All posts tagged debt

DSEF & FTC: Getting Real Debt Help

Today’s highlighted blog post from FTC/NCPW:

Click here

Having trouble paying your credit card bills? Is your home in danger of foreclosure? In this tough economy, many people are struggling with their debts. Ads from companies offering to help may be tempting, but beware – this could be a trap that will leave you worse off than before. You can usually get the same results yourself, for free, by trying to work out something directly with your creditors. In addition, there are places you can go for low-cost or no-cost help if you need it.

For 13 years, the DSEF has been proud to partner with the FTC and other organizations to offer a wide array of education events and resources that encourage consumers nationwide to take full advantage of their rights and make better-informed decisions.

You’ll find a wealth of resources at www.ncpw.g ov that will help you protect your privacy, manage your money, learn more about credit and debt, decipher advertising messages, and steer clear of fraud and scams.

Please take a moment to share the resources on this Web site with others in your communities and companies and, together, we’ll help build a nation of better-informed and educated consumers.

Charles. L. Orr
Executive Director

Direct Selling Education Foundation

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DSEF & FTC Consumer Resources: Hang Up On Credit Card Interest Reduction Offers

DSEF & FTC Consumer Resources: Hang Up On Credit Card Interest Reduction Offers

Today’s highlighted blog post from FTC:

Hang Up On Credit Card Interest Reduction Offers

You just got home from work and sit down to read the mail. There they are, like clockwork – your credit card bills. You look at the balances and then the finance charges and think, there’s got to be a way to cut the interest rates – especially since you carry a balance most months. You check your phone messages and, low and behold, there’s one from a company that claims it can negotiate better rates on your credit cards.

Please take a moment to share the resources on this Web site with others in your communities and companies and, together, we’ll help build a nation of better-informed and educated consumers.

Charles. L. Orr
Executive Director

Direct Selling Education Foundation

Blog / Teleseminar

DSEF & Money Wise Women

DSEF & Money Wise Women

Today’s highlighted post from Money Wi$e Women Get Smart Teleseminar Series:

How to Escape the Money Life Drain

Do you have any money tips to share? Which teleseminar tip was the most useful? We would love to hear your thoughts.

DSEF proudly sponsors the free Money Wi$e Women Get Smart Teleseminar Series hosted by Marcia Brixey, Founder and President of Money Wise Women Educational Services and author ofThe Money Therapist: A Woman’s Guide to Creating a Healthy Financial Life. The series covers topics related to business and finances and provides women the opportunity to learn from professional experts in a safe, comfortable environment.

To find out about upcoming teleseminars, visit http://www.moneywisewomengetsmart.com/

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How To Start Saving: From Baby Steps to Retirement

How To Start Saving: From Baby Steps to Retirement

Sometimes our finances can become overwhelming to keep track of. And starting a savings account is the last thing on our minds. But it’s necessary to avoid living from paycheck to paycheck! It’s also a great life and academic lesson for our kids to learn.

Here’s where to begin saving:

It could be as simple as a piggy bank – If you are living paycheck to paycheck, having a piggy bank for you and your kids is a great way to start saving. It could be for change left over, found money or from part time jobs, chores and gifts.
Make it automatic and a habit – Every time you get change from shopping or chores, save it. The ideal is to put away 10% of each paycheck. If that’s not possible try 5% – any amount. The sooner you start saving the more money you’ll accumulate.
Make the mental shift – Save instead of spend. Think about this, if you saved and invested your money from not buying that bottle of soda how much would it be in 15 years? A few hundred dollars? Then multiply that by how many bottles of soda you buy in 15 years. It’s probably enough to help you retire!
Open a free savings account – Once you get used to saving, don’t hide it under a mattress. Formalize the process and open a savings account with your local bank. Make sure that the account doesn’t have a fee associated with it. Again, the process of opening and systematically putting savings away is a great life and academic lesson for your kids.
Set a goal for your savings – Save up for a new bike, a trip or even money for college. The process of setting a goal may mean that you’ll have to create a budget, calculate interest, figure out how much things cost, etc. All this means you’re on your way to mastering the art of savings.
Start a Roth IRA retirement account – It’s a special retirement account that allows you to earn interest tax-free, and make tax-free withdrawals after age 59-1/2.

The key to savings is to start now, to make it a habit and to set goals for how you plan to use your money. These simple tips will get you on the right path to financial security. As your savings grow, find a trusted financial advisor to help take you to the next level.

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It’s Time For Your Annual Credit Check-Up!

It’s Time For Your Annual Credit Check-Up!

It’s time for your annual credit check up! It’s not only a smart way to maintain your financial health, but to also avoid financial and identity fraud. A once a year credit checkup is like getting an annual physical…it makes great sense and makes you feel good knowing you’re healthy.

Here are a few steps to review your credit and financial health:

Step 1 – Obtain your free once a year credit reports from all three credit agencies.

Step 2 – Review your credit reports and check if there are any inaccuracies or incomplete credit history.

Step 3 – If you do find a discrepancy, report it to the agency. They are required to investigate the inaccuracy within 30 days.

Step 4 – If you do have a legitimate negative mark, contact the creditor directly to negotiate and arrange for a payment plan.

Step 5 – Your credit report’s health is reflected in your FICO score which is a measure of your capacity to repay loans. This will affect the interest rates for your loans.

Step 6 – Understand your debt ratio. Creditors prefer a debt ratio under 36%. For example, if you earn $3000 monthly they want to see debt payments less than $1080 a month.

Step 7 – Consider keeping only 2 credit cards, maintaining less than 30% of the maximum limit at any time and always pay on time.

Step 8 – Develop a budget and financial plan. Review it annually to fit your financial situation.

Step 9 – Seek help from a certified credit counselor for sound financial advice if you get in trouble.

For more financial tips check out this helpful free government site http://www.ftc.gov/

This is all part of a healthy life style. Eating right, exercising, thinking positively and maintaining your credit leads to a happier you!

Do you check your credit annually? What tips would you offer? Would love to read your thoughts in the comments below!

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Credit Cards: Understanding Your Rights

Credit Cards: Understanding Your Rights

Credit cards. They can be a real convenience. Yet they can also help unwary consumers drive up debt that is hard to escape. If you are a credit card user, it’s important to use your credit card wisely, and also understand your rights, in order to protect your credit rating and live the lifestyle you choose.

Using Credit Cards Wisely

When choosing a credit card, it’s important to check the interest rate that will be charged. When you do not pay the full amount of your bill within the billing cycle (around 30 days), you are charged a percentage of that amount on top of the amount owed. This can really add up each month, so be sure that you understand how much more you will pay for the same purchase.

For example, if you are purchasing a $1000 item with your credit card, and only pay $10 towards that amount each month, and your card charges 10% interest each month, you will pay $1159 extra in interest, and it will take you 18 years to pay off that item. Is it really worth it? You might be better off just putting money aside each month until you have enough to purchase the item outright.

You can check out your own purchases using a credit card calculator online, such as this one.

Understanding Your Rights

Credit card companies also have obligations when it comes to lending through credit cards. Some things you should know:

Your credit card company must inform you, in writing, 45 days before raising your interest rate. They must also tell you how to cancel your card as part of that notification.
You must receive your statement at least 21 days before the payment is due.
Interest rates cannot be increased during the first 12 months that you have a credit card.
Promotional rates must last 6 months.
Your bank can increase your interest rate if your payment is more than 30 days late.

These and other rights are included in this PowerPoint that you can download titled “Credit Card Act of 2009 and You.”

Know Your Credit Score

Your ability to get a credit card with a low interest rate is determined by your credit score. It’s important to review your credit report regularly, to ensure that everything on it is accurate. This will help you make better decisions.

You are entitled to receive a free credit report from the 3 major credit reporting agencies (Equifax, Experian and TransUnion) annually. To get yours, visit http://www.annualcreditreport.com.
Your credit score is the number banks look at when deciding whether or not to give you a loan, a credit card, etc, and what interest rate to charge. Use this free tool to get an estimate of your current credit score: http://www.bankrate.com/calculators/credit-score-fico-calculator.aspx

How do you protect your credit score? How do you teach your kids to use credit wisely? Would love to read your thoughts in the comments below!