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.
Wednesday, September 26, 2012
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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