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A National 501(c)(3) Non-Profit Organization
call: 1.800.763.1874 |
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CACC Moneywise Monthly
Budgeting & Savings News You Can Bank On
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March 2011
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Spring into financial wellbeing
This is a great time of year to work on creating a new beginning when it comes to your family's finances. Tough times with money are like long, cold winters; Dreary and difficult to deal with day after day, month after month. Often, it seems there is no end in sight when dealing with financial difficulties. Eventually though, a new season starts. Warmer weather comes, flowers bloom and everything seems to have a fresh start.
While there is no guarantee that your financial life will change like the weather, let's use this change of seasons as our cue to begin a change when it comes to our personal financial management responsibilities and challenges. Resolve to begin with renewed passion and focus in managing your money. Plan for success to come your way this spring and summer. Expect good changes. Discipline yourself to take action and you can start on the path to the personal finances you've always dreamed. Confidence with money management is the result of having success. The good news is that once we change our financial situation, there is a good chance that we can avoid the cold of financial difficulty from ever coming back again. Wish we could do the same with the weather. Take Action! Start planning for summer vacations now. Don't let those expenses sneak up on you this year. Dust off the Spending Plan and start to consider the next three to six months income and expenses and update the plan accordingly for optimum 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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Are you losing track of your cash?
A recent survey from Visa shows Americans lose track of about $21 each week! Young adults fared even worse reporting that they cannot account for about $50 a week. Wow, that's between $1,092 and $2,600 that we are losing track of. It's a great deal of money to simply lose track of each year! One reason for losing track is that we are paying with cash and not keeping track of the expenses. The top categories where people reported losing track of spending included these:
- Shopping for food and groceries
- Leisure shopping and/or shopping for non-essentials
- Out for the night socializing
How can you avoid losing track valuable cash?1. Anytime you spend cash it is extremely important that those expenditures get recorded. Every time cash is taken out of the ATM machine, the withdrawal should be listed in your checkbook as soon as possible to avoid overdrawing your account. Don't wait for the end of the month statement to make adjustments to your check register. Either do it at the time of the withdrawal or soon after. 2. Keep track of exactly what you spent the cash on and list it in your Spending Plan and/or your Check register. This is really simple to do and very important if you are going to master your money and manage your finances successfully.
** 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 latest Credit Card statements closely
Phase two of the Credit Card Accountability, Responsibility, and Disclosure Act went into effect in February and you should be aware of changes to your account. Mainly, you can expect more disclosure and information included in your statements.
Balance Your Checkbook
It has been reported that 20% of Americans don't regularly balance their checkbooks. Like driving a car blindfolded, it's a prescription for disaster. Being on a DMP where your monthly payment is taken out via ACH makes it even more important for you to keep track of your exact checking balances so you always have enough in your account to cover all of your obligations. If you ever get to a point where the money for an upcoming ACH transaction may not be available in your account, call customer service right away to alert them so you avoid problems with your Creditors over late or missed payments.
Calls from Creditors and Collectors
Yes, they may still be calling you about the account even after you've enrolled into the Debt Management Program. Don't be alarmed. These are big companies and information often travels slowly. Getting Collection agencies to back off of their collection efforts is especially challenging and they are likely to make a few extra calls before finally leaving you alone.
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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Important questions to ask at the Bank Many people get intimidated when it's time to open a new bank account. They forget that the bank is there to serve the needs of consumers. People are often "sold" products and services that they don't need, or, end up paying higher interest or expensive fees because they did not ask the right questions when opening an account. Opening a checking or savings account should be approached just like you were entering into any other service agreement and you should ask lots of questions to make sure you understand what services will be rendered and at what price. Knowing the rules of each account will save time, money, and stress. Here are some of the important questions one should ask before agreeing to open an account:- What services and benefits will I receive?
- What are the minimum deposit requirements?
- Which accounts pay interest and what is the current interest rate?
- What fees are attached to each type of account?
- Do I have to maintain a minimum balance?
- Do I have to use my ATM card so many times per month to qualify for the account?
- Are there any limits on how many withdrawals I can make each month?
- Can I set up direct deposits into my accounts?
- Do you offer online and telephone banking? Are there any additional fees for using those services?
- Is overdraft protection available? If so, what are the requirements and the costs?
- Is this account insured by the Federal Deposit Insurance Corporation (FDIC)?
- Do you charge to print checks?
When you open a new account, many banks will also offer you a new credit card account, depending on your credit score, size of deposit, and other factors. If the bank does offer a credit card or line of credit, you will have a whole new list of questions to ask including, "what are the annual fees?" and, "what is the interest rate?" You also want to be sure you understand the hours of operation and who will be your main contact at the bank when you need help with your accounts. It's good to get a name rather than accepting the old standby, "any of us can help you when you call or come in." When you have a name you have a starting point when you need help so you hold someone accountable for serving your needs. Banks are necessary in our financial lives and having a good relationship with your bank starts with asking the right questions before you open important accounts.
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Smart ways to save money
Challenge the property tax assessment on your home
Home values have dropped over the past three years and your property tax assessment should have fallen as well. Make sure to review your current assessment and make sure it is in line with current market values and appraised values. Successfully reducing the taxable value of your home could save you several hundred dollars.
Pay with Cash
Those who use credit or debit cards tend to spend 12-20% more than someone paying with cash.
Drink more water
Not only is water a healthy choice but it can cut the cost of a meal by 15% to 25%.
Ride a bike to run errands
We've become programmed to drive everywhere, including down to the corner for a gallon of milk. Depending on where you live, if you can bike to nearby shops, the post office, the bank and other errands, over a year's time you could save a substantial amount of money...not to mention the health benefits.
Money Saving Tip "Don't sign any contract that requires full payment before satisfactory completion of the work. Work in check-points where you'd be willing to make a partial payment if the work meets agreed upon targets for work completion and quality."
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Make life less taxing
Not many people have completed their Income Tax returns so far. It may be we just avoid dealing with taxes until we can't avoid them any longer. For those expecting to receive a refund this year, procrastination is costly? Why? The government doesn't pay interest on over payments of income tax withholding. That money is sitting in the U.S. Treasury instead of in your bank account.
You are not alone if you haven't gotten started. But, we are at the point in time where you should be getting started soon, whether you are going to complete your return or have a professional do it for you. Here are some tips to help you get the ball rolling and get those taxes done. 1. Schedule time to spend on taxes each week. Whether it is an hour each night or several hours each Saturday, block off some time and stick to the schedule. The more complicated your tax return, the more time you'll need to complete it. Even if you are going to use a professional tax preparer, you'll need to spend time getting together the necessary information and documents. Just spending time thinking about the process and what has to be done to complete the return will be helpful. 2. Get organized. Start by creating a list of documents, dollar amounts, receipts and other sources of tax related information you will need to get the job done, or provide to a tax preparer. The Tax preparation software programs available today are great at providing outlines and categories of information that will be needed. By now you should have received any and all documentation from outside sources like employers, banks, etc. that you'll need. If you have not received a needed document, there is time to get in touch with the organization that owes you paperwork. 3. Decide if you will need help. Many people start out with good intentions of preparing their own taxes but find things getting too complicated. Unfortunately, the closer we get to April 15th, the busier the professional tax preparers get and you may find it difficult to schedule time. Waiting until the last minute guarantees stress, possible mistakes, and the chance that you won't find a competent preparer who is available to work for you. If you do choose to work with a tax preparer, the IRS offers these helpful ideas to avoid problems since you are ultimately responsible for the return. a. Be cautious of tax preparers who claim they can obtain larger refunds than other preparers. b. Avoid preparers who base their fee on a percentage of the refund. Use a reputable tax professional who signs the tax return and provides a copy. c. Consider whether the individual or firm will be around to answer questions about the preparation of the tax return months, or even years, after the return has been filed. d. Check the person's credentials. Only attorneys, certified public accountants (CPAs) and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collection and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared. e. Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics. Reputable Tax Preparation professionals will ask to see receipts and will ask multiple questions to determine whether expenses, deductions and other items qualify. By doing so, they are trying to help their clients avoid penalties, interest or additional taxes and fees that could result from an IRS examination. Visit www.irs.gov, the IRS web site for news, information and resources to help you complete your tax return. 4. Think deductions. Things like job search and moving expenses, high medical bills, unreimbursed work expenses, and other deductible expenses can reduce your overall tax burden, and they require you to itemize your return which requires more time and energy but is well worth the investment. 5. Think Credits. What tax credits do you possibly qualify for? Tax Credits are wonderful because they directly reduce the taxes you owe. Depending on your income, the Earned Income Tax Credit and the Saver's credit should be considered. 6. Any changes? Were you married or divorced last year? Did a dependent move out? Did you receive some unemployment insurance income? 7. Stay in Tax Prep mode. Consider putting all of this year's organization and preparation to work for you for the rest of this year. Rather than totally forgetting about taxes for another year, like most people usually do, promise to stay organized throughout this year keeping tax prep in the back of your mind and continue to keep track of expenses and income that will be needed for future income tax preparation. Staying organized will help make next year's tax preparation much easier and you'll be in position to complete your returns more quickly. Preparing income tax returns is an annual financial requirement so, just as with our other financial obligations, take income tax preparation very seriously, seek professional help if needed, give yourself plenty of time to complete returns error free, and, commit to better planning and preparation because, one thing is for sure...we'll have to do it all again next year.
IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start
WASHINGTON - In its latest effort to help struggling taxpayers, the Internal Revenue Service today announced a series of new steps to help people get a fresh start with their tax liabilities.
The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
"We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start," IRS Commissioner Doug Shulman said. "These steps are good for people facing tough times, and they reflect a responsible approach for the tax system."
The IRS is making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include:
- Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
- Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
- Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
- Creating easier access to Installment Agreements for more struggling small businesses.
- Expanding a streamlined Offer in Compromise program to cover more taxpayers.
"These steps are in the best interest of both taxpayers and the tax system," Shulman said. "People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens."
Consumer Alert
The IRS does not send taxpayers unsolicited e-mails about their tax accounts, tax situations or personal tax issues. If you receive such an e-mail, most likely it's a scam.
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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Struggling financially? So are your friends and neighbors!
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
Places to Know and Go...
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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:
Stay Safe On-Line
US General Services Administration Federal Citizen Information Center
National Drug Abuse Hotline 1-800-622-HELP
National Domestic Violence Hotline 1-800-799-SAFE
Suicide & Depression Hotline 1-800-999-9999
National Council on Problem Gambling 1-800-522-4700
Fair Debt Collection Practices Act
Fair Credit Reporting Act
Homeowners Hope Hotline for Mortgage Counseling and Assistance 1-888-995-4673
Benefits.gov
Learn about a variety of Government Benefits, how to qualify and how to apply.
Supplemental Nutrition Assistance Program (SNAP)
SNAP is the new name for the federal Food Stamp Program.
Temporary Assistance for Needy Families (TANF)
TANF is designed to help needy families achieve self-sufficiency. States receive a block grant to design and operate their programs to accomplish the purposes of TANF. These are:
-assist needy families so that children can be cared for in their own homes
-reduce dependency of needy parents by promoting job preparation, work and marriage
-preventing out-of-wedlock pregnancies
-encouraging the formation and maintenance of two-parent families.
Medicaid
Medicaid is health insurance that helps many people who can't afford medical care pay for some or all of their medical bills.
Good health is important to everyone. If you can't afford to pay for medical care right now, Medicaid can make it possible for you to get the care that you need so that you can get healthy and stay healthy.
Supplemental Security Income (SSI)
is a Federal income supplement program designed to help aged, blind, and disabled people, who have little or no income.
It provides cash to meet basic needs for food, clothing, and shelter.
Low Income Home Energy Assistance Program (LIHEAP)
If you can't afford to pay your home energy bill, your home may not be safe, and you may be at risk of serious illness or injury. The LIHEAP may be able to help keep you and your family safe and healthy.
National School Lunch Free Lunch Program (NSLP)
Established in 1946, The National School Lunch Program (NSLP) is a federally assisted meal program operating in public and nonprofit private schools and residential child care institutions. It provides nutritionally balanced, low-cost or free lunches to children each school day.
Federal Housing Assistance/Section 8 (FPHA)
Public housing assistance was established to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. Public housing comes in all sizes and types, from scattered single family houses to high rise apartments for elderly families.
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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.
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. 2011. 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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