America's Woes Spread to Other Countries

The current financial crisis began in the United States when lax lending standards on certain home mortgages came were allowed. Foreclosure rates began increasing as of 2000 and financial companies began reporting huge losses.

Many other parts of the world funded America’s consumer spending boom by lending America money. Many banks and investment funds outside America are holding large amounts of American debt paper and are now very upset and unhappy with bank and financial institution assets that no longer have any value.

Leaders of the world's top countries, the Group of Eight, are scheduling a meeting to meet in the near future to discuss solutions for the financial crisis. The Group of Eight consists of the United States, Japan, Germany, France, Britain, Italy, Canada and Russia.

European financial and political leaders agreed to pump billions of euros into their banks to help with declining economy. To deal with their failing economy Iceland's central bank dropped interest rates by 3.5 percentage points. Greece has pledged up to 28 billion euros or $38.5 billion to help its banks through the current financial crisis. Germany is proposing a plan to provide 400 billion euros or $536.7 billion to their banks.

How the Bailout Affects Your Credit

Due to the failure of many banks and financial institutions, lenders and other companies that extend credit to consumers are implementing stricter requirements for approval. Many people who received benefits of having a 700 credit score will now feel the affects of the new bailout plan.

The bailout plan will affect approval for credit cards and loans. This will also affect consumers in their personal and business life. Many small businesses that rely on business credit to purchase business equipment and supplies will also be greatly affected when trying to get approval for credit.

A year ago, a consumer could be approved with a credit score of 700 for any type of loan or credit card with a good interest rate. One year later things have changed.

According to a Yahoo article consumers will now have to have a higher credit score to get approved for a loan or credit card and to get good interest rates. For credit cards you need a 720-750. According to CNW, it will be even harder to get approved for an auto loan; you will need the minimum credit score of 786 to get the very best rate.

To get approved for a mortgage you will need a credit score of 740 to get the best rate. Previously you could get approved for a credit score of 700.

If you have bad credit follow these 5 tips to increase your credit score:

1. Get current on late bills
2. Setup payment plans with your creditors
3. Keep credit card balances at 30% or below the credit limit
4. Don't open a new account more than once every 2 years
5. Don't use credit cards for everyday purchases

It may be difficult to change your spending habits but you will be in a better position to ensure you get approved for credit when needed and this advice will help you maintain a good credit score.

How the 700 Billion Dollar Bailout Affects You

A credit freeze is currently in place because of the current economic crisis. President Bush signed a 451 page bill to implement a 700 billion dollar plan buy bad mortgages and other low valued assets currently held by distressed financial institutions which would allow them lend credit again to businesses and consumers.

The bill will also temporarily expands federal insurance for bank and credit union deposits of up to $250,000 which will help small businesses and many Americans including those will retirement accounts and 401Ks.

The bill will also allow mortgage lenders and banks to restructure home loans, reduce mortgage interest rates or change mortgage loan terms. However, with the bailout, it may be harder to get approved for credit or a loan because banks and financial institutions will no longer be willing to work with customers with bad credit because they don't want to take any more risks.

Approvals will require higher credit scores and possibly larger down payments. Credit card limits may be reduced or credit card accounts may be closed if accounts are maxed out or delinquent. Many small businesses that use credit to make purchases will also be affected which may reduce their revenue or possibly force some businesses to close.

Since this is an election year remind your congressmen of the issues that affect you the most and make your voice heard.

Tips for AIG Customers

AIG got a loan from the FDIC for 85 billion dollars because they lost money due to the sub-prime market. AIG is the parent company of many insurance holders.

If AIG has to file for bankruptcy they would pay off as many policyholder claims as they can. For the remaining unpaid claims they would be paid by the state because the state has guaranteed the policies.

If you have property or auto insurance, the state will also cover these, but usually have a cap. The level of coverage may vary by state, but every state association provides withdrawal and cash-value coverage for annuities of at least $100,000. Life-insurance policies are backed up with at least $300,000 in life insurance death benefits and $100,000 in cash surrender or withdrawal value. States offer at least $100,000 in health insurance policy benefits.

Every state including the District of Columbia, Puerto Rico and the Virgin Islands have established guarantee funds to protect homeowner's or car-insurance policies. Most state guarantee funds to pay all of their state's workers' compensation benefits.

Don't take money out of your AIG account. Your AIG insurance and annuity policies are safe because they are still insured. The Insurance Commissioner’s Office will continue to closely monitor the status of AIG to ensure that policyholders are protected and that assets remain to pay claims. If you do decide to cash in your policies check to see if your policy contains a surrender charge or cancellation penalty. Continue to pay your insurance premium bills for you AIG coverage. If decide not pay your policy may be canceled.

If you are unable to contact an AIG representative you can call the Insurance Consumer Hotline at 1-800-562-6900.

Be aware of scams. If someone tells you to replace your AIG policy because "may not be able to pay your claim" this is a scam. Call the Insurance Consumer Hotline at 1-800-562-6900 to report the incident.

To see if your insurer is owned by AIG, visit the state Insurance Commissioner's Web site at insurance.wa.gov and click on latest news or call 800-562-6900.

Advice for Wamu Customers

Here are answers to some of your questions regarding your WaMu accounts.


1. All Wasington Mutual and Henderson, NV accounts have been transferred to JPMorgan Chase Bank. No money was lost in any account during the transfer.

2. If you had a loan with Washington Mutual your loan has been transferred to JPMorgan Chase Bank. Continue to send payments to the same address and make checks payable to Washington Mutual Bank. Your payment due dates, balances and interest rates still remain the same.

3. Your debit and ATM cards will still work. Your direct deposits, automatic deductions and automatic bill paying will still work.

4. Any outstanding checks will clear with no problem. You can still write checks on any checks that you have.

5. If you have a loan that is currently being processed or line is credit that has not been approved yet contact your loan officer or processing agent for more information.

6. If you account balance is over $100,000 is will still be insured for up to 6 months after the merger. After that time you will need to move your money around to other accounts so the balance is below $100,000.

7. Contact your financial advisor regarding any Washington Mutual stock that you own.

Wachoiva : Another Bank Failure and How it Affects You

Wachovia was seized by the government and on September 29, 2008, and was bought by Citigroup. Wachovia has 3,300 retail offices in 21 states with 40 international offices. Citigroup will pay Wachovia $2.1 billion to pay for its subordinated debt (a debt obligation whose holder is placed in precedence below secured and general creditors) which basically means the debts bought by Citigroup will be paid after Wachovia's secured debt and debt owed to their creditors is paid. It will also assume $53 billion of Wachovia senior and subordinated debt. The buy will make Citigroup the largest bank in the US. The buy should be complete by the end of 2008.

Wachovia states that "Customers of both companies should continue banking as usual, and feel confident that their deposits are secure. Also, employees and vendors should continue to operate business as usual."

To down play the severity of the buy of Wachovia by Citigroup they use terms that the average consumer may not understand. When you visit the Wachovia website a blurb states "Wachovia announces bank subsidiary divestitures to Citigroup."

What does this mean? I am a customer of Wachovia and it saddens me that messages like this appear. Press releases and other messages should be explained in a manner so that all customers of Wachovia understand exactly what the buy by Citigroup means to them.
Divestitures are the sales of business holdings of a company. Citigroup purchased the retail bank, corporate and investment bank and wealth management businesses (divestitures) of Wachovia.

Wachovia investors will receive approximately $1 of Citigroup stock for each of their Wachovia shares of stock. For now, it appears that it is business as usual at Wachovia so don't take your money out of the bank.

Some Wachovia bank branches may close within the next year when Citigroup takes over the 3,300 retail offices. This will have a devasting effect on the Charlotte area where Wachovia is headquartered.

I advise all Wachovia customers to keep an eye on their account balances and monitor the behavior of your local branch staff to see if they started acting differently or see if you can pick up on hints about the health of the company.

Get Your Equifax Credit Score for Free

Get a free Equifax credit score for a limited time. Visit equifax.com/freeficoscore for more information.

How the Merrill Lynch Buy Affects You

The recent buy of Merrill Lynch by Bank of America over a week ago supposedly kept Merrill from failing and filing for bankruptcy. Merrill Lynch has billions of dollars in bad debts from the sub-prime market. Merrill Lynch posted loses for the past 4 quarters and has wrote down $40 billion in loses.

The buy of Merrill Lynch was originally valued at $50 billion but reduced to a final purchase price of $40 billion.

It is shocking how the deal occurred in just 2 short days. It makes one wonder how can a deal be that sound if it occurred in that short amount of time. Bank of America’s interest in Merrill was due to Merrill Lynch’s investment banking services. Both companies offer different products and services to their customers which could cause a potential problem in the future.

For investors, Bank of America would exchange 0.8595 shares of Bank of America stock for each Merrill Lynch share of stock. If you currently have investments in Merrill Lynch now is the time to diversify your portfolio to protect yourself from severe market losses. However, don’t make any drastic changes.

The Securities Investor Protection Corporation protects cash and securities, such as stocks and bonds held by customer at a financially troubled brokerage firm but does not protect you the same as the FDIC. Check with your financial advisor to see what options are available to you.

Remember, it’s now what happens day to day, it’s how long you stay in the game. Your money double every 72 months so just ride it out.

How the Fannie Mae and Freddie Mac Bail Out Affects You

The collapse of Freddie Mac and Fannie Mae that occurred on September 7, 2008 occurred because of company greed and consumer responsibility. Company greed led mortgage industry professionals to lure unsuspecting consumers into loans they could not afford and would not be able to maintain. Greed and responsibility led consumers to believe they could afford a home out of their price range and still be able to pay all their other bills. Consumers are partly to blame for the following reasons:

1. Believing everything a mortgage professional tells you without verifying the information
2. Buying a house you know you could not afford
3. Not reading the fine print on the mortgage documents
4. Lack of education about the home buying process
5. Forging documents (income, number of years on a job etc.)

Fannie Mae and Freddie Mac are partly to blame:
1. Allowing illegal mortgage loans to be approved
2. Approving consumers for homes they could not afford
3. Not developing plans to help consumers stay in their homes
4. Not being truthful with consumers during the home buying process
5. Not being truthful with consumers about the company's financial problems
6. Forging documents

Many of you may have considered or already purchased Fannie Mae and Freddie Mac stock. Don't. For each share of stock you buy, you will only get $.20 on the dollar, so if you buy 100 shares, you really only have 20 shares. Preferred investors with hundreds and thousands of shares will get $.50 on the dollar for each share owned.

Although the government is providing $200 billion to help Fannie Mae and Freddie Mac recover, it will take both companies several years to pay off the government loan. Share prices will not begin to rise a significant amount until the company begins to make a profit which could take years if at all.

Many of the mortgages Fannie Mae and Freddie Mac own will never be repaid which would have caused them to file bankruptcy if the government had not taken over both companies.

If you currently have a high mortgage interest rate or your ARM will expire within the next 6 months or year now is a good time to try to refinance. If you have bad credit, spend the next few months paying off debt and repairing your credit so you can refinance your home to ensure you remain a homeowner.

Since the government doesn't have the $200 billion on hand to bailout out Fannie Mae and Freddie Mac, someone has to come up with the money, who you ask? Us, the taxpayers by paying higher taxes. Show your frustruation, anger, disappointment and resentment during this year's election by demanding a change in how the government is run and how companies are run. One vote can make a difference.

There is one bright star as a result of the Fannie Mae and Freddie Mac collapse, executives of both companies will not get paid their the combined total $24 million severance pay.

Downpayment Assistance Ends 10/1/08

Please contact your state congressmen to demand that Down Payment Assistance programs do not end on October 1, 2008. Tell them to pass H.R. 6694.

Research by Zelman & Associates reports that 10-25% of potential homebuyers will have no way of securing homeownership without down payment assistance. Since 1997, downpayment assistance has helped more than one million families become homeowners. Between 1997 and 2005, $12.3 billion has been generated in taxes for state and local governments through the purchases of 150,000 homes.

A quote from Scott Syphax, President and CEO of Nehemiah Corporation of America praised some members of congress.

“Maxine Waters, Gary Miller, Al Green and Christopher Shays have demonstrated the willingness to understand all sides of this issue and the courage and leadership to follow their conscience. All those who understand the importance of working class American’s having their shot at homeownership, need to work together to encourage our elected officials to pass this bill.”

“There are dire consequences to America waking up on October 1st without downpayment assistance. In fact, 300,000 working class families will be locked out of homeownership in the next year alone.”

You can contact the following House Committee on Financial Services committee members to show your support for down payment assistance programs which have helped thousands of Americans achieve the dream of owning a home.

Chairman Barney Frank represents Massachusetts' Fourth Congressional District of the House Committee on Financial Services which oversees the country's housing and financial services including real estate, public and assisted housing. The Committee reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, Fannie Mae and Freddie Mac.

Democratic Members of the Committee are:
Rep. Paul E. Kanjorski, PA
Rep. Maxine Waters, CA
Rep. Carolyn B. Maloney, NY
Rep. Luis V. Gutierrez, IL
Rep. Nydia M. Velázquez, NY
Rep. Melvin L. Watt, NC
Rep. Gary L. Ackerman, NY
Rep. Brad Sherman, CA
Rep. Gregory W. Meeks, NY
Rep. Dennis Moore, KS
Rep. Michael E. Capuano, MA
Rep. Rubén Hinojosa, TX
Rep. William Lacy Clay, MO
Rep. Carolyn McCarthy, NY
Rep. Joe Baca, CA
Rep. Stephen F. Lynch, MA
Rep. Brad Miller, NC
Rep. David Scott, GA
Rep. Al Green, TX
Rep. Emanuel Cleaver, MO
Rep. Melissa L. Bean, IL
Rep. Gwen Moore, WI
Rep. Lincoln Davis, TN
Rep. Paul W. Hodes, NH
Rep. Keith Ellison, MN
Rep. Ron Klein, FL
Rep. Tim Mahoney, FL
Rep. Charles Wilson, OH
Rep. Ed Perlmutter, CO
Rep. Christopher S. Murphy, CT
Rep. Joe Donnelly, IN
Rep. Bill Foster, IL
Rep. Andre Carson, IN
Rep. Jackie Speier, CA
Rep. Don Cazayoux, LA
Rep. Travis Childers, MS

Republican Members of the Committee are:
Rep. Spencer Bachus, AL
Rep. Deborah Pryce, OH
Rep. Michael N. Castle, DE
Rep. Peter King, NY
Rep. Edward R. Royce, CA
Rep. Frank D. Lucas, OK
Rep. Ron Paul, TX
Rep. Steven C. LaTourette, OH
Rep. Donald A. Manzullo, IL
Rep. Walter B. Jones , NC
Rep. Judy Biggert, IL
Rep. Christopher Shays, CT
Rep. Gary G. Miller, CA
Rep. Shelley Moore Capito, WV
Rep. Tom Feeney, FL
Rep. Jeb Hensarling, TX
Rep. Scott Garrett, NJ
Rep. Ginny Brown-Waite, FL
Rep. J. Gresham Barrett, SC
Rep. Jim Gerlach, PA
Rep. Stevan Pearce, NM
Rep. Randy Neugebauer, TX
Rep. Tom Price, GA
Rep. Geoff Davis, KY
Rep. Patrick T. McHenry, NC
Rep. John Campbell, CA
Rep. Adam Putnam, FL
Rep. Michele Bachmann, MN
Rep. Peter J. Roskam, IL
Rep. Kenny Marchant, TX
Rep. Thaddeus McCotter, MI
Rep. Kevin McCarthy, CA
Rep. Dean Heller, NV

You can visit the Get Down Payment Assistance.com website to get more information.

6 Ways to Recession Proof Your Income

The Federal Reserve has dropped interest rates 2.25% points since August 2007. There were approximately 700,000 foreclosure filings in 2008. Congress is trying to combat the recession by giving Americans tax rebates. Oil prices are over $120 a barrel and gas is $4 or more a gallon. Food prices rose more than 4% from last year. With the high cost of gas, food, housing, utilities and travel costs you have to develop a plan to ensure you can sustain yourself through the current recession. Here are 6 ways to ensure you survive the recession.

1. Find stable employment – Many companies are having layoffs or reducing salaries or employee hours. To protect yourself, if you are a contractor or a seasonal employee try to find a stable job or get a part-time job to get additional income. Do research on a company to see their annual finance report, see what the company's plans are for the future and ask others if they have heard about the company to ensure you are working with a stable company. If you hear rumors of layoffs dust off that resume and start looking for a new job.

2. Reevaluate your finances – If you don't have health, life or disability insurance consider getting at least basic health insurance. Health costs are one of the biggest reasons for filing for bankruptcy and bad credit ratings. Get life insurance to at least cover funeral costs and cover bills for a few months.

3. Pay down debt – A balanced budget should consist of no more than 15% of your monthly income to pay monthly debt such as credit cards or student loan (this can vary based on your income and does not include rent or mortgage). Start small and pay off small bills first then work your way up to pay off larger debts. Double the minimum monthly payments when you can to pay down debt faster.

4. Create a budget or spending plan – create a budget and write down all of your monthly expenses and bills and your total monthly income to quickly see what you are spending your money on. Find ways to reduce expenses. Include savings goal in your budget and save enough money to cover at least 3 to 6 months worth of expenses.

5. Reduce Expenses – reduce your expenses one step at a time. Start small by taking your lunch to work, skipping that Starbucks Latte and bringing your coffee from home, use coupons or buy items on sale to save money. All these little things add up and will give you extra money to pay bills or pay down debt.

6. Don't avoid overdue bills. Many companies are desperate for money and may not follow the proper procedures to collect on a debt. They may file for judgment against you without ever notifying you. Call your creditors right away to setup payment plans to get current on old bills and prevent harassing calls or letters and damage to your credit report

Following these 6 tips will ensure you survive the current recession.

Check Out My Interview in the September Issue of Essence Magazine

Check Out My Interview in the September Issue of Essence Magazine page 108.

Harrine Freeman

Speaking to a Customer Service Rep May Cost You

Many people have complained over the years about dealing with a computer generated voice to answer questions or direct you to a customer service agent. Many companies opted to transfer calls to India or to other countries overseas to supposedly "save the company money". Other customers opted to use the http://gethuman.com/ website to find ways around the continual maze to reach a customer service agent for customers living in the US, England and Canada.

Well, now companies are fighting back. Some companies will now start charging a $5 fee if a customer would like to speak to a customer service representative or go to a customer service center to pay a bill or ask a question.

Some utility companies have eliminated the option of paying bills in person and have opted to use third party payment centers that will charge a fee that could be more than $5.

TMobile, Cablevision Systems and Cox Commmunications charges customers a $5 fee to speak to a customer service representative to pay a bill by phone. AT&T Wireless charges customers a $5 fee if they prefer to use a store clerk to make a bill payment instead of using a self-service kiosk. Comcast, Charter, Verizon Wireless and Verizon Telecommunications charge a smaller fee to pay a bill in person.

This election year is a critical year. This is the time to complain about issues that affect you, besides the main issues such as healthcare, the Iraq war, the housing crisis and the economy you can also complain about smaller issues such as how companies are taking advantages of customers charging outrageous fees to pay a bill by phone, if a bill is paid late, etc.

Write the company and complain, write your city council representative and write your congressman and let your voice be heard. You can also file a complaint against the cell phone and telephone companies with the Federal Trade Commission.

To avoid the fees you can pay your bill online but find out the security measures in place before signing up. Find out if your personal information will be encrypted, where it is stored and what happens if a security breach occurs - how are customers protected, etc.

You also have the option of switching companies and doing business with a company that doesn't show outrageous fees.

Decide on the option that is best for you.

Looking for People in Debt Aged 18-34 For Documentary

Taken from Peter Shankman

Current TV's (www.current.com) news department is producing a
half-hour documentary on young people in debt, how the economy
crisis is affecting us, and what our futures look like. The show
will be a look at various 18-34 year-olds around the U.S. who talk
about their experiences with moneywhether they are in debt or
trying to change their lifestyle so that they dont fall into debt.

We are trying to cover all ages and most major regions of the
country, and we are looking for someone who 1/lives in one of the
southern states, 2/ is between the ages of 27-34, 3/ is female, 4/
is not white, and 5/ in debt.


You can send all responses to:

Tracey Chang
Producer, Current TV
tchang@currentmedia.com

Or feel free to call:

office: (323) 308-4957
cell: (310) 980-5711

Current TV is a new cable network that airs in 50 million homes
around the U.S. and 12 million homes in the U.K. We also just
recently launched in Italy. Our network airs mostly news and
non-fiction programming for a target audience of 18-34 year olds.
You can learn more about our network at www.current.com

Upcoming Events

August 2008
August 23, 2008, Meet & Greet, Borders, 3304 Crain Hwy, #A, Waldorf, MD, 2-4pm

August 30, 2008, Interview with United Black Writers, Borders, Bowie, MD, 10am

September 2008
September 15, 2008, Financial Contributor, Heaven 1580AM, Todd B./The Breakdown, Lanham, MD 7am

September 16, 2008, Budgeting Basics Seminar, CAAB, 1801 K Street NW, Suite M100, Washington, DC

September 17, 2008, Credit Basics Seminars, Jin Lounge, 2014 14 Street NW, Washington, DC 6-9pm

September 20, 2008, Northern Virginia Community College, Fall Festival, Alexandria, VA, 11-3pm

September 26, 2008, CBC Author's Pavilion, Meet, Greet & Booksigning, Washington Convention Center, Exhibit Hall A Washington, DC, 1-3pm

September 27, 2008, Women's Empowerment Conference, Morgan State University, noon-1:15pm

September 27, 2008, Baltimore Book Festival, Booksigning, Baltimore, MD, 5-6pm

5 Ways to Keep Your Job

The number of unemployment claims of Americans laid off rose to 455,000 last week. This is the highest number of claims received since March 2002. Due to the recession, many companies are reducing benefits, work hours and laying off employees to cut back. Economists expect another series of layoffs by the end of this year. Here are 5 ways to keep your job and protect yourself from being laid off.


1. Update Your Resume. Update your resume and be sure to include all accomplishments you have achieved so far. Recruiters look for results so be sure to highlight yours.

2. Take a class. Take training classes related to your specific job to further your education. Keep your certificates in a file and provide a copy to your supervisor and Human Resources Department.

3. Volunteer. Volunteer for extra work assignments or to stay late to assist co-workers or your supervisor with high priority tasks. Ensure you supervisor is made aware of your hard work.

4. Feedback. Ask your co-workers and supervisor on feedback about your personality, strengths, weaknesses, and suggestions for improvement. Develop a personalized improvement plan and set deadlines to achieve each goal. Every 6 months provide a copy to your supervisor. This will be helpful if you receive annual performance reviews.

5. Work Ethic. Don't "borrow" or steal office supplies from work. Don't talk negatively about co-workers or your supervisor; you never know who may overhear you. Always arrive to work on-time and don't take regular extended lunch breaks or frequent days off. Limit internet use at work and use your cell phone for personal calls. Familiarize yourself with your Human Resources Manual or policies and ensure you are following them.

5 Inexpensive Foods To Slash Your Grocery Bill

During this recessions, Americans have been battling money issues and struggling to find money to pay for basic necessities. Gas for your car, housing and food are the major factors that have caused Americans to struggle.

If you are on a tight grocery budget, you know that you have to find creative ways to make you dollar stretch. Since last year, the price of dairy, bread and other products have increased. You can use coupons, buy items on sale, buy in bulk or shop at wholesale or discount stores like Costco, Food Lion or Sam’s Club to help save on grocery costs. If you eat out every day or multiple times a week, reduce that by 30-50% to save money. Try bringing your lunch to work or bringing your coffee from home and skipping the Starbucks. You can also purchase some inexpensive foods to cut grocery costs. Here are 5 foods that will help you save money.

1. Breakfast. Instead of buying sugar-coated cereal, replace with oat cereal or oatmeal along with a piece or fruit or toast.

2. Potatoes. Buy whole potatoes instead of instant potatoes. You can use the potatoes to make potato salad, mashed potatoes, baked potatoes, french fries, chips, sweet potatoes, pies, and more.

3. Nuts. Nuts can be used as a great snack instead of candy or junk food. Nuts are also healthy for you and are cheaper when bought still in their shell.

4. Fruit. Inexpensive fruits depending on the store can include watermelon, bananas and apples. They are also healthy for you and can help you lose weight.

5. Vegetables. Instead of buying packaged vegetables or pre-cooked vegetables buy raw vegetables and steam them or stir-fry them for a healthy alternative. Inexpensive vegetables include broccoli, greens, spinach and carrots.

4 Unusual Ways to Get Extra Cash

There are many ways to generate extra cash to: save for an emergency fund, pay down debt, pay for gas for your car or to just pay for basic necessities. Well, here are 4 unusual ways to get extra cash.

1. Hair. If you are a woman with long hair that has never been processed and you plan to get a shorter hairdo, you can donate your hair to Hairtrader.

2. Advertising. You can place an ad on a part of your body such as your face, neck, head or arms to help promote a business with companies such as eBay or Globat.

3. Donate Your Eggs. You can donate your healthy eggs for up to $2,500. Contact the Society for Assisted Reproductive Technology (SART) for more information. If you are up to it, you can become a surrogate mother for up to $25,000. Contact the Center for Surrogate Parenting for more information.

4. Participate in Studies. You can participate in studies for extra cash or donate your blood for science research. Contact Biotrax International for more information.

Bad Decisions to Eliminate Debt

Risky Solutions to Debt Elimination
Taking short cuts can lead to compounding woes

Taken from blackenterprise.com

By Zakiyyah El-Amin
August 1, 2008 -- If you are like most people, managing your finances isn't easy in today’s volatile market. As talk of recession threatens the U.S. economy, consumers are burdened with incomes that fail to keep up with inflation and expenses that continue to mount. Desperate for alternative ways to pay down debt, many rely on quick-fix solutions that often cause more harm than good.

Harrine Freeman, founder of H.E. Freeman Enterprises, believes that most people are simply trading one form of debt for another. “If you are already irresponsible with spending money, resorting to fast ways to get money is only a band-aid over the sore.”

The Bethesda, Maryland-based firm helps clients achieve their financial goals and educates them on how to prevent from falling trap to pricey habits. Freeman highlights a few common mistakes that can lead to further debt.

Use of Home Equity Loans
Many rationalize that this is effective because most home equity loans carry lower interest rates than credit cards and have interest that’s generally tax deductable. Understand that unsecured debt, such as credit cards, becomes tied to your home once this type of loan is used to pay it off. If you experience difficulties in making payments, you could default on the loan and risk losing your home. Since the amount that you can borrow is based upon your home’s value, as the value of your home decreases, so does your equity.

“Most people get a false sense of security once the debt is paid and end up accumulating more unsecured debt and putting themselves further in the whole,” Freeman adds.

Withdrawal from Retirement Plans
Tapping into your 401(k) jeopardizes your financial future. When you take money out of your retirement plan, you no longer benefit from tax-deferred compounding on the money withdrawn. Consequently, you have less money in your account working for you, which can lead to a smaller nest egg upon retirement. In addition, if you leave your job, you’re obligated to pay back the entire borrowed amount generally within 30-60 days. If you don’t, the unpaid balance will be treated like a distribution and you’ll owe taxes on the money and be charged a penalty.

Credit Card Cash Advances
Owning plastic comes with many bells and whistles. Credit card companies entice consumers with added features such as fraud protection, rewards, even cash. However, the likelihood of falling deeper into debt when using cash advances far outweighs the convenience of fast cash. If you pay off your balance in full at the end of the cycle, there’s no problem. Few understand that payments made to the credit card will first go toward regular purchases. Since cash advances carry higher interest rates than credit cards, problems arise when balances are carried over and both interest and fees compound.

Use of Debt Consolidation Loans

Debt consolidation is usually regarded as a credit cure-all that replaces multiple loans with a single loan resulting in lower monthly payments. However, the majority of consolidation loans only extend the pay-off period and do not carry lower rates. Since interest on consolidation loans is often higher than personal loans, mortgages and home equity loans, you actually owe more in the long run.

If you consolidate your loans, Freeman advises to use caution. “Many [debt consolidation agencies] are flooded with scams, and lenders who charge exorbitant fees and offer no real solutions to your debt,” she says. Some consolidators add fees directly to your monthly debt payments, without notifying borrowers of the charges. To help deal with debt, Freeman recommends that consumers establish a budget, develop a debt management plan, and consider credit counseling. Most importantly, use common sense by not spending money you do not have.

Show Your Support for DownPayment Assistance

The Department of Housing and Urban Development (HUD) has re-issued a proposed rule that would eliminate all private downpayment assistance programs.

Nehemiah has a long history of successfully advancing homeownership opportunities for homebuyers. For over 10 years, they have helped more than 290,000 families achieve their homeownership goals.

The proposed rule comment period ends on August 15, 2008. Submit a comment through our thge Nehemiah website to voice your support and let the Federal housing officials and your congressional representatives know how you feel about preserving private downpayment assistance as an option achieving your dream of becoming a homeowner.