5 Ways to Save Money on Summer Vacations

Summer vacations are not what they used to be. This summer's vacation may prove to be difficult for many Americans due to the country's current economic situation or "recession". In years past Americans couldn't wait for summer vacation. They planned months in advance for their vacations and talked on and on about how much fun they would have. With the high cost of gas and food summer vacation may not exist this summer for some Americans. People are really cutting back and trying to find ways to save money to offset their increasing expenses and to just live day to day. If you can afford to go on vacation without charging it and having to pay for it later – do it! Here are 5 tips to help save money when you are planning for your summer vacation.

1. Snacks. Buy snacks and a few drinks and pack them in your suitcase before you leave. This will tide you over when you get hungry while on vacation until you are able to eat a full meal. This will also help you save you money that would be spent on midnight snacks.

2. Think Ahead. Plan at least six months to one year in advance for vacations. This will prevent you from going into debt just to have fun.

3. Shop around. Shop around to find the best deal. Visit websites like Kayak, Hottickets, AAA, Costco or Hotels.com to find comparison shop for airfare and hotels or vacation packages.

4. Safety. Buy traveler's checks instead of carrying credit or cash because they can quickly be replaced if lost. Take only one credit card only for emergencies.

5. Enjoy yourself. The most important thing to do while on vacation is - have fun, but don't overextend yourself by splurging on unnecessary items. Create a small list of items you want to purchase and stick to it. The worst feeling is to return from vacation and get bills in the mail from items charged while on vacation.

Beware of Identity Theft Protection Companies

Taken from the Associated Press, May 22, 2008.

Todd Davis has dared criminals for two years to try stealing his identity: Ads for his fraud-prevention company, LifeLock, even offer his Social Security number next to his smiling mug.

Now, Lifelock customers in Maryland, New Jersey and West Virginia are suing Davis, claiming his service didn't work as promised and he knew it wouldn't, because the service had failed even him. Attorney David Paris said he found records of other people applying for or receiving driver's licenses at least 20 times using Davis' Social Security number, though some of the applications may have been rejected because data in them didn't match what the Social Security Administration had on file.

Davis acknowledged in an interview with The Associated Press that his stunt has led to at least 87 instances in which people have tried to steal his identity, and one succeeded: a guy in Texas who duped an online payday loan operation last year into giving him $500 using Davis' Social Security number. Paris said the fact Davis' records were compromised at all supports the claim that Tempe, Ariz.-based LifeLock doesn't provide the comprehensive protection its advertisements say it does."

It's further evidence of the ineffectiveness of the services that LifeLock advertises," said Paris, who is lead attorney on the three new lawsuits, the latest of which was filed this month.Davis learned about the fraud in Texas when the payday-loan outfit called to collect on the loan, he said. He didn't get an alert beforehand because the company didn't go through one of the three major credit bureaus before approving the transaction.

Davis said it's possible driver's licenses have been issued to other people in his name because of the widespread availability of his personal information and because of what he described as the flimsy mechanisms in place to report that kind of fraud.Paris noted that LifeLock charges $10 a month to set fraud alerts with credit bureaus, even though consumers can do it themselves for free.

But Davis stands by his company and his advertising gimmick, which has appeared in newspapers and on billboards, radio and MTV. He even broadcasts it by bullhorn on walking tours through crowded downtowns."There's nothing on my actual credit report about uncollected funds, no outstanding tickets or warrants or anything," he said. "There's nothing to indicate my identity has been successfully compromised other than the one instance. I know I'm taking a slightly higher risk. But I'll take my risk for the tremendous benefit we're bringing to society and to consumers."

The lawsuits, for which Paris is seeking class-action status, highlight the fundamental limits on how much security identity-theft companies can provide. Companies like LifeLock can help guard against only certain types of financial fraud by helping consumers set up alerts with credit bureaus, which inform them when someone tries to open a new line of credit or boost their credit limit to finance a buying binge, for example.

The services don't guard against many types of identity theft such as use of a stolen Social Security number on a job application or for medical services, or even the instance of an arrestee giving police a stolen Social Security number to shield his own identity.

LifeLock is also being sued in Arizona over its $1 million service guarantee, which the plaintiffs claim is misleading because it only covers a defect in LifeLock's service, and in California by the Experian credit bureau. Experian accuses LifeLock of deceiving consumers about the breadth of its protection and abusing the system for attaching fraud alerts to credit reports.Security experts say complaints about the company reinforce the time-honored wisdom of keeping your Social Security number secret."

There's been a lot of marketing, a lot of hype about LifeLock," said Paul Stephens, director of policy and advocacy with the Privacy Rights Clearinghouse, a nonprofit consumer advocacy organization. "The question is, 'How much protection does it really buy you?'""There is no company that can guarantee they can protect you (completely) against identity theft," Stephens said. "Absolutely nobody can do that."

6 Ways to Save on Airline Fares

With the current economic crisis (recession) that we are experiencing in America, this summer will be an expensive one. The cost of gas, food, dairy, clothing and air fares will increase. American Airlines plans to start charging $15 for the first bag checked in, all others bag can be checked in at no charge. United Airlines and US Airways charge a $25 fee each way for a second bag checked in. Plan ahead so you don't get caught in the price increase that will occur this summer. Here are 6 tips to help you save money on buying an airline ticket.

1. Start with the airlines first. Many airlines have specials that are not advertised on their website. You can call the airline directly and ask about current specials or sign up for the airlines free newsletter or airfare alert service to find out about discounted air fares.

2. Find deals. Shop around to find the best deal. Visit websites like www.travelocity.com, Kayak, Hotwire, Priceline, Orbitz, Cheaptickets or Hotels.com to find cheap rates for hotel, airfare and cruises. You can also try using smaller airlines such as airline travel booking websites such as www.cheapflights.com.

3. Book in advance. Try booking your flight at least 2 weeks in advance to save money.

4. Be flexible. Try booking your flight during the week and avoid flights near holidays unless you are specifically doing holiday traveling. You can also search for flights with one or two stops instead of non-stop flights to save money.

5. Fly big. Book flights that fly out of larger airports to save money.

6. Ask for membership discounts. Some airlines offer discounts to students, senior citizens, government employees, AAA members, and other organizations. Contact the airline to find out what discounts they offer to see if you are eligible.

Don't Let the Cost of Gas Crimple You

For the past year now I have not really realized the effects of the price of gas until this week. Prior to the price hike I could fill up my gas tank with a mere $12. I bragged to all my friends and family about how I could fill up my car with less than $20 a week. I loved my car and was glad I had didn't have a gas guzzler. Unfortunately that slowly began to increase.

One month it took $15, then $20, then $22, then $27, then $30, now I am at $33 for a fill-up. Now I know many of you are saying, that doesn't even fill up half my gas tank and I should be happy, but I am not. I didn't get to where I am in life by spending money frivolous. I did so by comparison shopping to find the best bargains, unfortunately this expense is not something I can negotiate.

What myself and everyone can do is complain about it to Congress by writing letters and depending a dramatic decrease in the price of gas. Inform your current State Legislators that if they do not lower the price of gas they will lose your vote. This is very critical since this is an election year. You may not feel you have the power to make a difference, but one voice can and if they hear all of our voices we can make a change. In the meantime here are 4 tips to help ease the cost of gas:

1. Combine nearby trips on the same day - this will save you time and money

2. Drive the speed limit - this reduces the amount of gas needed for your car

3. Buy your gas in the morning - gas is more dense in cold weather and in the early morning in the summer month you will get more for your money

4. Check your tires - ensure you tires are properly inflated helps prevents less friction on the road and helps tires last longer

Upcoming Events

May 2008
May 12, 2008, WUFO 1080AM, Interview with Pat Freeman, Buffalo, NY, noon-1pm
May 16, 2008, Interview w/iM4radio, Lanham, MD, 10am
May 17, 2008, Featured Speaker at Univ. of MD Eastern Shore, Princess Anne, MD

June 2008
June 6, 2008, Enterpreneurship Seminar with HOBY, George Washington University, Florence Hollis Hand Chapel, Washington, DC
June 7, 2008, Barnes & Noble Booksigning, 21 Grand Corner Avenue, Gaithersubrg, MD 1- 3pm
June 11, 2008, Credit Repair Teleseminar with the Women Network, 8-9pm
June 21, 2008, Booksigning at Urban Knowledge Bookstore, Mondawmin Mall, 2301 Liberty Heights Avenue, Baltimore, MD 2-4pm

5 Ways to Survive In This Economy

We have had recessions in America in the past which has affected various industries such as agricultural and manufacturing. The last recession we had was in 2001. There have been 8 recessions in the past 40 years and since 1945 there have been 11 recessions.

The shortest recession lasted 6 months while the longest lasted 16 months. A recession is defined by Webster's as: an extended decline in general business activity, typically two consecutive quarters of falling real gross national product (GDP) or the state of the economy declines; a widespread decline in the GDP and employment and trade lasting from six months to a year.

The economy is classified as being in recession only if there is a widespread decline in the economy that includes an overall decline in production, employment, personal income, industrial sales, and total manufacturing and trade sales. The decline must be long enough to be classified as "substantial and significant." This recession included industries such as housing, oil, employment and manufacturing. We know we were in a recession because:

1. Shares price dropped sharply
2. There were frequent employee layoffs
3. Several business went bankrupt
4. There was a rise in unemployment
5. There was a decline in employee income
6. There was a decrease in sales of manufactured products
8. Americans received an economic stimulus package refund
9. Interest rate reductions by the Federal Reserve z times in the past x months
10. There was an increase in negative savings rate
11. Economic issues developed in other countries
12. Value of the dollar sharply declined
13. ising costs of products or services

Here are 5 ways to protect yourself during a recession:
Protect your investments - call your broker and adjust your portfolio to limit the effects of the recession and money lost during this time. Ensure your portfolio is adequately diversified.

Stay calm - don't make rash decisions based on your emotions. Before making any changes think about your situation and wait one or two days and think about a solution. Get advice from friends or family members who have previously had financial crises.

Reevaluate your existing mortgage loan - review your existing mortgage loan to see if you got a good deal on your mortgage loan. If not, it's time to refinance to a lower fixed interest rate that will provide a level of stability to help you get through these difficult times.

Reduce your debt - create a debt payoff plan to identify the total debt owed, the minimum monthly payment and balance on each account. Create a plan to pay off each bill and find ways to reduce expenses to get extra money to pay down debt.Update your resume - if you are currently employed and as a general rule of thumb, each time you start a new job or new position with your existing company revise your resume. Update it at least once every 6 months. Take training class or learn a new process or skill at work to make yourself seen as a valuable asset to the company. Also, begin networking with staff outside your department to make alliances to staff that can provide leads, and other information on finding a job.

Good luck!

Financial Tips for College Grads

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

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

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

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

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

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

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

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

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

Financial Planning
1. Plan for a family

2. Buy insurance – health, life, disability

3. Pay off those student loans and credit card debt

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

Find out if you will receive an Economic Stimulus Package Refund

Economic Stimulus Payments Information Center

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Upcoming Events for April 2008

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

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

7 Ways to Eliminate Debt

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

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

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

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

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

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

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

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

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

Credit Repair Secret Gem - Account Reaging

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

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

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

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

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

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

Protect Your Children From Identity Thieves

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How to Consolidate Debt

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

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

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

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

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

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

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

How to Repair Your Credit

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

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

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

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

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

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

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

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

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

Credit Card Blocking

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

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

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

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

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

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

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

Why You Need to Save

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

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

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

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

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

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

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

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

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

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

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

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

Instant Grati Syndrome

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

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

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

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

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

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

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

7 Ways for Journalists To Save Money

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

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

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

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

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

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

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

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

9 Reasons to Treat Your Household Finances Like a Business

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

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

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

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

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

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

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

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

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

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