The average price for cable television per month is $75. Cable bills increase on average 5% per year. This is due to higher fees that cable companies have to pay the FCC, competition from other cable companies, loss of advertising dollars, higher technology costs and to makeup for the loss of subscribers each year.
Customers would have better accepted the higher costs if the cable companies sent out a survey to ask customers what technologies they would like and how much more they would be willing to pay. Instead, customers were forced to accept new technologies and higher prices.
If you feel like you are paying too much for cable or satellite tv or are frustrated by the service you receive there is hope. There are several free content websites available such as hulu.com and low fee content websites such as Apple's iTunes.
I liked analog cable and don't really care about high definition, blu-ray and fiber optics. I just want to be able to see a clear picture and don't need a picture that is so clear you can see a pimple on someone's face.
I purchased a television a few months ago and had cable installed. I wanted to see if my cable bill would be reduced. It was, by $8. Incredible. I heard good things about Netflix and am in the process of comparing Netflix options and movie selections with the number of movies I watch per week because I mostly watch movies or informational shows.
If you want to eliminate your cable bill you will not have as many channel options but it will save you a lot of money which can help everyone in this economy whether you are sinking in debt or not. Most U.S. homes can receive at least one local television station over the air and approximately 80% can watch 5 or more stations over the air.
The picture quality is clear largely in part due to the digital tv conversion that was completed last year and will still be able to see HD programming. HDTV is more expensive for local stations to produce so they may show non-HD during the day and switch to HD at night. To view the stations over the air you will need an antenna and an HDTV with a built in HDTV tuner or integrated HDTV. If you tv does not have this feature you can buy a separate HDTV tuner that connects your existing HDTV to an antenna.
For shows that you cannot see with your antenna, go on the internet to see if you can view them. Some of the shows may have commercials but it is worth it to watch them for free. If you use hulu.com you can watch shows for free and watch past seasons of your favorite shows. Hulu can be viewed on your computer, Play Station, Wii, iPhone and Xbox. You can watch unlimited shows for only $9 a month and you can cancel whenever you want.
Some sports channels can be viewed on the internet such as MLB.tv. You can also purchase single shows from Amazon.com and iTunes soon after they air on tv. You can also stream video from your computer to your tv if your computer has on output that works with a tv. Netflix allows you to watch as many movies as you want per month for only $9 and you can also cancel at anytime. Watch out cable tv, your subscribers are moving to free tv.
Thursday, August 05, 2010
Monday, August 02, 2010
New Mortgage Rules That May Affect You
New mortgage rules will affect those who previously qualified for the sub-prime mortgage loans. The new rules will require borrowers who qualify for riskier loans to pay higher fees and interest rates.
Lenders are now required to make qualified loans to borrowers with elimination of interest-only loans, terms no longer than 30 years. Borrowers with bad credit who cannot qualify or afford these types of loans will have to apply for non-qualified mortgages which will allow for terms longer than 30 years with higher interest rates. Lenders can still offer loans with higher rates in the first five years.
The new laws are causing Fannie Mae and Freddie Mac to implement restrictive rules that are preventing millions of borrowers with good mortgage payment history from being able to refinance at the current low interest rates.
This reaction by Fannie Mae and Freddie Mac may result in additional foreclosures if borrowers are unable to pay their mortgage and unable to refinance. This rule should be looked at again and should be done on a case-by-case basis for borrowers.
Write your congressman and voice your opinion about the new mortgage laws. If you are having trouble refinancing your home contact NACA at naca.com or HUD at hud.gov.
Lenders are now required to make qualified loans to borrowers with elimination of interest-only loans, terms no longer than 30 years. Borrowers with bad credit who cannot qualify or afford these types of loans will have to apply for non-qualified mortgages which will allow for terms longer than 30 years with higher interest rates. Lenders can still offer loans with higher rates in the first five years.
The new laws are causing Fannie Mae and Freddie Mac to implement restrictive rules that are preventing millions of borrowers with good mortgage payment history from being able to refinance at the current low interest rates.
This reaction by Fannie Mae and Freddie Mac may result in additional foreclosures if borrowers are unable to pay their mortgage and unable to refinance. This rule should be looked at again and should be done on a case-by-case basis for borrowers.
Write your congressman and voice your opinion about the new mortgage laws. If you are having trouble refinancing your home contact NACA at naca.com or HUD at hud.gov.
Friday, July 30, 2010
How to Save Money At Starbucks
Americans love drinking coffee but love drinking Starbucks even more. Americans have even become addicted to Starbucks. Americans who never drank coffee now go to Starbucks to drink coffee or some variation. The Starbucks marketing team is great to have that kind of affect on people but how has it affected you?
For the past several years Starbucks has dominated the coffee industry but now have a little competition from companies like McDonalds and Dunkin Donuts. This is especially true now during the slow economy. Americans are most conscious of their spending and some are making a great effort to live below their means and reduce their spending on extra treat such as Starbucks.
In January 2010, Starbucks increased their prices in certain areas and customers are not happy about the price hikes. Some customers have skipped the Starbucks and opted for coffee from Starbucks competitors.
Some Starbucks lovers are buying their Starbucks from other retailers such Safeway, Kroger, Walmart, Target, CVS as or online at sites such as discountcoffee.com or amazon.com.
The average price of one cup of Starbucks coffee costs $5.50 and in one year that equals to $1,375. If you buy a complex or specialty coffee with extras you could pay up to $9 for one cup. What would you do with that extra money?
Although Starbucks now offers an instant coffee for $1 you can still get coffee cheaper at the grocery store or buying in bulk at discount stores such as Costco or Sams Club. If you buy coffee from the grocery store a 27.8 ounce can of ground coffee can range from $7.39 to $10.99. Costco sells 18 – 2.5 ounce bags of coffee or 45 ounces for $42.03. Compare that with 1-12 ounce bag of Starbucks ground coffee for $9.99. If you love coffee here are some ways to save money.
1. Regular Coffee – Drink regular coffee instead of Starbucks. Remember what you did BS (before Starbucks) - you drank regular coffee. People seem to be addicted to Starbucks as though they never drank regular coffee. Unless you have several shares of Starbucks stock which earns more money each than you spend a month at Starbucks skip it. Every once in a while splurge on a cup of Starbucks but don’t make it a daily habit.
2. Short Cappuccino (Short Cap) – Order a short cap which is only available by request. It is smaller and costs less than the “Tall” Cappuccino.
3. Starbucks Regular – Buy the Starbucks coffee instead of a latte. You can save approximately $1.50.
4. Pairing – Starbucks sometimes offer customers options when purchasing a latte and a desert. Ask about their "pairing" specials. You can save approximately $1.00-$1.40.
5. Substitute Latte – Order 1-2 shots of expresso or macchiato in a large cup and fill with milk. You can also use half-n-half instead of milk in the macchiato. You can save approximately $.50-$1.20.
For the past several years Starbucks has dominated the coffee industry but now have a little competition from companies like McDonalds and Dunkin Donuts. This is especially true now during the slow economy. Americans are most conscious of their spending and some are making a great effort to live below their means and reduce their spending on extra treat such as Starbucks.
In January 2010, Starbucks increased their prices in certain areas and customers are not happy about the price hikes. Some customers have skipped the Starbucks and opted for coffee from Starbucks competitors.
Some Starbucks lovers are buying their Starbucks from other retailers such Safeway, Kroger, Walmart, Target, CVS as or online at sites such as discountcoffee.com or amazon.com.
The average price of one cup of Starbucks coffee costs $5.50 and in one year that equals to $1,375. If you buy a complex or specialty coffee with extras you could pay up to $9 for one cup. What would you do with that extra money?
Although Starbucks now offers an instant coffee for $1 you can still get coffee cheaper at the grocery store or buying in bulk at discount stores such as Costco or Sams Club. If you buy coffee from the grocery store a 27.8 ounce can of ground coffee can range from $7.39 to $10.99. Costco sells 18 – 2.5 ounce bags of coffee or 45 ounces for $42.03. Compare that with 1-12 ounce bag of Starbucks ground coffee for $9.99. If you love coffee here are some ways to save money.
1. Regular Coffee – Drink regular coffee instead of Starbucks. Remember what you did BS (before Starbucks) - you drank regular coffee. People seem to be addicted to Starbucks as though they never drank regular coffee. Unless you have several shares of Starbucks stock which earns more money each than you spend a month at Starbucks skip it. Every once in a while splurge on a cup of Starbucks but don’t make it a daily habit.
2. Short Cappuccino (Short Cap) – Order a short cap which is only available by request. It is smaller and costs less than the “Tall” Cappuccino.
3. Starbucks Regular – Buy the Starbucks coffee instead of a latte. You can save approximately $1.50.
4. Pairing – Starbucks sometimes offer customers options when purchasing a latte and a desert. Ask about their "pairing" specials. You can save approximately $1.00-$1.40.
5. Substitute Latte – Order 1-2 shots of expresso or macchiato in a large cup and fill with milk. You can also use half-n-half instead of milk in the macchiato. You can save approximately $.50-$1.20.
Tuesday, July 27, 2010
What the Financial Reform Means for You
President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection financial reform bill on July 21, 2010. President Obama stated that there will be no more tax-funded bailouts for the financial industry.
The law permits the FDIC to borrow taxpayer money from the Treasury temporarily to help cover the costs of closing large banks that would have to pay the Treasury back over time. The law will allow the government to eliminate and split up companies that may weaken or threaten the economy.
The law will require regulators to look for risks in the financial system and will create an independent consumer protection agency, the Bureau of Consumer Financial Protection within the Federal Reserve to write and enforce new regulations regarding credit and lending.
Companies will have to meet tougher standards. However, there will still be different standards for different types of companies: for credit unions, thrifts, state-chartered banks, etc. The law will require the Treasury department to monitor insurance companies which are currently regulated by the insurance commission of each state.
The law will make the Office of the Comptroller of the Currency the only regulator for U.S. based banks with branches in more than one state. Previously, the Office of Thrift Supervision oversaw these banks.
The law will require banks to have more capital (money that is readily available) and regulators will decide how much capital banks must have to cover unexpected losses.
The law will require that brokers offering personalized investment advice must act in clients' best interests. The law will hold brokers to the same standard that financial advisers already must meet.
The law will allow regulators to monitor credit card companies and banks. The law will require credit bureau agencies to be more accountable. The law will allow regulators to limit the fees retailers pay when consumers make purchases with debit cards. The law will allow the Bureau of Consumer Financial Protection to write rules and eliminate products it feels are unsafe, such as interest-only mortgages. Investors will be able to sue agencies for ignoring risks.
The law will let shareholders of public companies to provide input on the pay packages for top executives. They will be able to vote to approve or disapprove of pay packages. The law will ban bonuses for brokers which were based on the cost of a mortgage. Brokers gave borrowers higher rates and mortgages even when lower rates were available based on credit history.
The law will require that lenders verify that a borrower can afford their mortgage and may be fined if they fail to review a borrowers' income and credit history.
The law permits the FDIC to borrow taxpayer money from the Treasury temporarily to help cover the costs of closing large banks that would have to pay the Treasury back over time. The law will allow the government to eliminate and split up companies that may weaken or threaten the economy.
The law will require regulators to look for risks in the financial system and will create an independent consumer protection agency, the Bureau of Consumer Financial Protection within the Federal Reserve to write and enforce new regulations regarding credit and lending.
Companies will have to meet tougher standards. However, there will still be different standards for different types of companies: for credit unions, thrifts, state-chartered banks, etc. The law will require the Treasury department to monitor insurance companies which are currently regulated by the insurance commission of each state.
The law will make the Office of the Comptroller of the Currency the only regulator for U.S. based banks with branches in more than one state. Previously, the Office of Thrift Supervision oversaw these banks.
The law will require banks to have more capital (money that is readily available) and regulators will decide how much capital banks must have to cover unexpected losses.
The law will require that brokers offering personalized investment advice must act in clients' best interests. The law will hold brokers to the same standard that financial advisers already must meet.
The law will allow regulators to monitor credit card companies and banks. The law will require credit bureau agencies to be more accountable. The law will allow regulators to limit the fees retailers pay when consumers make purchases with debit cards. The law will allow the Bureau of Consumer Financial Protection to write rules and eliminate products it feels are unsafe, such as interest-only mortgages. Investors will be able to sue agencies for ignoring risks.
The law will let shareholders of public companies to provide input on the pay packages for top executives. They will be able to vote to approve or disapprove of pay packages. The law will ban bonuses for brokers which were based on the cost of a mortgage. Brokers gave borrowers higher rates and mortgages even when lower rates were available based on credit history.
The law will require that lenders verify that a borrower can afford their mortgage and may be fined if they fail to review a borrowers' income and credit history.
Saturday, July 24, 2010
Where to Find a Job
The unemployment rate has dropped to 9.5% which indicates that 14.6 million Americans are still out of work. In some cases those who previously worked one job now have to work two or three jobs to make ends meet if they want to survive in this economy.
Others are sitting back waiting for a job to magically appear or are in denial believing that they will be able make the salary they previously did or close too it. Still others have lived above their means – bought overpriced home, luxury cars, and lived the fairy tale lifestyle they dreamed of and are now paying the price.
Americans who have always lived below their means do not feel the effects of the recession as much others but are aware that wanting certain luxuries in life comes with a price - unless you are wealthy which is defined as being able to live comfortably for at least five years without working.
According to a Manpower survey more employers plan to increase hiring efforts starting in July 2010. The areas that have the most promising job opportunities are: Washington DC, Greenville, SC and San Antonio TX. Other areas that have promising job opportunities are: Syracuse, Buffalo, Rochester, Albany, Troy, NY; Memphis, TN; Milwaukee, Madison, WI; Wyoming, Grand Rapids, MI; Houston, El Paso, Baytown, TX; Carlisle, Harrisburg, Wilkes, Philadelphia, Camden, Wilmington, PA; West Des Moines, Des Moines, IA; Baton Rouge, LA; New Jersey; Delaware; Maryland; Salt Lake City, UT; Raleigh, NC; Alexandria, Arlington, VA and West Virginia.
Detroit Michigan which was hit hard by the auto industry failure and Las Vegas, Nevada have the least promising job opportunities.
According to the Conference Board, in May, Washington DC was the only area where the number of job vacancies was greater than the number of unemployed residents. The management consulting firm Accenture plans to hire 7,000 people in the U.S. and an additional 43,000 worldwide by August 31, 2010.
To improve your chance of getting hired: do research on the company, ask questions at the interview, take training classes or get a college degree. The job market is much more competitive now and you will have to do more than just have good interview skills to get hired.
Others are sitting back waiting for a job to magically appear or are in denial believing that they will be able make the salary they previously did or close too it. Still others have lived above their means – bought overpriced home, luxury cars, and lived the fairy tale lifestyle they dreamed of and are now paying the price.
Americans who have always lived below their means do not feel the effects of the recession as much others but are aware that wanting certain luxuries in life comes with a price - unless you are wealthy which is defined as being able to live comfortably for at least five years without working.
According to a Manpower survey more employers plan to increase hiring efforts starting in July 2010. The areas that have the most promising job opportunities are: Washington DC, Greenville, SC and San Antonio TX. Other areas that have promising job opportunities are: Syracuse, Buffalo, Rochester, Albany, Troy, NY; Memphis, TN; Milwaukee, Madison, WI; Wyoming, Grand Rapids, MI; Houston, El Paso, Baytown, TX; Carlisle, Harrisburg, Wilkes, Philadelphia, Camden, Wilmington, PA; West Des Moines, Des Moines, IA; Baton Rouge, LA; New Jersey; Delaware; Maryland; Salt Lake City, UT; Raleigh, NC; Alexandria, Arlington, VA and West Virginia.
Detroit Michigan which was hit hard by the auto industry failure and Las Vegas, Nevada have the least promising job opportunities.
According to the Conference Board, in May, Washington DC was the only area where the number of job vacancies was greater than the number of unemployed residents. The management consulting firm Accenture plans to hire 7,000 people in the U.S. and an additional 43,000 worldwide by August 31, 2010.
To improve your chance of getting hired: do research on the company, ask questions at the interview, take training classes or get a college degree. The job market is much more competitive now and you will have to do more than just have good interview skills to get hired.
Wednesday, July 21, 2010
Tax Cuts and How They Affect You
President Bush implemented tax cuts several years ago and some of those tax cuts you have enjoyed in the past will end this year.
Currently the standard deduction in 2010 for married couples is $11,400 which is twice that for single filers, $5,700. In 2011, the standard deduction for married tax filers will be reduced to approximately $10,000 which may cause higher taxes for lower and middle income couples.
There are currently 6 tax rate brackets as defined by the IRS: 10%, 15%, 25%, 28%, 33%, and 35%. A proposal is set in place to reduce the rate brackets to five: 15%, 28%, 31%, 36%, and 39.6% which will cause all Americans to pay more in taxes in 2011 if implemented.
The current federal rate on long-term capital gains (an increase in the value of an investment or real estate that gives it a higher worth than the purchase price and the gain is not realized until the asset is sold. A capital gain may be short-term or long-term and must be claimed on your taxes) is 15%.
In 2011, a phase-out rule could eliminate up to 80% of income for itemized deductions for charitable donations, state and local taxes and mortgage interest for those in the higher income brackets. The phase-out rules begin for those filers who have adjusted income over $170,000.
In 2011, another phase-out rule will cause some filers to lose out on personal exemption deductions if your adjusted gross income exceeds $250,000 for joint filers; $168,000 for single filers or $210,000 for head of household.
In 2011, the maximum rate on gains will increase to 20%. The maximum rate on dividends (a distribution of a portion of a company's earnings to its shareholders) will increase to 39.6%.
Filers in the 10% and 15% tax bracket get a break this year and get a 0% rate on long-term gains and dividends. However in 2011, they will pay 10% on long-term gains and 15% and 28% on dividends.
Be sure to visit the IRS website to learn about all the tax cuts and how they will affect you and your family to be sure you don't owe money at the end of the year and are not missing out on some deductions.
Currently the standard deduction in 2010 for married couples is $11,400 which is twice that for single filers, $5,700. In 2011, the standard deduction for married tax filers will be reduced to approximately $10,000 which may cause higher taxes for lower and middle income couples.
There are currently 6 tax rate brackets as defined by the IRS: 10%, 15%, 25%, 28%, 33%, and 35%. A proposal is set in place to reduce the rate brackets to five: 15%, 28%, 31%, 36%, and 39.6% which will cause all Americans to pay more in taxes in 2011 if implemented.
The current federal rate on long-term capital gains (an increase in the value of an investment or real estate that gives it a higher worth than the purchase price and the gain is not realized until the asset is sold. A capital gain may be short-term or long-term and must be claimed on your taxes) is 15%.
In 2011, a phase-out rule could eliminate up to 80% of income for itemized deductions for charitable donations, state and local taxes and mortgage interest for those in the higher income brackets. The phase-out rules begin for those filers who have adjusted income over $170,000.
In 2011, another phase-out rule will cause some filers to lose out on personal exemption deductions if your adjusted gross income exceeds $250,000 for joint filers; $168,000 for single filers or $210,000 for head of household.
In 2011, the maximum rate on gains will increase to 20%. The maximum rate on dividends (a distribution of a portion of a company's earnings to its shareholders) will increase to 39.6%.
Filers in the 10% and 15% tax bracket get a break this year and get a 0% rate on long-term gains and dividends. However in 2011, they will pay 10% on long-term gains and 15% and 28% on dividends.
Be sure to visit the IRS website to learn about all the tax cuts and how they will affect you and your family to be sure you don't owe money at the end of the year and are not missing out on some deductions.
Sunday, July 18, 2010
6 Ways to Save Money on School Supplies
It's that time of year again. You have to think about buying school supplies for your children which can be stressful and costly. Children are not aware of how much things cost and want the latest gadgets their friends have so they don't feel left out. Many stores are having great back to school sales.
Don't let your children pressure you into buying things they don't really need. This year try to buy more needs vs. wants and explain to your children that the family has to stuck to a budget and may not be able to buy extra things that they previously were able to get.
Buy things that they absolutely need for school. Talk with your children before going school shopping and set expectations. Let them know what you are going to buy so they won't be disappointed or thrown a tantrum when you refuse to buy something they want.
Have your children create a list of mandatory supplies that are needed for school. Do an inventory to see if you have any school supplies left over from last year. Determine what clothes your children can still fit comfortably and make a list of things they need. Prioritize the list in three categories: Need Now, Need in 2-4 months, Need in 5-7 months, Need When School Ends. This will also help budget your money and help you find other ways to get supplies for school if you don't have the cash to get everything you need.
Here are 6 tips to save money when shopping for back to school supplies and clothing.
1. Tax Free: Take advantage of tax free days in your state to buy school supplies and school clothes for your children.
2. Sales: Go to yard sales and dollar stores to find bargains. Shop at wholesale stores like Costo, Walmart, Target, Walgreens or Sam's Club to get great discounts.
3. Clothes. You can buy clothes from a thrift store, consignment shop or discount store such as Walmart or Target. Kids grow quickly and their clothes generally don't last or fit them throughout the entire school year. This will save you money and you kids will still remain fashionable. Buy clothes and shoes if possible at least one size too big so your kids can get more wear out of them.
4. Network: Mention to family, friends, co-workers and neighbors that you are going school shopping. They may be able to provide money savings tips for buying school supplies or may have extra supplies they can give to you for free.
5. Comparison Shop: Search the internet for reputable websites that sell school supplies at a discount price and purchase items before school starts to get the best deals. Shop at stores that honor competitor prices and coupons.
6. Budget: Create a budget for mandatory school supplies (pens, paper, pencils, erasers, notebooks, composition notebooks, rulers, compass, etc.) and save some additional money for unexpected school expenses that may pop-up after school starts such as additional supplies needed for classes, school trips, etc.
Don't let your children pressure you into buying things they don't really need. This year try to buy more needs vs. wants and explain to your children that the family has to stuck to a budget and may not be able to buy extra things that they previously were able to get.
Buy things that they absolutely need for school. Talk with your children before going school shopping and set expectations. Let them know what you are going to buy so they won't be disappointed or thrown a tantrum when you refuse to buy something they want.
Have your children create a list of mandatory supplies that are needed for school. Do an inventory to see if you have any school supplies left over from last year. Determine what clothes your children can still fit comfortably and make a list of things they need. Prioritize the list in three categories: Need Now, Need in 2-4 months, Need in 5-7 months, Need When School Ends. This will also help budget your money and help you find other ways to get supplies for school if you don't have the cash to get everything you need.
Here are 6 tips to save money when shopping for back to school supplies and clothing.
1. Tax Free: Take advantage of tax free days in your state to buy school supplies and school clothes for your children.
2. Sales: Go to yard sales and dollar stores to find bargains. Shop at wholesale stores like Costo, Walmart, Target, Walgreens or Sam's Club to get great discounts.
3. Clothes. You can buy clothes from a thrift store, consignment shop or discount store such as Walmart or Target. Kids grow quickly and their clothes generally don't last or fit them throughout the entire school year. This will save you money and you kids will still remain fashionable. Buy clothes and shoes if possible at least one size too big so your kids can get more wear out of them.
4. Network: Mention to family, friends, co-workers and neighbors that you are going school shopping. They may be able to provide money savings tips for buying school supplies or may have extra supplies they can give to you for free.
5. Comparison Shop: Search the internet for reputable websites that sell school supplies at a discount price and purchase items before school starts to get the best deals. Shop at stores that honor competitor prices and coupons.
6. Budget: Create a budget for mandatory school supplies (pens, paper, pencils, erasers, notebooks, composition notebooks, rulers, compass, etc.) and save some additional money for unexpected school expenses that may pop-up after school starts such as additional supplies needed for classes, school trips, etc.
Thursday, July 15, 2010
Ignoring a Debt May Land You in Jail
It is not a crime to owe company money unless it's the IRS. Laws such as the Fair Debt Practices Collection Acts were implemented to protect consumers from scandalous, immoral and illegal practices of companies but recently these laws have been bypassed and courts and now sending consumers to jail for owing a debt. Companies are increasingly using the courts to send consumers to jail. This is another example of companies abusing the system and getting away with it.
One woman in Minnesota was arrested after visiting with her mother because she missed a court hearing for an unpaid debt. Arrest warrants against debtors have jumped 60% over the past 4 years. Not every warrant results in an arrest, but in Minnesota many debtors spend up to 48 hours in cells with criminals.
Attorneys for consumers state that these type of arrests are increasing in many states, including Illinois, Indiana, Arkansas, Arizona and Washington, fueled by a slow economy, high consumer debt and a growing collection industry that buys outstanding debts any means possible to get the money owed. Getting locked up for an outstanding arrest warrant related to a debt depends on where you live, laws vary state by state and enforcement is inconsistent.
Some consumers have to remain in jail until they come up with the minimum payment for the debt. Debt collectors are abusing the legal system and using it to intimidate people and the legal system is allowing it. Debt collectors feel that they are doing nothing wrong.
If the consumer has been unable to pay the bill previously, they certainly won't be able to get the money to pay the debt after being sent to jail. You are sent to jail for the arrest warrant for not appearing in court, not because you owe a debt. Consumers are not charged with a crime but could be held in a jail cell with criminals.
Unfortunately, taxpayers are paying the bill for arresting and putting consumers in jail for outstanding debts. In Minnesota some judges set bail for the amount owed to the debt collector and in some cases for those who owed as less than $90.
Debt Equities LLC, Portfolio Recovery Associates and Unifund CCR Partners, Inc, Encore Capital Group, Resurgence Financial, Capital One Bank, Lakes Gas Co., Forest Lake Propane and Debt Equities are some of the largest companies that follow this practice. In some cases, consumers after receiving a notice to appear in court are required to fill out a financial disclosure to list all of their bank accounts and any assets which allows debt collectors to garnish their paycheck or bank accounts.
In many cases the debts are more than 4 or 5 years old and are purchased from companies for a few pennies on the dollar. Automated phone dialing systems are used to contact the consumers. Debt collectors cannot tack on extra fees and interest to the original debt owed unless the state law allows it. Telling a consumer that they will go to jail for failing to pay a debt is a violation of the Fair Debt Collection Practices Act.
In many cases, paperwork is not properly filled out and consumers are not notified that they have an outstanding arrest warrant which is against the law. You must be properly notified of the warrant. When you get to court be sure to let the judge know that you were never notified of the outstanding arrest warrant and the case should be thrown out of court. If not, seek legal advice.
One company that is trying to change legislation against debt collectors is Legal Aid. Contact your state congressman to ask them to change the laws to prevent creditors and debt collectors from sending consumers to jail for failing to pay an outstanding debt. Here are 6 tips to avoid getting a warrant and what to do if you receive one.
1. Read documents sent from collectors. You may not remember if you owe the debt or not but you can request a "debt validation" and the company by law is required to provide proof that you owe the debt. One you receive proof, work with the company to setup a payment plan. Don't provide the company with a check or bank account information because they will use this to garnish your paycheck.
2. Summons. If you get a summons to appear in court this means that you are being sued by a debt collector or creditor. The summons can be hand delivered or sent by mail and does not require that it is filed in court first.
3. Respond promptly. Respond promptly to a summons either admitting or denying the debt and providing proof to support your response. Send the information to the company who sent the summons and send a copy to the court clerk along with the case number. Send both copies certified mail with a return receipt.
4. Admittance. If you admit to the debt, and are unable to make the court date, don't ignore it. Ask to have the date changed. Make sure you get a letter in writing with the new date, if not, contact the court prior to the original date to make sure they know you responded to the notice.
5. Statute of limitations. Know the rights for collecting money on outstanding debts by finding out the statute of limitations in your state. In some states, debt collectors cannot request judgments after 5 or 6 years.
6. Seek legal advice. If you are unable to hire a lawyer, ask the clerk of the court about volunteer or pro bono attorneys who can specialize in collection account cases to assist you.
One woman in Minnesota was arrested after visiting with her mother because she missed a court hearing for an unpaid debt. Arrest warrants against debtors have jumped 60% over the past 4 years. Not every warrant results in an arrest, but in Minnesota many debtors spend up to 48 hours in cells with criminals.
Attorneys for consumers state that these type of arrests are increasing in many states, including Illinois, Indiana, Arkansas, Arizona and Washington, fueled by a slow economy, high consumer debt and a growing collection industry that buys outstanding debts any means possible to get the money owed. Getting locked up for an outstanding arrest warrant related to a debt depends on where you live, laws vary state by state and enforcement is inconsistent.
Some consumers have to remain in jail until they come up with the minimum payment for the debt. Debt collectors are abusing the legal system and using it to intimidate people and the legal system is allowing it. Debt collectors feel that they are doing nothing wrong.
If the consumer has been unable to pay the bill previously, they certainly won't be able to get the money to pay the debt after being sent to jail. You are sent to jail for the arrest warrant for not appearing in court, not because you owe a debt. Consumers are not charged with a crime but could be held in a jail cell with criminals.
Unfortunately, taxpayers are paying the bill for arresting and putting consumers in jail for outstanding debts. In Minnesota some judges set bail for the amount owed to the debt collector and in some cases for those who owed as less than $90.
Debt Equities LLC, Portfolio Recovery Associates and Unifund CCR Partners, Inc, Encore Capital Group, Resurgence Financial, Capital One Bank, Lakes Gas Co., Forest Lake Propane and Debt Equities are some of the largest companies that follow this practice. In some cases, consumers after receiving a notice to appear in court are required to fill out a financial disclosure to list all of their bank accounts and any assets which allows debt collectors to garnish their paycheck or bank accounts.
In many cases the debts are more than 4 or 5 years old and are purchased from companies for a few pennies on the dollar. Automated phone dialing systems are used to contact the consumers. Debt collectors cannot tack on extra fees and interest to the original debt owed unless the state law allows it. Telling a consumer that they will go to jail for failing to pay a debt is a violation of the Fair Debt Collection Practices Act.
In many cases, paperwork is not properly filled out and consumers are not notified that they have an outstanding arrest warrant which is against the law. You must be properly notified of the warrant. When you get to court be sure to let the judge know that you were never notified of the outstanding arrest warrant and the case should be thrown out of court. If not, seek legal advice.
One company that is trying to change legislation against debt collectors is Legal Aid. Contact your state congressman to ask them to change the laws to prevent creditors and debt collectors from sending consumers to jail for failing to pay an outstanding debt. Here are 6 tips to avoid getting a warrant and what to do if you receive one.
1. Read documents sent from collectors. You may not remember if you owe the debt or not but you can request a "debt validation" and the company by law is required to provide proof that you owe the debt. One you receive proof, work with the company to setup a payment plan. Don't provide the company with a check or bank account information because they will use this to garnish your paycheck.
2. Summons. If you get a summons to appear in court this means that you are being sued by a debt collector or creditor. The summons can be hand delivered or sent by mail and does not require that it is filed in court first.
3. Respond promptly. Respond promptly to a summons either admitting or denying the debt and providing proof to support your response. Send the information to the company who sent the summons and send a copy to the court clerk along with the case number. Send both copies certified mail with a return receipt.
4. Admittance. If you admit to the debt, and are unable to make the court date, don't ignore it. Ask to have the date changed. Make sure you get a letter in writing with the new date, if not, contact the court prior to the original date to make sure they know you responded to the notice.
5. Statute of limitations. Know the rights for collecting money on outstanding debts by finding out the statute of limitations in your state. In some states, debt collectors cannot request judgments after 5 or 6 years.
6. Seek legal advice. If you are unable to hire a lawyer, ask the clerk of the court about volunteer or pro bono attorneys who can specialize in collection account cases to assist you.
Monday, July 12, 2010
15 Ways to Save on Energy Costs This Summer
Summer time is one of the most expensive seasons when it comes to energy costs. No two summers are ever the same. This summer has turned out to be a hot one. Many people who are without air conditioning are making frequent trips to the doctor and emergency room from heat exhaustion, dehydration and dizziness. Even if you stay in doors you can still get dehydrated by not drinking enough fluids. Besides trying to keep your body cool, you also need to keep your home and car cool. If you don't have air conditioning in your car try to get it. This helps keep your body temperature cool and prevents accident due to heat stroke when driving.
Another way to stay cool is by doing periodic checks on your air conditioning in your home or condo to make sure it is working properly. Nothing is more miserable than being in a hot home. Here are 15 ways to save on energy costs this summer and stay cool.
1. Limit use of the oven. Using the oven in the summer time will make it harder to keep your home cool. Try cooking on top of the oven to save money on electricity. There are tons of recipes that help you prepare foods normally cooked in the oven on top of the oven.
2. Microwave. Limit the use of the microwave. Food loses its taste and nutrients when cooked or warmed up in the microwave. Purchase a portable grill such as the George Foreman grill or similar devices which reduces the amount of time it takes to cook food.
3. Dryer. Try drying clothes using full loads or air drying clothes to save money.
4. Electronics. Turn off all electronics when not in use. A color television uses 100-300 kilowatts per year. If you have multiple televisions in your home this adds up in electricity costs. If you are out of the room for more than 20 minutes turn off all electronics.
5. Computers. You can turn off your computer when not in use or leave it in standby mode. Energy Star has free energy efficient programs for computers that will help reduce energy usage.
6. Thermostat. Set your air conditioner thermostat to 78 degrees F. Don't adjust the air conditioner to try and cool off your home faster because this only uses more energy. If you need additional cooling use a portable fan or ceiling fans. Don't place lamps, televisions or computers near your thermostat. The thermostat can sense the heating coming from the appliances and will run longer than necessary.
7. Blinds. Keep blinds and curtains closed during the summer to block the sun rays coming into your home. When the sun goes down, open your windows to cool your home naturally. Turn your air conditioner thermostat down during this time. Once the outside temperature starts to rise again adjust your thermostat to keep your home cool.
8. Lights. Don't turn lights on if your home gets natural sunlight. Keeping lights off also keeps your home cool. Turn lights on only when necessary but don't sit in the dark unless you really want to.
9. Plant trees. Plant shade trees in your yard to help save on energy costs.
10. Insulate. Seal any leaks or cracks around and inside your home and insulate your attic floor.
11. Windows. Install storm windows to save on energy costs.
12. Garbage Disposal. Run cold water in your garbage disposal which helps get rid of grease.
13. Appliances. Buy energy efficient appliances and light bulbs to save on energy costs.
14. Refrigerator. Keep your refrigerator at 38 - 40 degrees F. Keep your freezer at 5 degrees F.
15. Washing clothes. Wash clothes in warm or cold water and rinse in cold water. Warm or cold water gets whites just as clean as hot water.
Another way to stay cool is by doing periodic checks on your air conditioning in your home or condo to make sure it is working properly. Nothing is more miserable than being in a hot home. Here are 15 ways to save on energy costs this summer and stay cool.
1. Limit use of the oven. Using the oven in the summer time will make it harder to keep your home cool. Try cooking on top of the oven to save money on electricity. There are tons of recipes that help you prepare foods normally cooked in the oven on top of the oven.
2. Microwave. Limit the use of the microwave. Food loses its taste and nutrients when cooked or warmed up in the microwave. Purchase a portable grill such as the George Foreman grill or similar devices which reduces the amount of time it takes to cook food.
3. Dryer. Try drying clothes using full loads or air drying clothes to save money.
4. Electronics. Turn off all electronics when not in use. A color television uses 100-300 kilowatts per year. If you have multiple televisions in your home this adds up in electricity costs. If you are out of the room for more than 20 minutes turn off all electronics.
5. Computers. You can turn off your computer when not in use or leave it in standby mode. Energy Star has free energy efficient programs for computers that will help reduce energy usage.
6. Thermostat. Set your air conditioner thermostat to 78 degrees F. Don't adjust the air conditioner to try and cool off your home faster because this only uses more energy. If you need additional cooling use a portable fan or ceiling fans. Don't place lamps, televisions or computers near your thermostat. The thermostat can sense the heating coming from the appliances and will run longer than necessary.
7. Blinds. Keep blinds and curtains closed during the summer to block the sun rays coming into your home. When the sun goes down, open your windows to cool your home naturally. Turn your air conditioner thermostat down during this time. Once the outside temperature starts to rise again adjust your thermostat to keep your home cool.
8. Lights. Don't turn lights on if your home gets natural sunlight. Keeping lights off also keeps your home cool. Turn lights on only when necessary but don't sit in the dark unless you really want to.
9. Plant trees. Plant shade trees in your yard to help save on energy costs.
10. Insulate. Seal any leaks or cracks around and inside your home and insulate your attic floor.
11. Windows. Install storm windows to save on energy costs.
12. Garbage Disposal. Run cold water in your garbage disposal which helps get rid of grease.
13. Appliances. Buy energy efficient appliances and light bulbs to save on energy costs.
14. Refrigerator. Keep your refrigerator at 38 - 40 degrees F. Keep your freezer at 5 degrees F.
15. Washing clothes. Wash clothes in warm or cold water and rinse in cold water. Warm or cold water gets whites just as clean as hot water.
Friday, July 09, 2010
The BP Oil Spill and Gas Prices
British Petroleum (BP) is one of the largest oil companies in the world. For now, many economists say that the BP oil spill will not have an impact on gas prices. The oil rig that exploded was an explanatory rig and the current oil supply is high which is an indicator that gas prices will not increase. However, the oil spill could interfere with shipping lanes by disrupting the ability of oil tankers to get crude oil to refineries.
The oil spill could slow the growth of offshore oil exploration and drilling which could have significant price impacts in the future. Stricter regulations that could be imposed in the future could also slow the pace of growth of offshore drilling and increases gas prices in 2011.
Oil is produced at a rate of 200,000 gallons a day. The oil spill will not affect our oil reserves because it would take 208 years to deplete the U.S. oil supply. The Obama Administration has currently banned deep-water drilling which could decrease the current oil supply.
Our existing oil reserves contain more than 362 million barrels and each barrel contains approximately 42 gallons of oil. Oil refineries in the U.S. are running at 88% capacity so oil is not affected right now. There is also a large supply of foreign oil.
Oil prices will probably increase at the end of 2010 or the beginning of 2011 as a result of the current oil spill because output will decrease.
The BP oil spill has hurt its 10,000 distributors of gas most of which are independent dealers. BP plans to give distributors a discount which in turn will trickle down to independent dealers. If you are concerned about gas prices you could buy a hybrid or electric car such as the Toyota Prius, Chevrolet Volt or Ford Transit Connect Electric van.
The oil spill could slow the growth of offshore oil exploration and drilling which could have significant price impacts in the future. Stricter regulations that could be imposed in the future could also slow the pace of growth of offshore drilling and increases gas prices in 2011.
Oil is produced at a rate of 200,000 gallons a day. The oil spill will not affect our oil reserves because it would take 208 years to deplete the U.S. oil supply. The Obama Administration has currently banned deep-water drilling which could decrease the current oil supply.
Our existing oil reserves contain more than 362 million barrels and each barrel contains approximately 42 gallons of oil. Oil refineries in the U.S. are running at 88% capacity so oil is not affected right now. There is also a large supply of foreign oil.
Oil prices will probably increase at the end of 2010 or the beginning of 2011 as a result of the current oil spill because output will decrease.
The BP oil spill has hurt its 10,000 distributors of gas most of which are independent dealers. BP plans to give distributors a discount which in turn will trickle down to independent dealers. If you are concerned about gas prices you could buy a hybrid or electric car such as the Toyota Prius, Chevrolet Volt or Ford Transit Connect Electric van.
Tuesday, July 06, 2010
How the BP Oil Spill Affects the Seafood Industry
Those living in the south have for years enjoyed getting fresh seafood year around. Since the BP oil spill in April that has changed dramatically. The Gulf of Mexico provides 67% of the U.S. oyster supply. Louisiana is the country's top producer of shrimp and oysters which ships out 30% of the seafood in 48 states. More than 80% of all seafood purchased in the US is imported most of which is farm raised. Fishing, shrimping and harvesting oysters has been banned in the Gulf of Mexico.
The oil spill has caused a decrease in the supply of seafood and an increase in costs. Since the supply has been decreased, oysters have been obtained from other areas but cost more. The oil spill has caused supply that was locally bought to now be sold out of state causing some suppliers to use frozen seafood instead of fresh seafood.
This has caused unemployment for many fishermen, processing plans, seafood markets, grocery stores and restaurants. Some oysters have been removed from the menus in New Orleans and surrounding area restaurants.
Some fish packing houses in Virginia get their oysters from the Gulf of Mexico which due to the oil spill supply has decreased by 60%. Oyster prices of seafood retailers have increased and in some cases have doubled in price. Shrimp prices have also increased.
In North Carolina, vendors are estimating that prices of mackerel may increase up to 300% or $20 a pound by the end of this summer.
Effects of the oil spill have even reached our nation's capital, Washington DC. Some restaurants will increase their raw bar surcharge by up to $3, especially for restaurants that promote Cajun, Louisiana dishes or Gulf seafood.
Some restaurants have not been affected and are still able to maintain their seafood supply but the scare of the oil spill has caused some consumers to skip going out to eat. Many seafood restaurants near the Gulf of Mexico and surroundings areas have had to change their menus and offer items such as steak, chicken and beef instead of seafood.
Oyster prices from the Gulf Mexico have jumped to $55-$80 a gallon. In Mississippi, prices for oysters and shrimp vary daily. The price of shrimp has jumped from $4.99 to $5.99 a pound and oysters have jumped fro $15.99 to $18.99 a pound. Fisheries off the coast of Louisiana, Mississippi and Alabama are closed while some off the coast of Texas and Florida remain open.
Some shrimp boat captains are leasing their boats to BP to help clean up the oil spill which is also a reason why less shrimp are being harvested.
Hopes remains for the seafood retailers who can get their supply from the Northern states such as Alaska and Boston. Consumers will also have to be concerned about price-gouging by vendors trying to take advantage of the oil spill. The oil spill will affect the seafood industry for many years. The shrimp and oyster harvest for next year is may already be damaged.
The oil spill has caused a decrease in the supply of seafood and an increase in costs. Since the supply has been decreased, oysters have been obtained from other areas but cost more. The oil spill has caused supply that was locally bought to now be sold out of state causing some suppliers to use frozen seafood instead of fresh seafood.
This has caused unemployment for many fishermen, processing plans, seafood markets, grocery stores and restaurants. Some oysters have been removed from the menus in New Orleans and surrounding area restaurants.
Some fish packing houses in Virginia get their oysters from the Gulf of Mexico which due to the oil spill supply has decreased by 60%. Oyster prices of seafood retailers have increased and in some cases have doubled in price. Shrimp prices have also increased.
In North Carolina, vendors are estimating that prices of mackerel may increase up to 300% or $20 a pound by the end of this summer.
Effects of the oil spill have even reached our nation's capital, Washington DC. Some restaurants will increase their raw bar surcharge by up to $3, especially for restaurants that promote Cajun, Louisiana dishes or Gulf seafood.
Some restaurants have not been affected and are still able to maintain their seafood supply but the scare of the oil spill has caused some consumers to skip going out to eat. Many seafood restaurants near the Gulf of Mexico and surroundings areas have had to change their menus and offer items such as steak, chicken and beef instead of seafood.
Oyster prices from the Gulf Mexico have jumped to $55-$80 a gallon. In Mississippi, prices for oysters and shrimp vary daily. The price of shrimp has jumped from $4.99 to $5.99 a pound and oysters have jumped fro $15.99 to $18.99 a pound. Fisheries off the coast of Louisiana, Mississippi and Alabama are closed while some off the coast of Texas and Florida remain open.
Some shrimp boat captains are leasing their boats to BP to help clean up the oil spill which is also a reason why less shrimp are being harvested.
Hopes remains for the seafood retailers who can get their supply from the Northern states such as Alaska and Boston. Consumers will also have to be concerned about price-gouging by vendors trying to take advantage of the oil spill. The oil spill will affect the seafood industry for many years. The shrimp and oyster harvest for next year is may already be damaged.
Saturday, July 03, 2010
Financial Reform - Keep Your Fingers Crossed
Your complaints have been heard. On June 30, 2010, the House approved a bill to implement financial reform. The bill authorizes financial industry regulators to impose restrictions on large financial companies that are in trouble and will create a way for the government to liquidate failing companies that will be at no cost to taxpayers, which is very similar to the process the FDIC uses for liquidating banks that have failed.
Regulators would have more options to impose restrictions on the largest financial companies which could help smaller banks have more competitive advantages. The Senate will vote on the bill after the July 4th recess. If the bill is passed this will be a historic moment in the financial industry.
To ensure the Senate passes the bill contact your senators at www.senate.gov/general/contact_information/senators_cfm.cfm. You can also thank you your house of representatives for passing the bill at www.house.gov/.
Regulators would have more options to impose restrictions on the largest financial companies which could help smaller banks have more competitive advantages. The Senate will vote on the bill after the July 4th recess. If the bill is passed this will be a historic moment in the financial industry.
To ensure the Senate passes the bill contact your senators at www.senate.gov/general/contact_information/senators_cfm.cfm. You can also thank you your house of representatives for passing the bill at www.house.gov/.
Wednesday, June 30, 2010
Don't Go Overboard on Independence Day
Summer is here. The weather is beautiful and everyone wants to enjoy it. All of the advertisers have increased their advertisements and hope to lure you to the store to spend money that you may or may not have.
This holiday season resist the temptation. Many times items that are on sale or not really a bargain. Try buying items off-season and only when the item is 30% off or more. Sales for 10-20% off are not worth your time. Also, do comparison shopping to see if you can find the item for a cheaper price at another store on online. If you absolutely have to go shopping here are some tips to help you save money.
1. Don't wait until the day before the holiday to go shopping. Lines at the register are longer and the selection of items is limited. Try shopping a week in advance or early in the morning.
2. Create a budget or shopping list and only buy the things you absolutely need.
3. If you are having a picnic or cookout ask friends and family to bring a dish to help cut downs on costs.
4. Visit local vendors to purchase meats, fruits and vegetables which will be much cheaper than the department store.
5. Resist temptation. This holiday season try not to go to the department stores or malls. I know it will be hard but take time out to enjoy being with family and friends. Try finding some free events to attend instead of going shopping. Your pocketbook will be happy you did.
This holiday season resist the temptation. Many times items that are on sale or not really a bargain. Try buying items off-season and only when the item is 30% off or more. Sales for 10-20% off are not worth your time. Also, do comparison shopping to see if you can find the item for a cheaper price at another store on online. If you absolutely have to go shopping here are some tips to help you save money.
1. Don't wait until the day before the holiday to go shopping. Lines at the register are longer and the selection of items is limited. Try shopping a week in advance or early in the morning.
2. Create a budget or shopping list and only buy the things you absolutely need.
3. If you are having a picnic or cookout ask friends and family to bring a dish to help cut downs on costs.
4. Visit local vendors to purchase meats, fruits and vegetables which will be much cheaper than the department store.
5. Resist temptation. This holiday season try not to go to the department stores or malls. I know it will be hard but take time out to enjoy being with family and friends. Try finding some free events to attend instead of going shopping. Your pocketbook will be happy you did.
Sunday, June 27, 2010
Prepaid Credit Cards
Many Americans struggle with managing their finances either through credit cards, debits cards or bank accounts. Another option that is available for those who do not have bank accounts, have bad credit or who have a hard time managing their money is the prepaid credit card.
A prepaid credit card allows you to have your paycheck, unemployment or benefits loaded onto a credit card which can be used like a debit or checkcard. The credit cards work like prepaid telephone calling cards.
A prepaid credit card eliminates check cashing fees, checks lost in the mail and provide easy access to your money. You can add additional money to your card at various locations based on the company you signed up with. There is no credit check or other requirements to obtain a prepaid credit card.
Several companies such as Western Union, Account Now, Visa, MasterCard or the American Express Pass for teens offer prepaid credit cards. You can also comparison shop on sites like creditcards.com or bankrate.com to find the right prepaid credit card for you.
Your credit card cash balance works like a credit limit on a traditional credit card. You will not be charged a fee for overdrawing your account. There is no minimum balance and free direct deposit. Some companies also offer online banking and bill payment. You will never be charged late fees or interest. However, you may be charged registration fees or other charges for using the prepaid credit card. Extra fees may also be charged for adding additional money to the credit card outside of your regular deposits.
Prepaid credit cards help control your spending. You can control over your spending limits and are great option for teens or college students. Once you activate the card you are able to start using it. Each time you make a purchase the amount is automatically deducted from your credit card balance. This forces you to keep track of your balance so you will never go over your limit because you can only spend the money you have on your card.
Be sure the company reports your payment history on your credit report to help establish your credit history or improve your existing credit history.
A prepaid credit card allows you to have your paycheck, unemployment or benefits loaded onto a credit card which can be used like a debit or checkcard. The credit cards work like prepaid telephone calling cards.
A prepaid credit card eliminates check cashing fees, checks lost in the mail and provide easy access to your money. You can add additional money to your card at various locations based on the company you signed up with. There is no credit check or other requirements to obtain a prepaid credit card.
Several companies such as Western Union, Account Now, Visa, MasterCard or the American Express Pass for teens offer prepaid credit cards. You can also comparison shop on sites like creditcards.com or bankrate.com to find the right prepaid credit card for you.
Your credit card cash balance works like a credit limit on a traditional credit card. You will not be charged a fee for overdrawing your account. There is no minimum balance and free direct deposit. Some companies also offer online banking and bill payment. You will never be charged late fees or interest. However, you may be charged registration fees or other charges for using the prepaid credit card. Extra fees may also be charged for adding additional money to the credit card outside of your regular deposits.
Prepaid credit cards help control your spending. You can control over your spending limits and are great option for teens or college students. Once you activate the card you are able to start using it. Each time you make a purchase the amount is automatically deducted from your credit card balance. This forces you to keep track of your balance so you will never go over your limit because you can only spend the money you have on your card.
Be sure the company reports your payment history on your credit report to help establish your credit history or improve your existing credit history.
Thursday, June 24, 2010
Debit and ATM Cards Changes on July 1st
Under the CARD Act of 2009, for new accounts opened on or after July 1, 2010, your bank can no longer charge overdraft fees for debit and ATM transactions unless you opt-in. If you open a new account before July 1, 2010 your bank will consider you an existing customer and you will receive a notice about your bank's overdraft services.
You can grant permission by opting in to the overdraft notice your bank sends you. If you decide to opt-in you can cancel at any time. If you do not opt-in before the deadline you can opt-in in the future.
For existing accounts if you do not opt-in by August 15, 2010, your bank's standard overdraft services won't apply to your debit and ATM transactions and future transactions will be declined when you don't have enough money in your account, and you will not be charged an overdraft fee.
Currently, for standard overdraft services your bank will cover the transaction by charging a flat fee of $20-$35 each time you overdraw your account.
If you have an overdraft protection service your bank provides a line of credit that is linked to your savings account to cover transactions when you overdraw your account. Banks charge a fee each time you overdraw your account.
However, using the overdraft protection service may be less expensive than using the standard overdraft service. Keep in mind that some banks report overdrawn accounts on your credit report so it may be wise to sign up for overdraft protection.
The new ATM and debit card overdraft guidelines do not affect checks or automatic bill payments.
You can grant permission by opting in to the overdraft notice your bank sends you. If you decide to opt-in you can cancel at any time. If you do not opt-in before the deadline you can opt-in in the future.
For existing accounts if you do not opt-in by August 15, 2010, your bank's standard overdraft services won't apply to your debit and ATM transactions and future transactions will be declined when you don't have enough money in your account, and you will not be charged an overdraft fee.
Currently, for standard overdraft services your bank will cover the transaction by charging a flat fee of $20-$35 each time you overdraw your account.
If you have an overdraft protection service your bank provides a line of credit that is linked to your savings account to cover transactions when you overdraw your account. Banks charge a fee each time you overdraw your account.
However, using the overdraft protection service may be less expensive than using the standard overdraft service. Keep in mind that some banks report overdrawn accounts on your credit report so it may be wise to sign up for overdraft protection.
The new ATM and debit card overdraft guidelines do not affect checks or automatic bill payments.
Monday, June 21, 2010
Save Money on Summer Vacation
We work hard all year long and we all live for summer vacation. Many Americans love to travel during the summer and family vacations usually begin during the Memorial Day holiday. The economy the past few years has made it difficult for many families to take a summer vacation.
Many airlines have increased prices and gas prices are high again this summer. If you can afford to take a vacation without hurting your budget and will still be able to pay all of your bills when you get back, then definitely take a vacation. Here are 5 ways to save money during summer vacation.
1. Plan ahead. Plan in advance to save money to go on vacation without using your credit card to pay for it.
2. Talk to others. Talk to friends and neighbors about their vacations and find out how they planned their vacation, i.e. ask about any discounts or sales they know about, inexpensive restaurants, shops, etc.
3. Act fast. When you see or hear about sales or discounts you have to move quickly to capitalize on the deal because they usually don't last long.
4. Shop around. Shop around to find the best deals. Visit websites like hotwire.com, priceline.com, kayak.com or hotels.com to find cheap rates for hotel, airfare and cruises.
5. Shop before you leave. Buy traveler's checks which can quickly be replaced if lost. If your credit card is stolen you may not have another credit card available to purchase any necessities. Buy toiletries and other necessities before traveling.
If you want to take a vacation and cannot afford it, here are 5 simple things to do in the meantime:
1. Camp out in your backyard.
2. Take a road trip and go camping a few hours or at a local camp park.
3. Visit local caverns.
4. Spend the day at a water park or amusement park.
5. Go sightseeing in your local area.
Many airlines have increased prices and gas prices are high again this summer. If you can afford to take a vacation without hurting your budget and will still be able to pay all of your bills when you get back, then definitely take a vacation. Here are 5 ways to save money during summer vacation.
1. Plan ahead. Plan in advance to save money to go on vacation without using your credit card to pay for it.
2. Talk to others. Talk to friends and neighbors about their vacations and find out how they planned their vacation, i.e. ask about any discounts or sales they know about, inexpensive restaurants, shops, etc.
3. Act fast. When you see or hear about sales or discounts you have to move quickly to capitalize on the deal because they usually don't last long.
4. Shop around. Shop around to find the best deals. Visit websites like hotwire.com, priceline.com, kayak.com or hotels.com to find cheap rates for hotel, airfare and cruises.
5. Shop before you leave. Buy traveler's checks which can quickly be replaced if lost. If your credit card is stolen you may not have another credit card available to purchase any necessities. Buy toiletries and other necessities before traveling.
If you want to take a vacation and cannot afford it, here are 5 simple things to do in the meantime:
1. Camp out in your backyard.
2. Take a road trip and go camping a few hours or at a local camp park.
3. Visit local caverns.
4. Spend the day at a water park or amusement park.
5. Go sightseeing in your local area.
Friday, June 18, 2010
You Can Still Find a Job
With the unemployment rate at 9.7% many Americans have still having trouble looking for employment. Many Americans are unable to find jobs for many jobs: bad credit, competition, decision to relocate and other factors. In addition, many companies have gone under, slashed staff and/or benefits and hours and others are hanging on by a thread. Well, there is hope.
Many companies have survived the recession and are hiring. If you are still looking for employment be sure to contact these companies as well as the federal and state and local governments. Some of the major companies that are hiring:
Wal-Mart which currently has 2 million employees
PepsiCo who also hire hourly and commission-based employees
NetApp
Amazon
Abbott Laboratories who employs almost 70,000 employees
Netflix
Perrigo Company which is the world's largest manufacturer of over-the-counter drugs and generic prescription drugs
VistaPrint
Here are 5 tips to help you get hired for these companies.
1. Update your resume. Be sure your resume is up-to-date and brief. Don't bring a 5-10 pages resume; it will be thrown in the trash. Highlight major accomplishments and ways you've helped your current and previous employers such as: saving money, gaining new customers, helping large volumes of users, etc.
2. Review your credit report. Get a copy of your credit report from annualcreditreport.com and check for any errors or late payments. If you still owe debt on late payment accounts contact your creditors right away to setup payment arrangements and to get errors fixed. Many employers check your credit report when considering you for employment.
3. Update and practice your interview skills. Dress professionally, get a fresh haircut, and make sure your nails and clean and neat. Be prepared to respond to questions that ask how you would deal with difficult people or situations, provide examples of how you've overcome a difficult situation at work and examples of how you've helped your team or co-workers. Explain how you can use your skills to help them grow achieve their goals. Make sure you visit the company's website to learn about what they do. Also, bring a list of questions at least 3 to ask on the interview.
4. Follow instructions. If you are given any instructions prior to the interview make sure you follow the exactly. Don't be too eager and ruin your chance for an interview by failing to follow the instructions.
5. Bring supporting documentation. Along with your resume bring any documentation that lists you as the author of articles, technical reports, etc. to support your experience and skills. If you are a web developer bring your laptop and show some of the websites you have developed. If you are a technical writer or editor bring some writing samples.
Do whatever you can to give yourself an edge over the competition. Don't answer the questions too fast and don't provide information that you were not asked. After the interview send a thank note to all the persons you interviewed with. Don't be afraid to follow-up by email a week after the interview.
Many companies have survived the recession and are hiring. If you are still looking for employment be sure to contact these companies as well as the federal and state and local governments. Some of the major companies that are hiring:
Wal-Mart which currently has 2 million employees
PepsiCo who also hire hourly and commission-based employees
NetApp
Amazon
Abbott Laboratories who employs almost 70,000 employees
Netflix
Perrigo Company which is the world's largest manufacturer of over-the-counter drugs and generic prescription drugs
VistaPrint
Here are 5 tips to help you get hired for these companies.
1. Update your resume. Be sure your resume is up-to-date and brief. Don't bring a 5-10 pages resume; it will be thrown in the trash. Highlight major accomplishments and ways you've helped your current and previous employers such as: saving money, gaining new customers, helping large volumes of users, etc.
2. Review your credit report. Get a copy of your credit report from annualcreditreport.com and check for any errors or late payments. If you still owe debt on late payment accounts contact your creditors right away to setup payment arrangements and to get errors fixed. Many employers check your credit report when considering you for employment.
3. Update and practice your interview skills. Dress professionally, get a fresh haircut, and make sure your nails and clean and neat. Be prepared to respond to questions that ask how you would deal with difficult people or situations, provide examples of how you've overcome a difficult situation at work and examples of how you've helped your team or co-workers. Explain how you can use your skills to help them grow achieve their goals. Make sure you visit the company's website to learn about what they do. Also, bring a list of questions at least 3 to ask on the interview.
4. Follow instructions. If you are given any instructions prior to the interview make sure you follow the exactly. Don't be too eager and ruin your chance for an interview by failing to follow the instructions.
5. Bring supporting documentation. Along with your resume bring any documentation that lists you as the author of articles, technical reports, etc. to support your experience and skills. If you are a web developer bring your laptop and show some of the websites you have developed. If you are a technical writer or editor bring some writing samples.
Do whatever you can to give yourself an edge over the competition. Don't answer the questions too fast and don't provide information that you were not asked. After the interview send a thank note to all the persons you interviewed with. Don't be afraid to follow-up by email a week after the interview.
Tuesday, June 15, 2010
Bad Credit May Not Affect Employment
The current unemployment rate is 9.7% and the economy gained 431,000 jobs in the month of May. This is promising although many Americans who are trying to find employment had to take drastic pay cuts or continue to remain unemployed. With the federal minimum wage at $7.25 any job looks promising right now.
The competition is stiff; those who made $100,000 or more are competing for entry or middle level jobs or jobs that are usually slated for college students accepting pay of $50,000 or less. Some Americans are working multiple low-paying jobs to try to make ends meet. Others have just given up looking for work altogether.
If you have bad credit it is a major factor that will determine if you get hired for a job or not. Having bad credit makes it difficult to get a job nowadays. If you know you have bad credit it is best to be upfront and let the potential employer know. Also, let them know the reason why you have bad credit and how you plan to fix your bad credit.
Many employers are no longer looking at just your resume, your interpersonal skills or your attire, if you have good credit and do go on the interview you have a better chance of getting hired than someone with the same qualifications and bad credit.
Previously when looking for a job, credit history was not a factor but recently due to the recession employers are scrutinizing candidates even more using credit as a factor for employment. Many industries are looking at your credit history including government agencies, police, fire department, banking industries. Many candidates do not realize that their bad credit will prevent them from getting a job or in some cases get them fired from a job.
It seems unfair that a company would simply disregard your experience, personality and interview skills simply because you have bad credit. Companies should focus on what you have to offer and not the mistakes you made or circumstances that affected your personal life and credit history. Employers see having a bad credit score as a reason to commit fraud or take bribes. In a few minor instances this may be the case, but overall Americans just want to work and pay their bills.
Since hiring can be discriminatory, one way companies can discriminate is by using credit scores. However, employers cannot refuse hiring you simply because of your credit but that is not always the case. Federal law prohibits this practice but there are really no protections in place to help candidates who have proof of companies who violate this law and usually can't afford to hire a lawyer to help them win their case in court.
Many Americans have complained about this practice and their complaints were heard. Nineteen states 19 states including Pennsylvania, Hawaii, Washington, Ohio, California, and the District of Columbia and South Carolina are considering passing legislation to prevent companies from using credit as a factor in hiring candidates for employment. Only two state legislatures Oregon and Illinois passed the law.
However, a win for consumers is that many credit card companies are banks are not weighing credit scores as much as before because the FICO score can make a mistake and classify a consumer as a bad risk when they are a good risk. Companies are now realizing what consumers knew all along, that the FICO score system is flawed and needs to be revised to accommodate the new credit card laws and current economic situation. Contact your congressman to demand states stop this unfair practice https://writerep.house.gov/writerep/welcome.shtml.
The competition is stiff; those who made $100,000 or more are competing for entry or middle level jobs or jobs that are usually slated for college students accepting pay of $50,000 or less. Some Americans are working multiple low-paying jobs to try to make ends meet. Others have just given up looking for work altogether.
If you have bad credit it is a major factor that will determine if you get hired for a job or not. Having bad credit makes it difficult to get a job nowadays. If you know you have bad credit it is best to be upfront and let the potential employer know. Also, let them know the reason why you have bad credit and how you plan to fix your bad credit.
Many employers are no longer looking at just your resume, your interpersonal skills or your attire, if you have good credit and do go on the interview you have a better chance of getting hired than someone with the same qualifications and bad credit.
Previously when looking for a job, credit history was not a factor but recently due to the recession employers are scrutinizing candidates even more using credit as a factor for employment. Many industries are looking at your credit history including government agencies, police, fire department, banking industries. Many candidates do not realize that their bad credit will prevent them from getting a job or in some cases get them fired from a job.
It seems unfair that a company would simply disregard your experience, personality and interview skills simply because you have bad credit. Companies should focus on what you have to offer and not the mistakes you made or circumstances that affected your personal life and credit history. Employers see having a bad credit score as a reason to commit fraud or take bribes. In a few minor instances this may be the case, but overall Americans just want to work and pay their bills.
Since hiring can be discriminatory, one way companies can discriminate is by using credit scores. However, employers cannot refuse hiring you simply because of your credit but that is not always the case. Federal law prohibits this practice but there are really no protections in place to help candidates who have proof of companies who violate this law and usually can't afford to hire a lawyer to help them win their case in court.
Many Americans have complained about this practice and their complaints were heard. Nineteen states 19 states including Pennsylvania, Hawaii, Washington, Ohio, California, and the District of Columbia and South Carolina are considering passing legislation to prevent companies from using credit as a factor in hiring candidates for employment. Only two state legislatures Oregon and Illinois passed the law.
However, a win for consumers is that many credit card companies are banks are not weighing credit scores as much as before because the FICO score can make a mistake and classify a consumer as a bad risk when they are a good risk. Companies are now realizing what consumers knew all along, that the FICO score system is flawed and needs to be revised to accommodate the new credit card laws and current economic situation. Contact your congressman to demand states stop this unfair practice https://writerep.house.gov/writerep/welcome.shtml.
Saturday, June 12, 2010
Checks vs Money Orders
Approximately 17 million Americans are unbanked or do not have a bank account. This numbers includes those who use check cashing retailers, liquors stores to cash checks or use money orders. Many of these Americans have bad credit, little to no savings or just don’t trust the banking industry.
I used to write checks to pay my bills but after electronic check processing became available I was very uneasy using checks to pay my bills. After becoming a victim of identity theft by check in July 2009 I decided to begin paying my bills using money orders. I still use checks to make some payments but will switch to paying bills 100% by money orders until my the industry forces me to do otherwise.
Choosing to pay by money order is a personal choice since I bank with a local credit union. I have been a customer of the credit union for several years and am happy with the service I receive; however, I am very uneasy with someone accessing my checking account electronically. This can increase errors made on your account, increase your chances of being a victim of identity theft. Until more security measures are put in place in the banking industry for consumers I will continue to use money orders.
On average I would spend $3.90 on postage for each check written per month. If I write ten checks I would spend $3.90 per month in postage. If I use money orders to pay my bills the cost of each money order is $.39 so it would cost me $7.80 ($3.90 + $3.90) to pay 10 bills each month. Using money orders have advantages and disadvantages:
Advantages
1. Reduces my chances of becoming a victim of identity theft by limiting exposure to my checking account.
2. If you frequently use a credit card to pay bills or frequently pay overdraft charges you will save money by using money orders.
3. You may become more disciplined in your spending habits because you will limit your use of your credit card, check card or debit card to make purchases which allow you to spend more money than you have.
4. Is the best option if you do not have a bank account.
5. If you have a checking account your bank may allow you to get a money order for no fee.
6. Purchasing a money order from the US Postal Services provides security protections such as the Ben Franklin images on the left side and the amount of the money order listed in two locations.
Disadvantages
1. Obtaining a single money order has limits in some cases up to $1,000 depending on the issuer. To get money order for larger amounts may require an id and will require purchasing multiple money orders.
2. Increases the time to process your payment if the money order is mailed out of state which on average can take anywhere from 2-15 business days to process.
3. Your account cannot be credited immediately once payment is received (because your checking account is not accessed).
4. If you lose your cash your bank will not replace it.
5. You will incur more expenses by using money orders.
6. If will be more difficult to dispute your payment history and you won't have a receipt of payment because the money order stub does not list who the money order was payable to.
I used to write checks to pay my bills but after electronic check processing became available I was very uneasy using checks to pay my bills. After becoming a victim of identity theft by check in July 2009 I decided to begin paying my bills using money orders. I still use checks to make some payments but will switch to paying bills 100% by money orders until my the industry forces me to do otherwise.
Choosing to pay by money order is a personal choice since I bank with a local credit union. I have been a customer of the credit union for several years and am happy with the service I receive; however, I am very uneasy with someone accessing my checking account electronically. This can increase errors made on your account, increase your chances of being a victim of identity theft. Until more security measures are put in place in the banking industry for consumers I will continue to use money orders.
On average I would spend $3.90 on postage for each check written per month. If I write ten checks I would spend $3.90 per month in postage. If I use money orders to pay my bills the cost of each money order is $.39 so it would cost me $7.80 ($3.90 + $3.90) to pay 10 bills each month. Using money orders have advantages and disadvantages:
Advantages
1. Reduces my chances of becoming a victim of identity theft by limiting exposure to my checking account.
2. If you frequently use a credit card to pay bills or frequently pay overdraft charges you will save money by using money orders.
3. You may become more disciplined in your spending habits because you will limit your use of your credit card, check card or debit card to make purchases which allow you to spend more money than you have.
4. Is the best option if you do not have a bank account.
5. If you have a checking account your bank may allow you to get a money order for no fee.
6. Purchasing a money order from the US Postal Services provides security protections such as the Ben Franklin images on the left side and the amount of the money order listed in two locations.
Disadvantages
1. Obtaining a single money order has limits in some cases up to $1,000 depending on the issuer. To get money order for larger amounts may require an id and will require purchasing multiple money orders.
2. Increases the time to process your payment if the money order is mailed out of state which on average can take anywhere from 2-15 business days to process.
3. Your account cannot be credited immediately once payment is received (because your checking account is not accessed).
4. If you lose your cash your bank will not replace it.
5. You will incur more expenses by using money orders.
6. If will be more difficult to dispute your payment history and you won't have a receipt of payment because the money order stub does not list who the money order was payable to.
Wednesday, June 09, 2010
Move Over Netflix There's a New Sheriff in Town
Many Americans have found dozens of ways to save money and reduce their expenses. One expense for many families is going to the movies. For a family of 4, a movie night can cost anywhere from $50-$80. Many Americans have resorted to renting DVD's instead of going to the movie theater.
Netflix has dominated the market in DVD rentals putting other retail stores out of business. Netflix has a larger inventory of movies and pays postage for each DVD rental.
A new company called Redbox owned by Coinstar has emerged to give Netflix some competition. You get a free rental when you open an account with Redbox. Redbox has over 20,000 locations nationwide where you can rent and return movies. You can rent a movie online or pick it up at a Redbox location for just $1.
There is a catch. There are limits on the number of rentals you can get at one time. If you are using a credit card for the first time you can rent 2 DVDs, existing customers can rent or purchase up to 5 DVDs.
You have to return the DVD rental by 9:00pm the same day but if you want to rent a movie longer you will pay an additional fee plus tax. The inventory of movies includes releases that are completed.
The Redbox is a tall red kiosk and can can be found at various McDonald’s restaurants as well as Wal-Mart stores, pharmacies, grocery stores, and other locations.
New DVD releases are added to the Redbox kiosks each Tuesday.
Redbox is now the largest operator of DVD rental kiosks and carries about 700 movies in each kiosk. Check out Redbox and let me know what you think.
Netflix has dominated the market in DVD rentals putting other retail stores out of business. Netflix has a larger inventory of movies and pays postage for each DVD rental.
A new company called Redbox owned by Coinstar has emerged to give Netflix some competition. You get a free rental when you open an account with Redbox. Redbox has over 20,000 locations nationwide where you can rent and return movies. You can rent a movie online or pick it up at a Redbox location for just $1.
There is a catch. There are limits on the number of rentals you can get at one time. If you are using a credit card for the first time you can rent 2 DVDs, existing customers can rent or purchase up to 5 DVDs.
You have to return the DVD rental by 9:00pm the same day but if you want to rent a movie longer you will pay an additional fee plus tax. The inventory of movies includes releases that are completed.
The Redbox is a tall red kiosk and can can be found at various McDonald’s restaurants as well as Wal-Mart stores, pharmacies, grocery stores, and other locations.
New DVD releases are added to the Redbox kiosks each Tuesday.
Redbox is now the largest operator of DVD rental kiosks and carries about 700 movies in each kiosk. Check out Redbox and let me know what you think.
Sunday, June 06, 2010
Another Way to Save Money Online
Many consumers nowadays are trying to find more ways to save money. One way consumers save money is by shopping online. There are also many comparison shopping websites such as Nextag and Bizrate. Well the latest trend in online shopping is penny auctions. Penny auctions allow consumers to shop for products for pennies on the dollar. The most popular penny auction website is QuiBids.com.
QuiBids works similar to eBay and auctions off brand new items such as HDTVs, digital cameras, iPads, and more for discounts up to 85% off the retail price. But, there is a catch. Users of the website have to pay to participate in these auctions.
Users pay $.60 to place a bid which runs by a clock timer. Each time a bid is placed time is added to the clock so users can determine if they would like to continue bidding. This fee allows QuiBids to sell their products at a cheaper price like digital cameras for under $60.
Users also have a "buy it now" option which allows all of the money paid towards bids they did not win to go towards the item they wish to purchase with the "buy it now" option.
The website allow consumers to buy products that they normally wouldn't be able to afford in this economy. The website is gaining popularity by word-of-mouth advertising.
Registering for a bid is rather easy. Once you register you choose the auction you want to participate in, place your bid and see what happens.
QuiBids works similar to eBay and auctions off brand new items such as HDTVs, digital cameras, iPads, and more for discounts up to 85% off the retail price. But, there is a catch. Users of the website have to pay to participate in these auctions.
Users pay $.60 to place a bid which runs by a clock timer. Each time a bid is placed time is added to the clock so users can determine if they would like to continue bidding. This fee allows QuiBids to sell their products at a cheaper price like digital cameras for under $60.
Users also have a "buy it now" option which allows all of the money paid towards bids they did not win to go towards the item they wish to purchase with the "buy it now" option.
The website allow consumers to buy products that they normally wouldn't be able to afford in this economy. The website is gaining popularity by word-of-mouth advertising.
Registering for a bid is rather easy. Once you register you choose the auction you want to participate in, place your bid and see what happens.
Thursday, June 03, 2010
Findings Deal May Be Possible At Walmart
I used to shop at Target faithfully and then I heard about WalMart and how they slash prices. Over the past few years Walmart stopped slashing prices altogether or reduced the amount of price cuts they offered customers.
When that happened I went back to shopping at Target and so did other consumers. Well, WalMart must have noticed because they are going back to slashing their prices, but don't get too excited, it's not on all items, just a select few.
WalMart has slashed prices on ketchup and Coke soda.
They are now selling ketchup for $1 per bottle and cases of Coke soda for $4. The price slashes began just before the Memorial Day weekend and more price slashes are expected through the summer on 22 foods and other products which should provide consumers with an average savings of 30 percent.
This is a risky move for a nationwide chain in this economy when many businesses are raising prices to stay afloat. WalMart hopes the price slashes will bring customers in droves to their stores.
Consumers have also complained about products that are now discontinued. WalMart heard your cry. They are now restoring hundreds of discontinued items such as soups and laundry detergent. WalMart is also focusing advertising basic items such as underwear and socks.
Previous and current WalMart customers are now comparison shopping to see which stores or online website has the best deal which is hurting stores like WalMart and Target.
Wherever you shop look for the best bargain and the best quality. You may be able to find the item you are looking for at WalMart or one of their competitors but at least you have the option of shopping around.
When that happened I went back to shopping at Target and so did other consumers. Well, WalMart must have noticed because they are going back to slashing their prices, but don't get too excited, it's not on all items, just a select few.
WalMart has slashed prices on ketchup and Coke soda.
They are now selling ketchup for $1 per bottle and cases of Coke soda for $4. The price slashes began just before the Memorial Day weekend and more price slashes are expected through the summer on 22 foods and other products which should provide consumers with an average savings of 30 percent.
This is a risky move for a nationwide chain in this economy when many businesses are raising prices to stay afloat. WalMart hopes the price slashes will bring customers in droves to their stores.
Consumers have also complained about products that are now discontinued. WalMart heard your cry. They are now restoring hundreds of discontinued items such as soups and laundry detergent. WalMart is also focusing advertising basic items such as underwear and socks.
Previous and current WalMart customers are now comparison shopping to see which stores or online website has the best deal which is hurting stores like WalMart and Target.
Wherever you shop look for the best bargain and the best quality. You may be able to find the item you are looking for at WalMart or one of their competitors but at least you have the option of shopping around.
Monday, May 31, 2010
Are You Stressed Over Debt
Are you stressed about your debt, you are not alone, so is most of the country. Over 1.3 million people have foreclosed on their homes this year. The unemployment rate remains at 9.9%.
Many people are still struggling to pay their bills while others have given up looking for employment. Others are living on fixed incomes that have not received a yearly increase to match the rising costs of food, housing and other basic necessities.
Americans who once traded in older homes, cars and clothing for updates each year are now forced to take care of their things and hold on to them longer because they simply can't afford to buy anything new.
Before the recession many Americans only lived day to day and didn’t worry about their future. Now many Americans are worried about their future and are struggling to live day to day. Americans are stressed about their homes, their jobs, their cars and other debts that they are unable to pay.
There has also been an increase in the number of judgments filed since the recession. More Americans are being dragged to court to pay delinquent debts that they don't have the money to pay. Hopefully the judges will be easy and setup payment plans that the consumers can afford instead of filing in the creditor's favor.
The recession has forced many Americans to live well below their means and watch their spending by reducing expenses, eating out less, canceling certain luxuries and look for new ways to save money. The good news is that more Americans are saving. According to the Department of Commerce, Americans saved 4.2% of their income last year.
The groups who are the most stressed according to a survey by AP-GfK are: households with income less than $20,000; women; married couples, and Americans aged 30-44. Groups with the least stress are: men, retirees, Americans aged 60 and over, singles, households with income greater than $100,000 and the wealthy.
Many people are still struggling to pay their bills while others have given up looking for employment. Others are living on fixed incomes that have not received a yearly increase to match the rising costs of food, housing and other basic necessities.
Americans who once traded in older homes, cars and clothing for updates each year are now forced to take care of their things and hold on to them longer because they simply can't afford to buy anything new.
Before the recession many Americans only lived day to day and didn’t worry about their future. Now many Americans are worried about their future and are struggling to live day to day. Americans are stressed about their homes, their jobs, their cars and other debts that they are unable to pay.
There has also been an increase in the number of judgments filed since the recession. More Americans are being dragged to court to pay delinquent debts that they don't have the money to pay. Hopefully the judges will be easy and setup payment plans that the consumers can afford instead of filing in the creditor's favor.
The recession has forced many Americans to live well below their means and watch their spending by reducing expenses, eating out less, canceling certain luxuries and look for new ways to save money. The good news is that more Americans are saving. According to the Department of Commerce, Americans saved 4.2% of their income last year.
The groups who are the most stressed according to a survey by AP-GfK are: households with income less than $20,000; women; married couples, and Americans aged 30-44. Groups with the least stress are: men, retirees, Americans aged 60 and over, singles, households with income greater than $100,000 and the wealthy.
Friday, May 28, 2010
5 Easy Ways to Save Money While on Summer Vacation
Many of us 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.
We all need to take time out to relax. The catch is how much will you have to spend to enjoy your summer vacation. Now is a great time to start looking for bargains on airfare, hotels and vacation spots. There are tons of sites available some good ones to use are kayak.com, travelocity.com, orbitz.com. Here are 5 ways to save money when planning for your summer vacation.
1. Comparison Shop. 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.
2. Don’t wait until the late minute. 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.
3. Ask others. 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 fast. When you see or hear about sales or discounts you have to move quickly to capitalize on the deal because they usually don't last long.
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.
We all need to take time out to relax. The catch is how much will you have to spend to enjoy your summer vacation. Now is a great time to start looking for bargains on airfare, hotels and vacation spots. There are tons of sites available some good ones to use are kayak.com, travelocity.com, orbitz.com. Here are 5 ways to save money when planning for your summer vacation.
1. Comparison Shop. 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.
2. Don’t wait until the late minute. 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.
3. Ask others. 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 fast. When you see or hear about sales or discounts you have to move quickly to capitalize on the deal because they usually don't last long.
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.
Tuesday, May 25, 2010
What You Need to Know About Gift Cards
The CARD Act of 2009 has regulations that affect gifts cards. Starting on August 22, 2010 the CARD Act will require that gift cards have a five year expiration date that must be disclosed to the consumer in advance. These regulations do not apply to prepaid telephone cards and reloadable gift cards.
Gift cards and gift certificates that have not been used can't incur inactivity fees for at least 12 months, and the amount and terms of the fee must be disclosed to the consumer in advance. After a year, only one fee can apply each month. Previously multiple fees were applied each month.
In September 2009, American Express ended its monthly gift card inactivity fee that states that after a year a card that had a balance was charged $2 deduction every month until the balance was zero.
Unfortunately gift cards can still charge upfront fees such as a fee for activity the card which can range from $4.99 - $9.99.
Consumers unfortunately may have to pay higher fees upfront after August 22, 2010 to make up for the revenue companies will lose by not being able to charge inactivity and other fees after the card is purchases.
Gift cards and gift certificates that have not been used can't incur inactivity fees for at least 12 months, and the amount and terms of the fee must be disclosed to the consumer in advance. After a year, only one fee can apply each month. Previously multiple fees were applied each month.
In September 2009, American Express ended its monthly gift card inactivity fee that states that after a year a card that had a balance was charged $2 deduction every month until the balance was zero.
Unfortunately gift cards can still charge upfront fees such as a fee for activity the card which can range from $4.99 - $9.99.
Consumers unfortunately may have to pay higher fees upfront after August 22, 2010 to make up for the revenue companies will lose by not being able to charge inactivity and other fees after the card is purchases.
Saturday, May 22, 2010
How Many Bank Accounts Do You Have
Some experts say less is more and in some cases that is correct but what about bank accounts. Determining how many bank accounts you should have depends on your financial goals: do you want to create an emergency fund, plan for retirement, etc.
You should have at least two bank accounts. If one bank goes out of business or has some type of glitch that prevents you from accessing your money, you will have the other account available. If you have your money in a FDIC insured bank for now you money is insured up to $250,000 temporarily and then the limit will go bank down to $100,000.
Another reason to have more than one account is when traveling, your local bank may not allow you to access money outside of your state so a second account would come in handy. The key is to make sure both accounts operate on separate networks or make sure that at least one account can be accessed nationwide or internationally if you frequently travel overseas.
You can have multiple accounts as long as they remain active and you are disciplined enough to keep track of them. Read your statements each month and verify your balances. If you decide to have a joint bank account verify the balance daily or weekly especially if you spouse does not balance the checkbook or keep receipts. Here are some options you can use to determine how many bank accounts you should have.
How Many Accounts Should You Have
1. Consider location
2. Consider fees
3. What does the bank offers - 24/7 access, after hours customer service, online options, multiple products and services, low or no fees, security protections, multiple locations
4. Watch how they treat their customers
5. Check the bank rating
6. Check the bank's stability
7. Look at future plans (upgrades to service, conversions, future mergers, layoffs, etc.)
You Should Closing Accounts If:
1. You don't know your balance
2. Your account is negative
3. Your balance doesn't grow because of fees you are being charged to keep the account open
4. The interest rate is low or you don't earn any interest
5. You cringe at the thought of going to the bank to make a deposit
6. You forgot you had the account
7. Your original reason for opening the account is no longer valid
You should have at least two bank accounts. If one bank goes out of business or has some type of glitch that prevents you from accessing your money, you will have the other account available. If you have your money in a FDIC insured bank for now you money is insured up to $250,000 temporarily and then the limit will go bank down to $100,000.
Another reason to have more than one account is when traveling, your local bank may not allow you to access money outside of your state so a second account would come in handy. The key is to make sure both accounts operate on separate networks or make sure that at least one account can be accessed nationwide or internationally if you frequently travel overseas.
You can have multiple accounts as long as they remain active and you are disciplined enough to keep track of them. Read your statements each month and verify your balances. If you decide to have a joint bank account verify the balance daily or weekly especially if you spouse does not balance the checkbook or keep receipts. Here are some options you can use to determine how many bank accounts you should have.
How Many Accounts Should You Have
1. Consider location
2. Consider fees
3. What does the bank offers - 24/7 access, after hours customer service, online options, multiple products and services, low or no fees, security protections, multiple locations
4. Watch how they treat their customers
5. Check the bank rating
6. Check the bank's stability
7. Look at future plans (upgrades to service, conversions, future mergers, layoffs, etc.)
You Should Closing Accounts If:
1. You don't know your balance
2. Your account is negative
3. Your balance doesn't grow because of fees you are being charged to keep the account open
4. The interest rate is low or you don't earn any interest
5. You cringe at the thought of going to the bank to make a deposit
6. You forgot you had the account
7. Your original reason for opening the account is no longer valid
Wednesday, May 19, 2010
Is Your Budget Too Tight
A budget is only restrictive if you don't have any extra cash left over after you pay your bills. Stars and athletes have budgets; they hire accountants to keep track of their money so why shouldn't you keep track of yours? 70% of Americans live paycheck to paycheck and 40% of Americans live above their means. This statistic shows there is a serious problem in America.
A budget frees you from stress, worry and anxiety because you know what you have, what you are spending and have the money available to buy the things you need and occasionally the things you want.
A budget helps keep your finances in balance. When your budget is out of balance you use credit cards, go into debt and this can lead to serious financial problems such as foreclosure, bankruptcy, etc. If you know how much money you earn you should also know how much you spend.
How to Develop a Budget
1. Subtract monthly expenses from your monthly income. If the total is negative or less than 5% of your total monthly income that is a red flag that you need to make some major adjustments to your budget.
2. Track daily, weekly or monthly
3. Keep all your receipts and reconcile your bank accounts
4. Use automated software tool, pen and paper or the envelope method
5. Include some wiggle room.
6. Create short and long term goals
7. Use money left over in budget to create a savings account and pay down debt
How Budgets Can Prepare You for Future Events
1. Is your financial roadmap
2. Helps to deal with unexpected expenses
3. If you work every year and don't have money to take a vacation or get your car repaired or buy a needed pair of shoes because the one you have squeeze when you walk, or don't have enough money to buy health insurance then you need a budget.
4. What you do today will affect your future
5. Can help you plan for the future
6. Frees up cash to achieve financial goals: plan for vacations, home renovations, your children's college education, and plan for retirement
Benefits of a Budget
1. Prevents you from spending more than you have
2. Reduce usage of credit cards
3. Reduces fees (bounced checks, overdraft, over-the-limit, late fee, etc.)
4. Prevents arguments with your spouse or significant other and helps reduce blame
5. Helps you save money when making purchases because you don't have to worry about credit card interest and finance charges
6. Prevents harassing calls from creditors
7. A budget is needed even if you pay your bills on time. The best athletes have personal trainers and coaches to help them remember the best, so if you want to get better with your finances start a budget
A budget frees you from stress, worry and anxiety because you know what you have, what you are spending and have the money available to buy the things you need and occasionally the things you want.
A budget helps keep your finances in balance. When your budget is out of balance you use credit cards, go into debt and this can lead to serious financial problems such as foreclosure, bankruptcy, etc. If you know how much money you earn you should also know how much you spend.
How to Develop a Budget
1. Subtract monthly expenses from your monthly income. If the total is negative or less than 5% of your total monthly income that is a red flag that you need to make some major adjustments to your budget.
2. Track daily, weekly or monthly
3. Keep all your receipts and reconcile your bank accounts
4. Use automated software tool, pen and paper or the envelope method
5. Include some wiggle room.
6. Create short and long term goals
7. Use money left over in budget to create a savings account and pay down debt
How Budgets Can Prepare You for Future Events
1. Is your financial roadmap
2. Helps to deal with unexpected expenses
3. If you work every year and don't have money to take a vacation or get your car repaired or buy a needed pair of shoes because the one you have squeeze when you walk, or don't have enough money to buy health insurance then you need a budget.
4. What you do today will affect your future
5. Can help you plan for the future
6. Frees up cash to achieve financial goals: plan for vacations, home renovations, your children's college education, and plan for retirement
Benefits of a Budget
1. Prevents you from spending more than you have
2. Reduce usage of credit cards
3. Reduces fees (bounced checks, overdraft, over-the-limit, late fee, etc.)
4. Prevents arguments with your spouse or significant other and helps reduce blame
5. Helps you save money when making purchases because you don't have to worry about credit card interest and finance charges
6. Prevents harassing calls from creditors
7. A budget is needed even if you pay your bills on time. The best athletes have personal trainers and coaches to help them remember the best, so if you want to get better with your finances start a budget
Sunday, May 16, 2010
7 Financial Tips for Recent College Grads
Congratulations! You graduated from college and received your degree. Now what? You now 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 everything you want 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. 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.
2. 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.
3. Pay more. 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.
4. Retirement. 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. Buy health, life and disability insurance. 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.
7. Student Loans. Start now paying back student loans. The longer you wait to pay them back the more interest accrues on your balance. Consider using student loan forgiveness programs at finaid.org.
1. 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.
2. 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.
3. Pay more. 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.
4. Retirement. 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. Buy health, life and disability insurance. 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.
7. Student Loans. Start now paying back student loans. The longer you wait to pay them back the more interest accrues on your balance. Consider using student loan forgiveness programs at finaid.org.
Thursday, May 13, 2010
Mortgage Lenders Get Punished
Today the Senate voted to ban mortgage lenders and loan officers from received higher pay for offering higher interest rates on loans, and will require that borrowers prove they can repay their loans as part of the overhaul of financial regulations to prevent the collapse of Wall Street and the housing market in 2008. The Senate also voted to let the Federal Reserve retain supervision of smaller banks.
The bill would place restrictions on how mortgage lenders and loan officers get compensated because consumers were encouraged to obtain higher interest rate mortgages that they were unable to pay, resulting in record numbers of foreclosures.
The bill would require borrowers to provide proof of their income by showing tax returns, payroll receipts or bank documents and would eliminate the "no-doc" or "low-doc" loans that were previously offered that did not require proof of income.
Another industry that needs an overhaul is the auto industry repeatedly take advantage of consumers by inflating rates and inserting hidden fees and displaying deceptive ads.
The bill would place restrictions on how mortgage lenders and loan officers get compensated because consumers were encouraged to obtain higher interest rate mortgages that they were unable to pay, resulting in record numbers of foreclosures.
The bill would require borrowers to provide proof of their income by showing tax returns, payroll receipts or bank documents and would eliminate the "no-doc" or "low-doc" loans that were previously offered that did not require proof of income.
Another industry that needs an overhaul is the auto industry repeatedly take advantage of consumers by inflating rates and inserting hidden fees and displaying deceptive ads.
Monday, May 10, 2010
Healthcare Reform and Small Businesses
The Healthcare reform has provisions for Americans as well as businesses. The Healthcare reform affects small businesses that have fewer than 100 employees but depends on state guidelines.
Tax credits are available to small companies depending on the size of the company. The largest tax credits are available for small businesses for that have 10 employees or less. Companies with 50 employees or more will not receive any tax credits. Companies who provide their employees with high cost insurance plans that is defined by the cost of the insurance premiums instead of what the insurance plan covers will be taxed at 40% beginning in 2014. Subscribers of these plans usually have excellent health coverage and low deductibles.
Starting in 2010 small businesses will receive a 35% tax credit if they have 10 employees or less that earn $25,000 a year. Small businesses that have 25 or less employees than earn $50,000 a year or less are eligible for a smaller tax credit. Employees who earn $80,000 or more per year are excluded from the tax credit.
Beginning in 2014, all states must setup health insurance pools called Small Business Health Options Programs (SHOP) which will allow small businesses to pool together to buy health insurance. Participating in this program will allow small businesses to receive a 50% tax credit if you have 10 or less employees who earn less than $25,000 a year. If you have 50 or more employees and do not provide health insurance you will be fined $750 per full-time employee but you will not be charged for the first 30 workers that you don't provide health insurance for. You will also be fined if you don't cover at least 60% of employee health costs.
Small companies that pay more than $10,200 per year for individual employee’s health coverage, or more than $27,500 for family health coverage will be charged a 40% excise tax on the portion of money paid that exceeds the individual or family amounts.
If you offer your employees health insurance you are required to cover no less than 72.5% of the cheapest health insurance plan for individuals, and no less than 65% of the cheapest plan for families. You will be required to automatically enroll every employee in a health plan with the lowest employee premium, unless they opt out.
If you decide not to provide health coverage to your employees you will be required to pay the Health Choices Commissioner 8% of the average wages paid during a predetermined enrollment period and you may be charged a lower percentage if your annual payroll is less than $400,000.
If you provide health insurance to your employees and don't pay the SHOP fee or if you try to entice a sick employee away from the company-provided health insurance towards the SHOP to save money you will be fined $100 per violation per day.
Tax credits are available to small companies depending on the size of the company. The largest tax credits are available for small businesses for that have 10 employees or less. Companies with 50 employees or more will not receive any tax credits. Companies who provide their employees with high cost insurance plans that is defined by the cost of the insurance premiums instead of what the insurance plan covers will be taxed at 40% beginning in 2014. Subscribers of these plans usually have excellent health coverage and low deductibles.
Starting in 2010 small businesses will receive a 35% tax credit if they have 10 employees or less that earn $25,000 a year. Small businesses that have 25 or less employees than earn $50,000 a year or less are eligible for a smaller tax credit. Employees who earn $80,000 or more per year are excluded from the tax credit.
Beginning in 2014, all states must setup health insurance pools called Small Business Health Options Programs (SHOP) which will allow small businesses to pool together to buy health insurance. Participating in this program will allow small businesses to receive a 50% tax credit if you have 10 or less employees who earn less than $25,000 a year. If you have 50 or more employees and do not provide health insurance you will be fined $750 per full-time employee but you will not be charged for the first 30 workers that you don't provide health insurance for. You will also be fined if you don't cover at least 60% of employee health costs.
Small companies that pay more than $10,200 per year for individual employee’s health coverage, or more than $27,500 for family health coverage will be charged a 40% excise tax on the portion of money paid that exceeds the individual or family amounts.
If you offer your employees health insurance you are required to cover no less than 72.5% of the cheapest health insurance plan for individuals, and no less than 65% of the cheapest plan for families. You will be required to automatically enroll every employee in a health plan with the lowest employee premium, unless they opt out.
If you decide not to provide health coverage to your employees you will be required to pay the Health Choices Commissioner 8% of the average wages paid during a predetermined enrollment period and you may be charged a lower percentage if your annual payroll is less than $400,000.
If you provide health insurance to your employees and don't pay the SHOP fee or if you try to entice a sick employee away from the company-provided health insurance towards the SHOP to save money you will be fined $100 per violation per day.
Friday, May 07, 2010
Bad Credit and Dating
Credit affects many aspects of your life include dating. If you have poor credit because you lost your job or home to foreclosure women will be more forgiving and understanding. However, some women may not be interested in dating a man who doesn't pay their bills or wants to wait 7 years for old debts to fall off their credit report instead of paying the debt.
Many women are more concerned with the character of a man instead of his material possessions and it is very appealing for a woman to meet a man with an average or good credit score because it states a lot about his character: you are aware that credit affects several aspects of your life, you are accountable and responsible with your money and pay your bills on time, you may have made mistakes in the past but have learned from your mistakes, and you continually work to ensure that you maintain and/or improve your credit score.
Some women don't date men with bad credit. If you have bad credit and are dating it is best to be upfront with women. Women want to be with a man who is responsible and accountable for his actions.
Women like a man who has a plan and knows how to solve problems and women examine how a man is solving his own problems. If a woman knows that you have bad credit and you are not doing anything to fix it you may not be considered for a possible date or a potential mate.
If you are dating and have poor credit it will force you to be accountable for your actions. Here are some tips to help you:
1) Think of creative ways to increase your income since many employers are using credit as a means to hire candidates.
2) Purchase items with cash (but if you don't manage your money properly and overdraw your account it will lower your credit score).
3) Develop better money management skills to ensure that you live below your means.
4) Examine why you have and/or continue to have poor credit.
5) Be creative when dating because if you don't have a lot of cash or credit you won't be able to go to the usual places like dinner and movies, trips, etc.
6) Learn how to appreciate the simple things in life.
Many women are more concerned with the character of a man instead of his material possessions and it is very appealing for a woman to meet a man with an average or good credit score because it states a lot about his character: you are aware that credit affects several aspects of your life, you are accountable and responsible with your money and pay your bills on time, you may have made mistakes in the past but have learned from your mistakes, and you continually work to ensure that you maintain and/or improve your credit score.
Some women don't date men with bad credit. If you have bad credit and are dating it is best to be upfront with women. Women want to be with a man who is responsible and accountable for his actions.
Women like a man who has a plan and knows how to solve problems and women examine how a man is solving his own problems. If a woman knows that you have bad credit and you are not doing anything to fix it you may not be considered for a possible date or a potential mate.
If you are dating and have poor credit it will force you to be accountable for your actions. Here are some tips to help you:
1) Think of creative ways to increase your income since many employers are using credit as a means to hire candidates.
2) Purchase items with cash (but if you don't manage your money properly and overdraw your account it will lower your credit score).
3) Develop better money management skills to ensure that you live below your means.
4) Examine why you have and/or continue to have poor credit.
5) Be creative when dating because if you don't have a lot of cash or credit you won't be able to go to the usual places like dinner and movies, trips, etc.
6) Learn how to appreciate the simple things in life.
Tuesday, May 04, 2010
Personal Finance Tips for Stay at Home Moms
With the recession many mothers have been forced or decided to stay home to reduce expenses and take care of their families. One thing that is crucial to the financial stability of stay at home moms is personal finance. Women can't depend on their spouses income during retirement.
As a stay at home mom you must have your own retirement account and finances to ensure you have a secure financial future. Here are some tips on how to prepare for your financial future.
Spending Plan
1. Create a spending plan and stick to it.
2. Collect change and put in a water bottle. Every 3 months take the money to the bank and deposit into a savings account.
3. Any additional money saved or earned (yard sale, coupons, etc.) can be deposited into a retirement account.
4. Sell new or used goods on eBay.
5. Save at least 3 to 6 months worth of expenses in an emergency fund.
Saving for Retirement
1. Consider getting a spousal IRA. A stay at home mom in 2010 can contribute up to $5,000 a year towards an IRA but this gets phased out for couples with adjusted gross income between $167,000 and $177,000.
2. Don't depend on your husband's retirement income to cover both of you during retirement. Each person needs at least 80% of their salary during retirement so if you are a stay at home mom, your husband's 80% salary will have to cover both of you and that money will be depleted very quickly even if you live a simple life.
Life Insurance
1. Determine how much money you would need to cover child care costs, housekeeping, car repairs, cooking, cleaning, school expenses for children, grocery shopping, etc.
2. Term life insurance is the cheapest type of insurance for a stay at home mom.
3. Determine how long you want a fixed rate: 10, 20 or 30 years.
4. Determine how long you want insurance: until your kids reach high school age, etc.
5. Comparison shop to find the best rates.
6. If you are unable to pay for a life insurance premium look for ways to reduce expenses and consider getting a part-time job.
Wills
1. Who will take care of my children?
2. How do I want my children taken care of?
3. Do I have any assets, if so, who will receive them?
4. Do I want my children to have an inheritance? If so, how do I want my children to spend their inheritance?
As a stay at home mom you must have your own retirement account and finances to ensure you have a secure financial future. Here are some tips on how to prepare for your financial future.
Spending Plan
1. Create a spending plan and stick to it.
2. Collect change and put in a water bottle. Every 3 months take the money to the bank and deposit into a savings account.
3. Any additional money saved or earned (yard sale, coupons, etc.) can be deposited into a retirement account.
4. Sell new or used goods on eBay.
5. Save at least 3 to 6 months worth of expenses in an emergency fund.
Saving for Retirement
1. Consider getting a spousal IRA. A stay at home mom in 2010 can contribute up to $5,000 a year towards an IRA but this gets phased out for couples with adjusted gross income between $167,000 and $177,000.
2. Don't depend on your husband's retirement income to cover both of you during retirement. Each person needs at least 80% of their salary during retirement so if you are a stay at home mom, your husband's 80% salary will have to cover both of you and that money will be depleted very quickly even if you live a simple life.
Life Insurance
1. Determine how much money you would need to cover child care costs, housekeeping, car repairs, cooking, cleaning, school expenses for children, grocery shopping, etc.
2. Term life insurance is the cheapest type of insurance for a stay at home mom.
3. Determine how long you want a fixed rate: 10, 20 or 30 years.
4. Determine how long you want insurance: until your kids reach high school age, etc.
5. Comparison shop to find the best rates.
6. If you are unable to pay for a life insurance premium look for ways to reduce expenses and consider getting a part-time job.
Wills
1. Who will take care of my children?
2. How do I want my children taken care of?
3. Do I have any assets, if so, who will receive them?
4. Do I want my children to have an inheritance? If so, how do I want my children to spend their inheritance?
Saturday, May 01, 2010
How I Saved $415 in One Day
Although we are still feeling the effects of the recession there are many ways you can still save money. My contract with my cell phone carrier had expired in April 2010 and I knew I was eligible for an upgrade.
I searched the carrier website and found the phone I wanted. I was going to order the phone online and wait for it to arrive in the mail but decided to wait a few days.
The cell phone I selected cost $399 and had tons of bells and whistles that my current phone did not have. I could not watch videos; upload presentations, and views documents in .pdf, Word and Excel. I just happened to be in an electronics store and was looking at their cell phones and noticed that they had the same cell phone I wanted to purchase.
The sales clerk asked me if I was interested in any of their cell phones and I pointed to the one I wanted but quickly told him that I could get the cell phone for free on my carrier's website instead of paying the $15 store price. The sales clerk told me to wait and they could match the price.
I logged on to my account and showed the salesclerk the phone I wanted and the price for upgrade which was "zero". He quickly selected my phone, switched over all my data and sold me a cover for my new phone, all for under $40. The $40 included a cover for my new phone $29.99 and the $9.99 per month insurance coverage. Needless to say I was excited about saving $400.
Keep in mind that my previous phone kept freezing up and I had several problems with it during the past year. I continually called my cell phone carrier and they suggested buying a new phone or wait until I was eligible for an upgrade. At one point they mailed me a new battery after threatening to go with a competitor cell phone carrier and reminding them that I had two cell phones with them, one for personal and one for business.
I was not happy with their response so I toughed it out with my phone freezing up, having to take the battery out to stop the phone from freezing, having the ball scroll all over the place, having a hard time deleting or selecting items. My thoughts about that will appear in another blog. But all that suffering paid off and now I have a new Blackberry which I love. Miracles do still happen.
I searched the carrier website and found the phone I wanted. I was going to order the phone online and wait for it to arrive in the mail but decided to wait a few days.
The cell phone I selected cost $399 and had tons of bells and whistles that my current phone did not have. I could not watch videos; upload presentations, and views documents in .pdf, Word and Excel. I just happened to be in an electronics store and was looking at their cell phones and noticed that they had the same cell phone I wanted to purchase.
The sales clerk asked me if I was interested in any of their cell phones and I pointed to the one I wanted but quickly told him that I could get the cell phone for free on my carrier's website instead of paying the $15 store price. The sales clerk told me to wait and they could match the price.
I logged on to my account and showed the salesclerk the phone I wanted and the price for upgrade which was "zero". He quickly selected my phone, switched over all my data and sold me a cover for my new phone, all for under $40. The $40 included a cover for my new phone $29.99 and the $9.99 per month insurance coverage. Needless to say I was excited about saving $400.
Keep in mind that my previous phone kept freezing up and I had several problems with it during the past year. I continually called my cell phone carrier and they suggested buying a new phone or wait until I was eligible for an upgrade. At one point they mailed me a new battery after threatening to go with a competitor cell phone carrier and reminding them that I had two cell phones with them, one for personal and one for business.
I was not happy with their response so I toughed it out with my phone freezing up, having to take the battery out to stop the phone from freezing, having the ball scroll all over the place, having a hard time deleting or selecting items. My thoughts about that will appear in another blog. But all that suffering paid off and now I have a new Blackberry which I love. Miracles do still happen.
Wednesday, April 28, 2010
Health Care Reform Part II
According to the National Women's Law Center whether women are insured or uninsured, they have many out-of-pocket costs that they are more likely to avoid health care or struggle paying for health care. Some startling statistics regarding women and health care:
1. 33% of insured women and 68% of uninsured women do not get the care they need because they cannot afford it
2. 23% of insured men and 49% of uninsured men avoid health care because of cost
3. 16% of women are considered underinsured, while only 9% of men are considered underinsured
4. 38% of women struggle with medical bills compared with 29% of men
5. Women have less access to employer-sponsored insurance because they are more likely than men to work part-time
6. Women's access to insurance is less stable because they are more than twice as likely as men to get employer-sponsored insurance through their spouse
7. Women are more likely than men to take prescription drugs
8. 52% of women did not fill a prescription, did not see a specialist when needed, skipped a recommended medical test or treatment, or had a medical problem but did not visit a doctor compared to 39% of men
9. 45% of women had medical debt or reported problems with medical bills compared to 36% of men
10. 45% delayed or did not receive a cancer screening or dental care because of costs compared to 36% of men
Women will also be able to receive preventative medical services like immunizations and mammograms that will be covered in full by private health insurance companies and Medicare. Medicaid will expand services to new mothers and pregnant women, they will offer more family planning services, postpartum support and education and home visiting programs. Employers will be required to give nursing mothers breaks and space to pump breast milk.
Children with pre-existing conditions will now be able to receive health care coverage which is a huge victory since approximately 9 million children are uninsured. Health insurance companies will now allow young adults to remain on their parent's health plan up to age 26.
Older Americans will also receive additional help with prescription drug costs. Small business owners, many who are women will be able to provide health insurance to their employees and will be able to receive business tax credits. Starting in 2010 small business owners can get a 35% tax credit if they have 10 or less employee that earn less than $25,000 a year.
Beginning January 1, 2011, health insurance companies are required to waive co-payments and deductibles on preventive care which includes regular mammograms. Prescription drug companies will be required to provide a 50% discount on brand-name drugs bought in the coverage gap. The federal subsidy for Part D premiums will be reduced for higher-income beneficiaries. Cost sharing for preventive-care services will be eliminated.
A new temporary health insurance program will pay health insurance premiums and is available for retirees ages 55 through 64 who were laid off during the recession. In addition, health insurance companies will no longer be able to impose individual spending limits and terminate patients who have high medical costs.
1. 33% of insured women and 68% of uninsured women do not get the care they need because they cannot afford it
2. 23% of insured men and 49% of uninsured men avoid health care because of cost
3. 16% of women are considered underinsured, while only 9% of men are considered underinsured
4. 38% of women struggle with medical bills compared with 29% of men
5. Women have less access to employer-sponsored insurance because they are more likely than men to work part-time
6. Women's access to insurance is less stable because they are more than twice as likely as men to get employer-sponsored insurance through their spouse
7. Women are more likely than men to take prescription drugs
8. 52% of women did not fill a prescription, did not see a specialist when needed, skipped a recommended medical test or treatment, or had a medical problem but did not visit a doctor compared to 39% of men
9. 45% of women had medical debt or reported problems with medical bills compared to 36% of men
10. 45% delayed or did not receive a cancer screening or dental care because of costs compared to 36% of men
Women will also be able to receive preventative medical services like immunizations and mammograms that will be covered in full by private health insurance companies and Medicare. Medicaid will expand services to new mothers and pregnant women, they will offer more family planning services, postpartum support and education and home visiting programs. Employers will be required to give nursing mothers breaks and space to pump breast milk.
Children with pre-existing conditions will now be able to receive health care coverage which is a huge victory since approximately 9 million children are uninsured. Health insurance companies will now allow young adults to remain on their parent's health plan up to age 26.
Older Americans will also receive additional help with prescription drug costs. Small business owners, many who are women will be able to provide health insurance to their employees and will be able to receive business tax credits. Starting in 2010 small business owners can get a 35% tax credit if they have 10 or less employee that earn less than $25,000 a year.
Beginning January 1, 2011, health insurance companies are required to waive co-payments and deductibles on preventive care which includes regular mammograms. Prescription drug companies will be required to provide a 50% discount on brand-name drugs bought in the coverage gap. The federal subsidy for Part D premiums will be reduced for higher-income beneficiaries. Cost sharing for preventive-care services will be eliminated.
A new temporary health insurance program will pay health insurance premiums and is available for retirees ages 55 through 64 who were laid off during the recession. In addition, health insurance companies will no longer be able to impose individual spending limits and terminate patients who have high medical costs.
Sunday, April 25, 2010
Why Women Should Support Health Care Reform
Women should support the new health care reform for several reasons: 1) women usually make most of the decisions regarding family health care, 2) women usually live longer than men, 3) women usually require more medical care than men, 4) women have additional medical needs such as pregnancy, childbirth and childcare.
According to a report by the Commonwealth Fund, approximately 64 million women or 70%of Americans have no health insurance coverage, inadequate health care coverage, high medical bills or debt problems, or problems accessing health care because of the rising cost.
Many women have difficulty getting adequate health insurance because you usually need a full-time job which 52% of women versus 73% of men are likely to have. Many women continue to work full-time to continue receiving health care coverage but would prefer to work part-time or stay at home.
According to the Group Health Research Institute in Seattle victims of domestic violence have even higher health costs than other women for three years after the abuse ends totaling $1600 or more after the abuse ends.
According to a 2008 study by the National Law Center, prior to the health care reform, it was legal in most states for companies selling individual health policies to participate in gender rating by charging women more than men for the same coverage, even for policies that did not include maternity care. The health care premium differences ranged from 4% to 48%.
Health care reform will really help women because they can no longer be discriminated against and charged higher insurance premiums than men simply because they are a woman or for a pre-existing condition such as pregnancy, caesarian sections or other issues such as domestic violence and rape. Since women generally make only $.77 for every dollar men make, any reduction in health care costs is appreciated.
According to the National Women's Law Center whether women are insured or uninsured, they have many out-of-pocket costs that they are more likely to avoid health care or struggle paying for health care.
According to a report by the Commonwealth Fund, approximately 64 million women or 70%of Americans have no health insurance coverage, inadequate health care coverage, high medical bills or debt problems, or problems accessing health care because of the rising cost.
Many women have difficulty getting adequate health insurance because you usually need a full-time job which 52% of women versus 73% of men are likely to have. Many women continue to work full-time to continue receiving health care coverage but would prefer to work part-time or stay at home.
According to the Group Health Research Institute in Seattle victims of domestic violence have even higher health costs than other women for three years after the abuse ends totaling $1600 or more after the abuse ends.
According to a 2008 study by the National Law Center, prior to the health care reform, it was legal in most states for companies selling individual health policies to participate in gender rating by charging women more than men for the same coverage, even for policies that did not include maternity care. The health care premium differences ranged from 4% to 48%.
Health care reform will really help women because they can no longer be discriminated against and charged higher insurance premiums than men simply because they are a woman or for a pre-existing condition such as pregnancy, caesarian sections or other issues such as domestic violence and rape. Since women generally make only $.77 for every dollar men make, any reduction in health care costs is appreciated.
According to the National Women's Law Center whether women are insured or uninsured, they have many out-of-pocket costs that they are more likely to avoid health care or struggle paying for health care.
Thursday, April 22, 2010
5 Ways to Handle Collection Accounts
A collection account is a late account that has been forwarded to an agency (also known as asset recovery agency, debt buyers, collection agency or collection agent) for lack of payment. An account is forwarded to a collection agency usually when an account becomes 90 to 120 days late.
Collection accounts are purchased from the original creditors for a fraction of the original amount owed. Creditors send accounts to collection agencies to remove them from their accounts receivables records and then write-off the full debt owed as a loss. Creditors benefit in two ways, one for writing off the debt as a loss on their taxes and two when the money is collected which can be recorded as a profit or accounts receivable.
A paid or unpaid collection account remains on your credit report for seven years from the date of first delinquency. Unfortunately many collection agencies re-age the account changing the date of first delinquency to the date they received the account which extends the time the account remains on your credit report.
A collection agency holds a collection account for a few months, it they are unsuccessful in collecting on the debt owed, and the account is forwarded to another collection agency. This process continues until the account is paid or legal action is taken against the consumer.
Many times when you provide a date when the bill is paid they will ask you why, why not now or similar questions trying to use psychological tactics to get you to pay the bill while they are on the phone.
Remain calm throughout the conversion. A collection agent may ask you to repeat what you just said or write it down. These are all tactics to make you powerless and confused. Here are 5 tips to help you deal with collection accounts.
1. Keep all copies of your credit reports (current and old). If you have made any late payments or have neglected to pay any delinquent accounts compare you old credit reports with your current credit reports to verify all information on your credit report and pay close attention to the dates for collection accounts, bankruptcies, accounts included in bankruptcies and other delinquent accounts.
2. When you receive a letter from a collection agency verify the company is licensed to collect money or delinquent debts, verify the company is a reputable company and that the company has a legal right to collect money or your debt.
3. You may request that the collection agency contact my mail only (use the term cease and desist). A collection agency's goal is to get the money owed paid as soon as possible. They will continue to ask why you can’t make arrangement today.
4. If you setup payment arrangements and fall behind on your arrangement the collection agents are advised to refuse to extend time between payments, shorten the time between payments, and refuse to reduce the monthly account.
5. Whatever arrangements you make with a collection agency stick to it, don't let the collection agency change your mind about what you can afford, use emotions, or scare you into doing something you don't want to do.
Collection accounts are purchased from the original creditors for a fraction of the original amount owed. Creditors send accounts to collection agencies to remove them from their accounts receivables records and then write-off the full debt owed as a loss. Creditors benefit in two ways, one for writing off the debt as a loss on their taxes and two when the money is collected which can be recorded as a profit or accounts receivable.
A paid or unpaid collection account remains on your credit report for seven years from the date of first delinquency. Unfortunately many collection agencies re-age the account changing the date of first delinquency to the date they received the account which extends the time the account remains on your credit report.
A collection agency holds a collection account for a few months, it they are unsuccessful in collecting on the debt owed, and the account is forwarded to another collection agency. This process continues until the account is paid or legal action is taken against the consumer.
Many times when you provide a date when the bill is paid they will ask you why, why not now or similar questions trying to use psychological tactics to get you to pay the bill while they are on the phone.
Remain calm throughout the conversion. A collection agent may ask you to repeat what you just said or write it down. These are all tactics to make you powerless and confused. Here are 5 tips to help you deal with collection accounts.
1. Keep all copies of your credit reports (current and old). If you have made any late payments or have neglected to pay any delinquent accounts compare you old credit reports with your current credit reports to verify all information on your credit report and pay close attention to the dates for collection accounts, bankruptcies, accounts included in bankruptcies and other delinquent accounts.
2. When you receive a letter from a collection agency verify the company is licensed to collect money or delinquent debts, verify the company is a reputable company and that the company has a legal right to collect money or your debt.
3. You may request that the collection agency contact my mail only (use the term cease and desist). A collection agency's goal is to get the money owed paid as soon as possible. They will continue to ask why you can’t make arrangement today.
4. If you setup payment arrangements and fall behind on your arrangement the collection agents are advised to refuse to extend time between payments, shorten the time between payments, and refuse to reduce the monthly account.
5. Whatever arrangements you make with a collection agency stick to it, don't let the collection agency change your mind about what you can afford, use emotions, or scare you into doing something you don't want to do.
Monday, April 19, 2010
Tax Refunds - Use It or Lose It
Many Americans get excited when they find out they are getting a tax refund. However, for many Americans in this economy getting a tax refund means it will be spent as soon as you get it. If you are struggling to pay bills or need to get out of debt your tax refund can be a lifesaver. But, it is up to you to determine how to spend it. Many Americans spend money frivolously and don't really think about their future. Here are 7 smart ways to spend your tax refund and improve your financial life.
1. Get current. If you are behind on your mortgage payment, use the money to catch up. Make sure you get current on all utility bills and car payments.
2. Downsize. If you are in a house that is upside or have a luxury car, downsize. If you are unable to downsize your home consider renting out one or two rooms. You can make a lot of extra money renting out a room in your home. Consider selling your car and buying a used car with no car payment or that costs $5,000 or less.
3. Borrow. Ask family or friends if you can borrow money to help get caught on your mortgage and utility bills. Your main focus is to keep a roof over your head and food on your table. Once you get current on household bills, then you can use any extra money to pay down debt and other bills.
4. Extras. Cancel your internet, long distance, cable service and magazine and newspaper subscriptions. If you absolutely have to have internet and cable service get the cheapest plan possible and call continually to ask about specials.
5. Eating. Skip eating out and buying fast food because you don't feel like cooking. Cooking at home can save you lots on your grocery bill. Buy more fresh fruits and vegetables instead of starches and processed food to save money. Also, use coupons, buy items on sale, buy in bulk or shop at wholesale stores. You can also change your eating habits. Meats are the most expensive items at the grocery store so consider buying cheaper meats, instead of steak buy pork, instead of pork buy turkey, seafood or chicken.
6. Sell. Go through your entire home and if you find anything in your home that has not been used by you or any of your family members in the past 6-12 months, donate the items to charity. You can later write the donations off on your taxes. You can also have a yard sale to get extra money.
7. Buy used. Many people believe the hype from advertisers that you can only get good quality items if they are bought new. Now true. You can visit websites such as freecycle.org and find items that are used for free. That's right free. You can also buy used items on eBay and Amazon.
I hope these tips help you slash your budget and work towards improving your financial life.
1. Get current. If you are behind on your mortgage payment, use the money to catch up. Make sure you get current on all utility bills and car payments.
2. Downsize. If you are in a house that is upside or have a luxury car, downsize. If you are unable to downsize your home consider renting out one or two rooms. You can make a lot of extra money renting out a room in your home. Consider selling your car and buying a used car with no car payment or that costs $5,000 or less.
3. Borrow. Ask family or friends if you can borrow money to help get caught on your mortgage and utility bills. Your main focus is to keep a roof over your head and food on your table. Once you get current on household bills, then you can use any extra money to pay down debt and other bills.
4. Extras. Cancel your internet, long distance, cable service and magazine and newspaper subscriptions. If you absolutely have to have internet and cable service get the cheapest plan possible and call continually to ask about specials.
5. Eating. Skip eating out and buying fast food because you don't feel like cooking. Cooking at home can save you lots on your grocery bill. Buy more fresh fruits and vegetables instead of starches and processed food to save money. Also, use coupons, buy items on sale, buy in bulk or shop at wholesale stores. You can also change your eating habits. Meats are the most expensive items at the grocery store so consider buying cheaper meats, instead of steak buy pork, instead of pork buy turkey, seafood or chicken.
6. Sell. Go through your entire home and if you find anything in your home that has not been used by you or any of your family members in the past 6-12 months, donate the items to charity. You can later write the donations off on your taxes. You can also have a yard sale to get extra money.
7. Buy used. Many people believe the hype from advertisers that you can only get good quality items if they are bought new. Now true. You can visit websites such as freecycle.org and find items that are used for free. That's right free. You can also buy used items on eBay and Amazon.
I hope these tips help you slash your budget and work towards improving your financial life.
Friday, April 16, 2010
How Couples Can Improve Their Finances
Here are some tips on how couples can improve their finances. Small things really do add up.
Erase Debt and Improve Credit
1. Setup payment plans
2. Get current on late accounts
3. Pay more than the minimum monthly payment
4. Keep balances at 30% or below the credit limit
5. Don't use credit card for everyday purchases
Joint Accounts
1. Spending. Spread spending for large purchases over several months to ease the burden.
2. Reconcile. Reconcile bank accounts daily or weekly.
3. Comparison Shop. Shop around for the best price for the product or services you require to maintain your household. This increases your monthly household income and reduces expenses.
4. Shop Together. Go shopping together. This way both of you how much money is being spent and can encourage each other to improve spending habits.
5. Buy needs vs. wants. Prolong items that you want for special occasions or when you have extra money, don't include wants in your budget.
Planning for the Future
1. Create an Emergency Fund. Use an emergency fund to buy small purchases or pay for unexpected expenses and have enough to cover bills for 9-12 months.
2. Retirement. Sign up with your company's 401K especially if your company provides matching funds.
3. Diversify. Control your risks by investing in various mutual funds that are a combination or low, medium and high risk to limit your losses and focus on long-term growth.
4. Buy insurance. Buy 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.
Erase Debt and Improve Credit
1. Setup payment plans
2. Get current on late accounts
3. Pay more than the minimum monthly payment
4. Keep balances at 30% or below the credit limit
5. Don't use credit card for everyday purchases
Joint Accounts
1. Spending. Spread spending for large purchases over several months to ease the burden.
2. Reconcile. Reconcile bank accounts daily or weekly.
3. Comparison Shop. Shop around for the best price for the product or services you require to maintain your household. This increases your monthly household income and reduces expenses.
4. Shop Together. Go shopping together. This way both of you how much money is being spent and can encourage each other to improve spending habits.
5. Buy needs vs. wants. Prolong items that you want for special occasions or when you have extra money, don't include wants in your budget.
Planning for the Future
1. Create an Emergency Fund. Use an emergency fund to buy small purchases or pay for unexpected expenses and have enough to cover bills for 9-12 months.
2. Retirement. Sign up with your company's 401K especially if your company provides matching funds.
3. Diversify. Control your risks by investing in various mutual funds that are a combination or low, medium and high risk to limit your losses and focus on long-term growth.
4. Buy insurance. Buy 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.
Tuesday, April 13, 2010
How the Inactivity Fee Affects You
In started back in late summer of 2009, credit card companies found another way to make money, charge consumers more fees. The credit card companies invented inactive or dormant fees. If you don't use your credit card within 6 to 12 months or more you will be charged an inactivity fee of $2-$5.
I belong to a credit union and thought I was shielded from some of the fall out of the credit card companies penalties to consumers after the CARD act became effective February 22, 2010. Wrong! Starting September 1, 2010, customers of my credit union will be charged an inactive fee for accounts that have not had any activity for 12 months and a dormant fee for accounts that have not had any activity for 2 years.
In a report by Bloomberg, customers of Fifth Third Bank are being charged a $19 inactivity fee for a credit card that had no fees associated with it for the past several years. Bank of America, JPMorgan Chase & Co., the Capital One Financial Corp. and Discover Financial Services currently do not have inactivity fees but have increased other fees associated with their credit cards.
Credit card companies have been warned about raising rates and establishing “inactivity fees” during the nine-month “grace period” that started with President Obama’s signing of the credit card reform legislation in May 2009 which ended with the CARD Act’s compliance on Feb. 22, 2010.
On March 3, 2010, the Federal Reserve proposed new rules that define penalty fees under credit card reform laws by prohibiting “inactivity fees”. Fees for “inactivity” are based on failure to use a credit card over a specific period of time or on a balance that is kept at zero for an extended period of time.
Closing an account to avoid paying an inactivity fee may lower your credit score if the account is less than 2 years old. Credit card companies don't want you to use your credit card to the maximum limit but they do want you to use your credit card and if you don't you are penalized because they can't make any money off of you.
Stick to paying for items with cash, that way you avoid paying any fees associated with the credit card, pay less money for the item because you don't have to pay interest and finance charges and you still help the economy because you are making a purchase.
I belong to a credit union and thought I was shielded from some of the fall out of the credit card companies penalties to consumers after the CARD act became effective February 22, 2010. Wrong! Starting September 1, 2010, customers of my credit union will be charged an inactive fee for accounts that have not had any activity for 12 months and a dormant fee for accounts that have not had any activity for 2 years.
In a report by Bloomberg, customers of Fifth Third Bank are being charged a $19 inactivity fee for a credit card that had no fees associated with it for the past several years. Bank of America, JPMorgan Chase & Co., the Capital One Financial Corp. and Discover Financial Services currently do not have inactivity fees but have increased other fees associated with their credit cards.
Credit card companies have been warned about raising rates and establishing “inactivity fees” during the nine-month “grace period” that started with President Obama’s signing of the credit card reform legislation in May 2009 which ended with the CARD Act’s compliance on Feb. 22, 2010.
On March 3, 2010, the Federal Reserve proposed new rules that define penalty fees under credit card reform laws by prohibiting “inactivity fees”. Fees for “inactivity” are based on failure to use a credit card over a specific period of time or on a balance that is kept at zero for an extended period of time.
Closing an account to avoid paying an inactivity fee may lower your credit score if the account is less than 2 years old. Credit card companies don't want you to use your credit card to the maximum limit but they do want you to use your credit card and if you don't you are penalized because they can't make any money off of you.
Stick to paying for items with cash, that way you avoid paying any fees associated with the credit card, pay less money for the item because you don't have to pay interest and finance charges and you still help the economy because you are making a purchase.
Saturday, April 10, 2010
You Still Have Time to File Your Taxes
April 15 is D-Day, the day to file your federal taxes. If you don't file your taxes on April 15, ask for an extension. If you are getting a refund you can file your taxes at any time although the IRS prefers you do so by April 15 each year.
If you owe taxes it is best to work with the IRS as soon as your file your taxes to setup a payment plan. Be sure to keep all of your receipts for future reference. Here are 13 deductions you can claim on your 2009 taxes.
1. Uniforms, job supplies
2. Higher education expenses
3. Purchase of energy efficient appliances and vehicles in 2009
4. Tax preparation fees
5. Job related training
6. Home office business expenses
7. Mortgage refinance fees
8. Charitable donations (cash and non-cash)
9. State Sales Tax
10. Property and estate tax deductions
11. Earned Income Tax Credit
12. Job research expenses
13. Foreclosure tax relief
Take your time if you prepare your taxes yourself. If you use an automated tax preparation tool like Tax Cut or Turbo Tax most of the laws are already installed in the tool so it is less likely that you will make an error or get audited. If you got a refund in the past and never received it, contact the IRS to get your money. The IRS has billions of dollars in refunds that were never picked up by taxpayers. Good luck.
If you owe taxes it is best to work with the IRS as soon as your file your taxes to setup a payment plan. Be sure to keep all of your receipts for future reference. Here are 13 deductions you can claim on your 2009 taxes.
1. Uniforms, job supplies
2. Higher education expenses
3. Purchase of energy efficient appliances and vehicles in 2009
4. Tax preparation fees
5. Job related training
6. Home office business expenses
7. Mortgage refinance fees
8. Charitable donations (cash and non-cash)
9. State Sales Tax
10. Property and estate tax deductions
11. Earned Income Tax Credit
12. Job research expenses
13. Foreclosure tax relief
Take your time if you prepare your taxes yourself. If you use an automated tax preparation tool like Tax Cut or Turbo Tax most of the laws are already installed in the tool so it is less likely that you will make an error or get audited. If you got a refund in the past and never received it, contact the IRS to get your money. The IRS has billions of dollars in refunds that were never picked up by taxpayers. Good luck.
Wednesday, April 07, 2010
Help for Gift Card Buyers
This year we will see a lot of changes in the banking industry. We have seen the CARD act that became effective February 22, 2010. A new regulation for debit cards becomes effective July 1, 2010. Now as part of the CARD Act a new regulation by the Federal Reserve will begin on August 22, 2010 that affects gift cards sold on or after August 22, 2010.
The new regulation applies to gift cards, non-reloadable or promotional program prepaid gift cards and gift certificates. The new regulation puts restrictions on inactivity or service fees which caused many consumers to lose the value on gifts cards or gift certificate due to the outrageous inactivity or service fees charged.
Here are some of the major features of the new gift card regulation:
1. Inactivity or service fees will only be allowed for a gift certificate or gift card that has been inactive for at least one year.
2. Only one fee can be charged per month and the consumer is provided clear disclosures about the fees.
3. Additional fees that are restricted by the regulation include ATM fees, service fees, monthly maintenance fees, balance inquiry fees and transaction based fees.
4. Gift certificate, gifts cards or non-reloadable or promotional program prepaid cards can no longer be sold if the expiration date is less than 5 years from the date of issue or the date the funds are last loaded on the card.
5. Fees will no longer be charged for replacing an expired gift card or gift certificate or for refunding the remaining balance if funds are still available.
Although consumers will no longer be charged these fees you better believe that the banking industry will find other ways to earn the revenue they are losing with all the new regulations so make sure you read my blog for additional updates throughout the year.
The new regulation applies to gift cards, non-reloadable or promotional program prepaid gift cards and gift certificates. The new regulation puts restrictions on inactivity or service fees which caused many consumers to lose the value on gifts cards or gift certificate due to the outrageous inactivity or service fees charged.
Here are some of the major features of the new gift card regulation:
1. Inactivity or service fees will only be allowed for a gift certificate or gift card that has been inactive for at least one year.
2. Only one fee can be charged per month and the consumer is provided clear disclosures about the fees.
3. Additional fees that are restricted by the regulation include ATM fees, service fees, monthly maintenance fees, balance inquiry fees and transaction based fees.
4. Gift certificate, gifts cards or non-reloadable or promotional program prepaid cards can no longer be sold if the expiration date is less than 5 years from the date of issue or the date the funds are last loaded on the card.
5. Fees will no longer be charged for replacing an expired gift card or gift certificate or for refunding the remaining balance if funds are still available.
Although consumers will no longer be charged these fees you better believe that the banking industry will find other ways to earn the revenue they are losing with all the new regulations so make sure you read my blog for additional updates throughout the year.
Sunday, April 04, 2010
Celebrate Financial Literacy Month
President Obama declared April is National Financial Literacy Month. Start this month and make at least one small change to improve your financial life. By deciding to make at least one change you will be able to: pay down debt, create an emergency fund, and plan for your future.
Here are 9 easy ways to improve your financial life.
1. Create a budget or spending plan and track spending daily, weekly or monthly.
2. Get current on any late bills.
3. Negotiate or setup payment plans for large debts.
4. Buy more needs vs wants and pay cash or use lay-a-way.
5. Get a checking account with no fees.
6. Create an emergency fund by using automatic savings plans such as Bank of America's Keep the Change program or Wachovia's Way 2 Save program.
7. Buy in bulk, buy items on sale or at wholesale or discount stores.
8. Buy used instead of new.
9. Pay bills automatically using paycheck deduction or online bill payment.
Remember, every financial decision you make today affects your future tomorrow. It takes hard work, discipline and making sacrifices to get out of debt and improve your financial life but I know you can do it. Start today!
Here are 9 easy ways to improve your financial life.
1. Create a budget or spending plan and track spending daily, weekly or monthly.
2. Get current on any late bills.
3. Negotiate or setup payment plans for large debts.
4. Buy more needs vs wants and pay cash or use lay-a-way.
5. Get a checking account with no fees.
6. Create an emergency fund by using automatic savings plans such as Bank of America's Keep the Change program or Wachovia's Way 2 Save program.
7. Buy in bulk, buy items on sale or at wholesale or discount stores.
8. Buy used instead of new.
9. Pay bills automatically using paycheck deduction or online bill payment.
Remember, every financial decision you make today affects your future tomorrow. It takes hard work, discipline and making sacrifices to get out of debt and improve your financial life but I know you can do it. Start today!
Thursday, April 01, 2010
A Slam Dunk for Student Loan Borrowers
On March 29, 2010, President Obama signed a bill to assist student loan legislation that goes into effect in 2014. One goal of the bill was to produce the most college graduates by 2020 . The bill will:
1. End subsidies to private banks that will no longer be allowed to make student loans with federal money, but may continue to earn income by servicing those loans.
2. Double funding for Pell Grants limits up to $5,550 in 2010 and up $5,975 per student by 2017. The Pell Grant will rise with inflation starting in 2013.
3. Cap a graduate's annual student-loan repayments at 10 percent of his or her income.
4. Help an additional 5 million Americans earn degrees and certificates over the next decade, by revitalizing programs community colleges across the country.
5. Expand Perkins Loan program.
6. Keep student loan interest rate at 3.4%.
7. Increase funding to College Access Challenge Grant Program to increase financial literacy and help retain graduate students.
8. Starting July 1, 2010, federal student loans will be originated through the Direct Loan program instead of through the federally guaranteed student loan program.
9. 100 percent of student loans will be serviced by private lenders who will have to compete for contracts to service federal student loans. Direct Loans can only be serviced by U.S. employees.
Under current legislation the government spends billions of dollars each year subsidizing financial institutions that make guaranteed federal student loans. This new legislation will generate approximately $68 billion in savings over the next 11 years.
The money saved will be used to expand the existing Income Based Repayment program for federal student loans. Under this program, student loan borrowers can have their monthly payments capped at 10 percent of income they have left over after covering basic needs, and any remaining debt will be forgiven after 20 years which will make it easier to pay back student loan debt. The current limit is capped at 15 percent of income left over.
This is great for public service workers such as nurses, teachers, military, etc. who will have their remaining debt forgiven after 10 years. Loans taken out in after July 1, 2014 will have to devote 10 percent of their income to paying back their student loans.
The Pell Grants will now provide $40 billion to eligible students to receive financial aid to help defer college costs including historically black colleges and universities. The legislation also provides new funding for community colleges to develop online courses, build partnerships with local employers, and help students obtain skills to ensure they succeed in the workforce.
Sallie Mae and many other lenders fought hard against the legislation but lost.
1. End subsidies to private banks that will no longer be allowed to make student loans with federal money, but may continue to earn income by servicing those loans.
2. Double funding for Pell Grants limits up to $5,550 in 2010 and up $5,975 per student by 2017. The Pell Grant will rise with inflation starting in 2013.
3. Cap a graduate's annual student-loan repayments at 10 percent of his or her income.
4. Help an additional 5 million Americans earn degrees and certificates over the next decade, by revitalizing programs community colleges across the country.
5. Expand Perkins Loan program.
6. Keep student loan interest rate at 3.4%.
7. Increase funding to College Access Challenge Grant Program to increase financial literacy and help retain graduate students.
8. Starting July 1, 2010, federal student loans will be originated through the Direct Loan program instead of through the federally guaranteed student loan program.
9. 100 percent of student loans will be serviced by private lenders who will have to compete for contracts to service federal student loans. Direct Loans can only be serviced by U.S. employees.
Under current legislation the government spends billions of dollars each year subsidizing financial institutions that make guaranteed federal student loans. This new legislation will generate approximately $68 billion in savings over the next 11 years.
The money saved will be used to expand the existing Income Based Repayment program for federal student loans. Under this program, student loan borrowers can have their monthly payments capped at 10 percent of income they have left over after covering basic needs, and any remaining debt will be forgiven after 20 years which will make it easier to pay back student loan debt. The current limit is capped at 15 percent of income left over.
This is great for public service workers such as nurses, teachers, military, etc. who will have their remaining debt forgiven after 10 years. Loans taken out in after July 1, 2014 will have to devote 10 percent of their income to paying back their student loans.
The Pell Grants will now provide $40 billion to eligible students to receive financial aid to help defer college costs including historically black colleges and universities. The legislation also provides new funding for community colleges to develop online courses, build partnerships with local employers, and help students obtain skills to ensure they succeed in the workforce.
Sallie Mae and many other lenders fought hard against the legislation but lost.
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