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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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December 2010
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Time to look back and look ahead
The end of the year is a perfect time for both looking back and looking forward.
Looking back at the past year and assessing how you and your family did financially; and looking forward to the new year and planning your financial moves. This is a great time to review 2010, month by month, to really dig into how you managed your money and understand where all income is going. Take a close look at your budget plan month by month vs. the actual expenditures as this will be helpful in making adjustments to your 2011 budget plan. It will give you good insight as to how well you are forecasting your monthly expenses as well.
Many people use vacation time and holidays as an excuse to eat, shop and watch television. The financial winners are using some of this precious time of year to review and plan their finances. Just like any successful business, you look for things that worked well in the past year and those things that did not help you financially. You eliminate and adjust the things that don't work and you do more of the good things that helped your finances.
You should be further out of debt by now than you were at the beginning of the year. If so, this is a good thing so keep doing what you are doing. If you are deeper in debt than you were at the beginning of 2010, this is a problem that must be looked at closely and adjusted to make sure you are not continuing to pile on more debt in 2011.
Starting a new year is exciting. Financially speaking, according to most experts 2010 should be a better year for most of us. We want to help you continue to improve your financial fitness in the coming year by starting early with a game plan. This newsletter is a helpful tool but remember, if things get difficult, our team is here to help you in any way we can.
The entire CACC staff wishes you and your family a very Happy Holiday Season and a Happy New Year. Take Action!
Review your finances for 2010 very carefully and decide whether you are allocating income proactively or simply paying bills on autopilot without managing your expenses. When you don't manage your expenses carefully, debts don't get paid down as quickly as possible, some bills may go unpaid. Losing track of income and expenses is a big problem that can be avoided if you put some time and effort into it. 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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Using Debit Cards? Use caution
Many people feel that they are doing the smart thing financially by using Debit Cards instead of credit cards in order to avoid piling up high interest debt. It is also a safety issue. Carrying around a large amount of cash while shopping leaves you open to theft and loss. While Debit Cards are a safer alternative to carrying around $300 cash in your wallet, consumers should be reminded that Debit Cards are vulnerable to theft and, when used, the funds are removed directly from a checking account.
If you suspect a problem, you should contact your bank directly by calling the proper numbers provided on your cards and other account documents. The sooner you report issues the better your chances of limiting your financial liability.
10 Ways to Avoid Identity Theft
- Never let anyone walk away with your DEBIT CARD!
- Change passwords often.
- Remove mail from your mailbox promptly. If you suddenly stop receiving mail, call the post office immediately. Consider locking your mailbox.
- Refuse to give your credit card number or other personal information to an unsolicited caller.
- Tear up or shred credit card receipts, unused loan applications and any other items with personal information before throwing them into the trash.
- Obtain copies of your credit reports regularly to check for fraudulent accounts and other information. Report all errors to the credit bureau.
- Report stolen Credit/Debit cards immediately.
- Take the time to carefully review all of your bank and credit card statements and other bills. Report any inconsistencies at once.
- Only take cards you absolutely need when shopping.
- Don't work on sensitive Financial or personal items on a wireless connection.
** Do you need help creating your family budget? Talk to a CACC Credit Counselor toll-free 1-800-763-1874. |
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Get the most out of a 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.
Read your agreement and understand your responsibilities
Be sure you understand your Debt Management Program agreement and what is required of you each month while you are enrolled in the program.
Clarify any items you do not understand
Ask questions. We realize this is a new process for you and you are under stress. Many people just go along with things they don't fully understand because they need the help right now. But, if you don't understand the details of your DMP and how important it is for you to fully participate in the process, you cannot fully enjoy all of the benefits. You are a major player in the DMP process and we want you to understand the program fully.
Were you lucky enough to have received an end of the year Bonus?
Before you run out and spend it, consider investing some of the money toward your DMP accounts. 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 your friends and family!
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Avoid fees and build wealth
One key strategy for building wealth is avoiding fees as much as possible. Fees can be found everywhere these days from extra bag check fees at the airport to extra fees on a variety of everyday transactions.
Fees are extra money that you could invest or use to pay down debt, but, instead you are paying that money to a merchant or lender. Fees are often issued as penalty payments because of a mistake or mismanagement of financial accounts and that makes these fees avoidable.
The Financial Services industry is full of fees and consumers often find themselves struggling to avoid them. Many consumers consider high fees something they cannot avoid. Credit Card issuers and Banks lead the way in charging fees of their customers. It has been reported that the fees associated with bank checking accounts have risen to an all time high.
As congress has attempted to crack down on abuses in the Financial industry over the past year, financial institutions have added new fees to make up for the loss of other profits.
"Many financial service fees can be avoided!"
You should be on the lookout for fees of all kinds as you manage your finances. Don't take a victim's mentality thinking there is nothing you can do. The more alert you are to fees, especially penalty fees for making financial mistakes, the more likely you will be to avoid making those mistakes.
Some fees are printed in plain site while other, hidden fees, will take some effort on your part to find by sifting through account agreements and other literature. Often, the best way to learn about all of the fees associated with any account is to review the fine print on the back of your statements. It is tough reading, but well worth the effort. Then, call the lender with specific questions about items you don't understand. Start with your Bank accounts.
Checking Account fees can include:
-Bounced Check Fees
-Overdraft Fees
It is reported that 75% of banks automatically enroll checking accounts into Overdraft protection programs. You may be paying annual fees for a service you never agreed to sign up for and have never used.
-ATM surcharges
-Monthly service fees
Credit Card account holders may be paying fees that include:
-Inactivity fees
Avoid inactivity fees by using your Credit Card at least once a year for a small purchase or otherwise meeting your lender's annual fee avoidance rules.
Reinstatement fees for Membership Rewards Programs
If you are late or miss a payment, some creditors are using a new tactic to charge fees. They freeze your access to the Membership Points Program and the points you've built up. Want to get those points back? You'll have to pay a reactivation fee. The average fee is $29. Airlines have adopted this tactic for their Frequent Flyer programs as well.
-Annual fees
If you are charged an annual fee, call the creditors and ask them to waive the fee. They don't always do it but often they will waive the fee.
-Over the limit fees
-Late payment fees
Imagine the extra cash flow you'd enjoy if you could avoid most of these fees all the time!
Wealthy people and those who avoid financial trouble regularly avoid fees! Avoiding fees year after year over many years allows you to build wealth at a faster pace. The money that does not get paid out in the form of fees stays in the accounts of smart money managers to grow over time. After many years of avoiding fees the savings really add up.
Don't forget brokerage accounts, loans, and other services that you may utilize that charge a fee if you are late with a payment or inactive for a period of time.
Be sure to make one of your objectives to avoid paying as many extra fees as possible in the coming year. Start by finding as many fee traps in your accounts as you can. Then plan the best ways to avoid them.
The Federal Reserve and the Congress are both taking action to reign in many of these punitive fees in the financial industry. In the meantime, it is up to you to protect your family's financial future by staying informed and avoiding fees whenever you can. |
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Give yourself Credit
Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information.
Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate. Many debt verification systems, especially at very large creditors are automated, and will verify a debt even if it is incorrect.
Often, incorrect information is verified as correct and remains on your credit report. If an item is truly incorrect, you must continue to follow up dispute the item with the credit bureau and the creditor who is reporting to ensure that incorrect information is corrected.
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 Money
-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.
-See if you can get free or lower cost checking through direct deposit or agreeing to ATM only use. Be aware of charges for using an ATM not associated with your financial institution.
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 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!
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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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