Thanks to the Consumer Financial Protection Bureau (CFPB), many credit cardholders could see a credit on their statements in the coming months. Discover, American Express and Capital One credit cards must refund about $435 million to customers because of a government crackdown on illegal and deceptive practices by the companies.
Customers that are owed the refunds will not have to take any action because the refunds will automatically show as credits on future statements. If the person has since canceled a card, the companies have been ordered to mail refund checks to the holders of any accounts affected by the illegal practices.
CNNMoney.com details what illegal actions each company took in their article titled, Refunds from credit card issuers on the way. The illegal practices included things like imposing higher late fees than they were legally allowed to charge and promising non-existent monetary rewards. Also, there was a claim that some customers were being pressured into buying additional products or services when they opened credit cards.
The Consumer Financial Protection Bureau was instrumental in investigating and ordering the credit card companies to make payments to the deceived customers. It is a federal agency that holds the primary responsibility for regulating consumer protection relating to financial products and services in the United States.
The central mission of the CFPB is to make markets for consumer financial products and services work for Americans. The agency assists people when they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products. The agency works to help consumer financial markets by making rules more effective, by consistently and fairly enforcing the rules and by empowering consumers to take more control over their economic lives.
The goals of the CPFC are outlined on their site. The first goal is to educate by informing consumers about abusive practices. Their second goal is to enforce by supervising banks, credit unions, and other financial companies, and enforcing Federal consumer financial laws. The agency's third objective is to study by gathering and analyzing information to better understand consumers, financial services providers, and consumer financial markets. One very important contribution the agency works toward is giving consumers the information they need to better understand the terms of their agreements with financial companies.
The website for the Consumer Financial Protection Bureau can be found at: http://www.consumerfinance.gov/. They provide a great deal of information and advice on financial issues and accept complaints from consumers who have experienced difficulties with financial products or services.
Thursday, December 27, 2012
Thursday, December 20, 2012
Tax tips for 2012
Tax time is quickly approaching and it could pay to do a little research and planning before the year ends. TurboTax posted some helpful tips in an article, Nine Things to Do Now to Cash In at Tax Time, to help minimize tax bills. Some of their strategies could help to reduce costs for 2012 tax filings and some could continue to be a benefit for years to come.
Contributing to an Individual Retirement Account (IRA) assists people once they retire, but it also reduces current tax bills. The article states that for 2012, the maximum tax-deductible contribution to an IRA is $5,000 and $6,000 for those who are 50 or older. As long as the IRA is opened before December 31, 2012, contributions made until April 15, 2013 can be deducted.
Some energy-saving home improvements can qualify for a tax credit of up to 30% of the costs associated with the improvements. For more information on which improvements meet the federal energy-efficient standards, please visit www.EnergyStar.gov.
The article also suggests giving to charity to help reduce a tax bill. The gifts can be cash, stocks or something like a vehicle. The Internal Revenue Service (IRS) has details and links for the necessary forms for making those deductions at: http://www.irs.gov/taxtopics/tc506.html.
There are ways to benefit not only on Federal taxes, but State, as well. Contributing to a 529 College Savings Plan for a child or grandchild can reduce tax costs. Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, as long as withdrawals are used for eligible college expenses, such as tuition and room and board. There are two types of 529 plans: pre-paid tuition plans and college savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a pre-paid tuition plan. The Securities and Exchange Commission defines 529 plans here.
For even more tips for 2012 taxes, Bankrate.com published an article titled, 12 tempting tax tips for 2012. Bankrate.com has suggestions such as making sure to remember the American Opportunity Tax Credit, which is an education tax break that provides a credit of up to $2500 of the cost of qualified tuition and related expenses. Up to $1000 of that education credit could be refunded to the tax payer.
Sometimes tax law can be confusing, so hiring a reputable tax preparer could be quite beneficial. Always check a tax professional's Internal Revenue Service registration status before allowing someone to take a look at any documents. The IRS posted an article on their site about what to keep in mind when choosing a tax preparer and that article can be found at: http://www.irs.gov/uac/Points-to-Keep-in-Mind-When-Choosing-A-Tax-Preparer.
Contributing to an Individual Retirement Account (IRA) assists people once they retire, but it also reduces current tax bills. The article states that for 2012, the maximum tax-deductible contribution to an IRA is $5,000 and $6,000 for those who are 50 or older. As long as the IRA is opened before December 31, 2012, contributions made until April 15, 2013 can be deducted.
Some energy-saving home improvements can qualify for a tax credit of up to 30% of the costs associated with the improvements. For more information on which improvements meet the federal energy-efficient standards, please visit www.EnergyStar.gov.
The article also suggests giving to charity to help reduce a tax bill. The gifts can be cash, stocks or something like a vehicle. The Internal Revenue Service (IRS) has details and links for the necessary forms for making those deductions at: http://www.irs.gov/taxtopics/tc506.html.
There are ways to benefit not only on Federal taxes, but State, as well. Contributing to a 529 College Savings Plan for a child or grandchild can reduce tax costs. Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, as long as withdrawals are used for eligible college expenses, such as tuition and room and board. There are two types of 529 plans: pre-paid tuition plans and college savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a pre-paid tuition plan. The Securities and Exchange Commission defines 529 plans here.
For even more tips for 2012 taxes, Bankrate.com published an article titled, 12 tempting tax tips for 2012. Bankrate.com has suggestions such as making sure to remember the American Opportunity Tax Credit, which is an education tax break that provides a credit of up to $2500 of the cost of qualified tuition and related expenses. Up to $1000 of that education credit could be refunded to the tax payer.
Sometimes tax law can be confusing, so hiring a reputable tax preparer could be quite beneficial. Always check a tax professional's Internal Revenue Service registration status before allowing someone to take a look at any documents. The IRS posted an article on their site about what to keep in mind when choosing a tax preparer and that article can be found at: http://www.irs.gov/uac/Points-to-Keep-in-Mind-When-Choosing-A-Tax-Preparer.
Monday, December 10, 2012
Holiday Tipping
Holiday tipping is a way to thank the people who provide services
all year long. Deciding if and how much to tip people like hairstylists and newspaper deliverers can be difficult. It is important to remember the amounts must be factored into an overall holiday budget.
MSNMoney.com recently posted a helpful article regarding tipping at the holidays. The new rules of holiday tipping provides some sound advice for those who are considering giving a little extra at the end of the year to the people who have provided a higher level of service throughout the year.
Setting priorities about which service providers deserve a tip is crucial, especially if money is tight. People who have gone above and beyond should be considered first. If there is not enough money to give to others, then a slightly larger than usual tip or a small gift should suffice.
The article provided some examples of how much is appropriate to tip people in certain service industries. They suggest that people providing services like newspaper delivery, parking garage attending, trash collecting and any other delivery services received on a regular basis could be given between $10 and $30. Some delivery services, such as the United States Postal Service, do not allow their employees to take cash gifts, so it is important to do a little research before putting someone in an awkward situation.
Holiday tips for people who provide more personal services normally can equal the cost of one visit or session. The professions that fall under this category might include hairdressers, manicurists, part-time house cleaners, pet groomers, dog walkers, lawn care services and babysitters.
It is customary to tip the equivalent of one week's pay to nannies or others who provide services more than a couple of days a week. Also, anyone providing services for children could certainly be given a small and thoughtful gift from each child.
The holidays can be extremely tough financially, so making sure any amount of money given does not leave a person going farther into debt is extremely important. If giving cash gifts does not work with the holiday budget, a smaller gift or perhaps a day off from providing services could be meaningful, as well.
MSNMoney.com recently posted a helpful article regarding tipping at the holidays. The new rules of holiday tipping provides some sound advice for those who are considering giving a little extra at the end of the year to the people who have provided a higher level of service throughout the year.
Setting priorities about which service providers deserve a tip is crucial, especially if money is tight. People who have gone above and beyond should be considered first. If there is not enough money to give to others, then a slightly larger than usual tip or a small gift should suffice.
The article provided some examples of how much is appropriate to tip people in certain service industries. They suggest that people providing services like newspaper delivery, parking garage attending, trash collecting and any other delivery services received on a regular basis could be given between $10 and $30. Some delivery services, such as the United States Postal Service, do not allow their employees to take cash gifts, so it is important to do a little research before putting someone in an awkward situation.
Holiday tips for people who provide more personal services normally can equal the cost of one visit or session. The professions that fall under this category might include hairdressers, manicurists, part-time house cleaners, pet groomers, dog walkers, lawn care services and babysitters.
It is customary to tip the equivalent of one week's pay to nannies or others who provide services more than a couple of days a week. Also, anyone providing services for children could certainly be given a small and thoughtful gift from each child.
The holidays can be extremely tough financially, so making sure any amount of money given does not leave a person going farther into debt is extremely important. If giving cash gifts does not work with the holiday budget, a smaller gift or perhaps a day off from providing services could be meaningful, as well.
Thursday, December 6, 2012
Financially Surviving the Holidays with Family
People are strained financially so many different ways during the holidays. For many, holiday spending goes beyond gift giving. It also includes entertaining and holiday travel to visit family. Below are some ideas for keeping out of debt while still enjoying quality time with family over the holidays.
Set ground rules with family regarding holiday gift giving. Discuss a dollar amount and make sure everyone sticks to it. Talking about how much everyone can afford to spend can feel awkward at first, but in the end no one has to feel stressed when the bills start piling up in January.
Another way to save on family gift giving is to have everyone draw a name out of a hat. That way, all family members will receive a gift and this can really help keep costs down especially in larger families. Some families decide to buy only for the children to save time and money.
Homemade gifts can actually be more thoughtful and will normally cut costs, as well. Volunteering time to help a family member by babysitting or helping them finally finish up that home improvement project would be much appreciated.
An entertaining idea for spending less is to have everyone in the family agree to find creative or funny gifts from a dollar store or yard sale.
If everyone agrees, maybe skip the gift giving and instead spend time bonding as a family donating to or volunteering at a local charity. There are many who are less fortunate and helping them experience some joy can mean much more than a store bought gift.
If hosting a holiday meal, make it a potluck. That way all of the expense does not fall on one person.
For holiday travel, there are websites available to find the best deals on flights, hotels and car rentals. Some sites like Yapta and Bing Travel even track or predict the cost of air travel and will send email updates when prices change. In addition, sometimes flying on Christmas Day or New Year's Eve can decrease the cost of airfare.
USAToday.com posted an article titled, How to save on family holiday travel, with suggestions for how to get the best deals on where to stay and where to eat while traveling. For even more tips, visit Investopedia.com and their Tips for avoiding a Spending Hangover.
Set ground rules with family regarding holiday gift giving. Discuss a dollar amount and make sure everyone sticks to it. Talking about how much everyone can afford to spend can feel awkward at first, but in the end no one has to feel stressed when the bills start piling up in January.
Another way to save on family gift giving is to have everyone draw a name out of a hat. That way, all family members will receive a gift and this can really help keep costs down especially in larger families. Some families decide to buy only for the children to save time and money.
Homemade gifts can actually be more thoughtful and will normally cut costs, as well. Volunteering time to help a family member by babysitting or helping them finally finish up that home improvement project would be much appreciated.
An entertaining idea for spending less is to have everyone in the family agree to find creative or funny gifts from a dollar store or yard sale.
If everyone agrees, maybe skip the gift giving and instead spend time bonding as a family donating to or volunteering at a local charity. There are many who are less fortunate and helping them experience some joy can mean much more than a store bought gift.
If hosting a holiday meal, make it a potluck. That way all of the expense does not fall on one person.
For holiday travel, there are websites available to find the best deals on flights, hotels and car rentals. Some sites like Yapta and Bing Travel even track or predict the cost of air travel and will send email updates when prices change. In addition, sometimes flying on Christmas Day or New Year's Eve can decrease the cost of airfare.
USAToday.com posted an article titled, How to save on family holiday travel, with suggestions for how to get the best deals on where to stay and where to eat while traveling. For even more tips, visit Investopedia.com and their Tips for avoiding a Spending Hangover.
Thursday, November 29, 2012
Tips for Holiday Spending
During the holidays, it is easy to get caught up in the joy of giving and all of the hype surrounding days like Black Friday. Unfortunately, too many people end up spending more than they can afford or running up the balances on their credit cards causing them to pay for the gifts they purchased long after they are given.
There are ways to save during this time of year. Making a budget for the holidays including all holiday expenses such as gifts, holiday entertaining, holiday cards, postage, and travel expenses is the first step. If this budget is made early in the year, then possibly a small amount can be set aside each month to avoid future credit card use.
Planning ahead and shopping throughout the year can be helpful, as well. Keeping a list of possible gifts can allow time to look for sales because the holidays are not always the best time of year to buy certain items.
Also, waiting until the last minute to buy can cause someone to spend more than expected because there is so much more pressure to just get it all done.
Bankrate.com posted an article titled, 18 ways to save money during the holidays, and their suggestions include making homemade gifts and offering to do needed things for people like dog walking instead of purchasing presents. Many times these types of gifts will be much more appreciated.
In addition, Bankrate.com suggests sending e-cards this year instead of having to pay for postage. E-cards are sometimes free or are offered at a relatively low price. Many e-cards can be personalized with family photos and sometimes even set to music.
Another important tip from Bankrate.com that may help people stick to a budget is to take out the amount available to spend on the holidays in cash and when it is gone, spend no more. This suggestion may cause people to be more frugal and their money may stretch farther than they think.
Going into debt for the holidays will cause more stress and cause the time spent with family to be less enjoyable. It could make the rest of the year even more stressful, as well. Remember to focus on making the time spent with family and friends happy and memorable instead.
There are ways to save during this time of year. Making a budget for the holidays including all holiday expenses such as gifts, holiday entertaining, holiday cards, postage, and travel expenses is the first step. If this budget is made early in the year, then possibly a small amount can be set aside each month to avoid future credit card use.
Planning ahead and shopping throughout the year can be helpful, as well. Keeping a list of possible gifts can allow time to look for sales because the holidays are not always the best time of year to buy certain items.
Also, waiting until the last minute to buy can cause someone to spend more than expected because there is so much more pressure to just get it all done.
Bankrate.com posted an article titled, 18 ways to save money during the holidays, and their suggestions include making homemade gifts and offering to do needed things for people like dog walking instead of purchasing presents. Many times these types of gifts will be much more appreciated.
In addition, Bankrate.com suggests sending e-cards this year instead of having to pay for postage. E-cards are sometimes free or are offered at a relatively low price. Many e-cards can be personalized with family photos and sometimes even set to music.
Another important tip from Bankrate.com that may help people stick to a budget is to take out the amount available to spend on the holidays in cash and when it is gone, spend no more. This suggestion may cause people to be more frugal and their money may stretch farther than they think.
Going into debt for the holidays will cause more stress and cause the time spent with family to be less enjoyable. It could make the rest of the year even more stressful, as well. Remember to focus on making the time spent with family and friends happy and memorable instead.
Tuesday, November 20, 2012
Kids and Finances (Part 2)
As children age, the lessons they should be taught about finances become more complicated. Many adults could use some education, as well, since money is not necessarily something their parents discussed with them. Parents should start age-appropriate dialogues with children about being financially responsible as young as 3 years old.
The President's Advisory Council on Financial Capability (PACFC) developed a website named Money as You Grow. The site provides 20 essential, age-appropriate financial lessons and includes corresponding activities for each age. One of the main objectives of the PACFC is to find ways to improve the financial capability of younger Americans.
Last week, a summary of what 3-13 year old children should be taught was provided. Some of the lessons for 14 year old children and up are below:
14-18 YEARS OLD
18 YEARS OLD and up
These are important lessons for everyone. The earlier people are taught about how money works, the better chance they will have for a healthier financial future.
The President's Advisory Council on Financial Capability (PACFC) was created by an Executive Order that was signed on January 29, 2010. The purpose of the website is to inspire families, community organizations, nonprofits, and businesses to embrace Money as You Grow as a tool to promote financial literacy. The website serves as a guide to learning about and using Money as You Grow. It is intended for reference only, and is not meant to endorse or promote specific initiatives.
The President's Advisory Council on Financial Capability (PACFC) developed a website named Money as You Grow. The site provides 20 essential, age-appropriate financial lessons and includes corresponding activities for each age. One of the main objectives of the PACFC is to find ways to improve the financial capability of younger Americans.
Last week, a summary of what 3-13 year old children should be taught was provided. Some of the lessons for 14 year old children and up are below:
14-18 YEARS OLD
- When comparing colleges, be sure to consider how much each school will cost.
- Avoid using credit cards to purchase things that cannot be afforded with cash.
- Money is taken out of paychecks for taxes, so they may appear smaller than expected.
- Save and invest money in investments like a Roth IRA.
18 YEARS OLD and up
- Credit cards should only be used IF they can be paid in full each month.
- Health insurance is a necessity.
- Save at least 3 months of living expenses in case of an emergency.
- When investing, consider the risks and annual expenses.
These are important lessons for everyone. The earlier people are taught about how money works, the better chance they will have for a healthier financial future.
The President's Advisory Council on Financial Capability (PACFC) was created by an Executive Order that was signed on January 29, 2010. The purpose of the website is to inspire families, community organizations, nonprofits, and businesses to embrace Money as You Grow as a tool to promote financial literacy. The website serves as a guide to learning about and using Money as You Grow. It is intended for reference only, and is not meant to endorse or promote specific initiatives.
Thursday, November 15, 2012
Kids and Finances (Part 1)
The holidays are a good reminder that children need to learn the value of money. Kids can be taught age-appropriate lessons at a very young age regarding money and how it is used in the 21st century.
These days, children might rarely see cash exchange hands or they might believe getting money is as easy as driving up to the ATM. Children need to be taught to be financially responsible, so they can carry that knowledge with them the rest of their lives.
The President's Advisory Council on Financial Capability (PACFC) developed a website named Money as You Grow. The site provides 20 essential, age-appropriate financial lessons and includes corresponding activities for each age. One of the main objectives of the PACFC is to find ways to improve the financial capability of younger Americans.
Some of the lessons for 3-13 year old children are provided below:
3-5 YEARS OLD
6-10 YEARS OLD
11-13 YEARS OLD
Check back next week to learn important financial lessons for older children.
The President's Advisory Council on Financial Capability (PACFC) was created by an Executive Order that was signed on January 29, 2010. The purpose of the website is to inspire families, community organizations, nonprofits, and businesses to embrace Money as You Grow as a tool to promote financial literacy. The website serves as a guide to learning about and using Money as You Grow. It is intended for reference only, and is not meant to endorse or promote specific initiatives.
These days, children might rarely see cash exchange hands or they might believe getting money is as easy as driving up to the ATM. Children need to be taught to be financially responsible, so they can carry that knowledge with them the rest of their lives.
The President's Advisory Council on Financial Capability (PACFC) developed a website named Money as You Grow. The site provides 20 essential, age-appropriate financial lessons and includes corresponding activities for each age. One of the main objectives of the PACFC is to find ways to improve the financial capability of younger Americans.
Some of the lessons for 3-13 year old children are provided below:
3-5 YEARS OLD
- Money is needed to buy things.
- Money is earned by working.
- It may be necessary to wait before buying something.
- There is a difference between needs and wants.
6-10 YEARS OLD
- Choices need to be made about how to spend money.
- It is good to shop around and compare prices before purchasing.
- It can be costly and dangerous to share information online.
- Putting money in a savings account will protect it and pay interest.
11-13 YEARS OLD
- Save at least a dime for every dollar received.
- Someone could steal personal information, like a bank or credit card number, if it is entered online.
- The sooner money is saved, the faster it can grow from compound interest.
- Using a credit card is like taking out a loan; if the bill is not paid in full each month, interest will be charged and the amount owed will increase.
Check back next week to learn important financial lessons for older children.
The President's Advisory Council on Financial Capability (PACFC) was created by an Executive Order that was signed on January 29, 2010. The purpose of the website is to inspire families, community organizations, nonprofits, and businesses to embrace Money as You Grow as a tool to promote financial literacy. The website serves as a guide to learning about and using Money as You Grow. It is intended for reference only, and is not meant to endorse or promote specific initiatives.
Thursday, November 8, 2012
Headed for Financial Trouble?
Many people simply do not face the fact that they are in
trouble financially before it is too late. In order to have more stable
financial futures, individuals need to take a good look at their current financial
health. It is important to look for “red flags” to determine if financial
problems are around the corner.
Some who are heading down the wrong financial path may do
things like pay only the minimum amount due on their credit cards or maintain
balances that are near or at the limit. In addition, they may rack up late
payment fees due to not having enough money to pay bills on time.
Frequently having to transfer credit card balances to new
cards may also indicate someone is having money issues.
Many people with financial trouble looming have little or no
savings or emergency funds available.
Withdrawing money from retirement accounts or investments to
cover day-to-day expenses can indicate someone is in trouble financially, as
well. That is money that they may never recover and can pay high taxes on for
early withdrawals.
Financial troubles are certainly very stressful and can be
hard to face, but avoiding them just exacerbates the problem. Taking control now
by looking for potential financial “red flags” can keep someone out of future financial
trouble.
People who recognize some of the above financial behaviors
should start working on prioritizing their financial needs and goals and look
for resources available to get back on track.
There could be options for someone who needs help and the
sooner the issues are dealt with, normally the better the outcome. Many times
it just takes changing financial habits and cutting spending, but there are
also other options like negotiating with creditors or bankruptcy to consider
for some.
To gain an even better understanding of potential financial
issues, individuals can go to the National Foundation for Credit Counseling’s
website at: http://nfcc.org/. The NFCC’s mission
is to promote the national agenda for financially responsible behavior and
build capacity for its members to deliver the highest quality financial
education and counseling services.
Tuesday, October 30, 2012
Tips for a Successful Interview
Many people are looking for employment or even trying to move up in their current companies. The job market is very competitive, so it is essential to possess the skills necessary to interview well.
Here are some important suggestions for having a more successful interview:
-Prepare for the interview by doing some research on the company and position. Some interviewers may ask the person interviewing what he or she already knows about the company.
-Practicing out loud beforehand can make a person sound more confident. People can role play with a friend and ask each other common interview questions or speak about what would make them a good fit for the position.
-Try to make a good impression by dressing conservatively and professionally. Also, practicing good hygiene is always important.
-Be on time! Unexpected things can occur when traveling to an interview, so always build in extra travel time.
-Avoid any negative comments about a former employer or position, if possible. Employers want to hire positive and enthusiastic employees.
-Be prepared to ask several questions about the company or expectations of the position. This demonstrates to an employer that the person interviewing is fully engaged in the discussion.
-Always follow up an interview with a Thank you note. This shows an employer that the person interviewed is really interested in working at the company and can be a chance for that person to highlight particular reasons why he or she would be a good fit.
For additional information, the U. S. Department of Labor, Employment and Training Administration sponsors CareerOneStop. The site contains many resources for those looking for employment and ways to prepare for interviewing.
Here are some important suggestions for having a more successful interview:
-Prepare for the interview by doing some research on the company and position. Some interviewers may ask the person interviewing what he or she already knows about the company.
-Practicing out loud beforehand can make a person sound more confident. People can role play with a friend and ask each other common interview questions or speak about what would make them a good fit for the position.
-Try to make a good impression by dressing conservatively and professionally. Also, practicing good hygiene is always important.
-Be on time! Unexpected things can occur when traveling to an interview, so always build in extra travel time.
-Avoid any negative comments about a former employer or position, if possible. Employers want to hire positive and enthusiastic employees.
-Be prepared to ask several questions about the company or expectations of the position. This demonstrates to an employer that the person interviewing is fully engaged in the discussion.
-Always follow up an interview with a Thank you note. This shows an employer that the person interviewed is really interested in working at the company and can be a chance for that person to highlight particular reasons why he or she would be a good fit.
For additional information, the U. S. Department of Labor, Employment and Training Administration sponsors CareerOneStop. The site contains many resources for those looking for employment and ways to prepare for interviewing.
Thursday, October 25, 2012
Planning for Retirement
Having a plan for retirement is crucial for everyone. People should start thinking about their retirement even as early as their 30s. The sooner individuals start saving, the better off they will be when approaching the age at which they plan to retire. The amount received from Social Security benefits and other possible sources of retirement income will not likely cover all of a retiree's expenses.
The Social Security Administration has a calculator that provides an estimate of a person's retirement benefit by accessing the actual earnings record. The calculator can be found at: http://www.socialsecurity.gov/OACT/anypia/anypia.html.
The first step to begin planning for retirement for individuals is to estimate how much money will be needed to live the lifestyle they would like to during their retirement years. Setting realistic and specific goals will assist in determining a budget and help individuals stay on track. It is important to keep in mind that health care expenses will most likely rise during retirement years, as well.
CNNMoney.com's series Money 101 has a section focusing on retirement and can be a useful resource. They have developed a retirement savings calculator to let people know about how much they will need to save to meet their goals during retirement. The calculator can be found at: http://cgi.money.cnn.com/tools/retirementplanner/retirementplanner_101.jsp.
Investing in a 401(k) is one of the easiest ways to save for retirement. Money contributed to a 401(k) is not taxed because contributions are taken out of a paycheck before the taxes are withheld. Another benefit is that many companies will match some or all of an employee's contributions to a 401(k), so it is free money.
Contributing to either a traditional Individual Retirement Account (IRA) or a Roth IRA can also offer tax breaks. A good resource for more information on investing in retirement accounts is the Internal Revenue Service's website at: http://www.irs.gov/Retirement-Plans?navmenu=menu1.
If they are healthy, some people choose to delay retirement past the age of 62 or continue to work part-time in order to receive a larger benefit from Social Security. According to the AARP, the benefit increases by about 6% a year for every year filing for benefits is delayed. The AARP is a nonprofit and nonpartisan organization with the mission to help those who are over the age of 50.
It is never too late to start planning for retirement. Every little bit of strategizing and saving will help people live fuller and richer lives as they reach their retirement years.
The Social Security Administration has a calculator that provides an estimate of a person's retirement benefit by accessing the actual earnings record. The calculator can be found at: http://www.socialsecurity.gov/OACT/anypia/anypia.html.
The first step to begin planning for retirement for individuals is to estimate how much money will be needed to live the lifestyle they would like to during their retirement years. Setting realistic and specific goals will assist in determining a budget and help individuals stay on track. It is important to keep in mind that health care expenses will most likely rise during retirement years, as well.
CNNMoney.com's series Money 101 has a section focusing on retirement and can be a useful resource. They have developed a retirement savings calculator to let people know about how much they will need to save to meet their goals during retirement. The calculator can be found at: http://cgi.money.cnn.com/tools/retirementplanner/retirementplanner_101.jsp.
Investing in a 401(k) is one of the easiest ways to save for retirement. Money contributed to a 401(k) is not taxed because contributions are taken out of a paycheck before the taxes are withheld. Another benefit is that many companies will match some or all of an employee's contributions to a 401(k), so it is free money.
Contributing to either a traditional Individual Retirement Account (IRA) or a Roth IRA can also offer tax breaks. A good resource for more information on investing in retirement accounts is the Internal Revenue Service's website at: http://www.irs.gov/Retirement-Plans?navmenu=menu1.
If they are healthy, some people choose to delay retirement past the age of 62 or continue to work part-time in order to receive a larger benefit from Social Security. According to the AARP, the benefit increases by about 6% a year for every year filing for benefits is delayed. The AARP is a nonprofit and nonpartisan organization with the mission to help those who are over the age of 50.
It is never too late to start planning for retirement. Every little bit of strategizing and saving will help people live fuller and richer lives as they reach their retirement years.
Thursday, October 18, 2012
Saving for an Emergency Fund
According to Bankrate.com's Financial Security Index, 28% of Americans do not have any money set aside for emergencies. In addition, their survey concluded that only 1 in 5 people have an emergency fund to cover less than three months of expenses. Although, there has been a slight economic recovery, there are still those losing jobs and having emergency situations arise where an emergency fund could have saved a home or kept someone from going into debt by being forced to borrow money.
Most experts suggest having anywhere between three to nine months worth of living expenses saved in the case of an emergency. This can seem overwhelming to someone who happens to have nothing saved, so it may be good to start with a smaller goal and build the fund from there. A goal of saving even $500 can help people realize they have the ability to save even more. If there is very little room in the budget, then saving smaller amounts like $10 a week can eventually make an impact, as well.
The first step in setting up an emergency fund is to open a savings account exclusively for emergencies. Making the payments automatic will ensure success. If the money will come from a paycheck, employees can have their employers set up a direct deposit into this account. That way the temptation is not there to use the money for other things.
The next step to building an emergency fund is tracking expenses for about a month and creating a budget. Most people will find they spend some money unnecessarily and they can reroute those funds into a savings account for emergencies. Cutting back on things like buying coffee at coffee shops or eating out can free up a good amount to save for many people.
Another way to get a jump start on saving for emergencies might be depositing federal and state tax refunds into the savings account. A good portion of Americans receive some kind of refund and this can have an impact on the amount saved.
Also, if someone is granted an increase in pay, the person can continue to live on the former amount of pay and can save the increase in the emergency fund account. Smaller habits like saving loose change in a jar can help, too. Once the jar is filled, the change can be deposited into the account.
Planning for the unexpected can provide much needed financial security for people in this unpredictable economy. A great resource for financial education for all stages of life is MyMoney.gov. The tools featured on this site include budgeting worksheets and checklists for people who want to make informed financial decisions.
Most experts suggest having anywhere between three to nine months worth of living expenses saved in the case of an emergency. This can seem overwhelming to someone who happens to have nothing saved, so it may be good to start with a smaller goal and build the fund from there. A goal of saving even $500 can help people realize they have the ability to save even more. If there is very little room in the budget, then saving smaller amounts like $10 a week can eventually make an impact, as well.
The first step in setting up an emergency fund is to open a savings account exclusively for emergencies. Making the payments automatic will ensure success. If the money will come from a paycheck, employees can have their employers set up a direct deposit into this account. That way the temptation is not there to use the money for other things.
The next step to building an emergency fund is tracking expenses for about a month and creating a budget. Most people will find they spend some money unnecessarily and they can reroute those funds into a savings account for emergencies. Cutting back on things like buying coffee at coffee shops or eating out can free up a good amount to save for many people.
Another way to get a jump start on saving for emergencies might be depositing federal and state tax refunds into the savings account. A good portion of Americans receive some kind of refund and this can have an impact on the amount saved.
Also, if someone is granted an increase in pay, the person can continue to live on the former amount of pay and can save the increase in the emergency fund account. Smaller habits like saving loose change in a jar can help, too. Once the jar is filled, the change can be deposited into the account.
Planning for the unexpected can provide much needed financial security for people in this unpredictable economy. A great resource for financial education for all stages of life is MyMoney.gov. The tools featured on this site include budgeting worksheets and checklists for people who want to make informed financial decisions.
Thursday, October 11, 2012
Types of Personal Bankruptcy
People considering personal bankruptcy as a debt management tool should do so as a last resort. It can be the best option for people who meet the eligibility requirements and can offer them a fresh start if they simply cannot ever satisfy their debts. People who follow the
bankruptcy rules receive a discharge, which is a court order that says they are not required to repay certain debts.
Chapter 7 is known as straight bankruptcy, and involves liquidation of all assets that are not exempt. What property may be exempt is determined by individual state laws and may include automobiles, work-related tools, and basic household furnishings. The property that is not exempt may be sold by a court-appointed official, named a trustee or bankruptcy administrator, or it could be turned over to creditors. There is an 8 year waiting period after receiving a discharge in Chapter 7 before an individual can file it again.
Chapter 13 is filed by individuals who have a secure and steady income and do have the ability to pay off all or a good portion of the debts they owe. The court establishes a repayment plan that normally lasts between 3 and 5 years. A trustee or bankruptcy administrator collects and distributes payments to creditors for the debtor. The court does have the ability to lower payments or interest paid on behalf of a debtor in a Chapter 13 case.
Both types of bankruptcy may eliminate unsecured debts, stop foreclosures, repossessions, garnishments and harassment from debt collectors. In most cases, neither type of personal bankruptcy can discharge child support, alimony, fines, taxes, and student loan obligations.
Visit the United States Courts website for eligibility requirements and basic information regarding both types of personal bankruptcy. Also, an important resource for information regarding bankruptcy is the United States Trustee Program website. The U.S. Trustee Program is a part of the Justice Department that works to ensure the integrity of the U.S. bankruptcy system.
Filers must meet all eligibility requirements to have a bankruptcy discharged, including taking a Pre-Bankruptcy Credit Counseling course and participating in a Post-Filing Debtor Education course from an approved agency. The agencies are approved by the U.S. Trustee Program and can be found at http://www.justice.gov/ust/eo/bapcpa/ccde/.
It is always a good idea to seek legal advice to determine if bankruptcy is the best option. Other possibilities may include negotiating with creditors or contacting a credit counseling agency for assistance in negotiating with a creditor. The National Foundation for Credit Counseling provides information regarding credit counseling agencies and other tools for financial education.
However, bankruptcy information can stay on a credit report for 10
years, and can make it difficult to obtain credit, buy a home, get life
insurance, or sometimes get a job. Individuals considering bankruptcy as an option should seek legal advice from an attorney or the local bankruptcy court to find out if they are eligible to file and to receive a full explanation of the entire process.
The two primary types of personal bankruptcy are Chapter 7 and Chapter 13. Many people are confused about the differences between the two. Chapter 7 is known as straight bankruptcy, and involves liquidation of all assets that are not exempt. What property may be exempt is determined by individual state laws and may include automobiles, work-related tools, and basic household furnishings. The property that is not exempt may be sold by a court-appointed official, named a trustee or bankruptcy administrator, or it could be turned over to creditors. There is an 8 year waiting period after receiving a discharge in Chapter 7 before an individual can file it again.
Chapter 13 is filed by individuals who have a secure and steady income and do have the ability to pay off all or a good portion of the debts they owe. The court establishes a repayment plan that normally lasts between 3 and 5 years. A trustee or bankruptcy administrator collects and distributes payments to creditors for the debtor. The court does have the ability to lower payments or interest paid on behalf of a debtor in a Chapter 13 case.
Both types of bankruptcy may eliminate unsecured debts, stop foreclosures, repossessions, garnishments and harassment from debt collectors. In most cases, neither type of personal bankruptcy can discharge child support, alimony, fines, taxes, and student loan obligations.
Visit the United States Courts website for eligibility requirements and basic information regarding both types of personal bankruptcy. Also, an important resource for information regarding bankruptcy is the United States Trustee Program website. The U.S. Trustee Program is a part of the Justice Department that works to ensure the integrity of the U.S. bankruptcy system.
Filers must meet all eligibility requirements to have a bankruptcy discharged, including taking a Pre-Bankruptcy Credit Counseling course and participating in a Post-Filing Debtor Education course from an approved agency. The agencies are approved by the U.S. Trustee Program and can be found at http://www.justice.gov/ust/eo/bapcpa/ccde/.
It is always a good idea to seek legal advice to determine if bankruptcy is the best option. Other possibilities may include negotiating with creditors or contacting a credit counseling agency for assistance in negotiating with a creditor. The National Foundation for Credit Counseling provides information regarding credit counseling agencies and other tools for financial education.
Thursday, October 4, 2012
Identity Theft
Identity theft or fraud is a crime committed by someone who steals another individual's personal information and uses it without that person's permission. Unfortunately, it can be quite easy for someone to access important personal information and commit such a crime.
Criminals can go through people's garbage looking for documents like bank statements or pre-approved credit card offers with the person's full name and possibly an account number. Thieves also watch closely while someone enters a PIN or a credit card number at an ATM machine or store.
The internet has made it even easier for criminals to access personal information. Many people receive SPAM messages that look as though they are coming from a legitimate source. Some may they click on the links in those emails and provide passwords, bank account information or Social Security numbers unknowingly to a thief. Criminals can find ways to access passwords for websites, as well.
An identity thief can take personal information to apply for loans or credit cards and rack up a large amount of debt without the victim realizing it for quite some time. They could possibly withdraw funds from a bank account or reroute someone's Social Security benefit checks as described in this article, "Scam targets senior's Social Security benefits," posted by CNNMoney.com.
There are ways to reduce the chances of becoming a victim:
Check account balances frequently to make sure there have not been unauthorized withdrawals or charges. If any fraudulent activity is expected, then contact the financial institution IMMEDIATELY.
Always shred any mail that contains even small pieces of personal information before disposing of it.
Never give personal information over the phone especially when someone calls asking for that information out of the blue. They may say they are from the bank or there is an issue with a credit card or account. Ask for information to be sent in writing or call the number of the bank or off the back of the credit card to verify that someone had a legitimate reason to call. Banks who call for valid reasons would not ask for pieces of information like PIN numbers.
Change passwords for websites that contain personal information frequently and never write them down in a place where they can be found.
Never click on links in emails unless the source of the email can be verified. If there is information that needs to be confirmed, go directly to the bank or credit card's website to do so.
Even for legitimate reasons, never give a credit card number or bank account number over the phone where someone else can easily eavesdrop and obtain the information.
According to the Federal Trade Commission's Identity Theft Site, if identity theft is suspected, four very important steps must be taken as soon as possible.
1. Place a fraud alert on and review credit reports.
2. Close any accounts that may have been tampered with or opened fraudulently.
3. File a complaint with the Federal Trade Commission.
4. File a report with your local police or the police in the community where the identity theft took place.
Free copies of identity theft resources from the FTC can be found at: http://www.ftc.gov/bcp/edu/microsites/idtheft2012/
Criminals can go through people's garbage looking for documents like bank statements or pre-approved credit card offers with the person's full name and possibly an account number. Thieves also watch closely while someone enters a PIN or a credit card number at an ATM machine or store.
The internet has made it even easier for criminals to access personal information. Many people receive SPAM messages that look as though they are coming from a legitimate source. Some may they click on the links in those emails and provide passwords, bank account information or Social Security numbers unknowingly to a thief. Criminals can find ways to access passwords for websites, as well.
An identity thief can take personal information to apply for loans or credit cards and rack up a large amount of debt without the victim realizing it for quite some time. They could possibly withdraw funds from a bank account or reroute someone's Social Security benefit checks as described in this article, "Scam targets senior's Social Security benefits," posted by CNNMoney.com.
There are ways to reduce the chances of becoming a victim:
Check account balances frequently to make sure there have not been unauthorized withdrawals or charges. If any fraudulent activity is expected, then contact the financial institution IMMEDIATELY.
Always shred any mail that contains even small pieces of personal information before disposing of it.
Never give personal information over the phone especially when someone calls asking for that information out of the blue. They may say they are from the bank or there is an issue with a credit card or account. Ask for information to be sent in writing or call the number of the bank or off the back of the credit card to verify that someone had a legitimate reason to call. Banks who call for valid reasons would not ask for pieces of information like PIN numbers.
Change passwords for websites that contain personal information frequently and never write them down in a place where they can be found.
Never click on links in emails unless the source of the email can be verified. If there is information that needs to be confirmed, go directly to the bank or credit card's website to do so.
Even for legitimate reasons, never give a credit card number or bank account number over the phone where someone else can easily eavesdrop and obtain the information.
According to the Federal Trade Commission's Identity Theft Site, if identity theft is suspected, four very important steps must be taken as soon as possible.
1. Place a fraud alert on and review credit reports.
2. Close any accounts that may have been tampered with or opened fraudulently.
3. File a complaint with the Federal Trade Commission.
4. File a report with your local police or the police in the community where the identity theft took place.
Free copies of identity theft resources from the FTC can be found at: http://www.ftc.gov/bcp/edu/microsites/idtheft2012/
Wednesday, September 26, 2012
Tips for saving on utility bills
With the winter months quickly approaching, many people are looking for ways to save on utilities. Below are some tips to save on electricity, gas, phone and water bills.
Many local electric, gas and water companies offer low cost plans for people with lower incomes or medical issues, so calling the local company could be a great way to begin saving.
If possible, replacing old appliances with ones that have the Energy Star approval can help, as well. An old appliance may be costing way more than a newer one by not running efficiently. Go to http://www.energystar.gov/ for more information on Energy Star products and ways to save by making small home improvements to make homes more efficient.
Installing a programmable thermostat can impact utility bills tremendously because they help regulate the heating and cooling systems while someone is home and away. Turning up the thermostat 2 degrees in the summer and down 2 degrees in the winter can make a huge difference, but will not sacrifice comfort.
Turning down the thermostat on a hot water heater to about 120 degrees can help save, but will still feel hot enough when bathing.
Turning off lights and turning off or unplugging appliances that are not in use should save money over time, too. Compact fluorescent light (CFL) bulbs will last much longer than old incandescent ones and will lower electricity costs. The best bulbs to purchase will have an Energy Star label.
Regularly cleaning the coils on the back of a refrigerator and replacing filters when needed on heating and air-conditioning units will use less energy, as well.
Many people who have cell phones can cancel their home phone service to completely eliminate a home phone bill. Also, there are free or low cost ways to make long distance calls like Skype, if internet service is available.
Air drying clothes or dishes and washing only full loads can help, too.
For even more tips on saving on utilities, visit the U.S. Department of Energy site at: http://energy.gov/energysaver/energy-saver
In their Frugal Living Guide, Bankrate.com offers 10 ways to save on utility bills at: http://www.bankrate.com/finance/smart-spending/10-ways-to-save-money-on-your-utility-bill-1.aspx
There are so many simple ways to save on utilities. Even doing just a few of them can have a dramatic effect on energy usage and monthly utility costs.
Many local electric, gas and water companies offer low cost plans for people with lower incomes or medical issues, so calling the local company could be a great way to begin saving.
If possible, replacing old appliances with ones that have the Energy Star approval can help, as well. An old appliance may be costing way more than a newer one by not running efficiently. Go to http://www.energystar.gov/ for more information on Energy Star products and ways to save by making small home improvements to make homes more efficient.
Installing a programmable thermostat can impact utility bills tremendously because they help regulate the heating and cooling systems while someone is home and away. Turning up the thermostat 2 degrees in the summer and down 2 degrees in the winter can make a huge difference, but will not sacrifice comfort.
Turning down the thermostat on a hot water heater to about 120 degrees can help save, but will still feel hot enough when bathing.
Turning off lights and turning off or unplugging appliances that are not in use should save money over time, too. Compact fluorescent light (CFL) bulbs will last much longer than old incandescent ones and will lower electricity costs. The best bulbs to purchase will have an Energy Star label.
Regularly cleaning the coils on the back of a refrigerator and replacing filters when needed on heating and air-conditioning units will use less energy, as well.
Many people who have cell phones can cancel their home phone service to completely eliminate a home phone bill. Also, there are free or low cost ways to make long distance calls like Skype, if internet service is available.
Air drying clothes or dishes and washing only full loads can help, too.
For even more tips on saving on utilities, visit the U.S. Department of Energy site at: http://energy.gov/energysaver/energy-saver
In their Frugal Living Guide, Bankrate.com offers 10 ways to save on utility bills at: http://www.bankrate.com/finance/smart-spending/10-ways-to-save-money-on-your-utility-bill-1.aspx
There are so many simple ways to save on utilities. Even doing just a few of them can have a dramatic effect on energy usage and monthly utility costs.
Thursday, September 20, 2012
Tips for improving credit scores
Many people wonder what they can do to improve their credit score. Since a credit score increases or decreases depending on how finances are handled, improving a low credit score will take diligence and time.
A credit score is determined by the information contained on a credit report and normally ranges from 300 – 850. The creditors and lenders use the credit score to decide if they will extend credit or a loan and at what interest rate. Credit scores can also affect whether or not a person can buy items like a cell phone and how much someone actually pays for different types insurance.
The first step to improving a credit score is being aware of what information is actually contained on a credit report. Because of the Fair and Accurate Credit Transactions Act (FACTA), which is an amendment to the Fair Credit Reporting Act (FCRA), everyone is entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies. This free credit report can be requested through AnnualCreditReport.com.
The credit reporting companies are Equifax, Experian and TransUnion.
Equifax: 1-877-576-5734; www.alerts.equifax.com
Experian: 1-888-397-3742; www.experian.com/fraud
TransUnion: 1-800-680-7289; www.transunion.com
If errors are found on any of the reports, a person must contact that reporting agency directly to correct those errors because inaccuracies can have a negative impact on a credit score. Here are some tips on raising a credit score once any errors have been corrected:
Consistently paying bills on time can have a dramatic effect on a credit score, but it does take time. It is so important not to be late on a bill, even by a day or two, if a person is trying to raise his/her credit score. This establishes that a person is responsible financially, so the creditor/lender will feel more comfortable about the fact that they will receive their payments in a timely manner.
Keeping credit balances well below the actual credit limit will also have a positive effect on a credit score. Experts recommend staying at 25% or below of the total credit limit. If a credit card is maxed out, the score will be impacted negatively.
Lenders like to see that a person can manage different kinds of debt. Having a variety of major credit cards, possibly a store credit card and a house or a car loan can help a credit score if the bills are paid in full and on time.
Limiting the amount of new accounts that are opened and preventing unnecessary credit checks or inquiries can have a positive effect, as well.
Improving a poor credit history will take time, so be leery of any companies who offer to quickly repair a credit report for a fee. Some credit repair organizations engage in illegal or deceptive practices.
The Federal Trade Commission offers facts for consumers regarding credit repair here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm.
More information on the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA) can be found on the Federal Trade Commission’s website at: http://www.ftc.gov/os/statutes/fcrajump.shtm and http://www.ftc.gov/opa/2005/06/disposal.shtm.
A credit score is determined by the information contained on a credit report and normally ranges from 300 – 850. The creditors and lenders use the credit score to decide if they will extend credit or a loan and at what interest rate. Credit scores can also affect whether or not a person can buy items like a cell phone and how much someone actually pays for different types insurance.
The first step to improving a credit score is being aware of what information is actually contained on a credit report. Because of the Fair and Accurate Credit Transactions Act (FACTA), which is an amendment to the Fair Credit Reporting Act (FCRA), everyone is entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies. This free credit report can be requested through AnnualCreditReport.com.
The credit reporting companies are Equifax, Experian and TransUnion.
Equifax: 1-877-576-5734; www.alerts.equifax.com
Experian: 1-888-397-3742; www.experian.com/fraud
TransUnion: 1-800-680-7289; www.transunion.com
If errors are found on any of the reports, a person must contact that reporting agency directly to correct those errors because inaccuracies can have a negative impact on a credit score. Here are some tips on raising a credit score once any errors have been corrected:
Consistently paying bills on time can have a dramatic effect on a credit score, but it does take time. It is so important not to be late on a bill, even by a day or two, if a person is trying to raise his/her credit score. This establishes that a person is responsible financially, so the creditor/lender will feel more comfortable about the fact that they will receive their payments in a timely manner.
Keeping credit balances well below the actual credit limit will also have a positive effect on a credit score. Experts recommend staying at 25% or below of the total credit limit. If a credit card is maxed out, the score will be impacted negatively.
Lenders like to see that a person can manage different kinds of debt. Having a variety of major credit cards, possibly a store credit card and a house or a car loan can help a credit score if the bills are paid in full and on time.
Limiting the amount of new accounts that are opened and preventing unnecessary credit checks or inquiries can have a positive effect, as well.
Improving a poor credit history will take time, so be leery of any companies who offer to quickly repair a credit report for a fee. Some credit repair organizations engage in illegal or deceptive practices.
The Federal Trade Commission offers facts for consumers regarding credit repair here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm.
More information on the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA) can be found on the Federal Trade Commission’s website at: http://www.ftc.gov/os/statutes/fcrajump.shtm and http://www.ftc.gov/opa/2005/06/disposal.shtm.
Thursday, September 13, 2012
Saving money at the pump
According to the US Energy Information Administration, the current average gas price in the US is about $3.85. It seems like fuel costs are rising almost daily, so people are looking for ways to save.
There are steps a vehicle owner can take to conserve gas and save money along the way.
One of the most important things that are overlooked when it comes to saving on gas is keeping up with a vehicle's maintenance schedule. Referring to the owner's manual for the proper timing for performing vehicle maintenance, such oil changes, can be extremely beneficial.
Under inflated tires and tires that are not properly aligned lower fuel economy and will have to be replaced more frequently.
Clogged air filters, loose gas caps, and worn spark plugs also have a huge effect on how much gas a vehicle burns.
Additionally, rapid acceleration and braking hard can impact fuel usage. Slowing down and maintaining consistent speeds, perhaps by using the cruise control option, can save money.
Turning off the A/C when possible, avoiding idling and lightening the load in the vehicle will make a difference, as well.
If in the market for a new vehicle, look for ones that are more fuel efficient. The US Department of Energy offers money saving tips and information on which cars are the most fuel efficient at: http://www.fueleconomy.gov/feg/drive.shtml.
Another way to save money is to shop around for the least expensive gas. GasBuddy.com has a website and free mobile app available for smart phones to find the cheapest gas available. Consumers make frequent price updates to the site to allow others to know where the best gas prices are at any given time.
The Federal Trade Commission states that an important variable in fuel economy is how someone fuels, drives, and maintains a car. The FTC provides more information on stretching fuel dollars at: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt064.shtm
Performing regular vehicle maintenance, not driving erratically, and shopping around for the best prices can greatly increase savings at the pump.
There are steps a vehicle owner can take to conserve gas and save money along the way.
One of the most important things that are overlooked when it comes to saving on gas is keeping up with a vehicle's maintenance schedule. Referring to the owner's manual for the proper timing for performing vehicle maintenance, such oil changes, can be extremely beneficial.
Under inflated tires and tires that are not properly aligned lower fuel economy and will have to be replaced more frequently.
Clogged air filters, loose gas caps, and worn spark plugs also have a huge effect on how much gas a vehicle burns.
Additionally, rapid acceleration and braking hard can impact fuel usage. Slowing down and maintaining consistent speeds, perhaps by using the cruise control option, can save money.
Turning off the A/C when possible, avoiding idling and lightening the load in the vehicle will make a difference, as well.
If in the market for a new vehicle, look for ones that are more fuel efficient. The US Department of Energy offers money saving tips and information on which cars are the most fuel efficient at: http://www.fueleconomy.gov/feg/drive.shtml.
Another way to save money is to shop around for the least expensive gas. GasBuddy.com has a website and free mobile app available for smart phones to find the cheapest gas available. Consumers make frequent price updates to the site to allow others to know where the best gas prices are at any given time.
The Federal Trade Commission states that an important variable in fuel economy is how someone fuels, drives, and maintains a car. The FTC provides more information on stretching fuel dollars at: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt064.shtm
Performing regular vehicle maintenance, not driving erratically, and shopping around for the best prices can greatly increase savings at the pump.
The National Mortgage Settlement
In recent years, some mortgage lenders have participated in using unfair and illegal practices with regard to home foreclosures, mortgage servicing and bankruptcy. These banks were found to have submitted foreclosure documents that were not signed in the presence of a notary and were not properly reviewed. This practice is commonly called robo-signing.
In February of this year, the largest ever consumer financial protection settlement agreement was reached between 49 states and 5 of the nation’s largest mortgage lenders. The state of Oklahoma decided not to join the settlement, so residents of Oklahoma will not be eligible for relief under this settlement.
The National Mortgage Settlement was approved by the United States District Court on April 4, 2012 and will provide about $25 billion in benefits to borrowers whose loans are owned or serviced by the 5 banks who settled.
The 5 mortgage servicers involved in the settlement are:
• Ally/GMAC: 800-766-4622
• Bank of America: 877-488-7814
• Citi: 866-272-4749
• JPMorgan Chase: 866-372-6901
• Wells Fargo: 800-288-3212
The bank that services the loan can be found on every mortgage statement. Since the agreement is complicated and it will take quite a while to notify all of the eligible homeowners, this settlement will be executed over a 3 year period.
The settlement will provide assistance for the following:
1. Homeowners who currently need loan modifications-This includes first and second lien principal reduction. Eligible borrowers will be contacted by the mortgage lenders and will receive letters offering principal reductions or other modifications starting in June 2012.
2. Borrowers who are current, but underwater-Eligible borrowers will be able to take advantage of today’s low interest rates by refinancing their mortgage despite their negative equity. Servicers will have to provide up to $3 billion in refinancing relief nationwide.
3. Borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011-Cash payments will be distributed to borrowers who receive and return a claim form. There will not be requirement to prove financial harm and borrowers will not have to release private claims against the servicers nor will they have to relinquish the right to participate in the independent review process being conducted by federal banking regulators. $1.5 billion is expected to be distributed nationwide to some 750,000 borrowers.
To determine if a loan was affected by the settlement, please refer to the following sites for more information:
The website of the Executive Committee of the state attorneys general:
http://www.nationalmortgagesettlement.com/
The United States Trustee Program’s website concerning the National Mortgage Settlement: http://www.justice.gov/ust/eo/public_affairs/consumer_info/nms/index.htm
The website of the Office of Mortgage Settlement Oversight: http://www.mortgageoversight.com/
For struggling borrowers who are not eligible under The National Mortgage Settlement, here are some other resources that could be of assistance:
The website for Making Home Affordable, which is an official program of the Departments of the Treasury & Housing and Urban Development: www.makinghomeaffordable.gov
The website of the Independent Foreclosure Review, which will determine whether individual homeowners suffered financial injury and should receive compensation or other remedy because of errors or other problems during their home foreclosure process: www.independentforeclosurereview.com
In February of this year, the largest ever consumer financial protection settlement agreement was reached between 49 states and 5 of the nation’s largest mortgage lenders. The state of Oklahoma decided not to join the settlement, so residents of Oklahoma will not be eligible for relief under this settlement.
The National Mortgage Settlement was approved by the United States District Court on April 4, 2012 and will provide about $25 billion in benefits to borrowers whose loans are owned or serviced by the 5 banks who settled.
The 5 mortgage servicers involved in the settlement are:
• Ally/GMAC: 800-766-4622
• Bank of America: 877-488-7814
• Citi: 866-272-4749
• JPMorgan Chase: 866-372-6901
• Wells Fargo: 800-288-3212
The bank that services the loan can be found on every mortgage statement. Since the agreement is complicated and it will take quite a while to notify all of the eligible homeowners, this settlement will be executed over a 3 year period.
The settlement will provide assistance for the following:
1. Homeowners who currently need loan modifications-This includes first and second lien principal reduction. Eligible borrowers will be contacted by the mortgage lenders and will receive letters offering principal reductions or other modifications starting in June 2012.
2. Borrowers who are current, but underwater-Eligible borrowers will be able to take advantage of today’s low interest rates by refinancing their mortgage despite their negative equity. Servicers will have to provide up to $3 billion in refinancing relief nationwide.
3. Borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011-Cash payments will be distributed to borrowers who receive and return a claim form. There will not be requirement to prove financial harm and borrowers will not have to release private claims against the servicers nor will they have to relinquish the right to participate in the independent review process being conducted by federal banking regulators. $1.5 billion is expected to be distributed nationwide to some 750,000 borrowers.
To determine if a loan was affected by the settlement, please refer to the following sites for more information:
The website of the Executive Committee of the state attorneys general:
http://www.nationalmortgagesettlement.com/
The United States Trustee Program’s website concerning the National Mortgage Settlement: http://www.justice.gov/ust/eo/public_affairs/consumer_info/nms/index.htm
The website of the Office of Mortgage Settlement Oversight: http://www.mortgageoversight.com/
For struggling borrowers who are not eligible under The National Mortgage Settlement, here are some other resources that could be of assistance:
The website for Making Home Affordable, which is an official program of the Departments of the Treasury & Housing and Urban Development: www.makinghomeaffordable.gov
The website of the Independent Foreclosure Review, which will determine whether individual homeowners suffered financial injury and should receive compensation or other remedy because of errors or other problems during their home foreclosure process: www.independentforeclosurereview.com
Friday, September 7, 2012
Welcome from the CEO
Welcome to our new and improved blog! Abacus Credit Counseling first launched this blog in 2010 to provide tips on managing money, lowering expenses, and generally improving your personal finances. Our new site will feature regular articles from our own credit counselors based on issues we hear from clients every day. Our goal is to provide practical advice that you can adopt right away. You can "follow" the blog or check back periodically to find new information each week for improving your finances.
Best regards,
Laurie Ahart, CEO
Best regards,
Laurie Ahart, CEO
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