the price slashes will bring customers in droves to their stores.
Consumers have also complained about products that are now discontinued. WalMart heard your cry. They are now restoring hundreds of discontinued items such as soups and laundry detergent. WalMart is also focusing advertising basic items such as underwear and socks.
Previous and current WalMart customers are now comparison shopping to see which stores or online website has the best deal which is hurting stores like WalMart and Target.
Wherever you shop look for the best bargain and the best quality. You may be able to find the item you are looking for at WalMart or one of their competitors but at least you have the option of shopping around.
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