End of Year Financial Tips

2010 Roth IRA Conversions

1. Funding. Funded with after-tax (post-tax) dollars, offer tax-free growth and tax-free distributions in retirement
2. Distributions. No minimum distributions and no age requirement
3. Income. Can convert to a Roth IRA regardless of your income
4. Pay taxes. Conversion taxes can be spread over two years: 2010 and 2011
Conversions after 2010 will pay the full tax due
5. Conversion. Can convert back to traditional IRA by October 15, 2011
6. 1099. No 1099 is required
7. Deadline. Make conversion by 12/31/10

Paying Down Debt Now Can Help You Next Year

1. Future. The future is an unknown.
2. Tax Rates. Tax rates may be higher in 2011 which means you may bring home less money. Tax credits may be reduced, child tax credit will be reduced to $500 in 2011, the deduction for mortgage insurance premiums will be eliminated, energy saving improvements will be reduced to 10%.
3. Minimum. Paying more than the monthly minimum pays your balance down faster so you will owe less next year (interest, finance charges, etc.).
4. Shopping. Cut back on shopping to reduce changes of going into more debt or having large credit card balances after the holiday shopping season.
5. Variable. Many credit cards have been converted from fixed to variable rates which means if the federal rate increases, so will your monthly payments
6. Finances. Can improve relationship with your spouse or partner related to arguments over finances
7. Retirement. You can't focus on retirement if you are in debt

Tips to Help You Plan for the Future

1. Change your thinking. Eliminate negative thoughts about money and bad money habits. Follow those who have good spending habits and consult a professional.
2. Emergency Fund. Create an emergency fund to cover bills for 9-12 months.
3. Plan for retirement. Contribute the maximum to get matching contributions. You will need 60-80% of your current retirement salary for a minimum of 20 years to have enough money to cover living expenses during retirement. Save 10-20% each month towards retirement.
4. Pre-retirement. One year before retirement start reducing your expenses to retirement levels to get adjusted to living on a reduced income.
5. SS Income. Don't count on social security unless you are near retirement age.
6. Financial Goals. Sets financial goals, i.e. plan for retirement, children's college education, pay off mortgage, pay off car note, etc.
7. Contributions. Increase retirement contributions with each salary increase

Tips to Plan For Retirement Now

1. Sign up. If you don't have a retirement account, run to your employer and sign up. Setup an account even if you are self-employed (SEP) or stay-at-home mom (spousal IRA).
2. Diversify. Don't put all of your eggs in one basket. Ensure your retirement account is diversified. This helps to offset losses.
3. Live below your means. Reduce spending and create a budget.
4. Pay down debt. Pay off large debts and keep debt at no more than 10% of your monthly income after taxes (credit cards, medical expenses, other loans, etc.)
5. Estate planning. Perform estate planning (will, trust, health care directive, etc.). Hire a lawyer to prepare documentation.
6. Review. Review financial statements on a regular basis to check for errors and stay informed about your account.
7. Backup Plan. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D. Use what-if scenarios.

Are You Paying the Right Creditor

It can be very difficult trying to make payments on a collection account because a collection agency holds a collection account for a few months, it they are unsuccessful in collecting on the debt owed the account is forwarded to another collection agency. This process continues until the account is paid or legal action is taken against the consumer.

Many consumers don't realize that once a delinquent account is reported to a collection agency a consumer has a short amount of time to pay the bill. This is because collection accounts are put on a nationwide registry and each collection agency in the country gets notified of a collection account. However, only one collection agency has a legal right to collect money on a delinquent account.

Collection agencies don't want you to know that as a consumer you have a legal right to question the validity of a collection agency which is called debt validation. Many consumers have paid money on delinquent accounts to a particular company only to find out that the company did not legally have a right to collect money on that account. As a result the consumer still owed the money on the delinquent account. Here are 7 ways to validate a debt and ensure you are paying the right creditor:

1. Request the creditor, collection agency or attorney to provide documentation that the company is authorized to collect on the debt. Ensure the name and address of the collection agency appears on the documentation which should be on company letterhead.

2. Ask for proof of the total amount of the debt including payment history from with the original creditor and status of the account. Verify the documentation against your own records.

3. Request the collection agency to provide the original contract or other documentation showing the agreement you made with the original creditor including the name and address of the original creditor.

4. Ask the creditor to provide a copy of their business license to prove they are licensed in their state to collect money on delinquent accounts. However this varies from state to state.

5. If the creditor use profanity, harasses you, is rude or threatens you inform the collection agency that they are subject to the Fair Credit Reporting Act (FCRA), they might argue and say they are not but they are considered debt collectors and are covered under the act.

6. If the creditor cannot verify the debt they cannot collect any money owed on your account and is not allowed to contact you about the debt. They also cannot report the account on your credit report.

7. A creditor may respond to your debt validation letter by sending you a summons to appear in court. This is a scare tactic and is illegal. A creditor has to validate the debt before they can file suit against you.

Say No to Black Friday Shopping

Approximately 84 million Americans shopped online from the middle of November to the middle of December last year for gifts. According to comScore, last year, Americans spent almost $900 million online shopping on the Monday after Thanksgiving, $595 million on Black Friday and $300 million on Thanksgiving Day.

Many of the best bargains are for electronics and large items such as tv's and computers purchased online. Some companies are offering pre-black Friday sales and in some cases prices are better than black Friday sales. Amazon, Target, Wal-Mart and Best Buy are offering online discounts on electronics that match or beat black Friday sales. Apple.com will have a one day sale on black Friday. Several websites, like Amazon, DealNews, RetailMeNot and DealDump, create online shopping bargains all in one place so shoppers can find them easily. Also look for black Friday sales on Twitter and Facebook. Here are 12 reasons to shop online on black Friday instead of going to the stores.

1. Store gimmicks. If the store says "Limited Supply" it usually means there are 4-6 items in stock. If an item is out of stock be sure to get a rain check and go after the New Year to buy the item at the discounted price.

2. Save gas. You can shop in your pajamas instead of waiting in line at 6:00am or in the cold trying.

3. Free shipping. Many companies offer free shopping starting on Black Friday through the holiday season.

4. Stock. There are more items in stock online that in the actual stores.

5. Easier. You can take your time and in some cases chat with online representatives to answer questions.

6. Stress. Shopping online is less stressful than running through the stores, fighting for parking spaces, fighting over items on sale and waiting in long lines.

7. Safer. Shopping online is much safer and you don't have to worry about getting elbowed or trampled over while shopping.

8. Prices. Some black Friday prices are not really bargains. Just because a store advertises an item for 50-60% doesn't mean you are getting a deal. Comparison shop to ensure you are getting the best deal.

9. Security. Don’t shop with companies you never heard of or with sites that don't have a https or shttp on the payment page, a mailing address and contact phone number.

10. Payment. Shop with a credit card. If you are a victim of identity theft you will not be held liable for charges reported within a few days.

11. List. Stick to a list. Don't get enticed with advertisements for something not on your list. Don't buy items on impulse. If you get emotional about an item you see on sale wait 30 minutes and ask yourself if it is a need or want.

12. Set a budget. The holidays should be more focused on spending time with family and friends and not about buying a gift. If you have to buy a gift for a parent and child consider just buying a gift for the child. Let the parent know you are cutting back this year and really can't afford a gift right now.

Black Friday shopping has resulted in violence such as: fist fights, trampling, smashed glass doors, shootings, pushing of employees, calling the police, and even death. If you insist on going to a store, ask yourself, if buying an item that may or may not really be a bargain worth getting injured for. I will be shopping online.

How to Handle Creditor Calls

Creditors call your house day and night. Some are rude and ask for a payment every hour on the hour. You can stop these harassing calls. Talking to customers in a rude and unprofessional manner is against the law according to the Fair Debt Collection Practices Act (FDCPA).

If you make one late payment, usually 30 days or more late, a creditor will call to remind you to send a payment, even if the payment is one day past the due date – unless the company offers a grace period.

A creditor cannot call you before 8:00 am or after 9:00 pm. Creditors cannot use threats, use profanity, make false statements, use unfair practices, or make repeated calls to your home to collect a debt.

If a creditor contacts you, as a consumer, legally you have the right to ask them to stop calling which is called "cease and desist" by writing a letter telling the creditor to stop contacting you by phone. You also have the option of having the creditor contact you by mail only which I strongly advice. Cutting off all contact with the creditor may anger the company and cause them to quickly take legal action against you.

If you are late on a payment, notify your creditor immediately that you are having financial problems and try to setup a payment plan with them to prevent the item from being reported on your credit report and to maintain a good relationship with the company.

If you feel a creditor has violated the Fair Credit Reporting Act you may file a complaint against them by calling the Federal Trade Commission at 1-877-FTC-HELP or visit ftc.gov to fill out an online complaint.

Tips for Estate Planning

An estate is property owned by you at the time of your death including: real estate, bank accounts, stocks, bonds, mutual funds, life insurance policies, and personal property such as cars, jewelry, and art. Estate Planning ensures that your property and health care wishes are honored, and that loved ones are provided for after your death. Estate planning can include wills, trusts, and health care directives.

According to Retirement Made Simpler, in 2009, women, younger and lower-income adults were less likely than men, older and higher-income adults to say they participate in a 401k plan offered by their employers. Approximately 53% of adults feel that even if their 401k account has lost value, it is as important to continue contributing to it. Here are some tips for estate planning.

Will Preparation:
1. If no will court decides who gets your assets
2. Living spouse and children get assets and if no children next to kin gets assets
3. Identifies who will take care of children and who manages will
4. Minimizes legal and court fees
5. Laws vary by state
6. No absolute right to estate
7. Signed by 2-3 witnesses

Living Trust:
1. Maintains privacy
2. Minimize gift and estate taxes
3. Can’t have trust without a will
4. Can put conditions on how your assets are distributed after you die
5. Covers only specific assets (life insurance, property, etc.)
6. Use if you have a net worth of $100,000 or more
7. Use if you want to maximize estate tax exemptions

For more information on estate planning visit moneycentral.msn.com/quiz/make-a-will-quiz/home.aspx or www.nolo.com/products/nolos-online-living-trust-NNTRUS.html.

More Car Recalls in 2010

Cars are not what they used to be. Cars used to last for 5 to 10 years without major defects or major problems. Nowadays you are lucky if you car lasts during the warranty. Think twice before trading in your old car for a shiny new one.

Last month there were multiple car recalls. Honda recalled approximately 500,000 cars with brake problems for the Odysseys and Acura RLs models from 2005 to 2007. Toyota recalled over 730,000 cards with unsafe brakes for the Avalon models from 2005 to 2006, non-hybrid Highlanders from 2004 through 2006, Lexus RX330, LXGS300, IS250 and IS350 from 2006.

BMV recalled over 150,000 cars because of potential problems with their fuel pumps. The problem affects cars with twin-turbo six cylinder engines with high pressure injection and direct fuel injection systems. The recall affects the 335i models from 2007 to 2010, 135i, 535i and X6 xDrive35I sports activity coupes from 2008 to 2010, Z4 roadster sDrive35i models from 2009 to 2010, MY 2008 X5 sports activity cars.

Here are 4 tips to help if your car is recalled.

1. Research. Find out what the process is to get your car fixed and if you will be compensated for the recalled part or for a rental car while your car is being repaired. Check the company's website to see if any information has been posted.

2. Call. Contact the car manufacturer directly to get accurate information on the model being recalled.

3. Status. Check on the status of your car repair frequently and document all phone calls with the car dealer and car manufacturer. Ask for a letter in writing from the car manufacturer stating what model what recalled and the process for addressing the recalled model.

4. Car Fund. Start creating an emergency car fund so if you have to get your car repaired you minimize the chance of going into debt.

Organization is The Key to Filing Taxes

Every year Americans have to file their taxes unless they don't earn enough income to qualify having taxes taken out. There are tons of tools available to help prepare your taxes and determine if you will get a refund or owe money. Some of the most widely used tools are Turbo Tax, Tax Cut and Quicken.

One of the reasons many Americans end up owing taxes or miss out on claiming deduction is because their financial papers are not in order. Many throw away, misplace receipts or even falsify documents because the original document cannot be found.

Don't wait until the last minute, this year start early and gather all of your financial paperwork. You can use an automated tool to track your spending and deductions or use a piece of paper, or word processing software such as Excel or Access. Getting organized will help you to see right away what deduction you can qualify for.

Using a tax preparation tool has all the tax laws imbedded in the tool which makes it easier for you to see what deductions you are eligible to claim. Here are 6 tips to help you get organized this tax season.

1. Gather. Gather all receipts, monthly, quarterly and yearly statements, medical bills, student loans, credit card statements, prescriptions, financial statements, etc. and place in one easy to find location.

2. Automation. Use a software package like Quicken or Quick Books to record all of your deductions. Use basic column headings: Item, Date Purchased or Sold, Cost, Quantity, Total Cost.

3. Categorize. Identify all items that can be used as itemized deductions and put them in one folder. Determine if the standard deduction for your tax bracket is greater than your itemized deductions. (This can be found in the IRS tax manual by using the items identified in tip 2). If not (standard deduction is less than itemized deduction), use the worksheet included with your IRS tax booklet to calculate your itemized deductions.

4. Go Green. To save money file your taxes electronically. You will receive your refund in approximately two weeks from the date of filing and you help save the environment.

5. Be Patient. Don't get a tax refund loan (rapid refund) or refund anticipation loan. You are charged a fee to get the refund loan which usually has high interest rates and associated fees. Save yourself time and money.

6. Free Filing. If you salary is less than $52,000 or less you can file your taxes electronically for free.

How to Lower Heating Costs

This year's winter season didn't seem like a normal winter season where in some parts of the country temperatures were in the 70's and 80's even until the last week of October. For utility companies specifically the gas company, the winter season begins October 1 and ends March 31. According to the Energy information Administration the average American household will pay $27 more than last year due to a 6% price increase.

Approximately 52% of all U.S. homes depend on natural gas as their primary heating fuel. Approximately 7% of U.S. homes depend on heating oil and will pay approximately $220 more this winter. Approximately 6% of all U.S. homes use propane for heating and can expect to pay approximately $136 more than last year. Approximately 37% of all U.S. homes use electricity for heating and can expect to pay approximately $18 less this winter.

The national average price for heating with oil has more than quadrupled to 198% from 2003-2004 to 2008-2009. Here are 9 tips to save on heating costs this winter.

1. Yearly check. Have annual checks on your heating system such as your furnace before the winter season begins. It is best to get a checkup during the summer months when business is slow.

2. Insulate. Insulate your attic and any other areas that are drafty such as your attic, basement, ceilings, walls, crawl spaces, hot water pipes, furnaces, ducts, etc.

3. Automate. Install a programmable thermostat and keep your setting on 68% Fahrenheit. Lower the temperature setting while away from home and during the day. This can save 20% on your heating costs.

4. Seal drafts. Seal any drafts around windows, chimneys, pipes, light fixtures, doors or electrical outlets which can reduce your heating costs by 30%. Replace drafty windows if needed. Hang curtains to seal drafts from windows or place rugs at doors to keep air out.

5. Water Heater. Buy a home water heater insulator to keep the water hot longer and reduce the amount of gas needed to heat the hot water heater.

6. Clothes. Wear more clothes at home to prevent turning the thermostat up.

7. Let the sun in. Open blinds or curtains during the day to let heat in.

8. Use fans. Use ceiling fans and run in the opposite direction to circulate heat.

9. Cover floors. Carpet floors to retain heat and keep floors warm.

Green Tax Tips for 2010

It's Tax Season. That dreaded time of year when you have to look through all of your receipts and try to piece together your spending for the year to file your taxes and hope you get a refund. In addition to the tax credits and usual tax benefits, you can also get tax credits for going green. Going green can qualify you for federal tax deductions for individuals as well as businesses.

Businesses that make changes in their appliances and products can get federal tax credits including those that recycle, buy recycling equipment, or use recycled materials. These can include items such solar water heaters which could qualify for a tax credit of 30 percent of the cost of the appliance.

Many state taxing authorities offer tax deductions and tax credits for going green to individuals. New legislation allows employers to give employees up to $20 a month for riding a bike to work. Employers can reimburse up to $230 per month of an employee’s public transportation expenses.

Solar homeowners and businesses can get tax credits for installing solar panels and solar powered water heaters. Solar water heaters may qualify for a tax credit of up to 30% of the purchase price. Improvements to a taxpayer's primary residence must be made before January 1, 2011. Here are 5 tax tips to go green.

1. Residential Energy Efficient Property Credit. This tax credit qualifies residential energy appliances such as solar hot water heaters, solar electricity equipment, geothermal heat pumps and wind turbines installed in or on the home and ends in 2016. The credit is 30% of the cost of home.

2. Plug-in Electric Vehicle Credit. This tax credit is for two types of plug-in vehicles: two- or three-wheeled vehicles or certain low-speed electric vehicles. The credit is 10% of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after February 17, 2009, and before January 1, 2012.

3. Residential Energy Property Credit. This tax credit is for homeowners who make energy efficient improvements to their existing homes. The credit is 30 percent of the cost of all improvements. The credit applies to improvements such as energy efficient windows, insulation, heat pumps and energy-efficient heating and air conditioning. The maximum credit is $1,500 for improvements placed in service in 2010.

4. Credit for Car Conversion Kits. This credit is for car owners who convert a vehicle to a qualified plug-in electric vehicle. This credit is 10% of the cost of converting a vehicle that is placed in service after Feb. 17, 2009. The maximum credit is $4,000 and ends in 2011.

5. Treatment of Alternative Motor Vehicle Credit. This credit allows the Alternative Motor Vehicle Credit, including the tax credit for purchasing hybrid vehicles, to be applied against the Alternative Minimum Tax (AMT).

To claim the green tax credit you must file out Form 5695, Residential Energy Credits. Manufacturers must certify that their products meet the green standards and they must provide a written statement to the taxpayer in the product packaging or on the manufacturers’ website.

How to Establish Business Credit

Two-thirds of new businesses survive at least two years, and 44% percent survive at least four years. Thirty-three percent of self-made millionaires are entrepreneurs. Now is a great time for entrepreneurs to start a business.

It is important to establish business credit when you are running a business because when you apply for business loans or credit, companies will look at your personal credit and your business credit profile to determine: if you will be approved, the amount approved, the terms of the approval and if you will have to give a personal guarantee. It takes about 6-9 months to establish business credit and up to 2 years to establish good to excellent business credit.

When you separate your business and personal credit it makes it easier to file your taxes. Opening a business credit card account provides a professional image for your company and ensures other businesses perceive you as a legitimate company.

There are only a few payments options available when making business transactions such as credit card, PayPal, debit card and checks. Business credit cards provide higher limits and higher rewards than personal credit cards.

Before applying for business credit and to ensure you are approved you will need: two years of financial statements and tax returns, one bank reference, and a good relationship with your local bank. You can do this by opening a CD for 3-6 months. Once it matures take the money out and open a small personal loan. Pay the loan back on time or before the loan end date. This helps establish a relationship with the bank. Now the bank will be more willing to approve you for a business loan or business credit card.

Here are 6 tips to establish business credit:
1. Open a business credit card or trade line with your business tax id to keep your personal credit and business credit separate such as Staples, Office Depot, UPS, FedEx, Office Max, Exxon, etc. You will need 5 trade references reporting to Dunn & Bradstreet.

2. You can apply for a business credit card with your SSN. However, if you make a late payment your personal credit is damaged.

3. Establish a business profile with Dunn & Bradstreet and get a Paydex score (business credit score).

4. Get a credit card with no personal guarantee. This ensures that if the business fails you are not responsible for any debt owed.

5. Get a secured business credit card.

6. Setup business credit reports with at least 3 agencies (Experian, Equifax, Dunn & Bradstreet, TransUnion, etc.)

Beware of Credit and Debit Card Scams

I was a victim of identity theft on my business debit card. Two fraudulent charges were made on my business account - both were under $10. How often have you seen charges that range from $2-$10 and for a second you wondered what the charge was but ignored it. Well I did just that.

The first charge I saw I assumed it was correct but I saw a similar charge two months later around the same amount of the first charge. I never bought anything from the company. I looked at all my receipts and bank statements. I researched the company. I called and let a voicemail message and never got a call back. The automated message stated they were busy helping other customers and to leave a message. I further researched the company phone number and other customers had been victims of fraud by the same company. It was a bogus company. I had been scammed.

I contacted my bank and told them of the fraud. They immediately placed an alert on my account and after 2 business days the charges were credited back to my account which totaled $18.98. If I never investigated these charges, the charges could have continued for years. My business account is with one of the largest banks in the country. I am going to open a new business account with another bank tomorrow.

The FTC has been cracking down on debit card scams. The FTC is investigating an international micropayment scam that stole almost $10 million from customers' credit and debit cards. Over 1 million credit cards were used to make fraudulent charges. Most of the charges were not disputed. The FTC closed down phony merchant accounts used by the scammers.

The charges were not detected by bank antifraud software. Some customers didn't bother to dispute the low charges. The identity thieves charges approximately $9.5 million over a 4-year period of four year starting in 2006. Here are 6 ways to protect your personal and business credit and debit cards from fraud.

1. Go with your gut feeling. Don't doubt yourself.

2. Don't give out your checking account number, tax id, personal or business credit card number over the phone unless you know the company and understand why the information is necessary.

3. If someone says they are taping your call, ask why. Don't be afraid to ask questions.

4. Companies do not ask for your bank account information unless you have expressly agreed to this payment method.

5. Do business with reputable companies. Be sure the company website has a physical address that is verifiable and a phone number that is answered by a live person. Verify the company phone number in the Verizon online yellow pages or do an internet search on the phone number.

6. Report the fraud to the FTC at ftc.gov by filling out an identity theft complaint form.

Halloween Mania and Money

Halloween is celebrated by many Americans in the United States. Is Halloween really a holiday? We don't get a day off work to celebrate it but it is treated as a holiday and it seems as though some people get more excited about Halloween than Christmas. I wonder if the people who dress up at Halloween also dress up as Santa or Mrs. Claus at Christmas or dress up at Thanksgiving.

Companies make millions of dollars in sales during Halloween. Disney theme parks had a 40% increase in attendance at Disneyland in LA. In 2009, companies made approximately 6 billion dollars in Halloween sales.

If Americans took the money they plan on spending this year for Halloween and put it towards paying down their debt or put it in an emergency fund they would be in a better financial position next year. If you are going to celebrate Halloween this year here are 5 ways to save money.

1. Costumes. Buy costumes from the dollar store or make you own. Dress up like a cartoon character or a TV show character.
2. Candy. Buy candy from the dollar store or at discount or wholesale stores like Costco, BJ's or Price Club. You can also use coupons at store that double the coupon value.
3. Family Outings. Carpool, buy bulk tickets or ask about discounts for families or large parties to save money on admission fees for haunted houses or other activities.
4. Host a party. Host your own Halloween party and ask guests to bring a dish. This way you save money by not going out and get the luxury of staying at home.
5. Skip Halloween. Skip Halloween and do something that is low cost or free like attending church, visiting family or plan a family night and watch TV. This will save you a lot of money and will bring your family closer together.

Retirement and You

Last week was designated as National Savings Retirement Week to help bring awareness to the need to plan for retirement. Many Americans still do not save enough for retirement and some do understand the importance of saving for retirement.

According to a 2009 EBRI a study of employees: 43% of workers said they have less than $10,000 in savings, while 27% of workers said they had less than $1,000. According to the FDIC: 97% of Americans will be dependent to some degree on family, friends or the government in retirement; a 65 year-old couple retiring today has a 63% chance that one of them will live to 90 years old; a 65 year-old couple retiring today will need approximately $240,000 to cover just medical expenses even with Medicare assistance.

You will need at least 60-70% of your salary during retirement. You should plan to save enough in your retirement account to cover living expenses for at least 20 years. Here is a retirement checklist to use when saving for retirement.

1. Do you have a retirement account?
2. Have you contacted a professional to map out your retirement plan and goals?
3. Do you know your retirement account balance?
4. Do you check your quarterly retirement statement?
5. Is your retirement portfolio diversified?
6. Do you know where you will live, what age you want to retire and the lifestyle you want to live during retirement?
7. Have you determined what costly expenses you will need during retirement (healthcare, prescriptions, etc.)?
8. Have you created an estimated budget for retirement?
9. Will you have enough life, health, disability and long-term care insurance?
10. Do you plan to pay off your mortgage and any other large debts prior to retirement? If not, how do you plan to pay for those expenses?
11. Do you want to be fully retired or work part-time?
12. Will you be eligible for social security when you retire?
13. Is your beneficiary information is up-to-date?

Here are 6 ways to help you prepare for retirement and increase your retirement savings.

a) Don't panic. Don’t make decisions based on emotions or get overwhelmed by the media, fear, anxiety and nervousness of those around you. Stay calm and follow the plan you have setup with your financial planner. Don't torture yourself by checking the stock market everyday or checking your retirement account balance every week or every month.

b) Review. Review your financial goals with your financial planner at least once a year to ensure you are on track to meet your goals. Also, check your statement for any errors and notify your financial planner immediately.

c) Time. Your money cannot grow if you take it out too soon. It takes a minimum of 7 years to see a significant return on your investment so leave your money in your account.

d) Diversify. If you have all of your investment in one area, re-allocate your investments to at least 3 areas to minimize losses.

e)DRIPs. To offset any losses you may have experienced you can purchase a Dividend Reinvestment Plan (DRIP) or use it as an easy way to start investing.

f) Buy now. The motto is "buy low, sell high" is very appropriate during a recession. This is a great time to buy stocks or to invest in a mutual fund. When the market bounces back you will have achieved great gains.

Are You Financially Literate

According to the Federal Reserve, 43% of Americans live above their means. Many Americans live paycheck to paycheck and are living in either low-income or middle income households – some just one paycheck away from being homeless. If they lose their jobs, they have no backup plan, no savings and no safety net to help them through a financial crisis. Some school systems do not teach financial literacy because they don't feel it is a priority.

Unfortunately, students who are not financially literate grow up to be adults who are not financially literate. These same adults develop bad spending habits, have bad credit and file for bankruptcy or foreclosure. If financial literacy was taught in all the school systems in the country, many Americans would be in a better financial position because they would be empowered with knowledge to help them make good financial decisions and they would have the tools to recover from a financial crisis.

Here are some questions that will help you determine if you are financially literate. If you answer "no" to 5 or more questions, you may need to gain some knowledge about financial literacy and change your thoughts about money.

1. Do you have a bank account?
2. Do you frequently overdraw your bank account?
3. Do you have an emergency fund? Do you have at least 9-12 months of savings in an emergency fund?
4. Do you cash your checks at a check cashing store or liquor store?
5. Do you pay bills late?
6. Do you have a retirement account or do you invest?
7. Do you know what your current credit score is?
8. Do you write all ATM/debit card transactions in your check book?
9. Do you regularly compare your bank statement with your receipts?
10. Do you have a budget?
11. Do you know how much debt you owe?
12. Do you know your net worth?
13. Do you owe taxes or have you owed taxes in the past?

If you are not financially literate and don't the basic about personal finance I encourage you to read self-help books on personal finance that discuss budgeting, investing, retirement, saving, paying for college and taxes. There are also several websites available such as CNN Money, Yahoo Finance, Bankrate.com, MSN Money and morningstar.com. The more you know the more you grow. Money can generate wealth or generate debt, you make the choice.

Financial Survivor or Victim

Many Americans have experienced financial, family or physical tragedies over the past few years. Their financial outlook has gotten worse because of the recession. This has caused many Americans to give up, lose hope, lose faith and become confused, lost, afraid, stressed, anxious, angry and resentful.

These feelings can cause one to make poor decisions and choices in their lives. The first key to dealing with these emotions is to acknowledge them. Once you acknowledge your feelings don’t allow your feelings to control you. Next, think about what you can do to overcome your current situation and find a solution. You can’t change what happened but you can change how you react to it and how you deal with it. To do this you determine if your behavior is that of a survivor or a victim.

A victim:
1. Makes excuses
2. Looks for handouts
3. Waits for someone to help them
4. Doesn’t take responsibility for their actions
5. Doesn’t seek professional help
6. Refuses to change their current situation
7. Doesn’t accept reality
8. Is unable to implement a solution
9. Stays in a spiraling state of emotion (stress, frustration, anxiety, etc.)
10. Doesn’t have a plan of action
11. Unable to recover from a crisis

A survivor
1. Doesn’t make excuses
2. Develops a plan to solve problems on their own
3. Seeks professional help
4. Lives in reality - accepts the current situation but remains focused on future goals
5. Takes responsibility for their actions
6. Doesn’t wait for someone to help them
7. Uses emotional intelligence to manage feelings (eqi.org/eitoc.htm)
8. Uses resources such as self-help books, educational television shows, law of attraction, etc.
9. Survived previous crises and learned from the experience

Here are 8 steps to overcome a financial crisis.
1. Focus on how to solve the problem rather than focusing on the problem
2. Spend money without feeling guilty – you feel guilty because you are not living below your means
3. Use cash vs. credit to save you money
4. Have faith that your financial situation will improve – law of attraction
5. Pay off credit cards at the end of each month to avoid paying interest and finance charges
6. Have a savings account, checking account and retirement account which helps you plan for the future
7. Have at least 6-12 months worth of savings in an emergency fund to help with unexpected expenses or a financial crisis

To become a survivor of any financial crisis you have to change your mindset. “If you do not attract what you want to be, you will be what you are, forever” by Ankur Sancheti.

Do Your Thoughts Keep You Poor

Today's post is taken from Burt Goldman creator of the Prosperity Paradox. I thought it would provide another perspective to financial success. Enjoy!

The longer you spend doing something, the better you will become at it. That is the Law of Life.

To become an expert at whatever it is you want to do, you know that if you put in the time and dedication, you'll eventually get there. After all, practice makes perfect, right?

This rings true for almost anything in life and most professionals in any field will tell you that following this Law has gotten them to where they are today.

In Sports - During his high school years, Michael Jordan never made the school basketball team but after years and years of dedication and practice, he became the all-star he is today.

In Arts - Heath Ledger took months to study and absorb his character, the Joker, in 'The Dark Knight' and actress Winona Ryder had to dive into the psychology of disturbed women for months before starring in 'Girl Interrupted'.

In Music - The Beatles were no strangers to practice. In the earlier days of their career, they played 8 hour sessions, every night of the week without fail. Well, we all know how successful they became.

There are an endless number of fields where world-class experts will tell you the same thing. Dedication, motivation and hours of practice will make you better at anything you take on. It's common sense, right?

It is the proven formula for most things... but here lies the problem... this does not apply to making money.

The Prosperity Paradox

We spend the majority of our lives trying to make good money. Do the math - say you have already spent 20 years dedicating the majority of your time and effort into making money. At 40 hours a week, that's over 40,000 hours spent making money!

After that much time, you should already be a master at it!

Think about what your golf handicap would be if you spent that amount of time on the driving range! But the truth is, most of you will continue breaking your backs for the rest of your lives and still not get any better at making money. Why?

Money is the only thing you will not get better at with time. This is what I call the Prosperity Paradox and it exists because of the 3 great lies we tell ourselves about money.

The 3 Great Lies

1) Money = Career
Most often we think that our career path will determine how much money we will make. A lawyer, accountant and a clerk will have certain expected pay grades. We believe our chosen career always has a salary cap. But this type of thinking limits our potential to make money. The truth is that you can reach financial success regardless of your monthly paycheck.

2) Money = The Value You Give The World
You make money only by giving value to the world. This is a myth. Think about jobs that benefit no one but themselves. Casino kings, drug lords, people who cheat others of their hard earned money. All these add no value to the world. Yet, these people are living the life honest folks deserve. Then think about those who have given so much value to the world. Teachers, nurses, even garbage collectors are not anywhere close to being millionaires. So how can this statement be true?

3)Money = Hard Work
The advice from our parents "You have to work hard for your money" no longer rings true. Money does not equal hard work. Most people slog all day and night, they take on two or three jobs, eat from their desks, ruin their health, suffer from stress, and yet they are no closer to financial freedom than before.

These 3 lies are created by YOU, by society and by your misconceptions about money. In fact, money doesn't relate to any of these things! The only thing your financial success relates to is your... Prosperity Blueprint.

The Prosperity Blueprint and Your Money Mindset

Or, in other words, your money mindset. Here's a scary fact... Right now, your Prosperity Blueprint has been preconditioned to never help you get any better at making money. But it's NOT your fault! You have been misled along with millions of other hardworking people who will never escape this money making struggle. Let me tell you how it happened.

1)You were never trained on HOW to make money
It is a sad but true fact. You were never trained on how to make money. There are no classes in schools or Universities that tell you what you need to do to become a professional moneymaker. You were simply trained with the skills that would hopefully make you some money one day. You make money as a result of THAT skill.

2) You are BRAINWASHED by society
You were conditioned to have certain limited and stereotypical beliefs about money. Here are a few phrases that I am sure you have heard before whether you believe them or not: "Money is the root of all evil" "It's more enlightened to be poor than rich" "If I get rich, everyone will want something from me"

In fact, even some very famous people have cautioned us against money:

"I do not like money, money is the reason we fight." --Karl Marx
"Love and money should properly have nothing to do with each other." --John Saul, Guardian
"Surely there never was so evil a thing as money, which maketh cities into ruinous heaps, and banisheth men from their houses, and turneth their thoughts from good unto evil." --Sophocles, Antigone

3) You are influenced by BIPOLARITY within society
There are many subsections within the society: The rich and the poor. The educated and the uneducated. The urban and rural. The democrats and the republicans. These splits within our society have fortified the limitations in our self-belief system about making money, "People like us will never be rich." "People like them have it so good." These conditionings have limited your potential to make money. This is a very BIG problem.

But here is good news... Unlike the millions of others who do not know any better, you have read this and are aware of this Prosperity Paradox. And here is more good news. There is a very SIMPLE SOLUTION and that is to... Reset Your Prosperity Blueprint.

Only 5% of people have figured out how to do this and they are enjoying financial success in a way that many can only dream of. And what about the other 95%?

Because of the lies they believe in, they will always be stuck trying to make money. Now that you know the truth, will you be part of the successful minority or the striving majority?

Open Enrollment Tips

The health care reform will affect health benefits for most Americans. Most of the changes will occur in 2011. For those currently employed, you can make changes now during your employers Open Enrollment.

Verify all of your health information is accurate. If you have benefits that will no longer be paid in 2011, ask your health plan provider if you can pay for the services using a Flexible Spending Account. Some highlights of the health care changes are:
1. Children up to age 26 can be added to their parent's health insurance plans and be considered qualified dependents for a Flexible Spending Account or Health Savings Account.

2. Starting in September 2010, some preventative services willl be available to health insurance customers at no additional cost.

3. Starting on January 1, 2011, a doctor's prescription is required to receive reimbursement from a Flexible Spending Account or Health Savings Account for over-the-counter medications and drug purchases. You will also be charged a penalty up to 20% of the total withdrawal if you withdraw from your Health Savings Account for non-medical expenses.

4. During Open Enrollment you should also sign up for vision, dental and life insurance benefits. Know th difference between Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPO), and Point-of-Service (POS) plans.

5. Comparison shop during Open Enrollment season and consider the cost of the plan including but not limited to: the monthly cost of each plan, deductibles, services provided and prescriptions costs. Coverage is also based on what you can afford and what is best for your family.

Employees and health insurnce providers must communicate about the different options that are available to an employee.

Medical Bankruptcy

The Medical Bankruptcy Fairness Act of 2009 is a bill that would amend title 11 of the United States Bankruptcy Code (Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) would: 1) provide protection for homeowners with medical debt, 2) restore bankruptcy protection for individuals experiencing financial distress who serve as caregivers to injured, ill, or disabled family members, 3) and to become exempt from taking the bankruptcy means test for those whose financial problems were caused by serious medical issues.

If the bill is passed it would waive the “means test” and credit counseling requirements for those who to wish file bankruptcy.

A recent study shows that based on the effects of the recession approximately seven million Americans will lose their health insurance coverage. Employee spending on health insurance coverage has increased 128% between 1999 and 2008.

Economists have found that increasing health care costs show a connection with decreases in health insurance coverage. National studies show that the main reason many people are uninsured is due to the high costs of health insurance.

The United States is the only developed country that provides health insurance but has the largest number of deaths due to lack of medical insurance or lack of appropriate medical care.

Contact your loss congressman to have the bill passed to provide additional protection for Americans and their medical costs.

Extra Money for Verizon Wireless Customers

If you are a Verizon Wireless customer you may be getting a refund. Verizon Wireless has been ordered by the Federal Communications Commission (FCC) to pay up to $90 million in refunds to cell phone customers who were changed for internet access or data usage over the past few years.

Last year the FCC asked Verizon Wireless about the $1.99 a megabyte access fee that appeared on bills of cell phone customers who didn't have a data plan but accidentally initiated data or internet access by pressing a button on their cell phones.

The issue affects approximately 15 million customers who will receive credits between $2 - $6 on their October or November cell phone bills. Customers who are no longer Verizon Wireless customers will receive refund checks.

Verizon stated that it no longer charges fees when a customer accesses data services but shuts it off quickly.

If you were affected by this, check your statement. If you have not received a credit on your October or November bill, contact Verizon Wireless to find out the reason.

Help for Bank of America Customers

As of August 2010 over 2 million homes are listed as foreclosed which shows there is still a great need for mortgage companies to work with homeowners to help them stay in their homes. Bank of America has decided to delay foreclosing on homes in 23 states while the company determines if they rushed too soon to foreclosure on some homes.

The states affected are: Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.

In some cases employees signed foreclosure documents without verifying the information. GMAC and JPMorgan Chase have also made the same mistake. This issue may lead to lawsuits due to homeowners contesting foreclosures that may not be valid. Pressure is being added to mortgage industry professionals by state attorney generals who are working hard to enforce foreclosure laws.

In some states, mortgage lenders can foreclose quickly on delinquent homeowners. Freddie Mac and Fannie Mae and Freddie Mac stated that they are informing mortgage companies to follow proper procedures.

It is uncertain how this decision will affect homeowners. If you are a Bank of America mortgage customer call the company at the 800 number provided on your mortgage statement to get information about your foreclosure or pending foreclosure.

In the future, go with your gut if you feel you have not been treated fairly by your mortgage company or you feel that proper procedures have not been followed. You can also contact HUD or a certified housing counselor to get a second opinion on any housing paperwork or issues that you are concerned about or have questions about. You can also file a complaint against your mortgage company with the Federal Trade Commission, Better Business Bureau or your state attorney general's office. If you have a FHA mortgage loan you can file a complaint with HUD.

Think Twice Before Shopping This Holiday Season

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

Check Out My Interview in the September issue of Essence

Check Out My Interview in the Sept Issue of Ebony

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.

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.

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.

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.

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.

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.