Paying Late has Harsh Consequences Did you know that making a payment late to one of your credit cards can cause your other credit cards to also raise you interest rate? This is due to the “universal default” clause, which allows credit card companies to periodically examine your credit report and penalize you if you make a late payment to any of your creditors. The universal default clause can usually be found in your credit car... More

Cutting Credit Card Costs I spend too much money every month on credit card fees. What can I do to cut my credit card costs? What are the APRs charged by the credit cards in your wallet? If you are paying more than 12% interest on any of them, you are probably paying too much. The prime rate is currently in the single digits, so credit card companies that charge above 13% APR are overcharging. If you have good credit, you... More

New Bankruptcy Reform: How does it affect you? The new bill recently signed into law by President Bush will change the way courts look at the cases of people who want to file for Bankruptcy to discharge their debts. The new law’s provisions will go into effect October 17, 2005, and is expected to affect up to 20% of bankruptcy filers every year. The new law dictates under which major chapter of the bankruptcy code consumers can file. The cha... More

Private Mortgage Insurance What is Private Mortgage Insurance? Private Mortgage Insurance (PMI) is a policy that protects lenders who make loans to individuals who want to buy or refinance a home, but are unable to come up with the required 20% down payment. Private Mortgage Insurance Facts: - PMI plays a valuable role in expanding home ownership. - With PMI, families can purchase homes with as little a 3-5 percent dow... More

Is there a recall on that car? Are you currently in the market for a new or used car? Are you spending more money on vehicle repairs and less on your weekly grocery bill? Did you know that certain vehicles are cheaper to insure than others? All of this information is available on one website, www.nhtsa.dot.gov. The National Highway Traffic Safety Administration (NHTSA) is a Federal Organization within the United States Depart... More

Student Loan Payment Options If you are a recent college graduate with considerably high student loans, it may be a good time to look at how you will repay them. Recently, the interest rate on the Federal Stafford Loans has dropped from 5.99% to 4.06%, the lowest rate in the 36-year history of the student loan program. This loan rate applies to Stafford Loans disbursed after July 1, 1998. Staf... More

Payday Loans, an Expensive Way to Borrow Money Do not be tempted by that neighborhood establishment that advertises quick and simple loans with no questions asked. The interest you pay and the collection practices they use make these loans an expensive way to get a little money. Rick has been going to his local payday lender and borrowing $200 to pay his bills for the last six months. He says it is a great service, even though he pays $38 for... More

College Tips for Parents Many parents feel it is necessary that their children are equipped with a credit card for emergencies when they leave home to attend college. Before you give out credit cards, consider taking these steps: - Educate your children about credit. If your children attend school in the South Florida area, they may have been fortunate to hear a DMCC speaker present a free seminar about responsible f... More

Electronic Check Conversion: A new way to pay Electronic Check Conversion uses your check as a source of information–for your check number, your account number, and your bank’s tracking number– to make a payment electronically from your account. The check itself is not the method of payment. It works this way: A store clerk takes your check, scans it through a machine, and hands you the voided check. The information scanned from the check al... More

Read the Fine Print We are constantly being exposed to ads for deals on new car purchases and low interest rates for home mortgages. Auto manufacturers talk about cash back offers, in some cases up to $5,000 cash back and 0% interest financing on new models. Mortgage brokers are tempting us with 1.5% interest rates on home mortgages. Although these offers sound great and are very tempting, our advice to you is to re... More

Is that deal really a deal? Have you ever been enticed by a great offer? It is particularly alluring if the product being sold is something you actually need. Before you sign on the dotted line, make sure you review the fine print. Understanding the terms and conditions, billing policy and disclosure statement is imperative to benefit from these types of offers. Otherwise, the special promotion you signed up for may not b... More

Marrying into bad credit I have great credit and recently married a man with awful credit. I’m afraid that his bad credit will drag down my good credit and we will not be able to purchase a home or take out big loans. I am also afraid that my credit will be ruined by his past credit decisions. What can I do? Your credit report only reflects your credit history. So, do not worry about your husband’s past credit indiscreti... More

Title Insurance What is title insurance? Title insurance protects the lenders and homeowners against loss of their interest in the property because of legal problems with the title. A title search checks on details such as making sure there isn't a lien against the title of a property or that the person you are buying the house from really owns it. When is it required? All lenders require homebuyers to p... More

Buying your first set of wheels I need to buy a car when I graduate from high school. I want something reliable that I can take up to college. How do I go about finding and purchasing a vehicle? A. Buying a car can be both exciting and stressful but you can reduce the stress level involved if you do a bit of research and get smart about your purchase. The first thing that you should do is find out how much car you can afford. ... More

To Co-sign or not to co-sign? A friend of mine from work wants to buy a car and needs someone to co-sign the loan. We have been friends for a few years and I feel that I could help her by co-signing for her. I feel I can trust her to be responsible for the loan. How will co-signing affect my credit? For anyone unfamiliar with the term, a co-signer is a person who lends his or her name and good credit history in order for the ... More

Are You Paying Too Much for Your Cell Phone? Believe it or not, many of us are overpaying for a cell phone service that does not fit our needs. According to research done by J.D. Power & Associates, only about 72 percent of cell phone anytime minutes and 51 percent of nights and weekend minutes get used each month. By finding a plan that best suits your use, you could save a few dollars each month, which could turn into huge savings every ye... More

A New Year with the Right Financial Attitude It's a New Year, and if you are like many people, you will begin the year by making a list of resolutions. This year, along with the usual resolutions to lose weight, eat better and get in shape, resolve to take care of your financial health as well. Check out these "financial fitness" resolutions and tone your money management skills. I will take advantage of compound interest by saving regularl... More

Online Shopping Tips Millions of people are sold on the convenience and fun of shopping on the Internet. To minimize any risk associated with using credit cards online, VISA, through their practical money skills website, suggests some "common sense" practices to keep in mind: Use a secure browser. With browsers such as Netscape Navigator (version 2.0 or higher), Microsoft Explorer, and America On-Line, you can be su... More

Credit card use during retirement Although most Americans have been preparing for retirement for most of their careers, leaving a job and adjusting to a fixed income can be a difficult transition. What should I do with my credit cards after I retire? Although credit cards are still useful during retirement, they should be used carefully and conservatively. People who are close to retirement should pay off their credit card debt... More

FICO Expansion Scores The FICO Expansion score is a new credit risk score from Fair Isaac designed specifically to help lenders extend credit to consumers who lack sufficient credit history. It predicts the likelihood that a consumer will become seriously delinquent in the 24 months following scoring by evaluating financial relationships usually absent in credit bureau reports. FICO Expansion scores use data, includ... More

Interest-only loans: Not always such a good idea What is an interest-only loan? Lenders are now offering an interest-only (IO) option on home loans. IO mortgage loans allow borrowers to pay only the interest portion of the loan for a specified period of time, usually 5 to 10 years. During that time, the mortgage monthly payment does not include any repayment of the principal of the loan. The principal is the sum of money owed as a debt, upon whi... More

It's Your Credit. Take Care of It! Thanks to the Fair and Accurate Credit Act, American consumers will all soon be able to receive a free annual credit report from each of the three major credit bureaus—Experian, TransUnion and Equifax. People who live in Western, Midwestern, and Southern states can already order their free credit report by visiting www.annualcreditreport.com or calling 1-877-322-8228. Those who reside in Eastern ... More

Is Refinancing Right For You? Even with mortgage rates at historic lows, refinancing a home does not make sense for everyone. The most obvious case of when refinancing does not make sense is when the homeowner will not live in the house long enough for the savings from a refinancing to outweigh the costs of getting a loan. Any of the following also can be red flags: - Have you been paying a long time on the loan you already ... More

Facts About Using Your Debit Card Debit cards, also known as check cards, ATM cards, and express checking cards can be used to withdraw cash from your bank account via ATM and make purchases without using cash or credit. They look similar to a credit card and work by taking the money directly out of your bank account. According to the American Bankers Association (ABA), in 2003 around 31% of in-store transactions were completed wi... More

Are you ready for the holidays? How to avoid incurring overwhelming holiday debt The holidays are so close you can almost smell them. While you are frantically preparing to host a holiday party, buying gifts for your family, or making travel arrangements to visit loved ones, it is very easy to lose track of the money you’re spending. Chances are that you are going to spend more money during the holidays than just about any ot... More

Budgeting Basics A budget, or spending plan, is the best way to get control of spending and review if your money is used the way that will benefit you best. Managing money is a skill, and like most skills it requires a bit of discipline and lots of practice. Step 1: Journalize your spending Using a spending diary can help identify areas where you can reduce unnecessary expenses. Logging your spending trends,... More

Student Financial Aid With the cost of college education constantly rising, it is very difficult for anyone to attend a university without getting some sort of financial aid. What is available? The Federal government provides any or all of the following financial aid programs to undergraduate* college students: Grants: Money that you do not have to pay back. Loans: Money borrowed that you must repay with interest. S... More

The Equal Credit Opportunity Act Have you been denied credit because of your nationality, gender of race? Well, in the United States that is illegal. The Equal Credit Opportunity Act is a federal law that protects consumers from discrimination based on gender, age, marital status, race, color, national origin, receipt of public assistance or because you may have exercised your rights under consumer protection laws. The ECOA pro... More

Saving on Your Homeowners Insurance As with any insurance purchase, it is important to evaluate coverage and research your options to find the best coverage for your dollar. Here are some tips from the National Association of Insurance Commissioners (NAIC) to help you save money on your homeowners insurance. Shop Around Homeowners insurance can be costly, but it is necessary. The premiums... More

Purchasing a Home Get Pre-Qualified Do you know if you can afford a home? How much can you afford to spend? These are a few questions you should get answers to before you start to look for a home. Talk to your lender first. Go over all of your finances with the lender and they can pre-qualify you to borrow a certain amount of money. The pre-qualification does not commit you to a loan but it does show that y... More

Telephone Expenses, Slamming and Cramming Telephone expenses have increased over time. Although you frequently see advertisements for low telephone rates, it is essential that you monitor your calling patterns and select a calling plan based on your individual needs. Many consumers are now able to choose both local and long distance phone service providers. These companies offer many optional services such as voicemail, call waiting, ca... More

What is a Credit Score A credit score is a number lenders use to help them decide: "If I give this person a loan or credit card, how likely is it I will get paid back on time?" The score is generated through statistical models using elements from your credit report. However, your score is not physically stored as part of your credit history on the credit file. Rather, it is typically generated at the time a lender req... More

Automobiles: Buying vs. Leasing There are many things to consider when deciding whether to buy or lease your next new automobile. To help you decide, we are reprinting an excerpt from www.leaseguide.com, with their permission. This website will give you the answers and information necessary for you to make an educated and informed decision. Leases and loans are simply two different methods of automobile financing. One finan... More

Bankruptcy While bankruptcy may be a life vest for most people drowning in debt, choosing to file is never an easy decision. For some financially distressed debtors, bankruptcy may not always be the best option. Several events can cause individuals to lose control of their financial situation. Divorce, job loss, lawsuits, foreclosures or credit card debt can drive a person over the financial edge. General... More

Challenging Credit Bureau Information There are two kinds of subscribers that furnish information about you to a credit bureau. Credit Grantors (banks, finance companies, etc.) are the businesses that lend you the money. Credit Users (car dealers, mortgage brokers, etc.) use the credit report to qualify you for a loan from the Credit Grantors. Credit Grantors are the only ones that are supposed to report the information about y... More

Identity Theft Avoiding Identity Theft According to the Federal Trade Commission, over half a million Americans will have their identities stolen this year. The most common types of identity theft are: Using or opening a credit card account fraudulently Opening cell phone or utility accounts fraudulently Passing bad checks or opening a new bank account Getting loans in another person's name ... More

CREDIT CARDS: Rules and Fees Credit cards are unsecured loans that do not require you to pledge any assets, just your signature. Most consumers are not aware of the rules and regulations imposed by the issuer of a credit card. It is important that you understand the major points of the credit card you are applying for or currently have. Learn about the costs and rules of the card. What is the annual fee and are there any... More

Facts about Consumer Credit Insurance What is Credit Insurance? Credit insurance assures a loan will be repaid in the event of the death, disability or involuntary unemployment of the insured borrower. It can be taken to protect all types of consumer borrowing, including loans to finance or refinance a home. These products may be sold by credit card companies, auto dealers, finance companies, department stores, furniture stores or wh... More

Credit Cards: Frequently Asked Questions What Are The Differences Between Unsecured And Secured Credit Cards? A secured card is a credit card that a cardholder "secures" with a deposit to ensure payment of the outstanding balance if the cardholder defaults on payment. Secured credit cards are targeted to customers with imperfect or limited credit histories who do not qualify for a traditional unsecured credit card. An unsecured credi... More

Telemarketing and 10 Ways Americans Get Scammed FTC Adds "Do Not Call" Registry to Current Telemarketing Sales Rule The Federal Trade Commission's amended Telemarketing Sales Rule puts consumers in control of telemarketing calls they receive at home. With the creation of the National "Do Not Call" Registry, the FTC will make it easier and more efficient for consumers to stop getting unwanted telemarketing. The National "Do Not Call" Registr... More

Mortgage What Can I Afford? The better your credit, the easier it is for you to qualify for a loan. Can I afford a home? How much money can I qualify for? As a general rule , your buying power is calculated by multiplying your annual gross income by two and a half (2 ½). For example, if you have a household income of $45,000, you might be able to qualify for a $112,500 home. You could actually qua... More

List of National Referrals and Credit Bureaus Alcohol: Alcoholics Anonymous See local directory for phone number Addiction Help Line 800-711-6102 American Council of Alcoholism 800-527-5344 National Clearinghouse for Alcohol & Drug Info. 800-729-6686 National Council of Alcoholism & Drug Dependence 800-622-2255 National Drug and Alcohol Treatment Hotline 800-662-4357 Currently unemployed: Federal Citizen Information Center 8... More

Reverse Mortgages Until recently, there were two main ways to get cash from your home: you could sell your home, but then you would have to move; or you could borrow against your home, but then you would have to make monthly loan repayments. Today there are "reverse mortgages" available to you. A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a r... More

Equal Credit Opportunity Download the printable PDF brochure. Credit is used by millions of consumers to finance an education or a house, remodel a home, or get a small business loan.The Equal Credit Opportunity Act (ECOA) ensures that all consumers are given an equal chance to obtain credit. This doesn’t mean all consumers who apply for credit get it: Factors such as income, expenses, debt, and credit history are conside... More

Fair Debt Collection Download the printable PDF brochure.If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "debt collector." You should know that in either situation, the Fair Debt Collection Practices Act requires that debt collectors treat you fair... More

Credit and Your Consumer Rights Download the printable PDF brochure. A good credit rating is very important. Businesses inspect your credit history when they evaluate your applications for credit, insurance, employment, and even leases. Based on your credit payment history, businesses can choose to grant or deny you credit provided you receive fair and equal treatment. Sometimes, things happen that can cause credit problems: a t... More

What to do if your cards are lost or stolen Download the printable PDF brochure. Credit, ATM and Debit Cards: What to do if They're Lost or Stolen Many people find it easy and convenient to use credit cards and ATM or debit cards. The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer procedures for you to use if your cards are lost or stolen.Limiting Your Financial Loss Report the loss or theft of your credit ... More

Billed for Merchandise You Never Received? Download printable PDF brochure. You found the perfect set of linens in a mail order catalog. You call to place your order and charge it to your credit card. You're told that your linens should arrive in two weeks. Two weeks go by, then three and four, and still no linens. What you do get is your credit card bill with a charge from the catalog company. So, just what do you do when you get a credit... More

Credit and Debit Card Blocking Download the printable PDF brochure. Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit, or money in your bank account? If this happened shortly after you stayed in a hotel or rented a car, the problem could have been card "blocking." What's Blocking? When you use a credit or debit card to check into a hotel ... More

Choosing and Using Credit Cards Download the printable PDF brochure. Chances are you've gotten your share of "pre-approved" credit card offers in the mail, some with low introductory rates and other perks. Many of these solicitations urge you to accept "before the offer expires." Before you accept, shop around to get the best deal.Credit Card TermsA credit card is a form of borrowing that often involves charges. Credit terms and... More

Cosigning a Loan Download the printable PDF brochure. What would you do if a friend or relative asked you to cosign a loan? Before you answer, make sure you understand what cosigning involves. Under federal law, creditors are required to give you a notice that explains your obligations. The cosigner’s notice states: You are being asked to guarantee this debt. Think carefully before you do. If the borrower does not... More

Credit and Divorce Download the printable PDF. Mary and Bill recently divorced. Their divorce decree stated that Bill would pay the balances on their three joint credit card accounts. Months later, after Bill neglected to pay off these accounts, all three creditors contacted Mary for payment. She referred them to the divorce decree, insisting that she was not responsible for the accounts. The creditors correctly sta... More

Credit Insurance: Is It for You? Download the printable PDF brochure. The next time you apply for a mortgage or personal loan, you may be asked if you want to buy credit insurance, or it might already be included in your loan proposal. Credit insurance protects the loan on the chance that you can't make your payments. Credit insurance usually is optional, which means you don't have to purchase it from the lender. In fact, the Fed... More

E-Checks (Electronic Check Conversion) Download printable PDF brochure. The next time you write a check to your local merchant, the cashier may hand it back to you after it's been processed - electronically. Or maybe you're mailing a check as payment to a company. That payment, too, may be processed electronically. Why? More merchants and companies are using e-checks, also known as electronic check conversion, which converts a paper ch... More

Debt to Income Ratios Your debt to income ratio (DIR) is a key indicator of your true financial picture. It is definitely the lending industry's measure of fiscal health. Your DIR is calculated by dividing monthly minimum debt payments (excluding mortgage or rent, utilities, food, entertainment) by monthly gross income. For example, someone with a gross monthly income of $2,000 who is making minimum payments of $400 on... More

CREDIT TERMINOLOGY Account: A credit agreement between a consumer and a credit-extending agency. An account may be a closed-end agreement, such as an installment loan, or an open-ended agreement, or a department store account (revolving). Adjusted Balance: A method used by some card issuers in which they subtract all payments made during the month, and then add the finance charges. Affinity Card: A card offered ... More

About Our Company Debt Management Credit Counseling Corp. (DMCC) is proud to be certified by the British Standard Institute (BSI) as compliant with ISO 9001:2000 Standards. Mission Statement Our mission is to provide the highest quality debt management services together with an extensive educational series on the management of credit and budgeting of personal finances to our members and our community. We are commi... More

Statistics At the end of 2002, American households owed an average balance of $8,940 on all credit cards, compared to $8,234 for 2001, and $7,842 for 2000. March 2003, Cardtrak.com At the end of 2002, consumers owed $750.9 billion in credit card debt; this includes $660.9 billion for bank credit cards (Visa, MasterCard, American Express, and Discover) and $90 billion for retail credit cards (store cards,... More

Do You Recognize the Signs of Too Much Debt? How to Know if You Are In Over Your Head Do you know the warning signs of too much debt? Credit is great when it is used wisely, but more and more Americans are getting in over their heads and threatening their financial futures. According to many financial planners your debt load, excluding your home or rent payment, should not exceed 20 percent of your take-home pay. Add up your monthly de... More

Debt Repayment Debt Management programs are structured, and endorsed by creditors, to help those consumers who face significant financial difficulty. Due to recent Creditor Policy changes, consumers who have shown they have no difficulties in their debt repayment no longer qualify for enrollment in such plans. If you have consistently maintained your monthly payments, plus send additional funds, creditors assu... More

Bankruptcy Easy credit and lots of demands on our money lead far too many of us into debt. What is bankruptcy? Is it a viable option? There are two major types of bankrutpcy filings: Chapter 7: When filing Chapter 7, the court would discharge most of the debts. However, the debtor's assets, excluding certain property exempted under federal and state laws, could be subject to liquidation to satisfy those deb... More

How to Plan for Income Reductions Due to the recent state of our economy, many people have been confronted with an unpredictable loss of income when companies are forced to restructure their workforces. Layoffs and downsizing seem to be constantly in the news. Companies are also cutting back on overtime, which can cause a profound reduction in income while salaried individuals are asked to take on more tasks and work more hours. I... More

Successful Budgeting A budget is necessary in order to gain control over your finances. It is the only way to get a grip on spending and review if your money is used the way that will benefit you best. There are several steps to creating a budget: Step 1: Estimate monthly take-home income and expenditures. Gather all bills including credit card statements, receipts for groceries, gas or anything else that is bough... More

Managing Your Checkbook Do you know how to balance a checkbook? Do you have overdraft protection or a debit card? Many consumers fail to properly manage their finances, and they do not understand the consequences of a mismanaged checking account and the potential costs involved. Balancing Your Checkbook Balancing a checkbook requires that you keep track of all transactions you have made through your checking account, i... More

Privacy and Identity Theft As a consumer, you benefit when information about you is used to approve your credit application. On the other hand, you may not want to receive unsolicited telemarketing calls or mail. If your personal information is inaccurate or misused you could even become a victim of a crime or treated unfairly. To address privacy concerns, some companies and industry groups have adopted voluntary policies... More

Challenging Credit Bureau Information There are two kinds of subscribers that furnish information about you to a credit bureau. The credit grantors, which are the businesses, banks and finance companies who lend you the money, and those who use the report to qualify you for a loan from the credit grantors, such as car dealers and mortgage brokers. Credit grantors are the only ones who are suppose to report both positive and negative ... More

Your Credit Score Your credit score influences the credit that is available to you, and the terms (interest rate, etc.) that lenders offer you. The credit score is a value assigned to several criteria used in making lending decisions. Criteria includes the amount you owe on non-mortgage related accounts such as credit cards, your payment history and your credit history. Refer to the "Report Card" pie chart illustr... More

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Bancarrota La bancarrota puede ser un chaleco salva vidas para la mayoría de gente que se ahoga en deuda, pero reclamar bancarrota nunca es una decisión fácil, y para algunos deudores, la bancarrota no es siempre la mejor opción. Varios acontecimientos pueden hacer que individuos pierdan el control de su situación financiera. Divorcio, pérdida del trabajo, pleitos, ejecuciones de una hipoteca o la deuda de una tarjeta de crédito pueden conducir a una persona a una mala situación financiera. Generalmente... More

Como eliminar las llamadas de telemercadeo La Comisión Federal de Comercio añadirá al reglamento de ventas de telemercadeo el registro de: "No LLamar" El reglamento de ventas de telemercadeo de la Comisión Federal de Comercio (Federal Trade Commision) pondrá a los consumidores a cargo de las llamadas de telemercadeo que reciben en su casa. Con la creación del Registro nacional de "No llamar", el FTC hará más fácil y efectivo para los consumidores detener las llamadas de telemercadeo que ellos no deseen. El registro nacional d... More

Guía para comprar una casa ¿Está comprando una casa? ¿Sabe usted si puede asumir el gasto de comprar una casa? ¿Cuánto está dispuesto a gastar? Estas son algunas de las preguntas que usted debería responder antes de empezar a buscar una casa. Hable primero con su prestamista. Haga una evaluación de todas sus finanzas con su prestamista , ya que él lo podrá pre-calificar para pedir prestada una cierta cantidad de dinero. La precalificación no lo compromete con un préstamo, pero demuestra que usted ha calificado para ... More

Hipotecas Inversas Hasta hace poco, había solamente dos maneras de recibir dinero por su casa: usted podía vender su casa, pero en ese caso se tenía que mudar; o podía pedir dinero prestado contra su casa, pero en ese caso tenía que hacer pagos mensuales para pagar ese préstamo. Hoy existen las “hipotecas inversas”. Una hipoteca inversa es un préstamo contra su casa que usted no tiene que pagar mientras viva en esa casa. Con una hipoteca inversa, usted puede convertir el valor de su casa en dinero en efectivo s... More

El Seguro de Propiedad Inmobiliaria Sugerencias de Cómo Ahorrar en el Seguro de Propiedad Inmobiliaria Cuando ud. esté buscando un seguro de propiedad inmobiliaria, es importante que evalúe el tipo de seguro e investigue las diferentes opciones para encontrar el seguro que más le convenga por el precio que va a pagar. A continuación encontrará algunas sugerencias de la Asociación Nacional del Comisionado de Seguros para ayudarlo a ahorrar dinero en su seguro de propiedad inmobiliaria. Mire alrededor El Seguro de Propiedad... More

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