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CACC Moneywise Monthly
Budgeting & Savings News You Can Bank On
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               May 2014 
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In This Issue:
8 Ways Retailers Fool You
The Biggest Homebuying Mistakes
Managing Finances with Damaged Credit
Why College Students should run a business
Healthcare Reform and YOU
Secrets to creating Wealthy Habits

How to Have a Money Saving Mindset

 

While many may dream about "get rich quick" schemes, they are achievable by few. The reason why is simple- building wealth just doesn't happen overnight. In Patrice Washington's new book Real Money Answers for Every Woman, the writer notes that getting on a money saving track is half the battle.

 

"There's no question that humans are creatures of habit," says Washington, CEO of Seek Wisdom Find Wealth, a personal finance training and development firm. "While sticking to positive lifestyle and financial changes may be just as difficult as breaking bad habits, your pocketbook will thank you."

 

Below are Patrice Washington's eight secrets to creating wealthy habits:

 

1. Get Clear About Your Goals: It's impossible to get what you want if you aren't exactly sure of what you want. "You need to be clear about your intentions in order to bring them forth," says Washington. "You must write them down and be as concrete as possible with details, especially those dealing with numbers or financial objectives." You'll be amazed at how opportunities come about and begin to lead you in the direction of your goal.

 

2. Commit to a Lifestyle of Learning: Education doesn't stop after the diploma or the degree- commit to a lifestyle of education and never stop learning. "Wealthy people commit to a lifestyle of education and non-wealthy people commit to a lifestyle of simply being entertained," says Washington. "Attend seminars and conferences, dial into teleconferences, log on to webinars or invest in coaching, but never stop learning."

 

3. Understand Your Value: Understanding your value allows you to create wealth in two ways. First, it allows you to evaluate people or situations that threaten your financial success, from mooching family members to associating money with actions that don't align with the big picture. Second, understanding your value and charging what you are worth will prevent you from selling yourself short.

 

4. Declare a Purpose: You have to know the why behind the want. Without declaring a purpose, you will continue living in the moment and blindly throw money away or worse, lie to yourself about why you are not closer to where you would like to be. "Knowing the 'why' will keep you focused on reaching both long-term and short-term goals," adds Washington.

 

5. Get Visual: Reaching personal financial goals cannot continue to simply be a dream; you need a financial blueprint. "Picture journals or dream boards can serve as focal points in turning imagination into reality," adds Washington. "Use the power of your visual sense to keep you focused on your goal- it will keep you going over the long haul."

 

6. Maintain a Grateful Spirit: What you verbalize you magnify and magnetize in your life. Remaining grateful for the little things in life will allow you to find wealth in whatever situation you may be experiencing at any given moment. When you are grateful for what you already have, as well as the things you desire, you become happier and healthier and can attract more of the same.

 

7. Develop a "So What, Now What?" Attitude: The reality is that obstacles are going to be thrown your way, no matter how much positive thinking and prayer you use. Instead of allowing life's distractions to throw you off course, you have to accept them, learn the lesson, and move on- all the while pressing toward your goals. Taking on this type of attitude teaches you to act in spite of your own doubts and fears or ridicule from others. When you press on despite the unexpected, you build courage and can take down challenges one by one.

 

8. Give Well, Receive Well: Believe it or not, many of us are not good at giving or receiving. "Truly good givers give to uplift and champion others, even when no one is looking," says Washington. "Women that receive well will simply thank the person and let the warm gesture give them a nice boost of energy." The bottom line is giving and receiving work in perfect harmony.

  

 

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

 

 

 

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.

 

 

 

8 Ways Retailers Fool you into Spending Money

  

As it turns out, there are a number of subtle, sneaky tricks retailers use to get you to spend more money. The recent "honest pricing" strategies by Stubhub and JCPenney have mostly been flops, but there are some tactics that are so well masked, consumers actually appreciate them. If you're tired of getting tricked, watch out for these eight ways retailers fool you into spending money.

 

1. Go Ahead, Touch It
It's always nice to get the chance to try a product before you buy it, but those in-store demos aren't just for your convenience. Studies have found consumers who touch products are more likely to pay more for those products than consumers who don't touch them. This strange effect is likely caused because once you touch an item, you feel a greater sense of ownership. To counter this trick, stick to window shopping until you're certain you're ready to buy.

 

2. Overwhelm the Senses
Have you ever walked into a store where the music or fragrance was too overwhelming to stand? Then you're probably not the customer they're looking for, anyway. In addition to touch, retailers tap into your other senses to create an atmosphere you identify with. This creates an emotional connection to the particular brand, enticing you to buy more and stay loyal. While stores won't turn down the tunes, be aware of the environment you're shopping in to better control buying decisions.

 

3. Buy Now or Miss Out
Retailers know tapping into your emotions is powerful, and urgency is another one that's easily exploited. While they might make you think it's the absolute final chance to shop at rock-bottom clearance prices, it rarely is. Sales are meant to do exactly what the name says: drive sales. To know if you're really getting the best deal, keep a coupon app such as Coupon Sherpa handy. This allows for easy in-store comparisons to see if another retailer has an offer that can beat the so-called "sale."

 

4. Turn Your Lights Down Low

If the dressing room at your favorite store always makes you look amazing, it's not an accident. Many retailers will manipulate the lighting so you feel better about your appearance. Dim lighting can make you appear thinner and more tan, while the angle of the mirror can also artificially slim your figure. Before you buy, get a second opinion from a mirror on the sales floor. The lighting there is usually more true to life, and

may reveal some previously unseen issues.

 

5. Bundles Are Better

Bundled services aren't always the steal they seem like. Instead, bundles can cause you to order services you never would've otherwise, and are often offered at temporary promotional prices. When the promos run out you're stuck paying a premium. Avoid this trap by only subscribing to services you use. Carefully monitor the terms of the promotion so you can call and cancel before the rate hike.

 

6. Ads That Stalk

Living in an Internet-savvy society has made us all acutely aware of spammy sales tactics. However, targeted advertising is one of the most common tricks that go unnoticed. By tracking your browsing history with cookies, retailers can fill ads with the very products you've already viewed online. Mashable offers a few advanced tips to eliminate ads, with clearing your search history and cookies after each browsing session as a good starting point.

 

7. Discriminatory Pricing

Another one of the most powerful tools retailers have to trick you into spending more is called dynamic pricing. It's the practice of adjusting prices based on consumer and market behavior to capture more customers. That means the price you saw on a microwave when you left for work in the morning could be completely different by the time you get home at night. Luckily you can use this tactic to your advantage by creating price alerts for specific products with a site like PriceGrabber to notify you when prices reach their lowest levels.

 

8. Better By Comparison
It's tough enough to compare apples to oranges, let alone apples to oranges to bananas. Wait, what? A common sales tactic is to introduce a third, mid-range product when you're comparing the high and low end. This encourages shoppers who would've paid the lowest price to spend a little more for the perceived superior quality of the mid-range product. Don't let yourself get duped by reading reviews and studying specs online before you go to the store. That way you know exactly which product offers the best value.

 

 

  ** 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

The Biggest Mistakes made by First Time Homebuyers
  

Lending Tree recently polled a panel of lenders on the Lending Tree network and created the list of the biggest mistakes first time homebuyers make.

 

Mistake # 1: Shopping for a home without a home loan

-Why it's a mistake? Without a pre-approved home loan, most sellers won't give you the time of day. Many experienced real estate agents will ask you to get pre-approved (or at the very least, get pre-qualified) with a mortgage lender before they'll take you shopping. It saves time and helps them weed out the dreamers and lookers. It also lets you avoid the experience of falling in love with a home, opening escrow and then finding out you can't get financing. Finally, a pre-approved mortgage is almost like paying cash, and being able to say, "I have loan approval and can close in 30 days" puts you in a stronger bargaining position.

 

TIP: you probably don't want to advertise to home sellers exactly how much your lender will let you spend. When making an offer, ask your loan officer for a custom letter. If you're approved for a $400,000 purchase and a $320,000 mortgage, but you're offering $300,000, your letter should probably say that you're approved for a $300,000 purchase with a $240,000 mortgage.

 

Mistake #2: Ignoring First-time Buyer Programs

-Why it's a mistake: Home ownership is such a big deal in the US that

there are all kinds of organizations looking to help you buy a house. Ignoring these opportunities can cost you a lot of money.

 

Here is just some of what you might be missing:

-Down payment assistance (low-interest loans or outright gifts of cash to buy a home)

-Mortgage Credit Certificates (mortgage interest subsidies through local governments)

-Revitalization programs (grants for buying homes in areas under redevelopment)

-HUD homes ($100 down and 50% discounts for first responders, nurses and teachers)

 

TIP: Most first-time home buyer programs define "first-timer" as someone who has not had an ownership interest in real property in at least three years.

 

Mistake #3 Thinking about only '30-year fixed' rate mortgages

-Why it's a mistake: While mortgage rates are super low, many folks think it just makes sense to lock them in as long as possible. And very conservative buyers believe traditional 30-year fixed rate mortgages are the only home loans to consider. However, especially for first-timers, hybrid adjustable-rate mortgages that provide a fixed rate for a specified

number of years may be better.

 

According to the National Association of Realtors, younger home buyers and first-time home buyers tend to sell and move much sooner than older repeat buyers. Chances are you'll pay a lot of money for a 30-year mortgage and get five or seven years out of it.

 

TIP: If you're considering a larger mortgage (a jumbo or super-jumbo), it makes even more sense to test drive the hybrids. The difference between the hybrid rates and the 30-year rates can be even more than it is with smaller conforming loans.

 

 

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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?

 

Managing finances with Damaged Credit
   

Bad credit can happen as a result of how you manage your personal finances, as well as accidents, family issues or illness. Unfortunately, even if the problems were caused by circumstances out of your control, the effects of bad credit can be devastating. Since living with poor credit can be difficult, you'll want to be proactive about clearing up your credit problems and getting your finances back on track.

 

No easy way out

Don't fall for credit repair scams that claim that they can remove accurate information from your credit report. While it's true that you have the right to file a dispute to remove inaccurate information, accurate info cannot be removed. You'll either have to wait for negative credit to come off your report, something that can take seven years or more, or you can try negotiating with creditors. Negotiating with creditors takes work, but you may be able to persuade a creditor to remove negative information if you can pay off or settle the debt. Just make sure to get the creditor's agreement in writing.

 

Paying down debt

Paying off old debts and reducing balances should be a priority when trying to manage bad credit. Work out a monthly budget and stick to it, using extra funds to pay off your debts. Many recommend that one should pay off debt that has the highest interest rates first. Prioritizing high-interest debts may help you pay off what you owe more quickly.

 

Re-establishing credit

While it will take time, if you manage your personal finances wisely, you'll eventually may improve your credit health credit. This means that you might be able to get some credit accounts with low spending limits. If you meet your credit obligations by maintaining low balances and paying on time every month, your credit scores could improve over time and you could find yourself in a healthier financial position. Just be sure not to make the same mistakes that caused your past credit problems.

 

Give Yourself Credit

Federal law allows you to:

  • Get a free copy of your credit report every 12 months from each credit reporting company.
  • Ensure that the information on all of your credit reports is correct and up to date.

To order your free credit reports, visit annualcreditreport.com or call 1-877-322-8228.

Why College Students should also run a business
    
Entrepreneur Specializing in Internships Shares 5 Benefits
 
These days, it seems as though Americans are spending more for college while getting less value in return - a trend research validates, says entrepreneur Matt Stewart.
 
"The average cost for an in-state public college is $22,261, and a moderate budget for a private college averaged $43,289 for the 2012-2013 academic year; for elite schools, we're talking about three times the cost of your local state school," says Stewart, a spokesperson for College Works Painting, (www.collegeworks.com), which provides practical and life-changing business experience for college students who have shown potential for success. Interns operate their own house-painting business with hands-on guidance from mentors.
 
Making matters worse, adults in their 30s have 21 percent less net worth than 30-somethings 30 years ago, according to a new Urban Institute report.
 
"More students are being saddled with long-term debt while getting less value for their education," Stewart says. "Because of the difficulty recent college grads are having finding jobs in today's tough economy; today's students may have even less worth in their 30s than 30-somethings today."
 
To add value to their professional career, Stewart encourages students to seek outside-the-box avenues for increasing their career stock while in college. Running a business is a great way to do that; he explains why.
 
-Employers love ambition. A college degree is the minimum qualification employers are seeking. What hiring managers are looking for is that something extra when reviewing a stack of qualified resumes. At the heart of the economy is innovation; it's the difference between simply existing in a market, and thriving in one. Employers know they need people with creativity and gumption for innovation.
 
-Real-world management of time and money. College is a time when young adults learn to live autonomously. It's the rare student, however, who learns to manage his or her own affairs and the most precious resources in the business world - time and money. Managing employees, driving sales, developing specific skills for a real market and building strong customer relationships are best learned with hands-on experience.
 
-Learn where they need help. What do you do well and where do you need help? The best way to know with any certainty is through experience. Running a business while attending college allows students to circle back to their education and focus on their trouble areas by adjusting their curriculum in future semester.
-Develop meaningful bonds. One of the most meaningful aspects of the college experience is the relationships students develop with each other, which often have professional consequences after college. Enlisting the help of fellow students for a common business purpose tends to have a powerful bonding effect.
 
-Immediate ROI - finding phenomenal success. Most students who run a business during college will not prove to be the next Steve Jobs, Mark Zuckerburg or David Geffen, which is precisely why students should not drop out of college like those pioneers did. However, a student doesn't have to be the next Zuckerburg to experience amazing success as an entrepreneur. College Hunks Moving Junk is just one recent example that began in an entrepreneurial student mind.

 

 

 

Have a money saving idea that you'd like to share?

 

Send it to us for possible publication in this newsletter!

 

 

Healthcare Reform and You
 

 

Do you Qualify for Medicaid Coverage?
  

You may qualify for free or low-cost care through Medicaid based on income and family size. Some states have expanded Medicaid to cover more people.

 

You can apply for and enroll in Medicaid or CHIP any time of year. There's no limited enrollment period for either Medicaid or the Children's Health Insurance Program (CHIP). If you qualify, your coverage can begin immediately.

If you have Medicaid coverage, you're considered covered under the health care law and don't have to buy a Marketplace plan.

 

Medicaid coverage and expansion

In all states, Medicaid provides health coverage for some low-income people, families and children, pregnant women, the elderly, and people with disabilities. In some states the program covers all low-income adults below a certain income level.

 

First, find out if your state is expanding Medicaid and learn what that means for you.

If your state is expanding Medicaid, use this chart to see what you may qualify for based on your income and family size.

 

Medicaid programs must follow federal guidelines, but they vary somewhat from state to state. Coverage and costs to you may be different from state to state. Some Medicaid programs pay for your care directly. Others use private insurance companies to provide

 

Medicaid coverage

Some state Medicaid programs have names that don't say "Medicaid." For instance, in Oklahoma it's called SoonerCare. In Minnesota it's called Minnesota Care.

 

Medicaid and the Children's Health Insurance Program (CHIP)

In many cases, if you qualify for Medicaid your children will qualify for either Medicaid or CHIP. CHIP may also provide coverage for children whose parents make too much money to qualify for Medicaid. Learn

more about CHIP.

 

Find out if you're eligible for Medicaid

Even if you were told you didn't qualify for Medicaid in the past, you may qualify under the new rules. You can see if you qualify for Medicaid by visiting your state's Medicaid website. You can apply right away and find out if you qualify. If you qualify, coverage can begin immediately.

 

Questions? Call HealthCare.gov at 1-800-318-2596, 24 hours a day, 7 days a week. (TTY: 1-855-889-4325)

Your friends and neighbors are suffering with money problems!

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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?

 
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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: education@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 
 
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Additional consumer resources:

 

America Saves 

 

Affordable Care Act

Starting October 1, 2013 all Americans must buy Health Insurance 

 

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
 
 
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. 2014. 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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