Safe Banks in 2009

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

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

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

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

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

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

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

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

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

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

The following banks closed in 2009.

Guaranty Bank

CapitalSouth Bank

First Coweta Bank

ebank

Community Bank of Nevada

Community Bank of Arizona

Union Bank, National Association

Colonial Bank

Dwelling House Savings and Loan Association

Community First Bank

Community National Bank of Sarasota County

First State Bank

Mutual Bank

First BankAmericano

Peoples Community Bank

Integrity Bank

First State Bank of Altus

Security Bank of Jones County

Security Bank of Houston County

Security Bank of Bibb County

Security Bank of North Metro

Security Bank of North Fulton

Security Bank of Gwinnett County

Waterford Village Bank

Temecula Valley Bank

Vineyard Bank

BankFirst

First Piedmont Bank

Bank of Wyoming

Founders Bank

Millennium State Bank of Texas

First National Bank of Danville

Elizabeth State Bank

Rock River Bank

First State Bank of Winchester

John Warner Bank

Mirae Bank

MetroPacific Bank

Horizon Bank

Neighborhood Community Bank

Community Bank of West Georgia

First National Bank of Anthony

Cooperative Bank

Southern Community Bank

Bank of Lincolnwood

Citizens National Bank

Strategic Capital Bank

BankUnited, FSB

Westsound Bank

America West Bank

Citizens Community Bank

Silverton Bank, NA

First Bank of Idaho

First Bank of Beverly Hills

Michigan Heritage Bank

American Southern Bank

Great Basin Bank of Nevada

American Sterling Bank

New Frontier Bank

Cape Fear Bank

Omni National Bank

TeamBank, NA

Colorado National Bank

FirstCity Bank

Freedom Bank of Georgia

Security Savings Bank

Heritage Community Bank

Silver Falls Bank

Pinnacle Bank of Oregon

Corn Belt Bank & Trust Co.

Riverside Bank of the Gulf Coast

Sherman County Bank

County Bank

Alliance Bank

FirstBank Financial Services

Ocala National Bank

Suburban FSB

MagnetBank

1st Centennial Bank

Bank of Clark County

National Bank of Commerce

Another Option for Phone Service

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

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

Some of the features of Google voice are:

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

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

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

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

An Easy Way to Receive Medical Services

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

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

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

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

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

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

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

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

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

5 Easy Ways to Protect Yourself from Mortgage Fraud

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

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

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

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

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

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

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

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

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

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

Should You Help A Relative

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

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

Here are 11 tips when loaning money to relatives.

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

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

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

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

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

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

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

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

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

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

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

Upcoming Events

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

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

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

Is Your Car a Clunker

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

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

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

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

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

Reduce Spending or Downsize

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

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

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

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

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

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

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

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

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

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

5 Back to School Shopping Tips

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

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

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

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

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

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

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

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

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

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

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

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

Here are some tips to protect yourself:

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

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

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

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

5. Be aware of your surroundings

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

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

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

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

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

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

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

Is Your Stubbornness Keeping You In Debt

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

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

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

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

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

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

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

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

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

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

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

How to Save Money on Dry Cleaning

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

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

1) Do-it-yourself kits

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

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

4) Wash by hand

5) Purchase a home steamer with at least 1200 watts

5 Social Media Marketing Tips

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

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

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

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

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

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

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

Helps for Home Owners

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

Some of the programs available are:

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

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

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

Help for Disputing Credit Report Errors

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

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

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

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

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

Student Loan Help is Finally Here

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

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

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

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

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

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

Are We Really in a Recession

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

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

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

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

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

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

5 Ways to Make Your Money Last

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

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

2. Budget. Stop using your credit cards and pay cash for everything. If you do not have enough money to pay for necessary expenses such as food, clothing, shelter, healthcare create a budget for yourself to determine your total monthly expenses and your total monthly income. Reevaluate your spending habits. Shop at discount stores, outlets, use coupons, carpool, etc. to find extra money which can be used to pay down debt.

3. Direct deposit. Stop cashing checks. Cashing checks at a check-cashing store costs on average anywhere from 1% to 5% of the amount of the check. If you do this each payday this is money that you giving away and could be using. Use direct deposit for free and save yourself some money.

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

5. Seek Help. Talk to friends, relatives or neighbors who have gone through similar situations. Go to the library or do research on the internet for various ways to reduce expenses, gain new skills, and shop on a budget. Some great websites are Budget Dial or The Stretcher. Some grocery stores such as Whole Food teach classes on how to shop on a budget.

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

Should You Lease

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

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

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

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

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

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

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

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

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

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

6 Tips to Buy A Home

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

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

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

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

The disadvantages of renting are:

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

Here are 6 tips to help you buy a home.

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

What Did You Buy Today - A Need or a Want

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

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

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

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

Upcoming Events

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

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

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

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

What the CARD ACT Means For Consumers

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

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

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

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

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

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

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

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

Your New Best Friend - A Budget

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

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

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

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

Another Reason to Use Cash

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

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

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

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

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

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

7 Reasons to Pay On Time

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

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

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

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

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

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

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

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

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

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

5 Ways to Keep Debt Manageable

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


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

If You Can't Pay Ask for Forgiveness

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

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

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

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


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

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

6 Tips for College Grads

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

1. Setup a debt payoff plan. Setup a debt payoff plan to prioritize your bills including student loans and credit card debt. Start by paying off the smallest bills first, then use the money paid towards a previous bill and apply it to the next bill and continue this process until all your debts are paid.

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

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

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

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

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

FERA - A Huge Victory for Homeowners

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

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

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

8 Tips for Credit Card Protection Plans

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

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

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

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

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

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

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

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

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

7 Tips to Lower Costs at the Gas Pump

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

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

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

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

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

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

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

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

How Bank Bailout Money Was Used for Lobbying Congress

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

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

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

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

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

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

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

Fighting Teens for A Job

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

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

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

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

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

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

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

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

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

5 Ways to Pay Down Medical Debt

Medical debt is one of the reasons why Americans file for bankruptcy. Every year many Americans file for bankruptcy due to medical debt. In 2008, 46 million Americans did not have any health insurance coverage.

Many people are uninsured due to the high costs of medical coverage. Many employers only pay a small portion of healthcare costs leaving the remaining expense for the employee. It is expected that 1.4 million Americans will file for bankruptcy this year, and some will be due to medical debt.

Health care costs continue to increase each year. According to the National Coalition on Health Care, in 2008, total health care costs increased approximately 6.0% - almost twice the rate of inflation. In 2008, employer health insurance premiums increased by 5.0%. The annual premium for an employer health plan covering a family of four averaged nearly $12,700 versus $4,700 for individual coverage. Retiring elderly couples will need $250,000 in savings just to pay for the most basic medical coverage.

Many Americans file bankruptcy for various reasons such as job loss, illness, death of a loved one, disability, loss of coverage, divorce, and the additional medical fees associated with health care coverage such as co-payments, deductibles, prescription costs, COBRA costs, etc.

The problem is the lack of mandated regulations in the health care industry, industry fraud and billing errors. Health insurance companies over charge patients fees for services and if you do not have health insurance coverage you might as well sign over your child to pay for the medical costs because when you don't have insurance you can basically be charged whatever fee the doctor or hospital chooses. When you have health insurance you can only be charged a certain amount for services.

We claim to be the most powerful country in the world yet we are the sickest developed country in the world. We have the highest incidents of high blood pressure, diabetes, heart attacks, stroke, and cancer.

We should demand that full health insurance coverage is provided to all Americans no matter what their income or lack of income. You should not get better treatment or additional services simply because you have a higher income or can afford better coverage. Every human life should be valued but based on our health insurance industry it is not. We must fight back and force Congress to develop better laws to improve our health care industry and provide insurance for all Americans because we deserve it. Here are 5 Ways to Pay Down Medical Debt

1. Ask for an itemized list of all services to ensure you are not being charged more than once for services you received
2. If you had health insurance at the time of service, verify which charges are covered under your insurance
3. Negotiate with the service provider (doctor or hospital) to get fees reduced or eliminated in exchange for paying the debt
4. Setup a payment plan with the service provider to pay down the debt
5. Adjust spending to gain extra money to pay towards the medical debt

Are Balances Transfer A Good Thing

Many credit card companies make it easy to transfer credit card balances from one credit card to another offering a lower interest rate for a promotional period of time. After that promotional period expires you will be required to pay a much higher interest rate and any payments made will first be applied to the old debt.

Any future purchases will continue to accrue finance charges. Once the old debt is paid down then any payments made will be applied to the new purchases. You may say – what is the point, I don't see the benefit.

Well, for those Americans who are struggling to pay down credit card balances with interest rates of 17%, 21%, 25% or 32%, a balance transfer is a reasonable option but should not be your first option. You should try to negotiate with your creditor to get a lower interest rate at least temporarily.

If your creditor refuses to work with you, you can file a complaint against the creditor. To save time and money you can transfer the balance to a low interest credit card.

Remember that each time you open a new account it counts towards your credit score and if you have opened more than 1-2 accounts in a 24 month period your credit score will slightly decrease. However, once your debt is paid down to 30% or below the credit limit your credit score will increase.

Transferring credit card balances may also lower your credit score because it is an indication that you are unable to manage your money. The biggest mistake made with transferring credit card balances is not reading the credit card agreement to find out all the terms and guidelines associated with the credit card.

The key to balance transfers is to pay off the transferred balance before the promotional period ends and use the card only occasionally for small purchases paying the balance off in full at the end of the month to prevent paying high finance charges.

Do some comparison shopping before selecting a credit card that offers a balance transfer. Some good sites to use are bankrate.com and creditcards.com.

Here are 5 reasons to transfer a credit card balance to another credit card with a lower interest rate.

1. If your current interest rate is higher than 12%
2. If you are struggling to make the payments due to late fees, over-the-limits fees and finance charges.
3. If you know you will be able to pay the debt off before or by the end of the promotional period.
4. If you are have at least an average credit score of 650 or above and can get approved for a new credit card.
5. If you are serious about getting out of debt.


The goal is to get out of debt and the fastest way to get out of debt is to pay more than the minimum monthly payment.

Stop Annoying Calls From Creditors

Creditors call you at work, home and on your cell phone day and night sometimes every hour on the hour asking for payment. Due to the recession the harassing calls from creditors have increased and have gotten more unprofessional. In some instances consumers are unemployed and therefore can't send a payment but creditors don’t care, they want their money and will do just about anything to get it – even lie.

If you make just one late payment usually 30 days or more late, no matter what your previous payment history you could be placed in the same category as those who avoid paying bills, hide under a rock hoping their creditors will get tired of contacting them for payment or who have filed for bankruptcy.

Most creditors have a Collection Department that calls to remind you to send a payment if the payment is even one day past the due date. The first few calls the creditors seem really nice and ask when you will be able to send a payment. Then they their attitude quickly changes and they use all kinds of threats, lies, emotional guilt, rudeness, etc. to get you to make a payment.

Please don't fall for this! Know your rights as a consumer and the rights that creditors and debt collection agencies have to follow before making a payment agreement verbally or in writing. The two main acts that protect consumers are the Fair Credit and Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) which can found on the Federal Trade Commission website at ftc.gov/credit.

A creditor or debt collection agency cannot call you before 8:00 am or after 9:00 pm. If a creditor or debt collector contacts you, you have the right to ask them to stop contacting you by phone by saying "cease and desist" and ask them to contact you by mail. If you feel a creditor or debt collector has violated your rights as a consumer file a complaint with the Federal Trade Commission at 1-877-FTC-HELP or by going to their website at ftc.gov.

Never make a decision to pay an overdue bill based out of fear or due to bullying tactics used by the creditors and collection agencies. Take a day or two to calm down, think about your situation and then develop a plan to start paying your debt back. Call the creditor back and tell them your plan to pay the debt back. Follow-up your agreement in writing and keep a copy for your records.

If you fall behind on your payments in the future notify your creditor or the collection agency immediately that you are having financial problems and setup a payment plan with them to prevent bad marks on your credit report and to prevent legal action being taken against you.

Upcoming Events

May 2009
May 6, 2009, Living by Design Show with Cathy Hill, Charlestown, IN, 6pm
May 8, 2009, Booksigning with DC Bookdiva, Washington, DC, 12-6pm
May 9, 2009, Guest on Urban Flow Show, DCTV, Washington DC, 2pm
May 23, 2009, Guest Speaker with Urban Leadership Institute, Baltimore, MD, TBD

June 2009
June 20, 2009, Guest on Urban Flow Show, DCTV, Washington DC, 2pm

July 2009
July 31, 2009, National Black Book Club Conference, Financial Seminar and Booksigning, Atlanta Marriott Marquis, Atlanta, GA

August 2009
August 1-2, 2009, National Black Book Club Conference, Financial Seminar and Booksigning, Atlanta Marriott Marquis, Atlanta, GA

5 Ways to Save Money for Your Summer Vacation

Many Americans work hard all year love and live for their summer vacations. Many Americans love to travel during the summer and family vacations usually begin during the Memorial Day holiday. The work load is usually not as high, the kids are out of school, and airline companies compete for your business.

Americans work between 10-12 hours days which is very unhealthy. We rush to work, rush to get the kids, rush home, rush to come dinner and then repeat the entire process all over again the next day. Americans actually need multiple vacations because we sometimes still do work while on vacation. We never fully take the time to relax. It may seem there are never enough hours in the day to get everything done.

We all need to take time out to relax. I am often guilty of this myself but at least once a year I plan a vacation. Every employee should do the same. You work hard all year and deserve take a vacation even if it is just a mini-vacation for the weekend to a nearby beach or hotel.

Now is a great time to find bargains on airfare, hotels and vacation spots. Here are 5 ways to save money when planning your summer vacation.

1. Plan ahead. Plan in advance for vacations especially if you in debt, recently getting out of debt or live paycheck to paycheck. This way you can save enough money to go on vacation without using your credit card to pay for it.

2. Find deals. Shop around to find the best deals. Visit websites like hotwire.com, priceline.com, kayak.com or hotels.com to find cheap rates for hotel, airfare and cruises.

3. Talk. Talk to friends and neighbors about their current or past vacations and find out how they planned their vacation, i.e. ask about any discounts or sales they know about, inexpensive restaurants, shops, etc.

4. Move quickly. When you see or hear about sales or discounts you have to move quickly to capitalize on the deal because they usually don't last long.

5. Reduce spending. Buy traveler's checks, they can quickly be replaced if lost. If you credit card is stolen you may not have another credit card available to purchase any necessities. Buy toiletries and other necessities before traveling. Take one credit card only for emergencies.

Don't Pay for Someone Else's Debt

When a financial crisis occurs many people often become victims of scams and get taken advantage of because they don't know their rights and allow fear to cause them to make bad decisions.

Companies take advantage of many consumers by using guilt and fear. Don't take responsibility for a debt you do not owe because once you do; you are bound to that debt and will have to pay it.

Many companies are desperate for business and are looking for someone, anyone to pay back an old debt. Companies are now reaching out to relatives and friends of the deceased to try to recoup money for delinquent debts.

Based on the Fair Debt Practices Collection Act by law you are not required to pay a debt that does not belong to you unless your name is on the account as a joint account holder or authorized user.

A creditor can only contact you for payment for a debt of a deceased spouse or parent who had an estate or any assets worth value, i.e. an inheritance, a banking account, boat, car, home, stocks, bonds, or other assets. The money owed to the creditor is paid by the estate after any money owed to the government is paid first.

To protect yourself in that situation, get the caller's name, title, name of the company they are calling from and what they said. Tell the caller you will contact your attorney and then contact them if it is determined that money is owed to them. If you have any bank accounts or other accounts that are in the name of your deceased spouse or parent's name put them in your name to prevent creditors from garnishing those accounts.

If you feel you are being harassed tell the company to stop contacting you by phone and notify you in writing. Learn about your rights as a consumer at ftc.gov.

Understanding Credit Score Codes

When you order a copy of your credit report you get several pages of information which can be confusing. Your credit report can at times seem like a maze. You may see abbreviations and codes that you don't understand. You may be provided explanations of why you have good or bad credit but still may not understand what it means.

One of the major factors in understanding your credit report and your credit score are the reason codes listed on your credit report. Some reason codes that may appear on your credit report are:

1. Length of credit history – this means how long you have had credit, either a loan or credit card.

2. Too many inquiries – this means you have had more than 1 or 2 companies pull your credit report within the last 12-24 months which lowers your credit score. You should have no more than 1 inquiry every 12 months if needed.

3. Too many new accounts – this means that you are considered a risk because you opened more than 1-2 new account within the last 12-24 months which also lowers your credit score. You should have no more than one new account opened every 12 months if needed.

4. Account balances too high – this means that your credit cards are maxed out or the balance on your credit cards are above 30% of the credit card limit.

5. Number of revolving and installment accounts – you need to have a mix of revolving (credit cards, line of credit) and installment accounts (student loan, car loan, mortgage, etc.).

6. Recent delinquency – you had one or more accounts that were paid late in the past 0-3 years.

Your credit score consists of the following factors: your payment history which accounts for 35% of your credit score, the amounts owed which accounts for 30% of your credit score, the length of your credit history which accounts for 15% of your credit score, new credit which accounts for 10% of your credit score, and the types of credit used which accounts for 10% of your credit score.

If you disagree with any of the information or explanations on your credit report or credit score contact the credit bureau reporting it to dispute the information and ask for a listing of the accounts that caused your credit score to be low. To order your credit report visit annualcreditreport.com.

Balance Transfers: A Positive or A Negative

Many credit card companies make it easy to transfer credit card balances from one credit card to another offering a lower interest rate for a promotional period of time. After that promotional period expires you will be required to pay a much higher interest rate and any payments made will first be applied to the old debt.

Any future purchases will continue to accrue finance charges. Once the old debt is paid down then any payments made will be applied to the new purchases. You may say – what is the point, I don't see the benefit.

Well, for those Americans who are struggling to pay down credit card balances with interest rates of 17%, 21%, 25% or 32%, a balance transfer is a reasonable option but should not be your first option. You should try to negotiate with your creditor to get a lower interest rate at least temporarily. If your creditor refuses to work with you, you can file a complaint against the creditor. To save time and money you can transfer the balance to a low interest credit card.

Remember that each time you open a new account it counts towards your credit score and if you have opened more than 1-2 accounts in a 24 month period your credit score will slightly decrease. However, once your debt is paid down to 30% or below the credit limit your credit score will increase.

Transferring credit card balances may also lower your credit score because it is an indication that you are unable to manage your money. The biggest mistake made with transferring credit card balances is not reading the credit card agreement to find out all the terms and guidelines associated with the credit card.

The key to balance transfers is to pay off the transferred balance before the promotional period ends and use the card only occasionally for small purchases paying the balance off in full at the end of the month to prevent paying high finance charges.

Do some comparison shopping before selecting a credit card that offers a balance transfer. Some good sites to use are bankrate.com and creditcards.com.

Here are 5 reasons to transfer a credit card balance to another credit card with a lower interest rate.

1. If your current interest rate is higher than 12%
2. If you are struggling to make the payments due to late fees, over-the-limits fees and finance charges.
3. If you know you will be able to pay the debt off before or by the end of the promotional period.
4. If you are have at least an average credit score of 650 or above and can get approved for a new credit card.
5. If you are serious about getting out of debt.


The goal is to get out of debt and the fastest way to get out of debt is to pay more than the minimum monthly payment.

Paying Medical Debt

Medical debt is one of the reasons why Americans file for bankruptcy. Every year many Americans file for bankruptcy due to medical debt. In 2008, 46 million Americans did not have any health insurance coverage.

Many people are uninsured due to the high costs of medical coverage. Many employers only pay a small portion of healthcare costs leaving the remaining expense for the employee. It is expected that 1.4 million Americans will file for bankruptcy this year, and some will be due to medical debt.

Health care costs continue to increase each year. According to the National Coalition on Health Care, in 2008, total health care costs increased approximately 6.0% - almost twice the rate of inflation. In 2008, employer health insurance premiums increased by 5.0%. The annual premium for an employer health plan covering a family of four averaged nearly $12,700 versus $4,700 for individual coverage. Retiring elderly couples will need $250,000 in savings just to pay for the most basic medical coverage.

Many Americans file bankruptcy for various reasons such as job loss, illness, death of a loved one, disability, loss of coverage, divorce, and the additional medical fees associated with health care coverage such as co-payments, deductibles, prescription costs, COBRA costs, etc.

The problem is the lack of mandated regulations in the health care industry, industry fraud and billing errors. Health insurance companies over charge patients fees for services and if you do not have health insurance coverage you might as well sign over your child to pay for the medical costs because when you don't have insurance you can basically be charged whatever fee the doctor or hospital chooses. When you have health insurance you can only be charged a certain amount for services.

We claim to be the most powerful country in the world yet we are the sickest developed country in the world. We have the highest incidents of high blood pressure, diabetes, heart attacks, stroke, and cancer.

We should demand that full health insurance coverage is provided to all Americans no matter what their income or lack of income. You should not get better treatment or additional services simply because you have a higher income or can afford better coverage. Every human life should be valued but based on our health insurance industry it is not. We must fight back and force Congress to develop better laws to improve our health care industry and provide insurance for all Americans because we deserve it.

Are Hair Weaves An Option for You

In a study by DailyMakeover.com women are cutting back on hair styling costs to save money. Many women are using cheaper products, going to the salon less often and others are turning to weaves as a hair styling option.

Money generated from hair industry for weaving last year was approximately $16 billion. 30 million women are suffering from some form of hair loss. Hair weaving is a big industry.

There are several different kinds of weaves: partial weaves, full weaves, short, long, medium length waves, weaves in all different colors, and hair textures, Remi, Brazilian, Lace, Fusion, Malaysian, Human, Yak, braid weaves, and glue weaving.

Weaves can last up to 3 months. It can take 1-5 hours to add a weave to your hair. You can get weaves, cut, styled or colored any way you like. Weaves can cost anywhere from $100 - $1,000. Here are 4 benefits of a hair weave:

1. Save money on hair stylist costs
2. Protects hair from heat and styling
3. Hair grows faster
4. Provides more flexible with styling and activities – can exercise without worrying about your hairstyle, etc.

Here are 3 disadvantages of a hair weave:
1. Must care for weave on a regular basis
2. Weaves can damage hair if not put on by a trained hair professional
3. All weaves are not the same, go for the quality of a weave versus the cost of the weave

Here is a comparison of salon visits versus a weave

Hair Salon Visit
6 times a year @ $70-$120 a visit = $420-$720 a year
12 times a year @ $70-$120 a visit = $840-$1,440 a year

Remove Hair Weave Fee
Remove fee $40-$80

Sewn in Pieces
4 times a year @ $150-$1,000 a visit = $600-$4,000 a year
2 times a year @ $150-$1,000 a visit = $300-$2,000 a year

Weigh all your options before considering getting a weave. Make sure that a weave is the right option for you.

Do You Live in a Debt Loving State

Debt has become a way of life in America. However some states are in debt more than others. If you are in debt you are not alone. According to TransUnion, the average consumer credit card balance is $8,000. Alaska leads the country with the highest average credit card debt of $7,827, followed by Nevada $6,636, Tennessee $6,568, North Dakota $4,403, and West Virginia $4,517. These figures are alarming and should be a wake-up call to become debt free. A goal for this year should be to pay down your debt. Here are 5 tips to pay down debt:

1. Stop charging – stop charging to avoid going further into debt. Pay with cash instead of credit.

2. Create a budget or spending plan – create a budget to track your spending and reduce expenses. Shop at discount stores, outlets, use coupons, carpool, etc. to find extra money, which can be used to pay down debt.

3. Send more than the minimum – sending just the minimum will extend the time it takes to pay the balance. Send at least $10 more than the minimum each month pay down the balance faster.

4. Use automatic payments – setup automatic payments from your checking account the day you receive your paycheck or soon after you receive your paycheck

5. Negotiate – contact your creditor to negotiate a lower interest rate and/or monthly payment, also ask to have any late fees, over-the-limit or other fees waived

Unemployment Rate Continues to Soar

The unemployment rate has increased to 8.5% or 13.2 million Americans out of work. This also means that 13.2 million Americans do not have health insurance.

Now more than ever Americans must forever change their spending habits to ensure that they can survive a financial crisis. We don't know what the future holds for this country but we do know these things:

1. Buying things that you can't pay off in 3-6 months will lead to excessive interest and finance charges

2. Buying used vs. new will save you money

3. Living below your means will minimize the chances of filing for bankruptcy or foreclosure

4. Create an emergency fund with enough to cover monthly expenses for at least 3-9 months will reduce stress, anxiety, worry and minimize a financial crisis

5. Using a budget will help to track your spending, provide accountability and ensure you have responsible with your spending

6. Mimicking good spending habits will ensure your children practice good spending habits

7. Each time you use a credit card you are making the credit card companies rich and yourself poor

8. Saving for a rainy day does help

For now, we can only hope by the end of the year or early 2010 the country will have recovered and Americans will have learned a valuable lesson - save now or suffer later.

April is Financial Literacy Month

April is Financial Literacy Month. This month make at least one change to your spending habits to improve your financial life and reduce future financial crises. Making at least one change can: save you money, help pay down debt, and plan for your future.

Make a promise to you and your family that starting in April you will do at least one of the following.

1. Create a budget or spending plan and track spending daily, weekly or monthly

2. Pay bills on time

3. Get current on any late bills – negotiate or setup payment plans

4. Don't buy something if you don't have the cash to pay for it

5. Get overdraft protection to reduce bounced check fees

6. Don't file for bankruptcy

7. Order a copy of your credit report and dispute any errors

8. Pay off at least one credit card this year

9. Create an emergency fund/savings account

10. Reduce spending by using coupons, buying items on sale, in bulk or shopping at discount, wholesale or outlet stores

11. Verify bank statements each month

Improving your financial situation can take time but it is worth it. To educate yourself about your rights as a consumer and about various financial literacy topics visit ftc.gov.