PORT ST. LUCIE – “Small things add up fast” and “manage your spending” are pieces of good financial advice.

What makes this advice even better is it came from high-school students.

The Allied Health Assisting students at St. Lucie West Centennial High School recently completed a financial literacy program that consisted of 12 modules throughout the school year.

“The subject students wanted to know most about this semester was bankruptcies,” said Elizabeth Durkee, health careers teacher at SLWCHS.

“Hopefully, if they learn now to be financially stable, it will stick with them throughout their adult life.”

The students completed three modules every nine weeks, assigned as homework. They received a grade for each test at the end of each module. The modules covered a variety of different subjects, from learning to use credit cards, to home loans, to understanding a credit report.

The program is offered through the nonprofit Debt Management Credit Counseling.

“We teach financial literacy throughout the state,” said Jason Athas, manager of educational programs at DMCC. “I have been teaching these classes at this school for about seven years.”

Mr. Athas said a common misconception for students is that no credit is just as damaging as bad credit.

“If you have no credit, that is something the credit agencies and banks can work with you on,” he told the class. “If you have bad credit, it takes a lot of work to get the companies’ trust back.”

Even though financial literacy was a topic addressed for years in classes, it was only recently added as one of the performance standards last year by the Florida Department of Education to career and technology classes.

Mr. Athas also made a trip to Tallahassee to showcase the success of this program at SLWCHS.

“I presented this pilot program to the Department of Education,” he said. “They are considering making it a part of every student’s curriculum.”

But Mr. Athas was not only there to hand out certificates of completion, he was there to reward the student with the highest score with a cash prize.

Senior Levi Wesley and juniors Matt Leo, Taylor Ferruggia, Christa Oralus and Holly Alderich tied for the top, with perfect scores. So Mr. Athas made sure they all received the same prize.

“I didn’t know credit was that important,” Christa said. “It’s something I need to pay attention to now.”

“I was interested in how to keep my credit from not going down,” Taylor said. “I know this is going to help me in the future.”

“This class is all about careers in health,” Ms. Durkee said. “Our students know that health careers are one of the stable groups of jobs in today’s shaky economy. But this will help them pay attention to their credit and their spending so they don’t get into trouble later on.”

Debt Management Counseling is a nonprofit that educates consumers on financial issues for free using seminars, workshops and more. The online financial literacy program is available to everyone at no charge. It can be found at www.dmcconline.org. Click on the financial literacy icon.

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Ref:  http://myhometownnews.net/index.php?id=88874

Lighthouse Point, FL (PRWEB) January 31, 2012

Debt Management Credit Counseling Corp (http://www.dmcconline.org), a nonprofit charitable organization (“DMCC”), announced today that it has relocated its office to Lighthouse Point, Florida. The lease for DMCC’s previous office space in Deerfield Beach expired at the end of December.

Unlike its previous location, which was within an office building complex with no exterior signage for DMCC, the new location is a standalone building on US 1, a major South Florida thoroughfare and retail front. Pending approval from the City of Lighthouse Point, DMCC’s name will be proudly displayed with a lighted sign on the building’s exterior. The new Lighthouse Point location is also only five miles southeast of the organization’s old office, making it an easy transition for DMCC clients, employees and vendors.

This location should give us the opportunity to reach more South Florida residents and provide them with the assistance they need.

The retail presence the new location brings to DMCC is expected to be of significant help in the organization’s efforts to expand its housing programs. As a HUD Approved Housing Counseling Agency, DMCC now provides consumers free one-on-one counseling with regard to pre-home buying, post-home ownership, and foreclosure prevention. DMCC also provides personal budget counseling and debt management plans for consumers struggling to repay credit card debt. “We are extremely pleased with our new location and the high retail visibility it provides us”, stated Phil Heinemann, DMCC Executive Director. “This location should give us the opportunity to reach more South Florida residents and provide them with the assistance they need”.

About Debt Management Credit Counseling Corp.

DMCC is a nonprofit 501(c)(3) public charity committed to educating consumers on financial issues and providing personal assistance to consumers overextended with debt. Education is provided free of charge to consumers via seminars, workshops, a proprietary financial literacy program, and a vast array of online and printed materials. Free personal counseling is provided to consumers to identify the best options for the repayment of their debt. Consumers interested in speaking with a DMCC Certified Credit Counselor may call (866) 618-3328 or request help at dmcconline.org. DMCC is a HUD Approved Housing Counseling Agency, is approved by the U.S. Trustee to provide bankruptcy counseling and education, and has an A+ rating with the Better Business Bureau.

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Ref:  http://www.prweb.com/releases/2012/1/prweb9152612.htm

Lighthouse Point, FL (PRWEB) January 25, 2012

Debt Management Credit Counseling Corp, a nonprofit charitable organization (“DMCC”), announced today that it has been approved as an adopter of the National Industry Standards for Homeownership Education and Counseling (NISHEC). As the economic downturn persists, many homeowners are dealing with reduced incomes and declining home values. They struggle to avoid foreclosure, but navigating the system can be extremely difficult. Housing counseling agencies can help, but it’s difficult for consumers to know which organizations they can trust. The NISHEC can help make that decision easier. NISHEC recognizes DMCC as an approved adopter of these standards and holds DMCC to a high standard of excellence, ensuring that consumers are provided the most consistent and critical information, advice and guidance.

We have highly trained nonprofit counselors who work one-on-one with homeowners in the community

“Foreclosure intervention counselors must have accurate, up-to-date knowledge of the mortgage landscape,” said Jeremy Montanti, Quality Manager at DMCC. “We have highly trained nonprofit counselors who work one-on-one with homeowners in the community to help communicate with their lenders and determine the appropriate solution.”

The National Industry Standards were developed by the Advisory Council for the National Industry Standards for Homeownership Education and Counseling. The Advisory Council is comprised of leading housing industry representatives including HUD, working together to provide a way for counseling organizations to demonstrate accountability and commitment; an approach known as “Homeownership Done Right.” According to a 2010 study by the Urban Institute, the odds of curing a foreclosure, and potentially avoiding losing a home, are 1.7 times greater for a homeowner who works with a counselor who adheres to the National Industry Standards than for a homeowner who doesn’t receive such counseling.

DMCC provides foreclosure intervention for consumers suffering from financial hardship and having a difficult time repaying their home mortgage. This program has been designed to identify available solutions for consumers to avoid foreclosure which meet their personal goals, and assist consumers with obtaining a loan modification if it is a recommended solution. Consumers who have already received a notice with Date of Sale are recommended to seek legal counsel for assistance. DMCC also provides debt management plans to consumers needing help with the repayment of their credit card debt.

To learn more about the National Industry Standards for Homeownership Education and Counseling, visithttp://www.homeownershipstandards.com.

About Debt Management Credit Counseling Corp.

DMCC is a nonprofit 501(c)(3) public charity committed to educating consumers on financial issues and providing personal assistance to consumers overextended with debt. Education is provided free of charge to consumers via seminars, workshops, a proprietary financial literacy program, and a vast array of online and printed materials. Free personal counseling is provided to consumers to identify the best options for the repayment of their debt. Consumers interested in speaking with a DMCC certified credit counselor may call (866) 618-3328 or request help at dmcconline.org. DMCC is a HUD Approved Housing Counseling Agency, is approved by the U.S. Trustee to provide bankruptcy counseling and education, and has an A+ rating with the Better Business Bureau.

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Ref:  http://www.prweb.com/releases/homeownership_education/credit_counseling/prweb9134717.htm

Lighthouse Point, FL (PRWEB) December 30, 2011

Debt Management Credit Counseling Corp.http://www.dmcconline.org, a nonprofit credit counseling organization (“DMCC”), donated toys to the children of FFCDC for the eighth year in a row. Since 2003, DMCC employees have donated over 400 gifts to the children of FFCDC as part of their December, Charity of the Month program. The DMCC program helps local charities by organizing food and clothing drives, providing volunteers, and making every effort to help the chosen charity thrive and succeed.

It is rewarding to help consumers daily with their financial tribulations; but this is rewarding on a different level

FFCDC is a children development center that offers affordable childcare, early education and family support programs to children of economically challenged families in their community. DMCC collaborates with FFCDC by purchasing gifts for children whose parents have limited income during the holiday season. “We are honored to take part in this charity. Our employees always get excited when this time of the year arrives and we always have a person willing to volunteer as Santa to give the gifts away” said Jessica Francese, Education Coordinator for DMCC. “It is rewarding to help consumers daily with their financial tribulations; but this is rewarding on a different level.”

As a nonprofit, DMCC knows the importance of community support and involvement. The Charity of the Month program implemented by DMCC is an extension of those efforts to educate the local community and provide financial assistance through their debt management plans. To read more about DMCC’s past charity work, clickhere.

About Debt Management Credit Counseling Corp.

DMCC is a nonprofit 501(c)(3) public charity committed to educating consumers on financial issues and providing personal assistance to consumers overextended with debt. Education is provided free of charge to consumers via seminars, workshops, a proprietary financial literacy program, and a vast array of online and printed materials. Free personal counseling is provided to consumers to identify the best options for the repayment of their debt. Consumers interested in speaking with a DMCC certified credit counselor may call (866) 618-3328 or request help at dmcconline.org. DMCC is a HUD Approved Housing Counseling Agency, is approved by the U.S. Trustee to provide bankruptcy counseling and education, and has an A+ rating with the Better Business Bureau.

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Ref:  http://www.prweb.com/releases/charitable_services/credit_counseling/prweb9068894.htm

According to Maria Vargas, spokesperson for EnergyStar, a division of the Environmental Protection Agency (EPA), energy bills can differ depending on the size and location on your home, but the average household spends $2,200 a year. The good news is these costs can be cut dramatically.

Energy Star, a program started in 1992 to help reduce greenhouse gas emissions and lower energy costs for consumers, offers suggestions for how to reduce your annual electric costs by a third. In other words, you can save about $700 a year on electricity. Last year, Vargas points out, Americans saved about $17 billion on energy bills and reduced green house gas emissions by nearly the equivalent of 30 million cars. Using data compiled by EnergyStar, MainStreet breaks down your energy bill and identifies the biggest wasters to help you save money (and reduce greenhouse gas emissions!) this winter.

HVAC Systems 

If you really want to cut back on your energy use, you need to focus on heating and cooling your home,” Vargas says. That’s because these two categories combined account for 46% of your overall electric bill. While most homeowners can’t afford a complete overhaul of their homes’ heating, ventilating and air-conditioning (HVAC) systems, some changes can increase energy efficiency and include:

• Installing a programmable thermostat, which lets you set temperatures for specific times of day. These devices can save about $180 each year on energy costs.

• Change air filters regularly. The harder your HVAC unit has to work, the more energy it eats away. Filters should really be changed out monthly, especially during the summer and winter months when the HVAC unit has a heavy workload. If you find this tedious, EnergyStar suggests changing filters a minimum of every three months.

• Seal your heating and cooling ducts, especially those running through the attic, crawlspace, unheated basement or garage, as that improves the efficiency of your HVAC unit by as much as 20%.

Water Heater

According to EnergyStar, your water heating system accounts for 14% of your energy bill. Monetarily speaking, the average household spends $400-$600 per year on water heating. To reduce this expense, lower standby losses, such as heat that escapes the water heater and seeps into the surrounding basement area, as well as the amount of hot water you use in your home.

When set too high, or at 140 degrees Fahrenheit, your water heater can waste anywhere from $36 to $61 annually in standby heat losses, and more than $400 thanks to overall consumption. Lower that expense by bringing the heater’s thermostat to 120 degrees Fahrenheit or below.

Lights Out

In EnergyStar’s breakdown, lighting accounts for 12% of bill, but it also represents one of the easiest fixes. In fact, by simply replacing five of your standard incandescent light bulbs with compact fluorescent light bulbs, you can save $70 a year.

Hot Stuff

Appliances only account for 13% of electric bills, so naturally, most people don’t upgrade to an energy efficient toaster. Still, if you are committed to reducing the amount of energy you use, you need to focus on larger appliances that use a heat coil, such as a refrigerator or washer and dryer. To do that, make sure that your fridge’s filters are cleaned regularly, and consider using only cold water to wash laundry loads. That can save $30 to $40 each year. But don’t be too stingy, Vargas says. Replacing a major appliance, like a refrigerator that is 10 to 15 years old, may help you save in the long term as new technology is constantly subject to federal standards that adjust every year.

Energy Vampires

Any appliance or device that sucks up energy when it’s plugged in, despite being turned off, is one of these money-draining culprits. According to EnergyStar, this includes most electronic devices, especially those that use some sort of display, like a television, laptop or DVD player. Slaying energy vampires won’t lower your energy bill significantly — electronics only account for about 4% of the total cost — but it’s important to keep them in mind, as they consume 75% of the electricity used to power home electronics and appliances.

Powering Down

The best way to eliminate this phantom menace is not only to turn energy vampires off, but unplug them. This may be easier said than done, but unplugging a laptop in between uses isn’t particularly problematic. However, doing so with your television would require you to wait for the cable to reboot every time you wanted to watch a program.

As an alternative, EnergyStar suggests plugging your television and/or DVD player into a power strip and then turning that off when your television is in stand-by mode. Put your computers on sleep mode, or manually turn off the monitor inbetween visits, as opposed to utilizing a screen saver, which, contrary to popular belief, does not reduce energy output. Also, make sure you unplug a battery charger of adapter as it continues to draw energy even when the product no longer needs it.

Put Stand By on Stand by

The final 11% of your electric bill comprises devices that don’t exactly fit into any particular category. This includes dehumidifiers, external power adapters and video game consoles, which are all considered energy vampires.

An Xbox 360, for example, if left on the draws approximately 1,000 kWh/yr. The PS3 draws 1,300 kWh/yr. According to EnergyStar, these values drop dramatically when users routinely turn the device off after use, lowering annual energy levels down to 110 and 120 kWh/yr, respectively. Since it costs about 12 cents per kWh/yr in the average residential home in the U.S., it costs $120 if to leave your Xbox plugged in for the entire year.

To lower these costs, unplug the devices when you are not playing and only resort to stand-by mode as, well, a stand-by. Energy Star estimates that stand-by power accounts for more than 100 billion kilowatt hours (kWh) of annual U.S. electricity consumption, and $11 billion in annual energy costs.

MONEY SAVING TIP:   Plan a pantry week

Challenge yourself to get through one week every quarter (or more often, if you can) without setting foot in the grocery store, says Mary Hunt, author of “Debt-Proof Living.” Use leftovers, unbury freezer items and clean out your pantry. Chances are, you have more food on hand than you think. Use the money you’ve saved on groceries to pay down debt, bolster your savings or even make a contribution to charity.

DID YOU KNOW…a budget can help you build growth?

Once you have a clear view of your overall financial picture, you can shift your focus to aggressively eliminating debts and building wealth. Once I solved my personal debt issues, I was already in the habit of putting a certain amount monthly toward debt. So rather than change that habit, I simply redirected those funds toward my savings.

As my savings and investments build, I’m able to generate a passive income from interest payments and capital gains while still using my actively generated income to budget for monthly expenses. In other words, I’ve been able to increase my total income simply by being smarter about how I use my regular paycheck.

www.usnews.com

]]> http://www.dmcccorp.org/thrifty-spending-issue-85/feed/ 0 http://www.dmcccorp.org/thrifty-spending-issue-84/ http://www.dmcccorp.org/thrifty-spending-issue-84/#comments Wed, 14 Dec 2011 15:21:08 +0000 jstokes http://www.dmcccorp.org/?p=2931 FEATURE ARTICLE:  You can expect more bank fees in 2012

Banks will continue to experiment with fee increases in the New Year, according to our own analysis and industry experts, as they attempt to make up billions in lost revenue due to the bad economy and new regulations.

Here is some of what you can expect for 2012:

• Higher penalty fees: Overdraw your account, and you’ll probably pay more. It costs banks just a few cents to handle a debit-card transaction, but when an account is overdrawn and the bank has to figure out what happened, the cost can escalate to $13. 
• Less-favorable rates: Banks could try to reduce their losses by increasing the interest-rate margin—the spread between what they pay to borrow money and what they charge to lend it. That could mean higher lending rates, especially on credit cards and other unsecured loans, as well as on auto loans.
• Charges for premium services: Customers could see new or higher charges for premium services, such as safe-deposit boxes, online budgeting tools, or person-to-person payments, such as Chase’s QuickPay service, which allows you to send money to someone else using just an e-mail address or cell phone number.
• Move toward electronic banking: Banks save when you serve yourself, just like gas stations do when you pump your own. So expect them to push computer and mobile-phone banking. That means you might pay more if you use a teller or speak with someone on the telephone. Some banks might present the changes as a perk, not a fee.
• Big credit-card push: Banks are likely to encourage the use of credit cards, says Bill Hardekopf, CEO of LowCards.com, a consumer resource for credit-card information in Birmingham, Ala. They get a swipe fee when someone uses a credit card, and so far those fees have escaped regulation that has made debit cards less profitable for banks. 
• More relationship accounts: Banks will probably dangle more carrots and brandish more sticks to get you to consolidate your accounts at a single institution, which will mean more fees. But you can avoid them by, for example, having direct deposit of your paycheck or linking your savings and investments.

www.consumerreports.org

MONEY SAVING TIP:  Form a wholesale buying club

Families — not just businesses — can band together and form buying clubs to purchase groceries at wholesale prices.

There are some logistics required, but a buying club could make sense if you don’t have a warehouse-club type store nearby. Club representatives fax or e-mail a group order to the wholesaler, arrange for delivery and divvy up the goods. Generally, items are purchased by the case, then shared. Many wholesalers offer produce, organic items, baby supplies and paper goods in addition to nonperishable food items.

To find a club in your area, search online for “grocery buying club” and your city’s name, or check sites like unitedbuyingclubs.com or CoopDirectory.org.

DID YOU KNOW…that buying generic is super smart?

When it comes to stocking up on basic ingredients like flour, salt, sugar, rice, and milk, you’ll barely notice a difference in taste between the generic and the brand-name equivalent. In many cases, the only real difference is the colorful packaging and presentation of the product. You’re buying the exact same item with virtually the exact same composition of ingredients whether it has a fancy label on it or it’s the supermarket’s own brand. Make the switch to more generic products and you’ll be able to shave a few dollars off your grocery bill.

www.usnews.com

With fees, fine print and blackout dates, locking in a low price on your plane ticket can seem impossible. We have some tips that can help cut the cost of flying, plus help organize your search for the best deal.

In addition to setting up alerts to track fares and searching for domestic flights three and a half months prior to booking (five and a half for international), you should also buy your ticket early—you’ll pay a premium if you wait to within 14 days of travel. Also, when comparing flights online through sites such as Expedia, Kayak, Priceline and Travelocity, be sure to check the airline’s own site, which can be cheaper because there is no commission.

How to get rock-bottom rates:

1. Look beyond discount airlines: Keep in mind that discount airlines are not always the cheapest. Airlines cannot afford to be more expensive than their competitors for comparable flights at comparable times.
2. Buy at 3 p.m. on a Tuesday: Most sale fares kick in on Monday at 8 p.m., and end on Thursday at 8 p.m., and according to Rick Seaney, co-founder of FareCompare.com, the greatest number of cheap seats will be available at 3 p.m. on Tuesday.
3. Avoid flying on weekends: Be mindful of booking weekend flights because these are popular with both business travelers and vacationers. More specifically, you should avoid flights on Friday afternoon through Monday morning, if you can.
4. Fly hungry: The least expensive flights tend to take off at dawn, or around lunchtime, as well as after 6 p.m.
5. Consider a connecting flight: Connecting flights can be substantially cheaper than flights that are non-stop, especially for international travel.
6. Shop for one seat: Reservation systems are programmed so that if there’s one too few cheap seats for your group, all members get bumped up to the next price level. So if you’re traveling with a group, establish the base price fro one passenger and compare it with the price for all.

MONEY SAVING TIP:  Shop at the drugstore

Savvy shoppers can score huge deals on groceries and household supplies by shopping at drugstores like Walgreens, CVS or RiteAid Pharmacies. As an incentive to get you in their doors and back again, these stores offer rock-bottom sales on everything from canned soup to cleaning supplies. Combine the sales with store and manufacturers’ coupons and many of your purchases may be free, says blogger Kirby. “I haven’t paid a dime for shampoo or toothpaste in more than two years,” she says.

How it works: At Walgreens.com, click the “weekly ad” tab; certain advertised items offer register rewards you can use like cash on your next Walgreens purchase. At CVS.com, click on the “extra care” link to sign up for a free store card. When you use it, you’ll earn 2 percent in “extra bucks” (CVS store credit) on every store or online purchase. Certain purchases, noted in the “weekly store ad” link, also generate extra bucks you can redeem on your next visit. At RiteAid.com, click the “single check rebates” icon. That site requires you to submit receipts to earn monthly rebates.

Extreme couponer Crystal Paine of Moneysavingmom.com offers helpful tutorials for the Walgreens and CVS programs and countless others on her site.

www.bankrate.com

DID YOU KNOW…Uncle Sam can help pay for child care?

Married and unmarried parents who work can qualify for a child care credit to help with the costs of providing child care. Certain cafeteria plans allow participants to contribute to a flexible spending account (FSA) that can be used for child care expenses. Expenses paid with FSA money cannot be claimed for the child care credit. Also, the maximum expenses eligible for the child care credit are reduced by the FSA paid expenses.

Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care, even though labeled education. Expenses to attend kindergarten or a higher grade are not expenses for care; however, before- and after-school care expenses do qualify until age 13.

The maximum you can put into the FSA is $5,000. The maximum expenses eligible for the credit when you have two eligible children is $6,000. However, the $6,000 is reduced by the $5,000 from the FSA, so your maximum eligible credit is $1,000. Use Form 2441 to compute the child credit and FSA exclusion.

www.bankrate.com

Deerfield Beach, FL (PRWEB) November 30, 2011

Debt Management Credit Counseling Corp.http://www.dmcconline.org, a nonprofit credit counseling organization (“DMCC”), announced today they provide tips for consumers to maintain accurate information on credit reports in order to receive the best credit rating, services and interest rates from lenders. As more consumers are struggling to find employment, it is their credit reports that may distinguish two candidates apart. It is estimated that 50% of all consumer credit reports contain at least one error. Many errors result from the incorrect reporting from creditors to the credit bureaus, including nonpayment or late payments, misfiling by a department store credit line, a mix up between family members with the same name, and accounts opened without the consumer’s approval by someone committing identity theft.

To start the process of removing inaccurate information from a consumer’s credit reports, DMCC first recommends obtaining the three free credit reports from AnnualCreditReport.com. This is a secure site where consumers can receive a free credit report from each of the credit bureaus, Experian, Equifax and TransUnion once every twelve months. “Be weary of other sites offering free credit reports. Typically there is a catch such as having to sign up for a service” states Jessica Stokes, Education and Research Coordinator for DMCC. If errors are found, consumers should write a letter to the credit bureaus stating what specifically needs to be removed. Copies of this letter need to be certified mailed with return receipt requested to the creditor who reported the inaccurate information and each of the credit bureaus reporting this erroneous information.

“Monitoring your credit reports carefully to make sure the erroneous information is removed, is imperative,” stated Stokes. “Consumers need to place importance on following up on all disputed items to make sure when their credit report is subsequently pulled, creditors will be looking at accurate information.” Stokes teaches about the importance of maintaining records for everything. “Keep copies of all mail relating to the situation and write down names and phone numbers”. DMCC also advises to be patient. The dispute process can take months as the credit bureaus deal with millions of disputes on an ongoing basis. Consumers planning to finance a large purchase are advised to order their credit reports at least 90 days in advance in case there are errors that need to be corrected. For a sample letter to send to the creditors and bureaus, visit DMCC.

It is important to note that only inaccurate information may be removed from credit reports. It is illegal to dispute information that is correct. Consumers can read about their rights to dispute inaccurate credit report information under the Fair Credit Reporting Act. Consumers with credit card accounts that are past due may want to consider enrolling the accounts in a debt management plan provided by a credit counseling agency licensed in the state they reside. Debt management plans typically provide lower monthly payments for consumers and some of the major creditors will re-age past due accounts and report them as current to the credit bureaus after the first couple plan payments are made.

About Debt Management Credit Counseling Corp.

DMCC is a nonprofit 501(c)(3) public charity committed to educating consumers on financial issues and providing personal assistance to consumers overextended with debt. Education is provided free of charge to consumers via seminars, workshops, a proprietary financial literacy program, and a vast array of online and printed materials. Free personal counseling is provided to consumers to identify the best options for the repayment of their debt. Consumers interested in speaking with a DMCC certified credit counselor may call (866) 618-3328 or request help at dmcconline.org. DMCC is a HUD Approved Housing Counseling Agency, is approved by the U.S. Trustee to provide bankruptcy counseling and education, and has an A+ rating with the Better Business Bureau.

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Ref:  http://www.prweb.com/releases/credit_counseling/debt_management_plan/prweb9000073.htm

There’s nothing worse than getting punished for doing the right thing. And that’s just what happened to a mom and her 18-year-old son when he opened a checking account at a local bank in McCullom Lake, Ill. His mom encouraged him to open the bank account as a way to teach him how to handle a bank account. And that’s when the trouble began.

After moving some money from checking to savings, Daniel Ganziano’s checking account balance fell to $4.85. Because of the low balance, the bank levied a $9.95 maintenance fee. The fee overdrew the account by $5.10, which triggered another fee of $28 that the bank charged daily. In just two weeks, the fees totaled $229.

This story, reported by the Chicago Tribune, is yet another example of banking fees gone wild. There are, however, a few simple steps you can take to eliminate banking fees once and for all.

1. Don’t assume small banks have small fees: With the Occupy Wall Street movement, there has been a big push to move from big banks to small, community banks. While smaller banks may be a great option for some, don’t assume they are free. Small banks, including credit unions, charge fees, too. And in some cases, they may not be the best option. Nothing replaces researching banks and making the best decision for your financial needs.

2. Go online: Some of the best banking options come from online financial institutions. Because online banks don’t have the cost of building out a network of physical branches, they often charge less in fees and pay higher interest rates.

3. Watch minimum balance requirements: It’s not uncommon for a bank to waive a monthly maintenance fee, but often you must maintain a minimum balance. It’s important to understand the terms of the maintenance fee before opening an account. And if a minimum balance is required to waive the fee, make sure you meet this requirement.

4. Monitor your account: There are a lot of good reasons to monitor your bank account. Of course, one of the most important reasons is to watch for unauthorized transactions. But keeping a close eye on your account will also help you spot bank fees that can sneak up on us. Because bank fees tend to multiply quickly if the account is overdrawn, addressing the issue as soon as possible is paramount.

5. Your bank may not be best for your children: Accounts designed for children often pose special problems when it comes to fees. Because most children do not keep a lot of money in an account, fees can quickly erode what little money they have. As a result, a parent’s bank may not be the best option for children. I’ve found that the best bank accounts for children are often online banks with no fees.

If you are wondering what happened to the bank fees charged to Daniel Ganziano, the bank eventually waived them. But it took the involvement of Jon Yates (he writes the ”What’s Your Problem” column for the Chicago Tribune) before the bank would budge.

www.usnews.com

MONEY SAVING TIP:  Stockpile sale items

Many avid couponers stockpile large amounts of nonperishable groceries and toiletries purchased on sale. Carrie Kirby, who blogs for Chicagonow.com/frugalista, once filled the entire cargo hold of her Subaru with cans of her favorite soda. “My basement shelves hold enough of things like toothpaste and cereal — often purchased for 25 cents or less — to last our family six months to a year,” she says.

And if a family member gets ill or loses a job, you’ll have a nicely stocked food pantry during a rocky time.

www.bankrate.com

DID YOU KNOW…to add back in the income tax when determining how much it costs you to buy things?

The sales tag on the leather jacket you want says that it costs $1,000. You know to add in the sales tax to determine the full price, which is perhaps 5% higher, or $1,050. But even that is not the true full price.

You can’t buy the leather jacket by earning $1,050. You need to have $1,050 in take-home pay to buy it, and that means that on a pre-income-tax basis, you need to earn a good bit more, perhaps $1,250.

It’s true, of course, that the money that goes to income tax is not yours to spend or save. Refraining from buying the leather jacket will not get it back for you. The other side of the story is that paying income tax hinders your effort to win financial freedom early in life as much as paying sales tax. Mentally adding back the income tax helps you appreciate how many hours of labor it takes to obtain a jacket with a nominal price tag of $1,000.

Low income workers who save for retirement using a 401(k) or IRA can earn a tax credit worth up to $1,000 for individuals and $2,000 for couples in 2011 and future years.

The saver’s credit can be claimed by workers whose modified adjusted gross incomes are up to $28,250 for singles, $42,375 for heads of households, and $56,500 for married couples in 2011. In 2012 those income limits will increase to $28,750 for singles, $43,125 for heads of households, and $57,500 for couples.The first $2,000 workers contribute to an IRA, 401(k), or similar workplace retirement account can count towards the saver’s credit. The credit can be used to increase your refund or reduce the tax you owe. This tax credit is available in addition to the tax deferral you get for making a traditional 401(k) and IRA contribution and any 401(k) match you get from your employer.

Consider a married couple who earned $30,000 in 2011 and contributed $1,000 to an IRA. They will be able to claim a $500 tax credit for their $1,000 IRA contribution.

Saver’s credits totaling just over $1 billion were claimed on approximately 6.25 million individual income tax returns in 2009. The credit varies based on your income and tax filing status and ranges from 10 percent to 50 percent of the amount you saved up to $2,000. Most taxpayers received modest tax credits for their retirement account contributions. Saver’s credits averaged $121 for single filers, $159 for heads of households, and $202 for married couples. “Though the maximum saver’s credit is $1,000, $2,000 for married couples, it is often much less and, due in part to the impact of other deductions and credits, may, in fact, be zero for some taxpayers,” the IRS says in a statement.

Awareness of the saver’s credit is increasing, but remains low. Just 21 percent of people earning less than $50,000 say they are aware of the saver’s credit, according to a Transamerica Center for Retirement Studies online survey of 4,080 workers age 18 and older at for-profit companies, but that’s up from 12 percent in 2010.

The saver’s credit was first added to the tax code in 2002 as a temporary provision, and was then made permanent in 2006. Income limits are now adjusted annually to keep pace with inflation. Workers under age 18, full-time students, and individuals claimed as dependents on someone else’s tax return are not eligible for the credit. Rollovers and trustee-to-trustee transfers into retirement accounts don’t count toward the credit. Your eligible contributions may be reduced by recent distributions you have taken from a retirement account.

Workers interested in getting the saver’s credit in 2011 must make 401(k), 403(b), 457, or Thrift Savings Plan contributions by the end of the calendar year. However, retirement savers have until April 17, 2012 to add money to an IRA that will allow them to get the credit in tax year 2011.

www.usnews.com

MONEY SAVING TIP:  Pursue goals of intense concern to you and you alone.

Have you ever had the experience of enjoying a nice dinner out with your spouse or a good friend, commenting that you were too full to have dessert, and then found yourself wavering when the waiter came by with the dessert tray? If you love cheesecake, and you see that this place makes a good cheesecake, you want some, whether in theory it is a good idea for you to order some on this particular occasion or not.

You need to want to save the way you want to eat cheesecake (if you love cheesecake), or the way you want to eat a chocolate brownie (if you are a chocolate brownie lover), or the way you want to eat an apple cobbler (if you are an apple cobbler lover). A general desire to save is like a general desire for desert – it’s not compelling enough to inspire action. Find what you’re passionate about and make your savings account turn it into a reality. The trick to becoming an effective saver is identifying that something, the saving goal that provides you with the motivation needed to get the job done.

People trying to sell always try to hit the emotional hot buttons with their sales pitches. They do this because it works. It works on the saving side too. To save well, you need to direct your money management energies to the pursuit of a goal that hits your emotional hot buttons.

DID YOU KNOW…You need to protect yourself in a short sale?

After a short sale, the mortgage lender often will report to credit bureaus that the home loan was settled for less than the full amount. In addition, it can also note the amount of the deficit as “balance owed” on the credit report, even though the obligation has been finalized and no additional money is owed.

In other words, if you have a $300,000 mortgage and sell your house for $250,000, the bank could report a balanced owed of $50,000.

While the short sale will damage your credit score dramatically (as much as a foreclosure, according to examples recently released by FICO), you can mitigate the damage slightly by arranging with the lender not to report a balance owed.

The best time to negotiate this with the lender: before or during the short sale process, says Ulzheimer. While you can attempt it after the fact, that’s not as practical.

“After it’s been paid, the lender starts to lose interest in speaking with a former customer.”

www.bankrate.com