Consumer Headlines

noreply@blogger.com (Pinellas County Extension) — Tue, 02 Mar 2010 18:34:00 +0000

3/8/10 -
Karen Saley, Extension Specialist, Pinellas County Extension

Losing a job can be difficult and in this time of unemployment nearing twelve percent in Florida more and more people have to cope with the complexities of being without a job. While each person experiences the loss of a job in different ways there are a few steps we can all take to make moving forward a little easier.

~ Keep a routine. It can be very easy to fall into the trap of wasting the day away and not accomplishing anything. While this may feel good for a short time, the long-term ramifications can be the inability to get motivated again.

~ Take Action. Make a list of things you would like to accomplish to keep you on track. Include everything from household chores, to continuing your education, to refining your job search. Staying busy is the best way to keep moving in the right direction.

~ Reevaluate. With a little bit of down time on your hands, this could be the perfect time to reevaluate your values and goals. As life changes what becomes important can also change so take the time to see if you are still living your dream.

~Don’t do it alone. Losing a job can be very frightening and isolating. Find a trusted friend or family member you can talk with about your concerns. Seek psychological counseling or join a support group to help you through the most difficult issues.

~ Develop a plan. Know where you are financially. Take a look at your emergency fund, your savings and investments, and your debt load. Write a spending plan to help keep your finances under control while you are job hunting. Having a written plan will help you identify areas where you may be able to cut expenses.

Losing a job can be distressing, but with the right frame of mind and a good support system you may well be on your way to having a bigger, better life experience. For more help and resources visit the links below.

http://www.nimh.nih.gov/index.shtml
http://www.nmha.org/

Beware of Debt Settlement Traps

noreply@blogger.com (Consumer News You Can Use) — Fri, 19 Feb 2010 21:15:00 +0000

As the jobs remain scarce and the bills continue to mount, many families are struggling with their finances and looking for help, sometimes in the wrong places. New tips from Consumer Federation of America, Consumers Union, Consumer Action, and the National Consumer Law Center warn that using a debt settlement company could be a trap that will leave consumers deeper in debt instead of eliminating the debt.
In debt settlement, consumers are instructed to make monthly savings payments, usually to a special bank account, until there is enough to make a lump-sum settlement offer to their creditors. But while consumers are putting money into their accounts, the debt settlement companies are taking their fees out of them. Saving to try to settle one debt can take a year or more, and since consumers typically have multiple debts, the process can take three or four years. However, debt settlement companies usually take out all of their fees, ranging from 14 to 20 percent of the total debt, within the first half of the contract. For debts totaling $20,000, a consumer could pay fees of $2,800 to $4,000 and most of the fees are collected from consumers long before debts are settled. And debt settlement doesn’t eliminate all debt for most consumers.
Using a debt settlement program doesn’t stop debt collection and could make a debt situation worse. In some cases debt settlement companies may not contact the creditors for months and some even tell consumers not to have any contact with their creditors.
The Federal Trade Commission has proposed rules that would stop companies that use telemarketing to sell debt settlement and other types of debt relief services from charging fees before they settle the debts. The FTC proposed rule would also require that debt relief services clearly disclose how long it will take to settle debts and reveal any negative impacts including the fact that not all creditors will make agreements.
Tips for Consumers on How to Get Real Debt Relief
• Try to resolve your debt problems with your creditors directly. You may be able to get your interest rate lowered, late charges forgiven, and your monthly payments reduced.
• Contact a nonprofit credit counseling service for advice. It may be possible to work out a plan through the credit counseling service to pay off the debts over time. To find the nearest nonprofit credit counseling services, consumers can contact the National Foundation for Credit Counseling, www.nfcc.org, 1-800-388-2227 or the Association of Independent Consumer Credit Counseling Agencies, www.aiccca.org, 1-866-703-8787.
• Know your rights. Ask your Attorney General’s Office if state law limits the amount or timing of debt settlement fees in your state. Find your state AG at www.naag.org.
• Read the fine print. Walk away if the contract doesn’t contain the promises that were made to you, or if the contract contradicts what you were told.
• Look for services that charge a fee only after the service actually settles your debts.
• Take immediate action if you can’t make your mortgage or car payments. (Debt settlement services don’t usually address mortgage or car debt.) Contact your lender or mortgage servicer immediately to try to work out new payment arrangements. For help regarding your mortgage, call 1-800-569-4287 or go to http://nhl.gov/offices/hsg/sfh/hcc/hcs.cfm to find a local housing counselor certified by the federal Department of Housing and Urban Development.
• Consider bankruptcy. Some people who have too much debt need the fresh start that bankruptcy provides. Get legal advice to see if that is the right choice for you.

The complete tips on debt settlement in English and Spanish are available at: http://www.consumerfed.org/finance/credit_counseling.asp
http://www.defendyourdollars.org/2010/01/what_you_need_to_know_about_de.html
http://www.consumer-action.org/alerts/articles/debt_settlement/

Teaching Your Children to Save

noreply@blogger.com (Karen) — Mon, 01 Feb 2010 19:37:00 +0000

By Karen Saley, Extension Specialist

With the personal saving rate at an all time low, now is a good time to start teaching your children about the importance of saving.

Be a good role model
Children learn the most by watching what others do. Show your kids that paying bills on time, being a careful spender and being a diligent saver are the skills they will need to establish a secure financial future.

Explain needs and wants
Shopping trips are good opportunities to talk about the difference between needs and wants. It's easy to show examples of “needs” and “wants” instead of just talking about them. You need shoes, but do you need $100 shoes when $20 shoes will do just fine?

Different types of savings
Develop a savings strategy by labeling four containers sharing, spending, short-term saving, and long-term saving. For every dollar that your child receives have them deposit it into these containers in the following way 10 percent in sharing, 30 percent in spending, 30 percent in short-term saving, and 30 percent in long-term saving.

Banking realities
Take your child to a bank and show them how transactions work. Write a check and cash it, make a deposit, show them how an ATM works. Open a savings account for your child and talk about what credit cards are and how they work.

Earning some money
Make a list of all the chores that need to get done around the house, and put a dollar amount next to each chore. Children can then pick and choose which chores they want to do depending on how much money they would like to earn.

Making wise choices
Have your child help you decide what to make for dinner for the family using a specific amount of money. Make your shopping list then go to the grocery store and see if you can purchase what you need with the money you have. If you can’t, talk about what the alternatives would be.

Saving all year long
Discuss with your children ways to save money throughout the year by packing a lunch, recycling clothes with family and friends, or having a garage sale for items they no longer use.

It’s never too early to start teaching children how to handle their money responsibly. The earlier they establish good money management practices, the more secure their financial future will be.

Join us on February 10, 2010 for a webinar entitled "Money Smart Kids." To join go to pinellascountyextension.org and click on webinars.

Free Tax Help!

noreply@blogger.com (Pinellas County Extension) — Mon, 25 Jan 2010 16:24:00 +0000

If you or someone you know earned less than $49,000 in 2009, you may be eligible for up to $5,600 in Earned Income Tax Credit (EITC). – and your taxes can be done for free beginning in January.

Many families have their taxes done using their year-end paycheck and sometimes pay more than they should, especially if they want a quick refund. By taking advantage of the free tax preparation, these working families and individuals can keep more of what they earn.

Eligibility requirements for the 2009 EITC are:

~ Families with three or more qualifying children who earn less than $43,279 (or less than $48,279 married filing jointly) are eligible for a credit of up to $5,657.

~ Families with two qualifying children who earn less than $40,295 (or less than $45,295 married filing jointly) are eligible for a credit of up to $5,028.

~ Families with one qualifying child who earn less than $35,463 (or less than $40,463 married filing jointly) are eligible for a credit of up to $3,043.

~ Workers without a qualifying child who earn less than $13,440 (or less than $18,440 married filing jointly) are eligible for a credit of up to $457.

The Child Tax Credit, which is up to $1,000 per qualifying child, is another often overlooked benefit. For tax year 2009, the minimum income threshold needed to qualify for the Additional Child Tax Credit has been reduced from $12,050 to $3,000, so more families will be eligible.

For information on tax site locations and what to bring, check out the following links.

Are You Ready to Own Your Own Home?

noreply@blogger.com (Karen) — Wed, 20 Jan 2010 20:38:00 +0000

By Karen Saley, Extension Specialist

It’s very enticing with the $8,000 tax credit available, the many home-buying incentive programs offered, and the number of discounted properties on hand, to jump into purchasing a home right now. But you may want to slow down, take a breath and look at the realities of home ownership.

Many people have a good idea of what the mortgage's principal and interest will cost every month, but principal and interest are only part of the equation. Property taxes, homeowner insurance mortgage insurance, and homeowners or condo association fees can typically add hundreds of dollars to each monthly payment.

Before you sign on the dotted line it's a good idea to get a rate quote from a couple of insurance companies, check with the county appraisers office to find out what the taxes are on the property , and ask the current owner about any association fees. Remember to include these figures along with any mortgage insurance in your calculations when determining how much monthly payment you can afford.

The Federal Housing Administration recommends that you spend no more than 31 percent of your before-tax income on a monthly house payment, including principal, interest, property taxes, homeowners insurance, mortgage insurance and homeowners or condo association dues. Once your monthly payment begins exceeding that 31 percent you may be in jeopardy of not having enough monthly income to cover the rest of your obligations and save for your future.

So before joining in the American dream of owning a home, do a little homework to ensure that your dream doesn’t turn into a nightmare.

Are You a Saver?

noreply@blogger.com (Karen) — Mon, 04 Jan 2010 20:35:00 +0000

By Karen Saley, Extension Specialist

You’ve probably heard it a million times…pay yourself first. Well I’m going to say it once more. You may think you don’t have any money to save, but I’m here to tell you that if it’s important, and it is, you will find even the smallest amount to set aside. You may be saying “if it’s such a small amount it won’t make a difference in my life so why bother.” It will make a difference because even if you aren’t able to save a substantial amount of money right now just the act of regularly saving will get you into the habit and when the time comes when you are able to save more it will make a great difference. Here are a few suggestions to get you started on your savings plan.

~Start by saving your change then add a dollar a day to that change
~Save every five dollar bill you come across.
~Track your expenses for a month to identify spending leaks.
~Make small sacrifices like that daily cup of coffee and save the money.
~Brown bag lunches can save a bundle.
~Seek out free entertainment
~Get your movies for free from the library
~Live below your means…don’t spend more money than you make!

Think of savings as a monthly expense just like any other bill you have and get in the habit of paying yourself first. Before you know it you will have a nice little nest egg.

For more savings tips along with other financial advice click on the link below
www.smartaboutmoney.org

Getting Financially Fit for 2010

noreply@blogger.com (Consumer News You Can Use) — Mon, 28 Dec 2009 22:16:00 +0000

Nan Jensen, Family and Consumer Sciences Agent
The year 2010 is right around the corner and many of us are considering our resolutions for the year ahead. After two years of recession and the high unemployment rate, it seems that a resolution that includes rethinking where you are financially and where you would like to be should be on the list.
Here are some important priorities to consider for the year ahead.

Develop a spending plan that allows you to live within your means. Simply, spend less than you earn. There are many ways you can budget your money. Buy in bulk (if it’s cheaper), shop sales, cook at home more often, and use coupons if you can. Eat out only on special occasions.
Take small steps to help you get your spending under control. On a weekly basis, try to find a simpler and less expensive way to do the same thing. If you’re going out to lunch with co-workers every day, enjoy lunch out just once a week and brown bag it the rest of the time. Bring your own beverages and snacks to work instead of making daily visits to the vending machine. Adjust the thermostat on the air conditioner in the summer a couple of degrees higher. Think about small things you can do to cut back.

Find a way to track your expenses. Cut and paste the link below into your browser to access an Excel spreadsheet to help you with your plan. http://tampabaysaves.ifas.ufl.edu/Web%20Project/000SpendingPlantemplate.xls

Pay off debt. The average American has more than $9,000 in credit card debt. Then there is the mortgage and a car loan. School loan debt is high among recent graduates. The first step in getting out of debt is to stop borrowing.
If you have debts on more than one credit card, either pay off the card with the highest interest rate first and work your way down to the card with the lowest rate, or pay off the smallest loan first and work your way up to the largest. Power Pay can help. https://powerpay.org/
Remember to make payments on time. Paying on time, over time, is the best way to improve your credit history.

Pay yourself first. Each month, set aside a specific amount of money for savings. It could be $50 or $500. Savings as little as $50 a month can add up over time. See what how the miracle of compounding works at http://www.americasaves.org/enroll/miracle.asp

For more information on getting in good financial shape for the new year join me for a webinar entitled “Get in Good Financial Shape for the New Year” on January 13. Go to the Pinellas County Extension website at http://pinellas.ifas.ufl.edu/ and click on the on-line registration button.

Choosing a Financial Planner

noreply@blogger.com (Pinellas County Extension) — Tue, 22 Dec 2009 14:00:00 +0000

By Karen Saley, Extension Specialist, Pinellas County Extension

Securing your financial future can sometimes seem a little complicated. There is a lot of information available to you in books, magazines, classes and of course on the internet that can help you with a financial plan. Still with all that knowledge at your fingertips there are times you may feel you need to talk with a professional. Choosing a reputable financial planner is key when it comes to finding the right person to help you get to where you want to go. Here are some questions you should ask any professional.

How many years have you been in practice?
What are your qualifications?
Will there be a written contract?
How do you calculate your fees?
How long should the work take to complete?
Will you be delegating any of the work?
May I have referenced to contact?

There is little regulation of the financial planning industry and many people claiming to be experts simply are not. Interview several financial planners, get references from friends and family and check with professional organizations before you sign on with a financial planner.

For more information:
National Association of Personal Financial Advisors (NAPFA)
www.napfa.org

Financial Planning Association (FPA)
www.fpanet.org

Society of Financial Service Professionals
www.financialpro.org

Homebuyer Credit Expanded and Extended

noreply@blogger.com (Pinellas County Extension) — Mon, 07 Dec 2009 18:35:00 +0000

By Karen Saley, Extension Specialist
Now may be a great time to purchase that new home. The $8,000 tax credit that was to expire at the end of December has been extended through April 2010. Here are some of the old and new requirements.

The rules that remain the same:

Applies only to homes used as your principal residence.
Reduces your tax bill or increases your refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out even if you owe no tax or the credit is more than the tax owed.

The new rules:

Under the new law, you must buy, or enter into a binding contract to buy, a home that will be your principal residence on or before April 30, 2010 and close on the home by June 30, 2010.
You will have the option of claiming the credit on either your 2009 or 2010 return.
Homeowners who buy a replacement home that will be the principal residence may also claim a homebuyer credit of up to $6,500. You must have lived in the same home for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
The new law raises the income limits for people who purchase homes after Nov. 6.
- The full credit will be available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
- Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit.
- Those with higher incomes do not qualify.

For more information click on the link below.
http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Protecting Your Credit During the Holidays

noreply@blogger.com (Consumer News You Can Use) — Mon, 23 Nov 2009 15:04:00 +0000

By Nan Jensen, Family and Consumer Sciences

As you gear up for Black Friday, Cyber Monday and the holiday shopping season, we’d like to offer you some tips on how you can use your credit cards wisely to keep your spending in check.

Set up a holiday budget. Without a predetermined spending limit, you can easily max out your credit card or charge more than you can afford. Before you hit the mall or the computer, figure out how much you can reasonably spend and keep that amount in mind as you shop. Create a list of all the purchases you will make that are specific to the holidays. Think about who you will be buying for, contributions to holiday parties at work or your child’s school and any extra entertaining you might do at home. You may tend to eat out more when you are shopping, or because you are busier around the holidays, so add those expenditures to your list. If you make charitable contributions around the holidays, add those to your list.

Make a list of people you need to buy things for. Try to think of what you have in mind for each person. If it is not a specific item, then you should think in terms of specific dollar limits. Without setting this in advance, it can be easy to overspend.

Beware of store credit cards that “save you money” on that purchase. Many stores typically offer enticing offers during the holidays by encouraging you to get a store card and save an extra 10% or more on purchases that day. This works only if you pay the balance charged back in a reasonable time frame. With the high interest rates (20%or more) you typically pay on the balances of those cards, that $50 savings on a $500 purchase may not be savings at all if you have to spread the payments out over time.

Don’t max out your credit cards. If you max out your credit card during holiday shopping, this can impact your credit score. According to Fair Isaac, a credit scoring program widely used by credit bureaus, about one-third of your score depends upon your "utilization ratio," or how much of your available credit you actually use. Experts recommend that you keep your balance below 30%, or $300 for every $1000 of available credit.

Keep track of your holiday credit card spending. What good is a budget if you're not keeping up with it? Check your receipts to make sure you're not spending too much.

Don’t fall for the “skip a payment” offer from your credit card company. Credit card issuers commonly make this offer around the holiday season. It can become a problem if you carry a balance on your card. The offer is designed to entice you to skip your payment but the interest would be applied to the full amount for that month. Skipping payments can get very expensive very quickly if your balance and interest rates are high.

Plan to pay off anything you charge on the holidays within 1-2 months at the longest. Considering the holidays come every year, you will never be able to get ahead if you are still paying off debt from last year when you begin holiday spending for this year.

Save those receipts. Make sure to keep them together in one location, as you may need them for returns and exchanges. Check credit and debit card sales and return receipts against your monthly bills and statements. Report any problems to the credit card issuer right away.

Keep an eye on your wallet. Don’t flash any cash you might be carrying. Watch your credit or debit cards during transactions, and get them back as quickly as possible. If your cards are lost or stolen, report the loss or theft immediately to the card issuers. To report your credit card lost or stolen, call the customer service number on your billing statement.

Make a New Year’s resolution. To avoid credit card use, begin setting aside a little money from each paycheck in January in a special account reserved for holiday expenses. Saving just $10 a week will give you a nearly $500 head start when December rolls around. Check to see if your bank or credit union offers special holiday savings accounts, or consider a direct deposit from your paycheck.

Here is a holiday budget sheet to get you started.

http://tampabaysaves.ifas.ufl.edu/Holiday%20Spending%20Worksheet.pdf

The Truth About Payday Lending

noreply@blogger.com (Karen) — Mon, 16 Nov 2009 15:42:00 +0000

By Karen Saley, Extension Specialist

With the holidays just around the corner and money being tight for many of us, you may be considering a short-term payday loan. Before you run out and borrow that money let’s look at how these loans work.

You write a personal check payable to the payday lender for the amount you want to borrow, plus the fee you must pay for borrowing. The company gives you the amount of the check less the fee, and agrees to hold the check until the loan is due, usually your next payday. The fees on these loans can be a percentage of the borrowed amount — or they can be based on increments of money borrowed: say, a fee for every $50 or $100 borrowed.

So let’s say you borrow $100.00 and the fee is $15.00. When you get your next paycheck you will need to give the payday lender $115.00. You may be saying to yourself, well that’s not so bad; I borrowed this money at 15%, that’s lower than the interest rate on my credit card. What you need to consider, however, is how long did you borrow the money? A week, two weeks? Then what happens if you can’t pay back the original amount in that time period? You “rollover” the loan and now you have borrowed $115.00 with another $15.00 fee attached. You now owe $130.00 and it has cost you $30.00 to borrow $100.00.

So if you are considering one of these short-term loans to cover holiday expenses you may want to reconsider. Look at other ways to make your holidays special. If, however, you find yourself in a position of not being able to meet your living expenses here are some things to consider before visiting your local payday lender.

~Contact your creditors and discuss the possibility of adjusting your payment amount and/or schedule. Be sure to ask what type of fees may be involved in restructuring your account.
~Contact a reputable credit counseling agency to help you set up a debt repayment plan or help you create a spending plan that fits your circumstances.
~Shop around for a low-cost loan from your credit union or small bank. Remember to ask about interest rates and fees.

Contact www.consumercreditcounseling.net to speak with a financial counselor free of charge and for more information about payday lending visit www.ftc.org.

noreply@blogger.com (Pinellas County Extension) — Thu, 05 Nov 2009 14:00:00 +0000

By Nan Jensen, Families & Consumers Agent, Pinellas County Extension

Holidays can be stressful even under the best of circumstances. But because of the economy and the high rate of unemployment, holidays this year may be particularly trying. Loss can trigger depression during the holidays.

Here are some strategies to help you deal with the stress during this holiday season.

Focus on what you have rather than what you don’t have.

~ Enjoy the little traditions that evoke positive memories for the holidays: songs, events, rituals, and more.

~ Come up with new holiday traditions – ones that don’t involve much money and that focus on family togetherness. Set aside time to create as a family new and inexpensive holiday decorations and gifts. Enjoy activities such as visiting displays, attending parades, viewing holiday lights or volunteering.

~ Spend your time with people you love and care about.

Take care of yourself-both physically and emotionally.
Your mental health is affected by your physical health, especially at holiday time.

~ Take care of yourself by getting enough sleep and making healthy food choices.

~ If you drink alcohol, limit your daily consumption. The Dietary Guidelines recommend no more than one drink for women and two drinks for men. This will not only save you calories but can help you “manage your mood” as well. Too much alcohol can trigger depression.

~ Exercise is important, too. Walking reduces stress and helps ward off weight gain.

~ Practice relaxation exercises (i.e., stretching, deep breathing, yoga, meditation).

Manage Your Time

~ Schedule your activities in advance. Break projects into small steps so you won't feel overwhelmed.

~ Involve family members in getting the holiday chores done.

~ Don't accept every invitation. Chose the events you want to attend.

~ Don't over-schedule. Leave some time unplanned for you and your family to relax and just be at home with each other.

Watch what you spend.
Overdoing it with credit cards and spending causes stress at the holidays. Try to keep spending under control.

~ Set spending limits for gifts for each person as well as for other items on your holiday list. Then search out the sales and specials to take advantage of the best buys.

~ Pay with cash and leave the credit cards at home. If you plan to use a credit card, select just one to use for your holiday spending. It’s much easier to control your spending on one card than using several cards.

~ If your children ask for something nonessential such as a video game system that does not fit into your budget, be honest with them and tell them you can’t afford it this year.

To help you control your holiday spending, join us on November 18 for a Solutions in 30 webinar entitled “Protect Your Credit during the Holiday Season”.

Avoiding Holiday Debt

noreply@blogger.com (Pinellas County Extension) — Mon, 26 Oct 2009 20:10:00 +0000

By: Karen Saley, Extension Specialist, Pinellas County Extension

I know it’s only October, but it’s not too early to start thinking about holiday gift-giving. As a matter-of-fact many financial experts advise holiday shopping all year long. That’s one way to stay within your budget and reduce holiday stress.

Everyone is feeling the money pinch these days and with the holidays just around the corner that pinch is going to hurt a lot more. Here are a few suggestions to help relieve the pain and let you enjoy the holidays a little bit more.

Send email greeting cards instead of spending money on paper cards and postage.
Ask your dinner guests to bring a dish and have a potluck holiday dinner. You’ll save money and time and everyone will get to sample some new dishes.
Create a holiday budget for gifts. Decide on a total dollar amount you are going to spend then determine how much you will spend on each individual. Remember to include the tax in your total.
Shop at discount outlets and closeout stores instead of the malls.
Create a coupon book. Coupons can be redeemed for things like cleaning duties, car washing, meal preparation, etc. Everyone likes a helping hand and it’s the gift that keeps giving all year long.
If you haven’t started shopping yet, get started. Look for those bargains and grab them while you can.

Keep in mind that the holidays are supposed to be about family and friends, being together and creating memories. Don’t get caught up in the spending trap and enjoy your holiday debt free.

Join us for our free Webinar “Reducing Financial Stress During the Holidays” on December 9, 2009. To register go to: www.pinellascountyextension.org

For more helpful hints on surviving the holiday season click on the links below.

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt082.shtm

http://www.smartaboutmoney.org/economicsurvivaltips/Spending/ShoppingTherapy/AvoidHolidayShoppingHangovers/tabid/616/Default.aspx

Job hunting-have you reviewed your credit report lately?

noreply@blogger.com (Consumer News You Can Use) — Wed, 21 Oct 2009 11:36:00 +0000

Nan Jensen, Family and Consumer Sciences

What does your credit history have to do with your chances of landing a job? More than you would expect, especially in these tough economic times. With unemployment at an all time high, the job competition is very stiff. In this “employer’s market”, many companies are able to take their time and evaluate job candidates with increasing scrutiny. Some companies are basing their search for the right candidates not only on resumes and qualifications but may also be reviewing the credit reports of those potential hires.
There are some stipulations though. The Fair Credit Reporting Act (FCRA) requires that an employer must get your permission to look at your credit report. If you don’t get a job because of information in your report, the employer must show you the report and tell you how to get a copy from the consumer reporting company. There is no charge for the report if you request it within 60 days of getting notice that you did not get the job
Since your credit report is a map of your financial history and how you handle finances, some employers view it as an indicator of how well you may handle your job responsibilities. Perhaps you have defaulted on a loan or have unpaid credit accounts. These situations may raise a red flag. If a potential employer asks you to sign paperwork allowing them to review your credit report you may want to discuss any negative information that may be on the report. If you have been unemployed for a long period of time, and unable to pay bills because of reduced income, employers may empathize with you. As long as you are up front and honest about your history, you still have a shot at getting the job.
Request a copy of your credit report. By thoroughly reviewing your report you can identify any problem areas or errors that may be negatively affecting your credit score. The FCRA requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. You can order your free annual credit report online at annualcreditreport.com, or by calling 1-877-322-8228.
Also view the free presentation on credit reports and scores at the link below.

http://fycs.ifas.ufl.edu/toughtimes/June2009/09%20Final%20Credit%20Reports%20Scores/Credit%20Report%20Scores%202.0.html

What is a Reverse Mortgage?

noreply@blogger.com (Karen) — Mon, 12 Oct 2009 12:42:00 +0000

By Karen Saley, Extension Specialist

A reverse mortgage is a loan secured by your home that lets you receive payments from the lender. As you receive payments, these amounts are added to your loan balance. Generally to obtain a reverse mortgage, you must be a homeowner at least 62 years old.

With health care costs rising and people living longer lives, many older folks are considering reverse mortgages to help them with their financial needs. These types of mortgages may be beneficial to some, but there are some pretty important issues to consider before making the leap.

Interest and fees
Just like any other type of loan, interest and fees are charges with a reverse mortgage. Even when you are no longer receiving payments, interest is charges on any outstanding balance until the loan is paid off.

Taxes and insurance
With a reverse mortgage even though you are no longer making payments on your home loan, you are still responsible for the property taxes and insurance on your home.

Heirs
With reverse mortgages you generally do not pay back the loan, but keep in mind that when you pass away your heirs will be responsible for the repayment of the loan in order to claim the property. This also applies if you should move out of the home or sell it.

If you find yourself in need of some extra cash you may want to explore other options before taking a reverse mortgage. Selling the home and downsizing or possibly drawing from a retirement fund may be better options depending on your circumstances. Talk to a financial advisor or housing counselor before making the decision.

For more information contact these agencies.

U.S. Department of Housing and Urban Development
www.hud.gov
AARP Foundation, Reverse Mortgage Education Project
www.aarp.org/revmort
National Association of Reverse Mortgage Lenders
www.reversemortgage.org

noreply@blogger.com (Consumer News You Can Use) — Tue, 06 Oct 2009 18:00:00 +0000

Managing in Tough Times-Dealing with Job Loss

Nan Jensen, Family and Consumer Sciences

You just got word that you are being laid off. Your initial reaction is shock. There is often a period of adjustment and transition that people must go through when dealing with a job loss. People feel and experience a number of emotions. Disbelief and denial, anger, sadness and depression, and eventually acceptance are often the phases people must work through as they deal with a job loss. It can be difficult to navigate this process. You may sometimes feel out of control or overwhelmed by the stress of it all.

Some of the stress that people experience is due to the fear of the unknown. Not knowing what will happen to the retirement plan you have invested in, understanding what your rights and responsibilities are with respect to maintaining health care coverage and wondering how you will deal with the unknown financial challenges ahead are just some of the issues that you may have questions about.

To help you navigate through some of these challenges, the University of Florida, IFAS has developed a website called Managing in Tough Times-Downsized! It has a wealth of information on financial resources, including calculators and worksheets to help you develop a spending plan and answer some of those questions you have about retirement and health insurance.

The website can be found at http://fycs.ifas.ufl.edu/toughtimes/index.htm.

Discount Dining

noreply@blogger.com (Consumer News You Can Use) — Wed, 23 Sep 2009 20:50:00 +0000

Karen Saley Extension Specialist, Family and Consumer Sciences

Eating out doesn’t have to be a wallet-buster. Pinching pennies seems to be the theme of the day so here are some ideas that may help you save a few dollars the next time you visit your favorite restaurant.

Look for coupons in the newspapers and online
Don’t feel bad about using them. Restaurants know what their food margins are and what they are able to give away. It’s in their best interest to offer coupons to attract new business.

Skip the beverages and drink water
It’s healthier for you anyway! The average fountain drink costs the establishment around twenty cents, you pay over a dollar and sometimes a lot more. So skip the beverages and pocket the change, and if you pass on the alcohol you’ll save a lot more than just pocket change!

Order appetizers instead of full meals
The size of some meals today is so outrageous that we are consuming two, three or four meals at one sitting. Appetizers are more portion friendly and can be very economical usually costing just a few dollars.

Share your meals
Again, portion sizes are usually much larger than they should be so consider splitting an entrée with your dining partner. Save yourself excess calories and a lot of dough.

Skip the dessert
If you must have that sweet indulgence at the end of the meal, why not have it at home. Buy yourself a little treat from the grocery store at a fraction of the cost and pair it with that two cent cup of coffee you can make yourself.

Be an early bird
Take advantage of the early bird specials. Eating a little earlier in the day can save you twenty to thirty percent and you’ll have the whole evening to go for a nice stroll.

Get it to go
No need to order beverages and you get to keep the tip by ordering your meal to go. Take your delicious meal home, light some candles, put on some music and you’ll feel like you’re at a top-notch restaurant without having to pay the high cost.

Who is Responsible for the Debt?

noreply@blogger.com (Consumer News You Can Use) — Wed, 16 Sep 2009 18:52:00 +0000

Nan Jensen, Famiy and Consumer Sciences

An email was sent to me awhile back regarding a question about who is responsible for a deceased relative’s debt. It was a question that I never have had to think about but one that is important to consider, especially in this economy. Certainly for families who have lost a loved one, it is the last thing that they want to deal with during this difficult time.

Surviving relatives are protected by the Fair Debt Collection Practices Act (FDCPA). Under the law, debt collectors are prohibited from using abusive, unfair, or deceptive practices to collect from you. If a debt collector contacts you, have them contact the decedent’s personal representative and certainly don’t give them any of your personal information.

The bottom line is that you are not legally responsible for paying a relative’s debt who is not your spouse. State probate law may limit your obligation to pay your spouse’s debt. For advice in this area, contact an attorney who is familiar with the laws in your state.

The Federal Trade Commission has developed a very helpful publication in a question and answer format about who has responsibility for a dead relative’s debts. For more information check out the FTC publication below.

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt159.pdf

Job Hunting Tips

noreply@blogger.com (Karen) — Tue, 08 Sep 2009 15:39:00 +0000

By Karen Saley, Extension Specialist

According to the United States Department of Labor, Bureau of Labor Statistics, Florida is hovering around a 10% unemployment rate. Not quite as bad as Michigan’s 15% and not nearly as good as North Dakota’s 4%. For those of you who have found yourself among the ranks of the unemployed, here are a few tips to help you get back in the game.

· Be patient
Keep calm and remind yourself that if you keep trying hard, you will eventually get the job you want.
· Discipline yourself
Carefully plan out how you will use your time and stick to your schedule. Make looking for a job your current job.
· Don't wait for the job to come to you
Don’t simply rely on posting your resume online. Going to a company and talking to people is one of the most effective ways to get a job.
· Look at growing job sectors
Knowing the job market means knowing who is hiring. Research the hot new jobs and current trends.
· Network
Let everyone know that you are available for work. The more people you see, the sooner you will get the job you want.
· Sharpen your skills
Keep your professional skills sharp while job hunting. Take a class to upgrade your knowledge and skills.
· Be Flexible
Be flexible about what you will take, and you may find more opportunities within that job, and it will give you the chance to grow in several directions and not in just one.

For more information about job hunting and other related topics, visit Managing in Tough Times found at www.pinellascountyextension.org

Don't Get Scammed!

noreply@blogger.com (Karen) — Mon, 24 Aug 2009 19:34:00 +0000

By Karen Saley, Extension Specialist

There have always been people in our society more than willing to take advantage of others, and today is no exception. Scams abound and with the new technology we have today it has become increasingly difficult to tell the good guys from the bad guys.

Think you can get some help from the government with your past due mortgage? Looking for a little help restoring you questionable credit? Want to meet a few new friends on a social networking site? Looking for a job? It seems no matter what you are looking for there is someone ready to scam you.

These are just a few of the hundreds of scams being perpetrated on an unsuspecting public.

Government grants scam
Instant credit repair
Cash-for-gold scam
Mystery shopping scam
Social networking scams
Courier cons
Odometer fraud
Free gas card promotion
iPhone purchasing website scam
Twitter Work-at-Home Money-Making Schemes

What can you do to avoid becoming a victim?

If you are signing a contract, read the fine print
Research the company before doing business with them
Don’t respond to emails, phone calls, and mail that you did not initiate
Do not give out personal information in any form
Don’t follow links provided in emails even if they look like legitimate sites

If you do find yourself a victim or potential victim of a scam, report it to the Federal Trade Commission at http://www.ftc.gov/. By doing so your report along with hundreds or thousand of other reports can help authorities stop the scam and prosecute the scammers.

Remember…if it’s too good to be true, it most likely is.

Want to learn more? Join Extension Specialist Karen Saley and Jason Ohman from Pinellas County Justice & Consumer Services on September 16th for a 30 minute webinar.
http://pinellas.ifas.ufl.edu/

Managing During Tough Times: Meeting Health Insurance Needs

noreply@blogger.com (Karen) — Tue, 18 Aug 2009 18:53:00 +0000

Many people rely on employer group health insurance to help ease the burden of medical costs. As unemployment continues to rise, people are looking for options to maintain health insurance coverage. The Stimulus Bill offers some additional help to people who involuntarily lost or will lose their job between Sept. 1, 2008, and Dec. 31, 2009. Workers that become involuntarily unemployed during this 16-month period are able through COBRA (Consolidated Omnibus Budget Reconciliation Act) to continue the health care coverage they had through an employer. COBRA applies to group plans at companies that employ at least 20 people. The subsidy ends if the employee becomes eligible for Medicare or obtains coverage through a new employer.
Even if employees did not sign up for COBRA when they lost their job, they have 60 days to get the subsidy after being notified by their previous employer of their eligibility. Additional information on the new COBRA subsidy can be found at the link below to the Federal Department of Labor. http://www.dol.gov/dol/topic/health-plans/cobra.htm
Those not eligible for COBRA may be able to convert a group policy to individual coverage. Employers and the insurance companies can explain options.
Investigate buying insurance through another group such as a fraternal or civic organization, professional association or health maintenance organization. Group coverage is almost always cheaper than coverage by individual policies.
Since individual health insurance is very expensive compare several policies for the best coverage. Generally, it is wiser to choose a large deductible in order to lower premium costs. It is better to self insure against routine medical expenses and buy major medical insurance to cover unexpected, costly illnesses or emergencies. Avoid purchasing single disease policies or overlapping coverage.
If you have a high deductible policy—either purchased on your own or through your employer—explore the benefits of setting up a health savings account (HSA). For 2008, in order to qualify to open an HSA, your minimum deductible must be at least $1,100 (self-only coverage) or $2,200 (family coverage). You can tap the HSA to pay out-of-pocket medical interest and can be used in the future. For more information, check the website, http://www.treas.gov/offices/public-affairs/hsa/

For people without health insurance or those who can no longer pay the premiums for health insurance, there are some limited health services available. Locally, the Pinellas County Health Department would have information about health care programs provided at little or no cost. These include immunization programs, well baby clinics, blood pressure checks and other screening programs. Also, St. Petersburg Free and Clearwater Free Clinic provide some basic medical care as well.
Medicaid is generally available to families who receive government income assistance or to people over age 65 or people who are blind or disabled. Check with the local Health and Human Services Office for current medical assistance programs and income and resource guidelines.
For more information check out the following links below.

http://fycs.ifas.ufl.edu/toughtimes/pdfs/MiTT%20health%20care.pdf
http://www.extension.purdue.edu/extmedia/CFS/CFS-704-8-W.pdf
http://solutionsforyourlife.ifas.ufl.edu/families_and_consumers/money_matters/insurance.html

Foreclosure: Don't Let It Happen To You

noreply@blogger.com (Karen) — Thu, 30 Jul 2009 19:55:00 +0000

The possibility of losing your home can be a frightening experience. If you find yourself in this position don’t freeze up. Taking action quickly will help you hang onto your home. The first thing you will want to do is ask yourself the following question.

What happened to make you miss your mortgage payment (s)?
Do you have any documents to back up your explanation for falling behind?
Have you tried to resolve the problem? How?
Is your problem temporary, long-term, or permanent?
What changes in your situation do you see in the short-term, and in the long-term?
What other financial issues may be stopping you from getting back on track with your mortgage? What would you like to see happen?
Do you want to keep the home?
What type of payment arrangement would be realistic for you?

Answering these questions will help you understand your situation more clearly and assist you in communicating your circumstances to your loan servicer.

Avoiding the problem will not make it go away and it could potentially hurt you, so be proactive, diligent, and assertive in your quest to save your home.

Join Pinellas County Extension Specialist, Karen Saley on August 12th to learn more about the foreclosure process, how to avoid scams, and the new government assistance program. For information you can use now, click on the link below.
http://www.hud.gov/foreclosure/

Getting Organized

noreply@blogger.com (Karen) — Mon, 20 Jul 2009 18:50:00 +0000

by Karen Saley/Extension Specialist

Getting your important papers organized can be a daunting task. It will take a little time and patience but it will be well worth it in the long-run. How do you know if you need to organize your record? Ask yourself these questions.

Do you have easy access to all of your receipts and paid bills for the last six months?
Do you know where your insurance policies are and what they cover?
Do you have a list of people who are your important financial contacts, such as tax advisor, attorney, broker, banker, and human resource officer at work?
If you become incapacitated, how easy would it be for other members of your family to figure out your filing system and gain access to your records?

Keeping good records will come in handy during a crisis, when a major life change takes place, at tax time, or just when you need to review them while establishing your financial goals.

Here are a few ways to keep your records organized.

Make once person the lead in the process
File papers on a regular schedule (once a week, twice a month, etc.)
Have a designated work area

Now you may be asking “which papers do I keep and where do I keep them?”

There are about 40 different types of papers you should consider keeping for a number of years. Some you will want to keep handy in your home files, others you will want to keep in a safe deposit box and still others you may want a copy held by a family member or attorney. Attached is a list of important papers and an example of where or with who may want to store them.

Remember; be persistent in getting your records organized. You will be making life much easier for yourself and anyone who would have to take over for you in an emergency.

http://pinellas.ifas.ufl.edu/blog_consumerHeadlines/Unit_1_GettingOrganized.pdf

What's Your Score?

noreply@blogger.com (Karen) — Mon, 06 Jul 2009 14:42:00 +0000

By: Karen Saley, Extension Specialist

Your FICO score is an important number when it comes to applying for credit. You may be asking “what exactly is a FICO score?” It’s a number that summarizes your credit risk, based on a snapshot of your credit report at a particular point in time. What this means is that your FICO score is constantly changing depending on several factor such as payment history, amounts owed, length of credit history, new credit and types of credit in use. This chart shows what percentage of these factors is considered when calculating your credit score.

A FICO score can range from 300-850 with most of the population falling between 750 and 799. How high or low your score is may determine your ability to secure credit and influence what the interest rate on that credit will be.

Unlike your credit report, which you are entitled to free of charge, there is a fee you must pay to get your FICO score. The cost is about $16.00 and can be purchased through any of the three credit reporting agencies; Equifax, Experian, and TransUnion. To obtain a copy of your credit report or FICO score you can click on http://www.annualcreditreport.com/.

Because your FICO score is a direct result of your credit history it is very important that you are aware of and understand the information in your credit report. For more information regarding your credit report and your FICO score visit www.myfico.com/crediteducation.

New Rules!

noreply@blogger.com (Karen) — Mon, 22 Jun 2009 16:24:00 +0000

By: Karen Saley
Extension Specialist

Have you ever wondered what all that fine print on your credit card statement says? Well, it actually says a lot, and you would be wise to read it. All that verbiage has been a source of frustration for consumers and a source of revenue for the credit card companies.

Contained in all that fine print are the terms and conditions related to your credit card. Unfortunately these terms are written in such a confusing manner that most people have a difficult time understanding them. This has made it very easy for credit card companies to implement some interesting money making strategies.

That will all be changing next year. The Federal Reserve has put a stop to some pretty shady practices on the part of the credit card industry by adopting some new rules that will help protect consumers.

What will the new rules do for consumers?

• Protect consumers from unexpected interest charges, including increases in the rate during the first year after account opening, unless it is stated up-front when the account is opened.

• Prohibit credit card companies from raising interest rates on money already borrowed unless it was borrowed on a variable rate card, or the minimum payment is made more than 30 day late.

• Forbid banks from imposing interest charges using the "two-cycle" billing method. This method charges interest on amounts already repaid.

• Require that consumers receive a reasonable amount of time to make their credit card payments. A late fee cannot be imposed if the bill was mailed less than 21 days before the due date.

• Prohibit the use of payment allocation methods that unfairly maximize interest charges. Payments must be allocated fairly among credit cards with different interest rates.

• Address subprime credit cards by limiting the fees that reduce the amount of available credit.

Remember, these rules will not be put in place until July 1, 2010. In the mean time take a few minutes and read that fine print. The credit card companies will be trying to maximize their profits while they can.

http://www.federalreserve.gov/newsevents/press/bcreg/20081218a.htm