College Student Financial Tips- BBB

According to a 2007 survey by Charles Schwab, fewer than half of teens considered themselves knowledgeable on how to budget money (41 percent), how to pay bills (34 percent), or how credit card interest and fees work (26 percent).

BBB recommends that before parents wave goodbye to their college bound students, they sit down and discuss four key rules for managing personal finances:

Be responsible with credit cards.
According to a U.S. Public Interest Research Group (U.S. PIRG) survey, two out of three college students report having a credit card, of which about two-thirds are responsible for paying their monthly bill. Overall, freshmen responsible for their own cards had average credit card balances of $1301.

While having a credit card is an important first step for a college student to start building a credit history, parents need to stress the importance of using credit responsibly. This includes having a minimal number of credit cards, paying off the balances every month and keeping a reign on spending.

For more information on managing credit cards visit BBB online.

Start saving money now, even if it’s just a small amount every month.
Developing good saving habits early on will help a college student reap the benefits throughout his or her life. Aside from the inherent benefits of saving money, starting early means taking advantage of what Albert Einstein described as one of the most powerful forces in the universe: compound interest.

For example, if a freshman saves $50 every month and puts it into a high interest savings account or money market account that earns five percent interest, by graduation, they’ll have saved more than $2660 including dividends. If they continue to save $50 every month at five percent interest, in 25 years, they’ll have saved nearly $15,000 and reaped another $15,000 in dividends.

For more information on creating a budget visit the BBB Web site.

Pay your bills on time.
U.S. PIRG found that more that 40 percent of college students who managed their own credit cards had paid bills late or paid at least one over-the-limit fee. Credit card companies often charge late fees as high as $40. Add to that any accruing interest, which can be upwards of 30 percent, and college students will quickly see how much can be lost by not paying a bill on time and in full.

Aside from the immediate benefits of paying bills on time – specifically, reducing needless spending on fees and interest charges – it is an important way for college students to begin building a healthy credit report.

For more information on managing credit and bills see BBB tips online.

Guard your personal information.
When comparing the age demographics of ID theft victims in the U.S., young adults between the ages of 18 and 24 were the second highest age group at risk for fraud according to an annual survey by Javelin Strategy and Research. Javelin also found that, in cases where the victims knew how their ID was stolen, 79 percent of the time it was stolen by someone they had contact with; therefore, preventing ID theft is important both online and offline. Parents should encourage their students to shred unnecessary documents that include personal information such as social security or bank account numbers and keep a close watch over credit and debit cards and checkbooks.

For more information on preventing ID theft online and for general ID theft prevention measures, visit the BBB Web site.

Penny Stock Investment Tips

Tips for saving money with your vacation

• 1. Stay local if not at home. Think of all the places you can visit that are within a day's drive.

• 2. Camping is a great way for a family to bond.

• 3. Be flexible. You don't have to stay at a 5 star hotel or fly first class.

• 4. Check out flights from smaller airports. Many times, these can be bargains.

• 5. When there are more than one going on the trip, believe it or not, driving may still be less expensive in the long run. Plus, you'll have a car at your destination.

• 6. Stay in the US. The dollar has seen better days and will see better days abroad.

• 7. Look for hotels that offer free breakfast. While continental may be viewed more as a convenience rather than a meal. some hotels will give you eggs and more.

• 8. Consider combining meals or eating a light snack for lunch and then an early dinner.

• 9. Look at rest stops and in hotel lobbies for coupons.

• 10. Brink water bottles. They are a whole lot cheaper at your local warehouse club than at an amusement park.

• 11. Check out the internet for deals. You can also make your own reservations.

• 12. Consider spending a day just sitting by the pool and being together as a family r anther than at a pricey attraction.

• 13. Seek out free spots while on vacations, such as scenic parks.

• 14. Travel after peak season. You can save a lot of money traveling on October rather than August, when it may be more crowded.

• 15. Sometimes the all inclusive trips are the best deals. They may throw in meals, drinks and more.

Life Insurance

Term insurance is the most basic, and generally least expensive, form of life insurance for people under age 50. A term policy is written for a specific period of time, typically 1 to 10 years, and may be renewable at the end of each term. Also, the premiums increase at the end of each term and can become prohibitively expensive for older individuals. . This is a type of Life Insurance that provides protection only for a specific period of time. Normally sold in 5,10,20, or 30 year periods. This is the most affordable for a young person but, can be quite expensive when one wants to renew at the end of the term.

Declining Balance Term insurance, a variation on this theme, is often used as mortgage insurance since it can be written to match the amortization of your mortgage principal. While the premium stays constant over the term, the face value steadily declines. Once the mortgage is paid off, the insurance is no longer needed and the policy expires. Unlike many other policies, term insurance has no cash value.

Whole Life combines permanent protection with a savings component. As long as you continue to pay the premiums, you are able to lock in coverage at a level premium rate. Part of that premium accrues as cash value. A traditional type of life policy which provides coverage for the “whole life” of the insured, rather than for a specific term period. The proceeds are paid at the insured’s death or at the age specified in the policy, usually age 100 or more, when the insured survives that long.

Universal Life is similar to whole life with the added benefit of potentially higher earnings on the savings component. Universal life policies are also highly flexible in regard to premiums and face value. A combination flexible premium, adjustable life insurance policy.

Drawbacks to this type of insurance include higher fees and interest rate sensitivity. Universal policies include up-front fees as well as ongoing administrative fees totaling as high as 5% to 7% of your premiums. You may also find your premiums increasing when interest rates decline.

Variable Life generally offers fixed premiums and control over your policy's cash value. Your cash value is invested in your choice of stock, bond, or money market funding options. Fees for these policies may be higher than for universal life .

Universal Variable Life insurance is the most aggressive type of policy. Like variable life, you control your investment in mutual funds.

Key Terms and Definitions

* Face Value -- The original death benefit amount.
* Convertibility -- Option to convert from one type of policy (term) to another (whole life), usually without a physical examination.
* Cash Value -- The savings portion of a policy that can be borrowed against or cashed in.
* Premiums -- Monthly, quarterly, or yearly payments required to maintain coverage.
* Beneficiary -- The individual(s) or entity (e.g., trust) that is designated as benefit recipient.
* Paid Up -- A policy requiring no further premium payments due to prepayment or earnings.

Tips on Auto Insurance

•Raise your deductible. If you have a $200 deductible on your policy, raising it to $500 could reduce the cost of collision and comprehensive coverage by up to 30%. Raising your deductible to $1,000 could lower your premium by 40% or more.

•Take advantage of discounts. Many insurers provide a discount teenage drivers with a B average or higher in school,

•Consult your insurance agent before you buy a car . Premiums vary significantly from one type of car or truck to another . Insurers review several factors, including repair costs, the likelihood the vehicle will be stolen and the model's safety record.

•You can check out different vehicles' ratings at the website for the Insurance Institute for Highway Safety, www.iihs.org.


•If you're considering switching insurers, start looking for a new policy well before your current policy comes up for renewal. Many insurers provide an "early shopping" discount.

•Don't even think about driving without insurance. Driving while uninsured will cost you a lot more in the long run.

•Shop around. You can shop for quotes at websites such as www.insurance.com, www.insure.com or www.esurance.com, or by working with an independent insurance agent.

•For more information, go to the consumer website for the National Association of Insurance Commissioners, www.insureuonline.org.

Stop Identity Theft

Credit Card Terms

When you receive credit card offers in the mail, examine the fine print before you accept any offer. Review the following items very carefully:

*
Annual Percentage Rate (APR) - determine if it varies, how the variation is determined and when can it change.
*
Period Rate - This is the interest rate used to figure the finance charge on your balance.
*
Annual Fee - Amount you pay to be a cardholder. All cards do not charge an annual fee.
*
Grace period - This is the number of days you have to pay your bill before finance charges begin to accrue.
*
Finance charges - Most lenders calculate finance charges using an average daily account balance. Look for offers that use an adjustable balance which subtracts your payment from your beginning balance.
*
Other fees - Ask about special fees when you get a cash advance, make a late payment or go over your credit limit.

The Fair Credit and Charge Card Disclosure Act requires credit and charge card issuers to include this information on credit applications.

BEWARE OF

*
Teaser Rates - these types of rates are low for a short period of time and then escalate to a higher rate on the balance. Sometimes one late payment could cancel the teaser rate.
*
Offer to skip a credit payment - If your credit card company invites you to skip a payment without penalty, you may still owe finance charges on your unpaid balance and the interest will probably be added to purchases you made after the due date you skipped.

Be thorough in your examination of all credit card offers; it could save you hundreds or even thousands of dollars.
usa.gov

Credit counseling

Credit counseling is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. Consumer credit counseling services provide confidential counseling on managing credit and getting out of debt, assistance in negotiating better terms with your creditors, and guidance on budgeting your money and meeting your debt obligations.


The National Foundation for Credit Counseling (NFCC) member agencies provide comprehensive money management services based on your individual needs. Members provide free and/or affordable services, which are offered in-person or by phone. Many agencies also offer web-based services.

Guidelines for Selecting the Right Credit Counselor

Regardless of your particular need, selecting the right credit counselor is vital. Unfortunately, some organizations, including some that label themselves "nonprofit credit counseling agencies," may be more interested in their own bottom line than in helping their clients. A 2005 report by a U.S. Senate investigating committee observed: "Some new entrants to the industry, however, have developed a completely different business model - a 'for-profit model' designed so that their non-profit credit counseling agencies generate massive revenues for for-profit affiliates."

By contrast, the report lauded the National Foundation for Credit Counseling (NFCC) for its commitment to ethical credit counseling that is provided at low cost to consumers. The report stated that ". . . if applied throughout the industry, these [NFCC] professional standards could significantly address the abusive practices identified in this Report."

Consumers need to "know the difference" when selecting a credit counselor. And they must know the warning signs of a credit counseling agency who might not have your best interests in mind. The following information can serve as a valuable guide to help consumers "know the difference" when choosing a credit counseling agency.

How to Select a Legitimate Credit Counseling Agency
If you're considering using a credit counselor, shop around, and ask each agency the following questions. More importantly, be certain that you are comfortable with their answers before you book that first appointment. A legitimate agency is always more interested in your bottom line than theirs.

* Is the agency affiliated with a national body such as the National Foundation for Credit Counseling (NFCC) that requires strict quality, financial and ethical standards for membership? Examples of such requirements are annual audits by an independent CPA, written action plans provided to each consumer, and consumers provided with statements at least quarterly.


* Is the agency accredited by an independent third party? Self-accreditation is not the answer you want. An example of a reputable third party accreditating body is the Council on Accreditation (COA). Such accreditation signifies that appropriate checks and balances are in place to protect you, the consumer.


* Is the agency a 501(c)(3) nonprofit community organization? Being a nonprofit does not guarantee that the agency is legitimate, but it is a step in the right direction.


* What is the composition of their Board of Directors? Board members should not be paid by the agency, should not be family members or friends, but should represent a wide cross-section of the community and civic interests.


* What services does the agency offer? A wide-range of services is a good sign. This could include: budget counseling for those who are not in debt; debt counseling for those who may need professional assistance digging out; housing counseling for pre-rental, pre-purchase, first-time homebuyer, reverse mortgage, and foreclosure prevention; and the mandated bankruptcy pre-filing counseling and pre-discharge education.


* What are the fees associated with the services provided? The agency should be forthcoming about fees, and no fee should be assessed prior to the service being provided. Be wary if the agency says their fees are voluntary. Any set-up fee or monthly fee should be reasonable, usually defined as $50 or less, with monthly fees in the $25 range. The agency should be willing to waive all fees in cases of true hardship.


* What delivery options are available to you for counseling? Does the agency offer in-person counseling? Counseling by phone? Internet counseling? Is the channel that's most appealing to you offered?


* Is the counselor assigned to you a Certified Consumer Credit Counselor? You want someone qualified assisting you with your critical financial decisions. NFCC certification means that the counselor has passed a rigorous battery of tests measuring their financial knowledge.


* Does the agency provide educational classes or workshops?
Are any of these tools offered online? Is there a fee to attend? The absence of any true education offered to the general public is a red flag.

* Will the agency work with all of your creditors?
Some agencies only work with creditors who agree to make a payment to them. A legitimate agency will take a holistic approach to solving your financial distress.

* Is there a minimum amount of debt required to be counseled?
True credit counseling agencies will work with you regardless of how large or how small your debt may be.

* What debt relief options are offered?
If the only tool is the Debt Management Plan (DMP), keep shopping. A DMP is a useful tool, and is often the appropriate resolution. However, each consumer's situation is different, thus the solution should be customized to fit their specific needs. A one-size-fits-all approach signals that you should continue your search.

* Are the counselors compensated for writing DMPs?
Any such incentive is not a part of a legitimate agency's pay to their counselors.

* How long will your counseling session last?
Don't be tempted by "drive-by" counseling. A counselor simply cannot do an adequate intake of your income, expenses and debts in a short amount of time. An initial session length of at least one-hour is standard.

* If you go on a Debt Management Plan, how soon after receipt of your monthly payment will it be disbursed to creditors?
The success of a DMP depends on timely, consistent payments to creditors.


* Will the full amount of your payment be disbursed to your creditors?
The full amount should go toward the repayment of your debts, with no portion going into the agency's pocket.

* How will your deposits be protected?
Ask for written evidence that the agency is bonded or insured to protect the consumer from fraud or the agency's own financial difficulties.

As a final step, check with the Better Business Bureau and your state's Attorney General to see if there are unresolved complaints about the provider you are considering. Anyone can file a complaint. What is relevant is how the agency resolved it.

Legitimate credit counseling agencies counsel and financially educate millions of consumers each year, making financial stability a reality in their lives. It all starts with selecting the right agency. Asking the above questions, and receiving the right answers, will ensure that your credit counseling experience is a positive one.



*
For general information on managing credit, you may wish to contact the Federal Trade Commission's (FTC) Consumer Response Center. The FTC offers tips on how to be a smart financial consumer, guidelines for getting rid of consumer debt, and information on your rights as a consumer.
*
You may also wish to view information on the Internal Revenue Service's (IRS) consumer alert on credit counseling organizations.

NFCC

Recession-Proof Your Life

5 Things You Need to Know about Life Insurance

Consumer Reports; Money Mistakes can cost you $$$

Money mistakes that could cost you $1,000,000
The Consumer Reports Money Lab puts a price tag on some common financial blunders and explains the best ways to avoid them

Retiring before you need to
Cost: $237,000 to $309,000

For starters, you'll be giving up income you would have earned during what might be the best-paid years of your career. What's more, Medicare won't cover you until age 65, so you might have to buy individual health insurance at an age when costs are apt to be at their highest. And each year you postpone is one less year your savings will need to support you.


We asked the Social Security Administration how much his benefits would be reduced if he had retired at 62 vs. 66. The answer was $403 a month for life. If he lives to age 78, that will cost him $8,899; to 85, $42,751. True, the equation would change somewhat if he took early benefits and invested them, but few retirees have that luxury.

We solicited price quotes for health insurance from Blue Cross/Blue Shield of Illinois. Premiums ranged from $6,501to $44,958 over three years, depending on coverage limits and deductibles.

Launching a divorce war
Spouses can't always avoid a divorce, but they can take steps to reduce the financial impact. Hiring a lawyer can be a good idea to make sure your interests are represented. But the more issues you want to slug out, the more billable hours you'll run up. (The rate in big metro areas such as Los Angeles can be $475 an hour.)


Underinsuring your home
Cost: $16,000 to $194,000

Even with the recent retreat in home prices, if you've lived in the same house for 10 years, it's likely to be worth 54 to 104 percent more than you paid for it, depending on where you live. But if you haven't updated your homeowners insurance and disaster strikes, you could lose those gains.



Overpaying for your mortgage
Cost: $27,000

The annual percentage rates on mortgages in a given area can vary by close to a percentage point. That might not seem like much, but over a 30-year term, it adds up to a bundle.


Carrying a credit-card balance
Cost: $5,000 to $23,000

Owing money on a credit card is a costly mistake that can take its toll for a very long time. If you have a card with an interest rate of 15 percent and you pay only the minimum due each month, it will take you 22 years and 2 months to retire a $5,000 debt, and you'll have paid $5,729 in interest.

Some 45 percent of consumers maintain a credit-card balance that averages $2,200, according to the Federal Reserve. But Fair Isaac, the credit-scoring company, says 15 percent of consumers have balances of more than $10,000. We applied an average 15.2 percent interest rate to each of those balances and assumed the borrower got in the habit of carrying a balance for 20 years.


Maintaining an unhealthy lifestyle
Cost: $4,600 to $42,000

Unhealthy habits not only tend to catch up with us as we age, but they also can hit our bank balances in the form of higher life-insurance premiums.


Ignoring Roth accounts

Cost: $9,000 to $26,000

Roth IRAs and Roth 401(k) plans can protect you from likely future tax hikes, because you pay taxes on your contributions today rather than when you withdraw them. T

Cashing out your 401(k)

Cost: $6,000 to $17,000

Almost 45 percent of workers cash out their 401(k) accounts when they change jobs, according to a survey of some 200,000 plan participants by Hewitt Associates, a human-resources consulting firm. Workers ages 20 to 29 are the most likely to do this, but 42 percent of employees ages 40 to 49 make the mistake too.

Not only do they have to pay income tax on their withdrawals, but in many cases the IRS also imposes a 10 percent penalty. More important, they lose the tax-deferral they could have maintained by rolling the money into an IRA or other retirement account.


Underfunding your 401(k)
Cost: $36,000


This year, workers younger than 50 can put up to $15,500 into a 401(k); those over 50 can make an additional "catch up" contribution of up to $5,000. On average, workers contribute considerably less than their allowable limit. You can't make retroactive contributions, so each dollar not contributed this year is an opportunity you've lost forever. You also lose the opportunity to earn income on those tax-deferred dollars.

Paying needless fund fees
Cost: $4,000

If you buy mutual funds from a broker, investment adviser, or other salesperson, you could pay commissions, or "loads," of up to 5.75 percent. But if you buy no-load funds, you'll pay no sales charges and start off that much ahead. Annual expenses can also vary widely among funds, from 1.5 percent or more a year to as little as 0.1 percent.

According to the Investment Company Institute, a trade association, stock fund investors made initial investments averaging $23,000 in 2005. We projected that out over 10 years, assuming the money had been invested in one of two S&P500 index funds and that our investor had added nothing further during that time.



Falling for a scam
Cost: $100 to you-name-it


Otherwise smart people can be no match for professional con artists, who are virtuosos at playing on people's vulnerabilities. Their scams cross into almost every area of personal finance: can't-lose investments you must grab now, fake health insurance that promises coverage for low premiums, incredible bargain prices for normally expensive goods or services.

You can lose your life savings in a financial scam, of course, and we've all heard the horror stories. But most people lose only a few hundred to a few thousand dollars. To find what's typical, we consulted the National Consumer League's Top 10 list of telemarketing and Internet scams.


Investing too conservatively during retirement
Cost: $360,000 to $750,000


Conventional wisdom has long suggested that as retirees age, they should shift money out of stocks and into more stable investments, such as bonds. But the problem with bonds is that their annual returns may barely keep pace with inflation, while stocks, over time, typically provide returns significantly above inflation. And inflation can be a retiree's worst enemy.


source; consumer reports

Financial Aid for College Tips from GH

Here's how your teen can get extra financial help:

1. Go local. Competition for big national scholarships can be fierce. But local chapters of service organizations like Rotary International or Lions Clubs International may get fewer applicants, especially for smaller awards (ranging from $500 to $1,000). You should also pay attention to announcements of local scholarships in the community pages of your town paper.

2. Make volunteer work pay. Kids who are big on community service have a good chance of getting a scholarship — more and more of these grants are available every year at both private and public schools. For a list, visit FinAid.org.

3. Sign up for contests. While most of these competitions reward standouts in writing and the arts, some involve more luck than talent. The American Fire Sprinkler Association (firesprinkler.org) holds a drawing for ten $2,000 scholarships for students who ace a 10-question, open-book, multiple-choice test. Several companies and banks — such as Tylenol, Calgon, and Wells Fargo — give from $1,000 to $5,000 to lucky winners. So do a number of college-related companies: Next Step magazine (up to $20,000) and ECampusTours.com ($1,000).

4. Try co-op programs. Many universities team up with local employers to create programs where students earn money in an off-campus job that’s related to their major. Your child can work part-time while in school or alternate between semesters of full-time work and full-time study. The Directory of College Cooperative Education Programs (it’s $69, so look for a copy at your library) lists 460 schools with co-op programs, which are especially popular at engineering schools. Finishing this kind of program can take five years, but students graduate with little or no debt and a lot of résumé-enhancing experiences. They’re also frequently hired by their co-op employers at significantly higher starting salaries. The National Commission for Cooperative Education (co-op.edu) has a “best of” guide about these programs on its site.

5. Check out professional associations. They offer scholarships to students planning to major in their field, or even to kids who are just looking into that kind of job. Visit FastWeb.com for a huge database of scholarships from various associations. Students can apply for these at any point in their college career, but their application will be more convincing after they’ve declared a major.

source GoodHousekeeping.com

Learning to be a Value Investor

Preparing for Death

Experts agree that it is critical that we all plan ahead and tell the people who matter what we believe about life and how we want to face death.

AARP suggests that the first conversation you must have is with yourself, to find out what your feelings are regarding your own death.

* Where do you want to die? At home? In a hospital or medical facility? Do you want to move to be closer to relatives, friends or other loved ones?
* What kind of medical treatment do you want? What don't you want?
* Who do you want to take care of you?
* What do you think is a "good death?"
* What kind of funeral services do you want?
* What do you want done with your remains?

Legal Documents You May Need

A power of attorney, a living will or medical directive and a will or trust in place so that his or her wishes can be followed is advised by many experts. If your family doesn’t have these legal directives, they may not be able to enforce your wishes, so you should consult an attorney and have the appropriate documents drawn up.

This is also the time you should consider planning your estate and your funeral. Financial issues and fights over who gets what shouldn’t be your legacy. Remember, the more you plan now, the easier it will be for your loved ones to focus on remembering the joys of your life, instead of focusing on the business of concluding it.

From the FCIC:

• Funerals: A Consumer Guide
  A Consumer Product (excerpt)
  

• Funerals rank among the most expensive purchases many consumers will ever make. A traditional funeral, including a casket and vault, costs about $6,000, although "extras" like flowers, obituary notices, acknowledgment cards or limousines can add thousands of dollars to the bottom line. Many funerals run well over $10,000.
  

  Planning
  Thinking ahead can help you make informed and thoughtful decisions about funeral arrangements. It allows you to choose the specific items you want and need and compare the prices offered by several funeral providers. It also spares your survivors the stress of making these decisions under the pressure of time and strong emotions.

  You can make arrangements directly with a funeral establishment or through a funeral planning or memorial society - a nonprofit organization that provides information about funerals and disposition but doesn't offer funeral services. If you choose to contact such a group, recognize that while some funeral homes may include the word "society" in their names, they are not nonprofit organizations.

  One other important consideration when planning a funeral pre-need is where the remains will be buried, entombed or scattered. In the short time between the death and burial of a loved one, many family members find themselves rushing to buy a cemetery plot or grave - often without careful thought or a personal visit to the site. That's why it's in the family's best interest to buy cemetery plots before you need them.

• Estate Planning

• Publications available for ordering from our Money Page

Websites*:

• The U.S. Administration on Aging
• American Association of Retired People (AARP)
• The National Institute on Aging
• The National Hospice and Palliative Care Organization

source AOA

What is in your Safe Deposit Box

Having a safe deposit box in a bank is something that is recommended by most personal finance professionals. The box should be located in a bank that is convenient to your home.

Your box is the location where you should original documents. A good rule of thumb is to put documents in the box if you can't easily replace them or if you don't know what might happen if you don't have it.

Also in your box should be official (original copy with all required signatures) or certified copies of documents (such as birth certificates, must also be certified or notarized to be considered valid) .

Items to place in your box should include;

• Birth certificates
• Citizenship papers
• Marriage certificates
• Adoption papers
• Divorce decrees
• *Wills
• *Advance directives
• *Powers of attorney
• Death certificates
• Deeds
• Titles to cars
• Household inventory
• Veteran's papers
• Bonds and stock certificates
• Important contracts
• Passports

*Since the safe deposit box will be sealed at your death, keep a copy of your will someplace accessible. The same goes for the advance directive and the power of attorney since you may not be able to give others access to the safe deposit box.

Quick Consumer Tips

1. A deal that sounds too good to be true usually is!
2. Extended warranties or service contracts are rarely worth what you pay for them.
3. Say no to credit insurance offers.
4. There is no universal three-day cooling-off period. Don't be misled into thinking that you have an automatic three days to cancel a purchase.
5. Think twice before sharing personal information.
6. Beware of payday and tax refund loans because interest rates on these loans are usually excessive.
7. Not all plastic cards offer the same protections.
8. Real estate agents represent the seller – not the buyer.
9. Home improvement and auto repairs are the subject of frequent complaints- get a second opinion.
10. Think twice before you rent-to-own because interest rates on rent-to-own purchases can be very high.
11. Don't buy under stress. Those under stress are especially at risk of being victimized. Avoid making big-ticket purchases during times of duress.
12. Be cautious of Buy Here, Pay Here car lots. .
13. Work-at-Home ads usually don't pay off.

Source;Consumer Action Website

Get organized in '08

Schedule to totally clean up your office.


Take everything off your desk and set things on the floor.
Throw away any piece of paper that you haven't touched for a month.
Go through your "in" basket and distribute everything you can.
Easy rule- touch a paper only once.
Recycle print media that you will never use.
Clean out your filing cabinets.
Get calendar smart. Put a new calendar where you will see it daily.
Get list smart. Keep a pad of paper on your desk and when you start your day, make out your list.

Sort through your mail. Immediately through away what you deem as 'junk'.

Schedule a specific and consistent time in your week to do the things that you have to do- such as pay bills. .

5 Tips to Set Priorities

1. Use a paper-based, electronic or computerized list to keep track of your tasks, instead of relying on your memory. A list will give you a clear idea of what you need to accomplish.
2. Which tasks could you handle another day? If you would face no consequences by moving a task forward, move it ahead another day or another week.
3. Know the difference between important and urgent. Important means a task needs to be done while urgent means it must be done immediately. Knowing the difference between the two will make prioritizing easier.
4. Realize that you can't do everything. This will help you to realistically prioritize your tasks.
5. Determine if postponing the task would affect other projects you are working on. Tasks and projects can have a domino effect. If you do one task, yet fail to do another, you may have wasted effort on the first task.

Brought to you by SCORE "Counselors to America's Small Business."

TIPS ON AVOIDING FRAUDULENT CHARITABLE CONTRIBUTION SCHEMES

Prepared by the
Internet Crime Complaint Center (IC3)
July 17, 2007


Throughout the year events will occur which may prompt individuals with criminal intent to solicit for contributions for a charitable organization and/or a good cause. When donating, consumers should consider the following:

* Do not respond to unsolicited (SPAM) e-mail.
* Be skeptical of individuals representing themselves as officials soliciting via e-mail for donations.
* Do not click on links contained within an unsolicited e-mail.
* Be cautious of e-mail claiming to contain pictures in attached files, as the files may contain viruses. Only open attachments from known senders.
* To ensure contributions are received and used for intended purposes, make contributions directly to recognized organizations rather than relying on others to make the donation on your behalf.
* Validate the legitimacy of the organization by directly accessing the recognized charity or aid organization's website rather than following an alleged link to the site.
* Attempt to verify the legitimacy of the non-profit status of the organization by using various Internet-based resources, which also may assist in confirming the actual existence of the organization.
* Do not provide personal or financial information to anyone who solicits contributions: providing such information may compromise your identity and open you to identity theft.

To obtain more information on charitable contribution schemes and other types of online schemes, visit www.lookstoogoodtobetrue.com. If you are a victim of an online scheme, you may file a complaint with the IC3 at www.ic3.gov.

Help Yourself out of Debt

Developing a Budget: Take control of your financial situation.
Do a realistic assessment of how much money you take in and how much money you spend.
Start by listing your income from all sources.
Then, list your “fixed” expenses — those that are the same each month.
Next, list the expenses that are not fixed.
Prioritize your non fixed expenses according to necessity.


Contacting Your Creditors: Contact your creditors immediately if you’re having trouble making ends meet.
Be honest and tell them why you are having trouble.Try to work out a modified payment plan.

Dealing with Debt Collectors: The Fair Debt Collection Practices Act is the federal law that dictates how and when a debt collector may contact you. A debt collector may not call you before 8 a.m., after 9 p.m., or while you’re at work if the collector knows that your employer doesn’t approve of the calls. Collectors may not harass you, lie, or use unfair practices when they try to collect a debt. And they must honor a written request from you to stop further contact.