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CACC Moneywise Monthly
Budgeting & Savings News You Can Bank On
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 March 2012
 
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In This Issue:
Spring cleaning your finances
Survive tax season
Improve financial intimacy
Be a coupon consumer
Tips to improve fuel economy
Spring Cleaning should include finances! 

 

Spring has sprung and this is the time of year we think about cleaning up from the Winter months and sprucing up for Spring. Most families focus on cleaning up around the house but too many neglect their finances. This is a very good time of year to zero in on any problem financial areas and improve in places where you are doing well. With many expecting to receive tax refunds, there may be some extra money available to help you meet your goals, or at least get started toward an important financial goal.  

 

It is also a time of year when many scam artists come out to try their luck at stealing tax returns. Recently, several "work at home" scams were also exposed as the internet has made it much easier for thieves from across the world to victimize people. We provide the latest information from the IRS regarding the latest scams in this issue. 

 

It is always best to use common sense when anyone asks you to send them money in order to give you a job, or cash a check for them as part of your work at home position. The best way to avoid being ripped off is to ask lots of questions, research any companies or people you plan to do business with thoroughly, and understand that there are no easy ways to make fast money from home. It takes work, as any entrepreneur will tell you. If these work at home schemes worked so easily, everyone would be doing them.  

 

As for a fast tax refund, filing online is a faster way to receive a refund if you utilize one of the leading software applications and/or a legitimate tax preparation firm. Never trust someone who asks you for an up-front fee promising you a better result than a legitimate firm can give you. Everyone goes through the IRS so there is no way to fast-track ahead of legitimate providers. 

 

Be careful with your hard earned money and don't forget to do your financial spring cleaning this year.

  

Take Action!  

Plan some time to review and update all of your financial information to ensure you are tracking your progress and updating your progress toward financial goals. If you have not set financial goals for 2012, it is a good time to take care of this task!        

  

A great way to change your money management style is with the free Money Smart program developed by the FDIC? It's the smart way to improve your fiscal fitness!

  

Tips to help you clean up finances

 

by Andrea Woroch

 

If the thought of spring cleaning your home is overwhelming, why not turn that energy towards your financial situation and make sure everything is in order. With just a little time and effort, you can shape things up and enjoy some peace of mind. So scrub up your finances with these 11 tips.

 

1. Organize Bank Accounts
Streamline your online statements and bill payments. Toss out old statements and checks, then consolidate your accounts at one or two institutions. If you've moved or found better service and rates at another bank, you might have left some cash behind in an old account. Close them out and move your money to where it will work for you, before bank fees throw you into overdraft status.

 

2. Review Investments and Retirement Planning
Update beneficiaries. Re-balance and consolidate accounts. Move old 401(k) accounts into one at your present place of employment or move them into a self-directed IRA through such mutual-fund companies as Fidelity or T. Rowe Price.

 

3. Clear up Debt
Get over that holiday hangover by wiping Christmas debt off the books. Credit cards carry the highest interest rates, so they're the first debts you should tackle. Then, try to buy gifts throughout the year to avoid end-of-year purchasing binges, or commit to budgeting more effectively come November.

 

4. Slash Your Spending
Once you're on track to reduce your debt, cultivate good spending habits to ensure you're not paying down debt again next year. Use coupons where you can..

 

5. Adjust Tax Withholdings
If you're receiving a big tax refund this year, you're not withholding enough money from your monthly paycheck or quarterly payment. Don't let the government play with your cash all year; Make it work for you now. Use the IRS's 2012 Publication 15  as a guide.

 

6. Review Monthly Bills
Look for areas you can trim. You can save up to $50 per month by simply canceling your movie channels. It's a lot cheaper to download or stream films and you'll have access to your favorites much faster. Or you might just read more books.

 

7. Organize for Taxes
Instead of tossing all your receipts into one shoebox, set up a filing system to separate health-care forms, travel records, 401(k) contributions, etc.

 

8. Meet with a Financial Expert
Get some professional help to go through your IRA, 401(k) and 529 College Savings Plans to understand where all your money is going and whether it's working for you. The Wall Street Journal offers some good advice on how to select a financial adviser.

 

9. Review Your Budget
Even if your income hasn't changed, spring is a good time to look over your budget and see if it still works for you. Or, if you've put off creating a budget, now is the time to establish where you'll spend your money and how much you can sock away for the future. Kiplinger has an easy budget form to get your started.

 

10. Address Estate Planning
Create or update your will or trust. Look into setting up a living will and power of attorney, should the unthinkable happen. Destroy old documents so there's no confusion when you're gone.

 

11. Update Insurance Policies
Call around or surf the Net for new quotes on car, home and life insurance policies. Update the beneficiaries on your life insurance. Rates have gone down of late, so you may be paying much more than you should.

 

Andrea Woroch is a consumer and money-saving expert AndreaWoroch.com.


   

  ** Do you need help creating your family budget? Talk to a CACC Credit Counselor toll-free 1-800-763-1874 or visit www.caccdebt.org.

Tips to survive tax season     

  

Tax Scam Warning: Beware of Phony Refund Scheme Abusing Popular College Tax Credit; Senior Citizens, Working Families and Church Members Are Targets

 

The Internal Revenue Service is warning senior citizens and other taxpayers to beware of an emerging scheme tempting them to file tax returns claiming fraudulent refunds. 

 

The scheme carries a common theme of promising refunds to people who have little or no income and normally don't have a tax filing requirement. Under the scheme, promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college.

 

In recent weeks, the IRS has identified and stopped an upsurge of these bogus refund claims coming in from across the United States. The IRS is actively investigating the sources of the scheme, and its promoters may be subject to criminal prosecution.

 

"This is a disgraceful effort by scam artists to take advantage of people by giving them false hopes of a nonexistent refund," said IRS Commissioner Doug Shulman. "We want to warn innocent taxpayers about this new scheme before more people get trapped."

 

Typically, con artists falsely claim that refunds are available even if the victim went to school decades ago. In many cases, scammers are targeting seniors, people with very low incomes and members of church congregations with bogus promises of free money.

The IRS has also seen a variation of this scheme that incorrectly claims the college credit is available to compensate people for paying taxes on groceries.

 

The IRS has already detected and stopped thousands of these fraudulent claims. Nevertheless, the scheme can still be quite costly for victims. Promoters may charge exorbitant upfront fees to file these claims and are often long gone when victims discover they've been scammed. 

 

The IRS is reminding people to be careful because all taxpayers, including those who use paid tax preparers, are legally responsible for the accuracy of their returns, and must repay any refunds received in error. 

 

To get the facts on tax benefits related to education, go to the Tax Benefits for Education Information Center on IRS.gov.

 

To avoid becoming ensnared in this scheme, the IRS says taxpayers should beware of any of the following:

  • Fictitious claims for refunds or rebates based on false statements of entitlement to tax credits.
  • Unfamiliar for-profit tax services selling refund and credit schemes to the membership of local churches.
  • Internet solicitations that direct individuals to toll-free numbers and then solicit social security numbers.
  • Homemade flyers and brochures implying credits or refunds are available without proof of eligibility.
  • Offers of free money with no documentation required.
  • Promises of refunds for "Low Income - No Documents Tax Returns."
  • Claims for the expired Economic Recovery Credit Program or for economic stimulus payments. 
  • Unsolicited offers to prepare a return and split the refund. 
  • Unfamiliar return preparation firms soliciting business from cities outside of the normal business or commuting area.

This refund scheme features many of the warning signs IRS cautions taxpayers to watch for when choosing a tax preparer. For advice on choosing a competent tax professional, see Tips for Choosing a Tax Return Preparer on IRS.gov.


For additional information on tax scams, see the
2012 Dirty Dozen list.

   

CACC does not prepare taxes and recommends you seek tax advice from licensed tax professionals in your state who are familiar with your personal financial situation.


__________________________________________________________________________ 

 

If you have the desire and the ability to make extra payments towards your DMP, contact CACC Customer Service to coordinate making the extra payment. Since your DMP is set up to pay a certain amount each month changes must be handled properly to make sure you do not get removed from the Creditors DMP.
   

CACC Customer Service: 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!

  

5 steps to improve your financial intimacy    

 

By Pamela Yellen

 

Financial stress is a leading cause of marital and relationship problems and 91 percent of couples avoid talking about finances, according to a recent survey by American Express. 

 

Since so many couples don't talk openly about money, when money issues do come up, it becomes a sensitive subject and leads to conflict," says Pamela Yellen, New York Times bestselling author and savings expert. "The solution is to sit down with your partner every month and go over your spending and savings plan. Look at everything you bought during the past month and everything you're thinking of buying soon, and ask yourselves, 'Is this really a need or a want?' Awareness is the key to taking control of your spending habits, and asking questions like this one is very powerful."

 

Here are 5 steps to boost financial intimacy:

  • Hold a monthly financial discussion night - Even if you don't always agree with your partner's spending habits, you can agree that any purchase over a certain amount, such as $200, will be discussed in advance.
  • Have an in-depth discussion about your retirement plans, including when you both plan to retire and your plan for getting there. Nearly 40% of couples who responded to a recently survey Pamela conducted have not discussed their retirement plans in depth.
  • Share responsibility - One of the biggest traps that leads couples into financial disharmony is when the partner with the biggest income makes the major financial decisions alone. Solution: Make all decisions about major purchases together.
  • Eliminate debt to financial institutions - Create a plan to reduce and eliminate debt and commit together to building an emergency fund to help you weather life's unexpected costs.
  • Have a "Plan B" - What's your back-up plan if things change. What if one partner loses their job?  Or what if one partner wants to go back to school? What if one of you gets a job in another part of the country? Talk it over and come up with a plan together.

 

 

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.

Without Getting Consumed By Coupons -
 
Expert Offers Tips for Easy Ways to Save
On Every Trip to the Market

 

More people than ever are clipping coupons for their supermarket trips, but they're often not saving as much as they could, says Toni House, author of How to Reduce Your Weekly Grocery Bill to $85 Per Week - Or Less!.

"You can easily shave $5 to $20 off your weekly grocery budget with a minimal investment of time," says House. "Cutting your bill just $10 a week will save you $520 over the course of a year.

"Taking a couple of extra steps to ensure you can use all the coupons you clip will save you more money - and protect your investment of time in clipping them."

How can consumers take advantage of coupons without becoming consumed by them?

Let us count the ways!

  • Learn different stores' rules. Call the grocery stores that are convenient to you (near home OR work), ask these questions and write down the answers: Do you have double or triple coupon days? (If so, what are they?) Do you accept other stores' coupons? Do you allow "stacking" coupons - using them on sale items?
  • Seek coupons far and wide. The Sunday paper is always a good place to start, but most households also get coupons through direct mail. If there are brand-name products you just have to have, try Googling the name and "coupon."
  • Plan meals around your coupons. Say you have coupons for 30 cents off a box of pasta, half-off spaghetti sauce (a type you normally buy - not a pricey splurge!), buy-one, get-one canned mushrooms and $1 off a pound of ground chuck. Can you smell dinner simmering? For less than $4?
  • Organize your coupons. An expandable folder, like you might use for taxes, is a convenient place to store coupons at home. You might organize it by product - frozen foods, snacks, meats, or by expiration date. If you're going to do some meal planning around coupons, you might want a section for those. As you clip, sort the coupons immediately so you don't end up with a big pile that never gets sorted or used. Clip the meal coupons together and drop them in either the meals section or, if you're organizing by date, the date the first one is set to expire.
  • Save up to 30 to 50 percent with "shopping club" cards. Many supermarkets now offer "shopping clubs" that provide members with special in-store discounts. These are no-clipping-required coupons that never expire! Sign up for free and get a "membership" card that clips to your key ring. When the cashier swipes it, the discounts are applied to your grocery bill. Some stores have an associated website where you can log in while you're planning your shopping list and see what discounts are available that week.
  • Upload coupons directly onto your shopping club card. Stores that have a shopping club website may also post manufacturer and brand coupons there. Log into the site with your card ID number, then click on the coupons you want and they'll load right onto your card! Instead of carrying coupons to the grocery story, you get your discounts when the cashier swipes your card.
  • Organize your shopping club cards and coupons with your smart phone. If you shop at a lot of stores, you may be carrying around a lot of shopping club cards. Search for apps that can help you organize coupons and club cards on your smart phone.
  • Planning ahead is the most effective way to use coupons. Since we know you would never dream of heading to the supermarket without a list -- because that's a huge money waster - just match your coupons to your shopping list before you head out the door.

Be sure to check expiration dates, brand names and quantities on the coupon (if it says "8-ounce can of beans," don't grab the 24-ounce can of beans!)

 

Imagine, if you save just $1 a week with coupons, you'll have $52 extra at the end of the year. And then you can get that splurge spaghetti sauce - and the 24-ounce can of beans!

 

Toni House was most recently the senior consultant and owner of an accounting firm. "How to Reduce Your Grocery Bill" is her second "Savvy Shopping" book.

 

 

Have a money saving idea that you'd like to share?
Send it to us for possible publication in this newsletter!

Tips to improve fuel economy     

 

With the cost of gasoline going up almost daily, CarMD shares tips to Help Car Owners Improve Fuel Economy and alerts drivers to the top "Check Engine" Failures that Reduce MPG.

 

As analysts warn that gas prices are on track to reach an all-time high this year, CarMD's team of Automotive Service Excellence-certified technicians has tapped the most comprehensive database on car maintenance and repair trends to prepare the following tips to help drivers maximize their vehicle's fuel economy.

 

"There are many small measures we can all take to reduce the impact of rising gas prices, starting with paying attention to our car's warning signs such as the 'check engine' light," said Art Jacobsen, vice president, CarMD.com Corporation. "By sharing these tips and this information, our goal is to remind drivers that there are many small, cost-effective ways to save money even as gas prices reach an all-time high."

 

1.    Heed Warning Signs - CarMD research shows that at least 10 percent of motorists have a "check engine" light on right now, and half have ignored the light for over three months. Dashboard warning lights alert drivers to problems that affect their car's emissions output, reduce fuel economy, and ultimately cause mechanical damage. While it may seem like your vehicle is driving just fine, it's often guzzling extra gasoline. For example, the no. 1 most common cause for "check engine" repairs is a faulty oxygen sensor. The O2 sensor measures the amount of unburned oxygen in the exhaust and tells a car's computer when there is either too much, or not enough fuel compared with oxygen for ideal operation. It costs less than $250 to fix, but can lead to as much as a 40 percent reduction in gas mileage if ignored - that's more than $900 extra per year in fuel costs.

 

2.    An ounce of prevention - Many drivers admit to stretching their dollars by extending time between schedule maintenance appointments.  In this case a penny saved may result in many hundreds of dollars spent in extra fuel costs and repairs. Air filters are a good example of how an ounce of prevention can save you money. You can inspect the filter yourself, shake out the dirt or vacuum it and re-use it, or opt to spend the $25 or so for a new one. Ignore a dirty air filter for too long and it can result in the need to replace a mass air flow sensor (MAF).  The no. 5 most common car repair, according to the CarMD® Vehicle Health Index™, a MAF can cause a 10 to 20% reduction in fuel economy, costing an extra $250 to $450 at the pump each year, and eventually resulting in the need to replace a much more expensive catalytic converter.

 

3.    Lose weight - Are you driving around with extra "junk in your trunk" or truck bed? By removing an extra 100 pounds of clutter from your vehicle, you can improve your gas mileage by several percentage points. A bucket of baseballs weighs about 25 lbs, snow chains weigh at least 10 lbs, and a set of golf clubs can weigh anywhere from 20 to 50 lbs.

 

4.    Make Friends - Whether your commute is 15 miles or 50 miles, carpooling saves on vehicle wear and tear, time and money.  It's also a great way to meet co-workers, neighbors and friends. At today's gas prices, most drivers are spending over $40 per week filling their tank.  Split these costs and you can put an extra $1,000 in your wallet each year, not including the money you'll save on car maintenance and tires.

 

5.    Avoid Idling - Attention carpool moms, dads and older siblings. Idling for over 10 seconds uses more gas and causes more pollution than restarting your engine. While it's not recommended to turn off your vehicle at a stoplight or while moving through a pickup line at the local fast food drive-through or school, it is a good idea to pull into an approved parking spot and turn off the engine whenever you expect your wait to be more than a couple minutes.

 

6.    Keep Your Tires Maintained - Ensuring proper tire maintenance, tread and inflation can increase gas mileage by about 10 percent.  Changes in season or major temperature swings are a good time to double check your tire pressure, even if you have a tire pressure monitoring system on your vehicle.  It's best to set them first thing in the morning to the high end of the manufacturer's specifications (usually found on the inside of the driver's door). 

 

7.    Be Green - If budget and lifestyle allow, it's certainly worth considering a hybrid or electric car as fuel prices rise.  But if that's not for you, you can still drive green by planning your trips efficiently, limiting peak-hour driving and making sure to get your annual or bi-annual emissions test.  There are also products that let you quickly check your car for hidden problems that may result in reduced fuel economy or breakdowns.

 

The mission of CarMD.com Corporation is to empower consumers and the vehicle market by providing the tools and information needed to make better-educated decisions about vehicle health and maintenance.

 

 

Millions of people are suffering with Debt stress! 

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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
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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 
 
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Additional consumer resources:

 

Internal Revenue Service

www.irs.gov 

 

The Federal Trade Commission
www.ftc.gov

 

 

Free Birthday Gifts

 

Free Credit Report
www.annualcreditreport.com 

National Do Not Call Registry
www.DoNotCall.gov

 

Report ID Theft
www.ftc.gov/idtheft

Consumer Tips
www.ftc.gov/consumer
 
Consumer Resources in Spanish
www.ftc.gov/consumidor

Free Consumer Publications
www.ftc.gov/bulkorder  

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


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.

 

Home Affordable Modification Program (HAMP)

888-995-HOPE

If you are struggling with your monthly mortgage payments or have already missed a payment, now is the time to take action.

Contact Us:
phone:  1.800.763.1874 
web:     www.caccdebt.org
 
CACC Money Wise Monthly Editor in Chief:
Mike Schiano, "The DebtBuster"  


'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. 2012. 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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