Save on Grocery Shopping

Grocery prices may seem like they are constantly rising, especially with the volatile economy. Food is one aspect of most budgets that usually can be reduced. Summertime is typically a season in which most people eat less because of the heat. That fact alone may help save money toward your debt settlement on buying food items. Below are some eating and food tips that may help you save money on your grocery bill during the summer months.
 
Drink Plenty Of Water
 
Drinking water is usually healthier and more hydrating than filling up on sodas and sugared drinks. Water is also one of the most economic beverages. Unless you have a problem with the water in your local area, drink tap water instead of individual bottles of water, which can be harmful to the environment and costly to purchase.
 
Buy Produce In Season
 
Eating fresh fruits and vegetables are healthy staples of a well-balanced diet. Check your supermarket ads and consider buying produce that is in season.
 
Plant Your Own Garden
 
If you have the space and a green thumb, consider planting your own fruits and vegetables. You may be able to save some money by growing your own produce and the taste of homegrown food can be very appetizing. Also, consider freezing and canning items so you can enjoy them throughout the year.
 
Go Vegetarian
 
WebMD recommends eating vegetarian once per week to increase your consumption of plant foods. By cutting back on expensive meats and seafood, you can save money with more vegetarian meals that you eat.
 
Make Homemade Ice Pops
 
Children usually love ice pops and other frozen treats. Consider making your own ice pops with natural fruits and juices instead of buying prepackaged processed frozen snacks. The Tree Hugging Family web site lists a variety of homemade popsicle making ideas. Visit their site at www.treehuggingfamily.com.

New Credit Card Laws Favor Consumers

We have previously discussed the Responsibility and Disclosure (CARD) Act. This set of provisions has recently merged with the Credit Cardholders’ Bill of Rights. On May 22, President Obama officially signed the CARD Act and the new regulations will take effect in February 2010. This set of laws is a major milestone for the credit card industry and may be instrumental in ending deceptive practices that affect consumers. Below is a brief outline of some of the changes that will take place under the CARD Act.
 
What Will Change?
 
According to the Center for Responsible Lending, a non-profit research organization, the following new laws are definite and may benefit consumers. 

Applicants under the age of 21 will not be able to get approved for a credit card unless they obtain a co-signer or show they have sufficient income.
 

Creditors will be required to give cardholder’s 45 days notice before changing rates. After a new account is opened, rates will not be able to be increased during the first 12 months. Promotional rates must last six months. Card companies can still raise rates in the event of delinquencies, but must lower the rates if the cardholder stays current for a period of six months.
 

Bills must be mailed at least 21 days before the due date rather than the current 14 days. Early morning deadlines will also be banned.
 

Over-the-limit fees can only be applied if the consumer consents to over-the-limit transactions.
 

Card companies must apply payments above the minimum payment to the highest interest rate balance.

Debt Settlements = Results

Many consumers receive results from debt settlement companies. According to The Association of Settlement Companies (TASC), consumers seeking to manage their debt have higher success rates when using credible debt settlement companies rather than credit counseling services. TASC, the non-profit watchdog organization for self-regulating the debt-settlement industry, gathered the information from various sources, including the Consumer Federation of America and National Consumer Law Center, the Executive Office for the U.S. Trustees and testimony by credit counseling companies.
 
With both shorter program durations and lower budgeted monthly payments, debt settlement programs frequently see higher success rates and fewer dropout rates. Other differences between credit counseling and debt settlement are:

Debt settlement companies do not receive any fees, contributions or other forms of compensation from any entities other than the debtor client. Meanwhile, credit counseling companies get money each month from their customers, plus they receive “contributions” from credit card companies and “fair shares” from banks.
 

Debt settlement programs are typically 36 months or fewer. Credit counseling programs are usually 60 months or more.
 

For consumers that complete programs, the total cost of a debt settlement program is usually about half the cost of a debt management program offered by a credit counseling company.
 

Debt settlement programs achieve individualized and customized results depending on a consumer’s circumstances and needs. Credit counseling payment plans are fixed payments over a length of time.

Living Without Available Credit May Be Quite An Adjustment

Changes in our lives are usually inevitable. Whether it is spring changing to summer or trying to change a bad habit, most of us will experience some form of change at one point.
 
As we undergo a major change, we may have mixed feelings. For example, if you recently enrolled in a debt negotiation program, you may feel optimistic that you took the first step to achieve financial freedom. Yet, the fact that you must live on a budget and have limited access to credit may scare you.
 
Living without available credit may be quite an adjustment, especially in a world where credit cards are accepted everywhere from local pizza shops to furniture stores. Many retailers may also pressure you to apply for credit cards when you checkout and you may have to decline more than once.
 
Some consumers may also use credit cards to pay for unexpected emergencies or to buy necessities before their next paycheck arrives. Without this security, new debt settlement customers may feel like they will never be able to survive without credit.
 
Although overcoming your dependency on credit cards may be difficult, try to focus on the positive aspects of your financial decision. Look to the future and imagine how relieved you will feel once you are free from the bonds of debt. As a result of hard work and perseverance, you may one day not receive any more calls from collectors or have to keep track of multiple credit card bills.
 
Throughout your debt settlement program, we will provide you with a variety of money-management tools such as this article. Our goal is to equip you with knowledge that will help you remain debt-free. During these changing times, remember that Credit Answers is here for you. Feel free to give us a call if you ever have a question about your program. We realize that the many changes that you are experiencing can be stressful and we want to help you accomplish your financial goals.

Clean Your Wallet – Money Saving Tips

Warm weather allows you and your family to complete certain chores and participate in seasonal activities. Throughout your neighborhood, you may see people planting gardens, washing cars, and children playing in backyards. Below are some debt settlement money-saving tips that may help cool your wallet as the temperature heats up.
 
Save Money On Your Air Conditioner
 
You may want to prepare your air conditioning unit for hot and humid days. For example, keep all objects away from the air conditioning unit. Make it a habit to routinely remove grass and leaves from vents. These items will block airflow. For more tips, visit the Department of Energy’s web site at www.energy.gov.
 
Consider Inexpensive Ways To Have Family Fun
 
Some families plan vacations during the spring and summer seasons and these excursions can be costly. Just because an elaborate vacation is not in your budget does not mean that you can’t have fun. Discover the many activities that you can enjoy in your local community. Most libraries offer summer reading programs for children and adults. You can also rent movies at the library for free. Call your local zoos, museums, and amusement parks to see if they offer discounted rates on certain days or during specific times of the day.
 
Spring Clean Your Vehicle
 
Extreme temperatures may be difficult for your car to handle. Routine maintenance on your vehicle may help its performance and improve gas mileage. For example, have an oil change performed regularly and keep your tires properly inflated. Visit the Car Council’s educational web site at www.carcare.org for more auto maintenance tips. Also, keep in mind that gas prices tend to skyrocket during the warmer months. Web sites such as www.gaspricewatch.com and www.gasbuddy.com track gas prices in your area and are updated by local volunteers. You can also save on gasoline by carpooling. Visit www.erideshare.com to search for local commuters that are going the same way you are or you may post your own listing.

Save Money on Your Cell Phone Bill

Cell phones have become a common gadget in most of our lives. According to CTIA – The Wireless Association, there are now more than 262 million wireless subscribers in the United States, which includes 83 percent of the total U.S. population and 3.3 billion active cell phones worldwide. Since there is a good chance that you may have a cell phone, below are some tips that may help you save money on your monthly bill and save for your debt settlement.
 
Assess Your Minutes
 
Track your usage each month to make sure you subscribe to a plan that meets your needs. Check to see if you are using more minutes than your plan allows. If so, you may benefit from subscribing to a plan that offers more minutes instead of incurring overage charges. You may also want to sign up for a service such as www.overmyminutes.com. It is a free service that sends you an alert before you are about to go over your monthly minutes. On the other hand, if you are not using as many minutes as you are paying for, you may be able to save money by switching to a less expensive plan.
 
Scale Down Your Plan
 
In addition to your minutes, you may also want to consider if you are paying for extras that you do not use or are not really necessary. For example, you may be able to eliminate extras such as games, ringtone downloads, and web surfing capabilities.
 
Decide Whether To Keep Your Landline
 
According to the FCC, nearly a million land lines have been discontinued since 2000. Canceling your home phone may allow you to eliminate a bill each month. Before you decide to cancel your landline, ensure that the decision is right for you. From a debt settlement standpoint, basic home phone service allows you to give collectors a phone number in which they can leave a message. Numerous voice mail messages on your cell phone may use up some of your minutes. Also, a land line gives you an opportunity to make local calls for free. Cell phones usually use minutes whether you call locally or long distance.

Financial Job Scams Rise in a Bad Economy

The economy may be slow, but thieves may be using these times to take advantage of unsuspecting individuals. The FDIC wants consumers to be aware of some common job schemes being reported, followed by tips that may protect you. While saving for your debt settllement program make sure that you don’t fall victim to many of the financial job scams that are circulating the web.

Work-At-Home Scams

Thieves prey on people who have lost their jobs or need extra cash by sending unsolicited e-mails and running advertisements on the Internet. The ads offer flexible, easy part-time jobs that allow you to work at home. These jobs usually involve a lot of pay for doing very little. Examples include processing payments or shipping items.

According to the FDIC Consumer news, a lot can go seriously wrong with these supposed employment opportunities. This company may steal your identity and commit fraud by obtaining your bank account and Social Security numbers, perhaps as part of a fake job application. Or, you could face major losses if your new boss requests that you deposit a check or electronic transfer into your bank account and wire funds out of your account. Later your bank tells you that the original deposit was bogus and you’re responsible for the money. For more information about work-at-home scams and a complaint form, go to www.IC3.com, a web site established by the U.S. Department of Justice and the National White Collar Crime Center.

Credit and Car Buying

Since you are currently enrolled in a debt settlement program, buying a car may seem difficult. However, if your only means of transportation is unreliable and creating costly repair bills, you may make the decision to purchase a different vehicle to save you time and money. Here are some tips that could help you purchase a reliable car at an affordable price.
 
Make A List Of Expenses
 
Establishing a budget will help you determine how much of a car payment you can afford.
 
Know Your Credit Score
 
It is good to know exactly what your credit score is before you apply for a car loan. You have the right to receive a free copy of your credit report by visiting www.annualcreditreport.com. For more information on how to purchase your credit score, visit www.myfico.com. According to Jeff Ostroff, host of the informative web site, www.carbuyingtips.com, “Lenders have greatly tightened requirements after the financial crisis to ensure a buyer’s ability to pay back the loan. It’s more important than ever to make sure your credit report is as clean as it can be.”
 
Choose A Vehicle
 
Before you apply for a loan, have some idea of the type of car that you would like to purchase. Visit sites such as www.Autoweb.com, www.Cars.com, and www.CarsDirect.com to search for vehicles in your area and to research makes and models. You may consider obtaining a vehicle history report at www.carfax.com for any car in which you express an interest. Unlimited reports for 30 days cost $39.99.
 
Since you are enrolled in a debt settlement program, select a reasonable-priced, modest vehicle. Remember, you are buying a car for reliable transportation and not as a status symbol. In most cases, you want to select a late-model used car as opposed to a new car. You can find many quality pre-owned vehicles for less money. In addition, you avoid the hit on the first year depreciated value of the new car.

Quick Debt Tips

Saving for a debt settlement negotation can be difficult. Every little bit helps on the road to become debt free. Below are some quick debt tips to help you on the path to financial freedom.

Make Sure Your Credit Report Is Really Free
 
Many TV commercials with catchy jingles claim that consumers can get a free credit report. According to the Federal Trade Commission (FTC), the only authorized source to get your free annual credit report under federal law is www.AnnualCreditReport.com. To reinforce this message, the FTC is featuring two new videos with their own catchy tunes. Both videos are available at www.ftc.gov and www.YouTube.com/FTCVideos. The new videos highlight the differences between AnnualCreditReport.com and those other sites that claim to provide “free” credit reports. Other sites require users to pay hidden fees or agree to additional services. For example, some sites provide a free credit report if you enroll in a new service. If you don’t cancel the service during a short trial period, you’re likely to see membership fees on your credit card statement.
 
Enjoy Your City “On The Cheap”
 
Motivated by the current coupon-clipping climate, Cities on the Cheap www.citiesonthecheap.comwas created to help those who want to check out the low-cost activities in their local city. This site consists of a rapidly growing network of “On the Cheap” blogs. Each blog highlights city-specific freebies, discounts, and deals. Visit the site to see if you can find some deals in your city. Cities on the Cheap now includes more than 40 city blogs in the U.S. and Canada, with more in development.
 
Save Money By Carrying Big Bills
 
Keep large bills in your wallet if you want to spend less cash, according to new research from the University of Maryland’s Robert H. Smith School of Business. Researchers find people are more likely to think twice about making a purchase when they carry one large denomination of cash rather than many smaller denominations equal to the same amount of money. For example, you are more likely to hang onto a $20 bill than 20 one-dollar bills. This is because there is a greater “pain of paying” associated with breaking a large bill and there is a good chance you will lose track of spending when you break a large bill. When those studied knew they had to save $100 and exercise self-control in spending, they were more likely to choose a single $100 bill than five $20 bills.
 
A Major Credit Card Company Offers A Helpful Guide
 
Chase Card Services in partnership with College Parents of America has issued an informative guide that helps parents discuss financial issues with teens and young adults. Topics include “Understanding Credit Cards” and “Creating a Livable Budget.” You can download this free 32-booklet by visiting www.chaseclearandsimple.com.

Make a Credit Comeback

Many classic trends and fashions seem to be reinvented throughout generations. Fabulous fads from the past suddenly resurface and become popular among consumers. At one time, you may have thought that a wallet full of credit cards with high credit lines exemplified style. But when minimum payments skyrocketed or you experienced an emergency, the allure of credit quickly became a fad that you wish would have been buried in a time capsule.
 
Once you have completed your debt settlement program, you will be one step closer to financial freedom. At this time, you can begin to re-establish your credit and make a credit comeback! Although your rating will not improve overnight, consider the following ideas to rebuild your credit.
 
Revolving Debt Is Not In Style
 
Many consumers realize that fashion and trends are fickle because they can change from month to month. Credit cards make it easy to charge all of the latest gadgets and just pay a low monthly minimum payment. Making this a habit can create costly unwanted debt because of compounding interest. Also, consider the fact that you may still be paying on merchandise that was purchased years ago or that is no longer used. Do you really want to pay for holiday gifts three years from now or clothes that will eventually wear out or become outdated? You can discover the true cost of paying the minimum with this online calculator provided by Bankrate.com. When you begin to re-establish your credit, use your credit card so you can show creditors that you can make timely payments. However, only charge items that you can afford to pay in full each month.
 
Less Is More
 
Stuffing your wallet with a deck of credit cards is not very impressive or fashionable. Upon completion of your program, apply for one or two credit cards, perhaps one major card and one department store card. Remember that inquiries appear on your credit report every time you complete a credit card application. Having many recent credit inquiries will usually not improve your credit rating.
 
Start Slow
 
With some fads, you may be unsure if you want to jump on the bandwagon right away. In order to gradually make your credit comeback, you may also want to consider a secured credit card. The credit limit on this card is based on the deposit that you make. For example, if you put $300 on your credit card account, you will receive a line of credit for $300. Since a secured card is considered a credit card, maintaining this account with moderate charges and on-time payments may boost your credit rating.