|
A National 501(c)(3) Non-Profit Organization
call: 1.800.763.1874 |
CACC Moneywise Monthly Budgeting & Savings News You Can Bank On
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
May 2010
|
"Manage your money properly for future generations."We all tend to be extremely focused on today and don't spend a great deal of time thinking about, or planning, for the future.
Experts point to our need for instant gratification which makes it difficult for us to think about next week, let alone the next twenty or thirty years or more. That is why car dealers focus on the monthly payment rather than the total cost of the car when trying to make a sale.
It is a key reason why so many people are deep in credit card debt because it was easier to think about getting the items they wanted that day by borrowing at high interest using credit cards, even if they couldn't really afford the expense, versus taking a long-term approach, delaying the purchase until they could save up for it, in order to avoid high interest costs.
Lack of proper financial planning for the future can lead to many problems including the need to rely on high interest borrowing to pay for things that we didn't plan to buy when we had time to save well ahead of the need. Retirement is one of those important areas where a majority of people simply fail to properly plan for their financial needs. It has been reported that 75 million people do not put any part of their annual household income toward retirement.
Right now, while you are in the heat of financial problems, it's even harder to think about the future when you are just trying to get through each day.
Difficult or not, it is very important to plan ahead and manage money for the long haul. Modern medicine and healthier lifestyles will lead to longer lives in retirement which will be expensive. Parents must provide for their children for at least eighteen years and, likely, longer than that. So those are two very good reasons to plan your finances beyond what you need to buy today.
And, as a bonus, taking the long view does some important things for you: - Long term thinking makes you think more in depth about your financial goals and how you will attain them. You'll think more about your future lifestyle, where you will be living in 20 years, and how much you will need to earn in the future to live the lifestyle you envision. When we go on a trip, most people reserve a hotel room in advance so they have a place to sleep when they arrive. Start envisioning your living arrangements 20 years from now.
- Long term planning helps you realize all of the expenses you will be responsible for in the future. Food, cars, medicine, and so many other expenses don't disappear in the future. They only get more costly.
- Long term planning helps you avoid overpaying for purchases today which will require you to borrow at high interest rates. You should take a more patient view about buying things you want today. Remember, there is a difference between "wants" and "needs." You may "need" a car but you may "want" an expensive luxury car. Even if you can afford the monthly payments for the luxury car, long-term planning will force you to think about the total cost of buying or leasing the more expensive vehicle, and what effect it will have on your finances years from now.
- Long-term planning will empower you because you will feel more in control of your financial future.
- It will give you confidence to make other decisions in your life. Financial empowerment leads to a more confident overall approach to life in general. When we feel out of control, like when collectors are calling our home night and day making threats, we tend to make mistakes under the stress financially and otherwise. That is why personal relationships and marriages can get damaged under the stress of financial problems.
Your financial responsibilities go way beyond the present. To minimize financial mistakes the next time you are contemplating borrowing or spending money, think about where you'd like to be financially twenty years from now. CACC Counseling and Customer Service teams are here to help you!
Take Action! Sit down and start by writing some financial goals for this year, two years from now and five years out.
Thank you for choosing Consumer Advocates Credit Counselors as your credit counseling organization.
We welcome your comments and suggestions for future issues.
Please email education@caccdebt.orgwith your ideas.
|
|
"Fighting Identity Theft"
Several companies, including VISA, have teamed up to test an application this summer that would allow people to make purchases by simply waving their IPhone in front of a small device at checkout? No signature and no pin number required, and no need to present a credit or debit card.
This is a natural expansion of the "Wave and Go" technology which allowed consumers to wave a credit card past a reader without having to sign for a purchase. Soon, it seems, having to "swipe" a credit or debit card through a machine will be a thing of the past. We'll be waving our way into debt.
As we move deeper and deeper into being a cashless society, more reliant on our PDA's and cell phones to make paying for things easier, Identity Theft will grow more common. Currently, the Federal Trade Commission (FTC) says 10 million Americans are victims of ID Theft each year.
At our CACC "Fighting Identity Theft" workshops we teach a number of techniques to help you protect your personal and financial information. Here are a few things you can do to protect yourself: Check your credit reports on a regular basis to be sure no accounts have been opened in your name with your personal information. Review statements carefully for unusual activity. Protect your passwords and pins carefully. Don't post anything on the Internet that you may use as a password, especially your date of birth and mother's maiden name. If you move, notify all of your financial institutions, even companies that may have closed accounts, of your new address and keep track to be sure all statements and other important correspondence arrive at your new location. Thanks to online banking, we can check personal information online to be sure everything is correct and up to date. Shred personal information properly before disposing of it. Buying the cheapest shredder isn't a smart move. The best shredders create small dots or diamonds of confetti by cross cutting paper. Long strips of paper can still be put back together and read by a motivated thief.
We wonder, with this new "wave and pay" technology, if someone walks too closely to one of the readers, could they actually pay for something without even knowing that they've done so? Could "pick-pockets" walk behind people with these readers and scan phones with credit card numbers programmed in without ever touching the victim? It's something to think about. Here are some warning signs to help you avoid Identity theft and fraud through the mail, telephone, and Internet: - You are asked for your bank account or credit card number in an email or by a strange caller.
- Someone you don't know offers you the chance to receive a credit card, loan, prize, lottery, or other valuable item, but asks you for personal data to claim it, like your checking account number, or they ask you to send money to them in advance.
- The solicitation looks like a government document and suggests contest winnings or unclaimed assets are yours - for a small fee.
- An unknown caller claiming to be a lawyer or in law enforcement offers to help you get money that is owed to you, but you must pay a fee in advance.
- The deal is only good "for today" or a short period of time.
- You are given very little or no time to read a contract.
- A stranger needs your help to bring a large amount of money into the United States and offers to pay you a big fee to let them deposit the money into your bank account for a short time.
Deter, Detect and Defend yourself against Identity Theft by staying aware and taking proper precautions.
** For more tips, information, and resources on budgeting, saving strategies, ways to combat debt, and how to use credit responsibly, call Consumer Advocates Credit Counselors toll-free 1-800-763-1874.
|
|
Get the most out of your Debt Management Program!
To get the most out of your Debt Management Program you must continue to be part of the process. Here are some smart things you should do to make sure that you are getting the maximum benefits from each and every monthly payment you make.
Make sure your accounts are being posted properly
Review your statements from creditors carefully to make sure payments are posting properly. Also check to be sure the Annual Percentage Rate (APR) is also at the correct and agreed to percentage. This is very important because the sooner you find a mistake, the easier it will be to get it corrected.
Do you know someone who would benefit from money management
strategies and information? Please forward this email to them!
|
Finding Summer Work
It's tough enough for adults to find work these days and it is expected that High School and College students will encounter another tough summer of trying to find work. But, here are a few suggestions of businesses where students might not normally think to apply for summer work:
Museums and Other Cultural Institutions
Summer is a busy time for Museums which are always looking for affordable help and don't require much in the way of previous experience. It is also a great way for a young student to enjoy some interesting and educational shows and exhibits for free.
Golf Courses, Tennis and Recreation Centers
Golf courses are plentiful and usually need seasonal
workers. Caddying, landscaping and working in the restaurant and pro
shop are some jobs available to teens. Other than caddying, no special
golf knowledge is needed for most jobs. While there are fewer Tennis and Recreation centers around, they offer a great opportunity for young people to stay active and earn some money.
Non-profit organizations
Although volunteering does not usually pay, it does offer a great way for young people, and adults, to help out in the community and gain experience. Volunteering enables teenagers to develop skills, network, and improve their resumes and college applications. Colleges are putting more weight on volunteer and community service work than ever before when reviewing applications.
|
|
Give yourself Credit
The Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of the nations' consumer reporting companies. Because of the FCRA, you have the right to know what is in your Credit Reports.
A consumer reporting company must tell you everything in your report, and give you a list of everyone who has requested your report within the past year - or the past two years if the requests were related to employment. Consumer reporting agencies like Equifax, Experian, and TransUnion collect and sell four basic types of information:
Identification and employment information - This information can include your name, birth date (Employer Credit reports don't include date of birth), and Social Security number. The consumer reporting company may also provide information about your employment history (make sure this is accurate if you are applying for jobs), home ownership, income, and previous address, if a creditor asks.
Payment History - How much credit has been extended to you and whether you've paid your bills on time?
Inquiries - This includes creditors, individuals, and businesses who have asked for your credit report in the past year.
Public record information - Events like bankruptcies, foreclosures, tax liens and Court Judgments, may appear in your report.
Under the Free File Disclosure Rule of the Fair and Accurate Credit Transactions Act (FACT Act), each of the nationwide consumer reporting agencies is required to provide you with a free copy of your credit report once every 12 months, if you request it. To access your free report visit www.annualcreditreport.com, call 1-877-322-8228.
|
A Money $aving TIP
"Use cash as a negotiating tool. Especially in this economy, offering cold, hard cash, if you agree to buy today at a discount, may be music to a seller's ears. Never be afraid to ask for a discount, especially when you are planning to pay in cash!"
Have a money saving tip that you'd like to share?
Send it to us for possible publication in this newsletter! education@caccdebt.org |
|
Millions of Americans continue to have money problems!
They need your Help! CACC is a non-profit, IRS approved 501(c)(3) educational and counseling organization. Our expenses and operations are supported through generous contributions from corporations and individuals like you. Will you please consider providing some financial support so that we can continue our mission? The donation you make today will help fund debt relief programs, education and client services while providing help and hope to thousands. Won't you help us give the gift of Debt Relief.
YES, I'd like to help fund CACC's Debt Relief and Education efforts with a contribution of:
( ) $25 ( ) $50 ( ) Other $___________.
Please Mail your Donation to:
CACC Education Development
23123 U.S. 441, Suite 107
Boca Raton, FL 33428
Thank you for your generosity!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Support CACC while you save up to 85% on your favorite Magazines! Now that's a Win-Win!
Click Here |
|
Free Workshops and Seminars 
As a non-profit Credit Counseling and Financial Education organization, CACC is dedicated to reaching out to the community. CACC provides financial education seminars and workshops at community centers, local organizations, and companies.
Popular Topics Include:
- Managing Money in Tough Times
- Creating and Using a Spending Plan
- Managing Debt and dealing with Creditors
- Financial Trouble signs and What to do Next
- Smart Buying Strategies
- Fighting Identity Theft and Financial Fraud
- Understanding Your Credit Report and Boosting Your Credit Score
- Creative Ways to Teach Kids About Money
- Finding More Money to Save
- How to Get Out of Debt
Ask about customized seminars for your group, staff, congregation, team, or club!
Call 1 800-763-1874 or e-Mail: mikes@caccdebt.org
Upcoming FREE Workshop Schedule
If you live in South Florida, join CACC Director of Education, Mike Schiano, on the first Monday of each month at the Broward County Main Library from 2-3pm.
June - Creative Ways to Teach Kids about Money
July - Managing Money in tough times
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Consumer Advocates Credit Counselors, Inc. is a 501 (c)(3) non-profit credit counseling organization providing credit counseling, financial education, and debt management services. Please visit our website at: www.caccdebt.org
Additional consumer resources:
National Drug Abuse Hotline
1-800-622-HELP
National Domestic Violence Hotline
1-800-799-SAFE
|
| Contact Us:
phone: 1.800.763.1874
CACC Director of Education and Money Wise Monthly Editor in Chief:
Mike Schiano, "The DebtBuster"
mikes@caccdebt.org
'Til Next Month,
Consumer Advocates Credit Counselors, Inc.
Copyright©Consumer Advocates Credit Counselors, Inc. 2009
Use of all or part of this newsletter allowed with proper attribution and link:
Source: Consumer Advocates Credit Counselors, Inc. www.caccdebt.org |
|
|
|
|
