How Freezing Your Credit Report Protects You From Identity Thieves

According to the March 5th, 2013 release by the Federal Trade Commission (FTC), identity theft was the #1 consumer complaint in 2012.  In addition, the FTC’s February report states that nearly one in four Americans have an error on their credit reports that is significant enough to prevent them from obtaining a loan or certain types of employment. The best method for combating identity theft is to check your credit report at least, once a year. It is free through www.annualcreditreport.com and you can view all three reports, every twelve months. Another option for safeguarding your identity is to place a credit freeze on your credit reports. A credit freeze prevents the credit bureaus (Equifax, Experian and TransUnion) from releasing...

Posted on Mar 17, 2013

Survival Plan for Maintaining Financial Stability during Sequestration

  Washington, DC – Sequestration is now in place, and along with it came a good amount of uncertainty, causing many Americans to wonder how they will be impacted.  By some estimates, more than one million employees of federal agencies may receive furlough notices.   Some workers are not adequately prepared to deal with a loss of income, even a short-term one.  For those living from paycheck to paycheck or without significant savings, any income interruption is likely to put them over the financial edge.    For example, consider the statistics below from the National Foundation for Credit Counseling (NFCC) Financial Literacy Survey:   ·         Thirty-three percent of respondents admit to not paying all bills on time; ·         Thirty-nine percent have zero non-retirement savings; ·         Thirty-nine percent carry...

Posted on Mar 03, 2013

NFCC Poll Reveals Majority of Consumers Admit Financial Problems are Self-Inflicted

  Washington, DC – According to the National Foundation for Credit Counseling (NFCC) December poll, when asked if their personal financial problems were self-inflicted or the result of events beyond their control, the overwhelming majority of respondents, 63 percent, admitted responsibility for their financial woes. “The poll results are encouraging, as the first step to correcting a problem is recognizing it,” said Gail Cunningham, spokesperson for the NFCC.  “Taking ownership of financial problems empowers consumers, putting them in the driver’s seat to affect change.” There is no better time than the start of a New Year to change behaviors. To help consumers get on the right track for 2013, the NFCC offers the following 12 action steps which can either be implemented one...

Posted on Jan 02, 2013

Poll Shows Overwhelming Majority of Consumers Will Cut Back or Spend Zero on Holiday Shopping

Washington, DC – The November poll hosted on the National Foundation for Credit Counseling (NFCC) website queried consumers regarding holiday spending.  The results revealed that 50 percent of consumers intend to spend less on holiday purchases this year than last, indicating they are in a worse financial position, while thirty-seven percent plan to spend nothing at all, as they fear further financial distress.  While this total of 87 percent is a shocking number, when asked the same question in 2011, 91 percent of respondents indicated their intention was to cut back or spend zero on holiday gifts, demonstrating a positive year-over-year trend.  “This statistic speaks loudly, and underscores that consumers are not willing to repeat the mistakes of Christmases past by spending...

Posted on Dec 03, 2012

Holiday Overspending Can Have Long Term Consequences

  Washington, DC – Millions of consumers have begun their holiday shopping, snagging sale items either in-person or online, and therefore considering themselves savvy shoppers.  At the same time, many lost sight of the fact that regardless of the price, a bargain isn’t a smart purchase if it compromises a person’s overall financial health. “If there’s one time of the year when people shop with their heart, not their head, it’s the holiday season,” said Gail Cunningham, spokesperson for the National Foundation for Credit Counseling (NFCC).  “Emotional spending during the holidays is often the tipping point that pushes people over the edge financially, as common sense can take a backseat during this time of the year.” To help consumers remain financially responsible during...

Posted on Nov 28, 2012

5 Credit Card Traps to Avoid

Every business has tricks of the trade, and credit cards are no exception. Learning the techniques purveyors of plastic use to separate you from your money will make you a smarter consumer. From Stacy Johnson, our Partner at MoneyTalksNews; Written by Jeffrey Trull Credit card companies love to dangle juicy offers in front of you. You might be “pre-approved” for a zero-percent interest credit card or valuable sign-up bonus. Maybe it’s even that fancy “gold” or “platinum” card you never knew you were eligible for. Unfortunately, some offers that sound too good to be true probably are. The amazing benefits you see in the bold lettering aren’t always what you get once you understand the fine print. To sort out the credit card deals from...

Posted on Nov 05, 2012

A Quick Guide for Consumers on Credit, Debit, and Prepaid Cards from the FDIC

From the FDIC Below is a great guide developed by the FDIC. Use this guide to understand the difference in protections you have when using different types of credit, debit and prepaid cards.     Credit Cards Debit Cards Prepaid Cards What it is A credit card is a loan. A debit card is linked to your bank account and is issued by your bank. There are a variety of prepaid cards, including "general purpose reloadable" (GPR) cards which carry a brand of a card network (such as Visa or MasterCard) and can be used where that brand is accepted. Payroll cards and gift cards are two other types of prepaid cards. How it Works When you borrow funds using a credit card, you must pay the money back. You may...

Posted on Mar 07, 2012

Are You Using the Right Credit Card?

According to a report by CNNMoney, consumer reliance on credit cards is on the rise. The statistics used by CNNMoney were provided by First Data, a credit card processing business. Since the end of 2008, when consumers began relying more heavily on debit cards to make purchases, credit card use has been down. That all changed in April of this year when retailers noticed an uptick in the number of persons applying for credit and using credit to make purchases. I thought this would be a great time to talk about the ways to use a credit card and receive the perks without going into debt. Only charge what you can afford to repay in full. This rule is an oldie, but a...

Posted on Dec 04, 2011

Looking for a Reasonable Small Loan? Find it Below

In my work, I spend a lot of time reading articles and information about credit, debt, and many different money management strategies. Many times what I read is frustrating and it feels like the average American is never going to get a break when it comes to dealing with payday loans, overdraft protection, and access to credit for emergency needs. However, one company has surprised me. Their name is Emerge Workplace Solutions. I mentioned them a while ago in a Tweet and in a Facebook post, but even then I didn’t really understand what they do for people. Emerge is an employee benefit company. Through employers, they offer financial counseling and access to small dollar loans for employees. But it doesn’t stop...

Posted on Nov 09, 2011

Layaway. Is It Really a Good Deal?

It is an amazing thing to see this holiday season – the restoration of layaway. Back in 2006 Wal-Mart stopped offering layaway saying that, as most consumers had access to credit cards, it just wasn’t necessary or profitable. Now they’ve brought it back, but only for big ticket items like electronics, jewelry and some toys. Sears (and Kmart) are back on the layaway scene as well. Sears’ advertisements tout your ability to put anything on layaway. Just pay a $5 fee and 20% down on the items and in eight weeks you can take the merchandise home. So is layaway really a good deal? Well let’s do some calculations. I found a child’s bike on sale for $99.99. To put...

Posted on Nov 06, 2011