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A National 501(c)(3) Non-Profit Organization
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CACC Moneywise Monthly
Budgeting & Savings News You Can Bank On
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October 2010
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Step into Fall...Financially
As we head quickly into the Fall Season the financial news for millions of American Families continues to be grim and the near future does not promise to bring great financial changes for the better.
While consumer spending did decrease overall in 2010, expenses tend to increase at this time of year whether we like it or not. It is necessary to prepare ourselves and our homes for the coming cold weather months and that means an increase in expenses including cold weather clothing, heating, and home winterization costs.
This is the time of year when holiday shopping, travel, work and family gatherings also strain many family budgets. It shouldn't surprise you to know that grocery expenses traditionally go up, along with many waist sizes, over the next two months as we celebrate holidays and special celebrations.
Our goal this month is to help you prepare to survive and thrive financially during the winter-holiday season.
It will take careful planning and close attention to expenses to be successful, but, with the right combination of helpful strategies and action on your part, you'll become more confident financially and get through the next few months successfully and with less financial stress. CACC Counseling and Customer Service teams are here to help you!
Take Action!
Don't let the inevitable expenses sneak up on you. Start planning expenses for the next few months right now. There are many costs you incur every year at this time as well as some you don't expect. Planning is essential for financial success!
Thank you for choosing Consumer Advocates Credit Counselors. We welcome your comments and suggestions for future issues. Please email education@caccdebt.org with your ideas.
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Advance Planning for Financial Success
How do you start to plan your finances? Some call it a Budget while others refer to it as a Spending Plan. Whatever you call it, it's the only way for you to stay in control of your income and expenses and create a roadmap to a better financial future.
Starting a budget once someone is in trouble financially is not the best time to start one, but it is not too late either. In fact, it is extremely important for those having difficulty financially to create a good monthly spending plan as soon as possible.
Quick Budgeting Tips:
· Record all sources of income. Be sure to count even small amounts like interest income from checking and savings accounts. Every little bit helps!
· Next, account for all of your Expenses. Some expenses are easier than others like mortgage or rent payments that are the same each month. A good budget includes the daily items like coffee everyday on the way to work, lunch out, lottery tickets, and other expenses often paid for with cash that go unrecorded and forgotten until the we run out of money at the end
of the month and wonder, "where did all the money go?"
· Now do some simple math and subtract your expenses from your monthly take home pay and see where you stand. What is your family's Bottom Line?
Positive: You have money left over. This is GOOD!
Break even: Everything you bring home goes right back out for expenses. Not great but not creating debt either.
Negative: You spend more each month than you can afford based on your income. We must find a way to fix this as soon as possible.
Review Your Expenses
Double check to make sure you've not forgotten any income or expenses. If there are several people in the family with access to an ATM Card drawing on the same checking account, everyone should participate in the budget creation process.
· If you're bottom-line is negative you must look for expenses that are excessive and unnecessary which can be reduced or eliminated right away. In a negative situation, no new spending or borrowing to spend should be considered.
· Look for where you are spending money on things you like to have but don't need. Having 300 cable channels with DVR to record and playback Movies and TV shows is nice but not required to live comfortably. Believe me; "suffering" with only 80 basic TV channels is much easier when you see money in your bank account at the end of the month!
More Detailed Planning
Now that you have a quick idea of your financial situation and a framework of income and expenses, you can begin to create a spending plan for each month of the year going forward 12 months. The idea is that you are actually planning in advance so you can make adjustments in spending before the month is upon you. It is also a great time to look more deeply into your spending habits to find patterns that you can manage and revise so that you are working toward creating a positive outcome each and every month.
Now is also the time to consider new expenses that will be coming your way during the Fall and Winter months.
Home
· Heating bills for those living in cold weather parts of the country will be
going up!
· Maintenance costs to keep heating equipment working properly and
safely all season
· Winterizing your home against the elements may cost a little but may
save substantially on heating bills
· Don't forget the costs of preparing for bad weather and power outages
Travel
Are you planning to travel in the next three months? When it comes to travel, early planning and purchases almost always mean savings. Sure, there are some last minute deals around, but why take the chance that a flight will be sold out and paying the highest possible price for a ticket. Shopping now gives you time to find the best deals.
Food
Whether you are cooking or visiting friends or relatives for the Holidays, you will experience extra food and entertainment costs. Even if it's the cost of brining a bottle of wine to a friend's house for a dinner party, it is an extra expense that you should plan for and include in your monthly budget.
Clothing
Cooler weather means more clothing needed and, just like with travel, the sooner you can plan clothing that is needed the easier it is to find sales, discounts, and other sources of what you need such as borrowing a coat from a friend or relative.
Many families with children make it a habit of calling everyone they know to ask if a coat or pair of boots that their own children have outgrown could be useful. Don't be shy about asking people you know if they have extras you could borrow or even purchase for a small amount. It's got to be cheaper than retail!
Better Now than Later!
You will be surprised at how many extra, often, small expenses, pop up on the radar once you seriously sit down and begin to track them. Finding extra expenses may sound like a problem you'd rather avoid. However, you will actually gain a feeling of empowerment over your financial situation by being more aware of what is coming up and managing your financial resources to deal with the expenses that would have otherwise surprised you and possibly caused you to take on more credit card debt.
** 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.
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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.
Don't keep it a secret!
If you are going to be late with a payment or won't have enough money in your account to cover an upcoming payment, be sure to alert Customer Service as soon as possible. This is very important.
A missed or late payment puts your enrollment in the Debt Management Program and any benefits your creditors may have extended to you in jeopardy. With enough notice, payment dates could possibly be rescheduled to a day when you will have enough funds.
If something happens to your ability to afford your monthly payments on an ongoing basis, you must report this as well. Just letting payments go delinquent without explanation will cause your creditors to restart their collection process immediately.
Communication is key to keeping on track to becoming debt free.
For CACC Customer Service call 1-800-763-1874.
Do you know someone who would benefit from money management strategies and information? Please forward this email to them!
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Stealing from Granny
Courtesy of USAA
She spends her days tending her gardens and fruit trees. She embroiders pillowcases to give as gifts. She cooks delicious, down-home meals. She does her best to spoil 48 grandchildren. And once, she gave a perfect stranger access to $20,000 in her checking account.
When criminals call offering help
The scam artist on the telephone called her by name when he offered to help her get her stimulus money a little quicker. "I knew that $300 check was coming in the mail, and I had been wondering about it a lot," explained 88-year-old Theresa. Theman on the phone made it sound like a good idea - there was no reason to wait weeks for the check to come to her mailbox.
So, she gave him what he asked for - her bank account number - and he claimed that he would have the stimulus check directly deposited into her account. Luckily, Theresa's story has a happy ending. She told her grandson about the call, and right away, they contacted her bank. Quick action likely protected a big chunk of Theresa's savings from being withdrawn by crooks.
Elder fraud's frequent unhappy endings
According to the National Center for Elder Abuse, elder fraud is any knowing, intentional, or negligent act that causes harm or exploitation to a vulnerable adult. It's a crime that many victims don't report.
"They may be afraid of retaliation, or they're embarrassed," says Tom Shaw, Enterprise Fraud Officer for financial services company, USAA. He adds, "Seniors may think if they tell someone, they'll lose more independence or control over their finances."
In his work, Shaw sees cases in which elderly victims are exploited by a family member or caregivers."Maybe it's the only person who ever comes to visit, or a trusted caregiver who is taking advantage," says Shaw, "Sadly, some don't report abuse because they are afraid of being left alone. They may be dependent on the help of the very person who is stealing from them."
Doing something about elder fraud
Besides the work of agencies like adult protective services, there are stiffer laws protecting seniors on the horizon. Most states in the U.S. already have legislation that includes mandatory reporting of suspected elder abuse or fraud.
Elder fraud costs the most vulnerable
One case in particular, sticks out in Shaw's mind: A USAA member was told he would receive an inheritance of $10 million dollars, but he had to first wire six figures in fees from his account to receive the inheritance. The transaction sent up a red flag for an employee who was trained to recognize signs of a potential scam.
"It feels really good when we catch and stop a potential disaster for our members," says Shaw, "If the money had been wired at the member's request, it wouldn't have been USAA's money lost, but we would have lost an opportunity to help protect that member's financial future."
Granny's advice
Even though Theresa's near-fraud experience happened three years ago, it was traumatic, and she recalls the details easily.
"Even though he already had my checking account number, he was pushy, and went on to try and get my Social Security number," she says, "That's when I got really nervous and said, 'This is a scam, isn't it?'" When the caller hung up on her, it was a clear sign to Theresa that she needed to tell someone and take action to protect her hard-earned savings.
"I tell people all the time what happened to me," she explains, "I especially tell my older friends because I don't want something bad to happen to them. I was lucky."
Tips for avoiding a scam.
Elder fraud can be particularly tough on anyone physically separated from an aging family member. Whether you're near or far from a vulnerable loved one, share these tips for avoiding a scam:
· Never give personal or financial information to someone you
don't know.
· Never pay money to get a prize or other type of monetary
distribution.
· It is OK to hang up on someone pressuring you on the
telephone.
· Beware if someone asks you to wire money.
· If you believe someone has exploited you financially, don't
hesitate to call your bank or financial institution and someone
you trust who can help.
What kind of thug targets seniors?
Crooks and scam artists look for easy victims and quick payoffs.
Here's what they believe about elders:
-There are valuables to take - assets like homes, proceeds from sales of appreciated real estate and retirement savings.
-A senior can be easily swayed if promised quick profits. Especially if there's concern about running out of money in retirement.
-Can be easy to deceive, especially if they suffer from memory problems or mental confusion.
-Seniors are socially isolated and want attention, even from strangers, so they're easily influenced and exploited.
Spotting a thief who is close to the victim
A trusted person may be forging checks, using credit cards without permission, using a senior's good credit to take out loans, adding themselves to accounts, embezzling, or using a fraudulent Power of Attorney for illegal access to an elder's finances.
Tom Shaw provides these examples to show how vulnerable adults might be targeted by someone they have an on-going relationship with:
· An in-home health care provider steals a debit card from an
elderly patient's home. The fraudster uses the card to buy a
new mountain bike.
· A son fills out a false Power Of Attorney, then uses it to add
himself to his elderly mother's bank accounts. The son then
opens two new accounts and transfers funds from the parent's
account.
· A neighbor steals checks and statements out of a senior's
home and mailbox in order to forge and cash them at a local
bank.
Getting help
If you suspect elder abuse, neglect, or exploitation, call 1-800-677-1116. To report suspected abuse in the community, contact your local adult protective services agency. For state reporting numbers, and more on elder fraud, visit the National Center on Elder Abuse website at www.ncea.aoa.gov.
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Give yourself Credit
Yes, you can dispute inquiries.
Federal Law gives you the right to dispute any information contained in your Credit Reports that is not accurate or factual. That includes inquiries made by businesses who are looking at your credit report without your authorization.
Inquiries listed on a credit report are now broken down into two categories.
1. Those that other lenders and organizations reviewing your credit reports see, such as when you apply for a loan or a credit card. These types of inquiries must be authorized by you when you apply for credit and having too many of these will lower your credit score.
2. The inquiries that you did not authorize but that only you will see when you review your own credit reports. These are called "soft inquiries" and they don't affect your credit score because these inquiries are done by marketing companies and lenders looking to see if they want to market their product or service to you, or by your own creditors who want to keep an eye on your other accounts. You did not ask these companies to review your credit.
The inquires in the first category are the ones you want to review very carefully looking for any that may be unauthorized. If you see inquiries from companies that you did not give permission to review your credit, it is your right under the Fair Credit Reporting Act (FCRA), to dispute the inquiry with the reporting Credit Bureau.
Inquiries are listed on Credit Reports for two years so it is also a good idea to check the dates and request that those older than two years be removed as well.
Many people overlook this opportunity to ask for old and unauthorized inquiries to be removed. Fewer inquiries helps improve your credit score.
Remember... www.annualcreditreport.com is the only Web site, mandated by Federal Law, where you can get a truly free copy of your "Big 3" credit reports once every 12 months. Other web sites offering free credit reports are usually selling some type of membership or monitoring service in return for giving you a credit report. These services can cost as much as $200 a year.
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 or call 1-877-322-8228.
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Money $aving Ideas
Simple, Everyday Things You Can Do to Save Money10 Ways to Save Money this Fall!
1. You will spend less on food if you shop with a list, take advantage of sales, and purchase basic ingredients, rather than pre-packaged components or ready-made items.
2. You can save hundreds of dollars a year by comparing price-per-ounce or other unit prices on shelf labels. Stock up on those items with low per-unit costs.
3. Since brand name drugs are usually much more expensive than their generic equivalents, ask your physician and pharmacist if a less expensive generic or an over the counter alternative is available.
4. Since pharmacies may charge widely different prices for the same medicine, call several. When taking a drug for a long time, also consider calling mail-order pharmacies, which often charge lower prices.
5. Once a year, review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies which provide service in your area (including wireless and cable), to find the cheapest calling plan that meets your needs. Consider a bundled package.
6. If you use a cell phone, make sure your calling plan matches the pattern of calls you typically make.
7. A home energy audit can identify ways to save up to hundreds of dollars a year on home heating (and air conditioning). Ask your electric or gas utility if they audit homes for free or for a reasonable charge. If they do not, ask them to refer you to a qualified professional.
8. Enrolling in load management programs and off-hour rate programs offered by your electric utility may save you up to $100 a year in electricity costs. Call your electric utility for information about these cost-saving programs.
9. You can save more than $100 a year in fees by selecting a free checking account or one with no minimum balance requirement. Request a complete list of fees that are charged on these accounts, including ATM and debit card fees.
10. Get a new quote on auto insurance every year.
Have a money saving idea that you'd like to share?
Send it to us for possible publication in this newsletter!
education@caccdebt.org |
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Americans need Debt Relief in record numbers!
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 236A
Boca Raton, FL 33428
Thank you for your generosity!
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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
- Fighting Identity Theft and Financial Fraud
- Understanding Your Credit Report and Boosting Your Credit Score
- Creative Ways to Teach Kids About Money
- How to Get Out of Debt
Ask about customized seminars for your group, staff, congregation, organization, or club!
Call 1-800-763-1874 or e-Mail: mikes@caccdebt.org
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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
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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.
This newsletter is designed to provide accurate and authoritative information with regard to the subject matter covered. This information is given with the understanding that neither CACC nor the Editor and Writers are engaged in rendering legal, accounting, or other professional advice. Since the details of your situation are fact dependent you should always seek the services of a competent professional before making any financial decisions.
Copyright©Consumer Advocates Credit Counselors, Inc. 2010. All Rights Reserved.
Use of all or part of this newsletter is allowed with proper attribution and link: Source: Consumer Advocates Credit Counselors, Inc. www.caccdebt.org |
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