Bank of America may owe you money. If yo

Bank of America may owe you money. If you paid overdraft fees during January 1, 2001 through May 24, 2011. – http://ow.ly/5HhX2

Newlyweds: 5 Money Matters For A Recession-Era Marriage

Stephanie Christensen, provided by

Monday, June 27, 2011

You made it through the wedding planning and budgeting process, and started your life as a married couple. But have you decided as a couple how will you handle your finances? (Marriage can be like doubling an income, as long as you avoid doubling these expenses. Check out Marriage: For Richer Or Poorer?)

Handled improperly, marriage and unaddressed money issues can wreak havoc on a relationship. In 2009, The New York Times reported the findings of a Utah State University study which indicated that “couples who reported disagreeing about finance once a week were over 30 percent more likely to get divorced than couples who reported disagreeing about finances a few times a month.”

The best way to avoid financial disagreements with your new spouse is to address challenges openly, have a shared plan of action, and to understand how credit and the financial system works. Maxine Sweet, vice president of public education for Experian and Wedding Planning Expert Kimberly Schlegel Whitman offer their expert advice for the top five money matters facing recession-era newlyweds.

1. Fight the Newlywed Homeowner Fantasy
Though you’re starting a new life as a married couple, one’s financial past does not go away so easily. Particularly if one spouse owns real estate that has lost significant value in the housing downturn, it’s important to be realistic and plan for your new financial life together, with a broad vision on the long-term. If you’re swept away by the fantasy that a newly married couple should purchase a home together to begin a new life, it’s time for a reality check. Schlegel advises couples that own a home they can’t sell to consider staying in the existing home until the market improves. If you’re itching to buy housing right after marriage, consider renting as a temporary option to build savings and a solid financial foundation. Agree as a couple how long you will stay there, and how you will start saving and building your assets for home buying in the future. “The most important thing is to protect your credit history, so that when you are positioned to be able to buy a new home together, you can get approved, and at the best interest rate,” says Schlegel.

2. Save for Worst-Case Scenarios
While the economy is making a slow recovery, job security is still wavering in many industries. Though double income may leave you feeling like money is pouring in, Schlegel advises married couples to have savings amounting to at least six months (preferably nine) of your total monthly income as a couple, in the event that one spouse loses a job, or some other disaster strikes. Choose an interest-bearing savings account together, and establish an automatic savings plan (ASP), so that a portion of each spouse’s paycheck is deposited to the account regularly. Destroy the ATM card so there is no temptation to dip into the funds.

3. My Debt, Your Debt
While joining finances can be a “rite of married passage” for couples, Sweet urges newlyweds to remember that as a married couple, you are both responsible for debt incurred on a joint account. If you decide to consolidate finances, joint accounts will be reported on each of your individual credit reports, and both spouses are financially responsible for any debt incurred. Likewise, a missed payment will negatively impact both of your credit scores and histories. If you live in a “joint property state,” which are predominantly located in the Western part of the United States, Sweet reminds that both spouses are held liable for debt, even if your name is not on the account.

4. Maintain Your Individuality
While financial planning should be a joint activity after marriage, Sweet also recommends keeping at least one individual account in each spouse’s name open. This approach will ensure that each individual has easy access to credit in case of an emergency. If you do find yourself facing divorce one day, having an established account in your name will also help you rebuild your individual credit history. (Does signing a prenuptial agreement put your marriage on shaky ground, or is it just smart planning? See Marriage, Divorce And The Dotted Line.)

5. Understand Credit as a Married Couple
In today’s tightened lending environment, credit is more important than ever. Sweet reminds that while each spouse will always have an individual credit history, even after marriage. Lenders will often consider both of your financial standings when you apply for credit jointly, especially for major purchases like a car or home. Missing just one payment on one of your individual accounts, could impact your future ability to open joint accounts.

The Bottom Line
Money and marriage can be a challenging and stressful issue for many. For recession-era newlyweds, the unique circumstances presented in an economic downturn make sound financial planning as spouses even more critical. Use these five steps as a guide to pave the way for your new job as joint money-managers, and ensure that you’ll start your new financial life as a married couple on the right foot. (Strengthen your marriage by discussing these financial pitfalls. Refer to Top 6 Marriage-Killing Money Issues.)

 

Original story – Newlyweds: 5 Money Matters For A Recession-Era Marriage

Copyright (c) 2011 Investopedia US. All rights reserved. Investopedia.com is a division of ValueClick, Inc.

Important facts about bankruptcy

by Jamie Billings

Bankruptcy is a tough road that best reserved for those who do not have any other options. Generally speaking, filing a Bankruptcy is a last resort. While it should not be entered into lightly, it may prove itself to be a positive solution for you. If you cannot pay your debts or you are dealing with a lawsuit bankruptcy maybe an option for you. Bankruptcy is an option when you have little or no income in order to make any kind of monthly payment to your creditors. The court will take away from you the responsibility of paying your debts. Bankruptcy usually lasts 12 months, after which time, any unpaid debt is written off.

One of the major aims of bankruptcy law is to give a financially distressed person an opportunity to make a new financial start. Bankruptcy laws help people who can no longer pay their creditors get a fresh start through liquidating assets to pay their debts or by creating a repayment plan. It also protects troubled businesses and provides for orderly distributions to business creditors through reorganization or liquidation.

Bankruptcy is an important decision and the law and it application to one’s particular situation can be very complicated. It is generally recommend that one consult with an attorney with experience in the personal bankruptcy field.

If you feel comfortable with attempting the bankruptcy process without an attorney there are several online bankruptcy services and information that may assist you. Bankruptcy information provides an expert advice and a live forum alongside a regular roundup of the latest news, statistics, and research from the world of debt solutions. You may also find reports on issues surrounding bankruptcies.

If you are deeming for a bankruptcy help, you should first understand the different consequences of bankruptcy so you will then be able to make informed decisions about the alternatives available to you. You can also try and come to an informal repayment arrangement with your creditors you can consider a formal arrangement.

There are a number of factors to consider in deciding whether bankruptcy is an appropriate option. You may wish to consult an attorney before proceeding to file for bankruptcy.

Bankruptcy laws help people who can no longer pay their creditors get a fresh start through liquidating assets to pay their debts or by making a repayment plan. Bankruptcy laws also guard troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation.

Bankruptcy will really give you a fresh start. However, careful consideration should be given before filing for bankruptcy, because doing so may affect your credit and like any ordinary phenomena, it have other consequences.

Source

Dangers of not disclosing everything to your bankruptcy attorney

 by Pamela Stewart, Attorney at Law ·

I realize potential clients are scared when they come to see me and are unsure of their circumstances and their future. But this does not excuse a client from fully disclosing their financial situation to me or to any bankruptcy attorney. I can’t help you – if you don’t help me. So, what are the dangers of not telling me everything?

Property and/or property rights may be lost to the bankruptcy trustee or to a secured creditor if not properly disclosed. Clients often forget they have dormant savings accounts or accounts with credit unions – but this property that needs to be disclosed. The same is true with tax refunds, bank accounts that you are on but don’t use (such as a parent’s bank account), accrued vacation pay, salary or pension rights, insurance interests – especially if there is cash value.

Another often overlooked item is debt that where the client has co-signed for someone else. Even if you don’t have the item (such as a car), you are still liable for the debt and how that debt is treated in your bankruptcy could afffect the other co-debtor.

Clients often have the misconception that he or she can pick and choose which creditors will be included in the bankruptcy. WRONG!!! Failure to list a creditor could mean that debt is not discharged and cannot be discharged in a future bankruptcy.

Another common issue is when a client fails to disclose all of their property to the attorney and it turns out the property is not exempt. Had the potential client disclosed all the property interest upfront, the attorney may have advised the person not to file for bankruptcy or to delay the filing of the bankruptcy in order to keep the property.

Or, if you fail to tell me about a security interest in property such as where you have put up household goods for security for a personal loan, I am unable to utilize the statute to avoid the lien so that you can keep your household goods.

The biggest danger, though, is not disclosing all of your assets and having your discharge denied. Recently, one of our judges denied an a husband and wife their bankruptcy discharge due to their failure to disclose a number of assets. Not only did their bankruptcy discharge get denied, they still owed several million dollars in debt that can never be discharged, their non-exempt property was taken by the bankruptcy trustee and sold for the benefit of their creditors, and he will probably lose his law license. (The debtor was an attorney.)

As a bankruptcy attorney, I want you to get the maximum benefit of a bankruptcy filing and to help you keep as much property as you can. But in order to do so, it it critical that you disclose all of your assets and liabilities to me – no matter how insignificant you may think it is.

Source

What To Do When Your Unemployment Checks Stop Coming?

By Tisha Tolar, on April 6, 2011

You’ve learned to live off of your unemployment benefits. You’ve cut your budget and are finally starting to make some progress in the new job market. Right when all seems to be going well, the rules change. It is expected that many more states will start the process of cutting back on the unemployment benefits they are issuing to their unemployed residents.

The bottom line is many states are broke. Cutting back on unemployment helps solve a portion of this immediate financial problem. In addition to saving a state budget funds, the cuts are being considered because of the unemployment taxes companies have to pay. The hope is that if business taxes can be decreased, more companies would begin to hire new employees.

Changes Are Coming

States across the nation are inundated with claims for unemployment benefits since the recession came about. Employers were quick to downsize to keep the company afloat, leaving many in the lurch without reliable income or the prospects of finding a new job immediately. The unemployment trust funds set up in each state took a serious beating, prompting some to take a loan from the federal government in order to meet the demand for covering eligible benefit distributions to those without jobs.

The states of Florida and Arkansas are currently looking at reducing the number of weeks unemployed workers can receive benefits. Florida’s legislature has proposed cutting the benefit receipt time by 6 weeks. Indiana has been working to reduce the number of jobless that are eligible to receive benefits in the first place. Govenor of Indiana Mitch Daniels recently signed into law a bill that limits eligibility for unemployment benefits. The law also changes the way payments are calculated and these changes will start in July 2012. There are a total of 32 states which still owe monies back to a federal unemployment fund. For now, the total owed is estimated at $45.7 billion and states are expected to repay about $1.4 billion back in interest.

This is not the first time states have had to borrow federal funds and make cuts to unemployment benefits. It happened in the 1980s when a recession forced states to borrow $28 billion to meet the unemployment benefits needs for laid-off workers. During that time 40 of the 50 states made changes to the way money was distributed for unemployment, even going as far as changing up the eligibility guidelines for workers.

How to Prepare for Benefit Cuts

Above all you need to get off unemployment benefits. Even with multiple Congressional extensions they will eventually run out. Aside from that, the best thing you can do now if you are worried about cuts and changes to your unemployment benefits is be proactive about learning the facts. Follow the news in your state about the impending changes on benefits guidelines so you know what to expect.

You should also look at the big picture and work to save enough cash as you can while you look for work. It may not be easy to get by even with the benefits you are now receiving, but planning budget cuts of your own is a good start.

Brush up on old skills or learn new ones as you continue to look for a new job. There are often community accessible courses where you can learn new skills and improve your existing knowledge. Many of the unemployment departments in your state will either already require some job polishing efforts by recipients and often have resources available for free that can help spice up your resume. You will also be able to find opportunities to seek work through the unemployment office in your state.

Most changes will not be immediate but it is important to plan for the inevitable, especially if you have gone a while without securing a new source of income.

My Life with Bankruptcy

by Andrew Bernstein
Certified Personal Finance Counselor 

In 1985, I had completed my first 10 years in the newspaper business, 5 as a managing editor, which had been my dream all through school and life. The opportunity was presented to me to open my own publishing company and start to produce my own magazine and newspapers. I literally jumped in without even thinking about it. I knew how tough it was going to be and that there might be a stretch that finances would be tight.

My partner and I got great backing from a few local banks and investors and we were off and running. Our first publication, a women’s magazine, was an instant critical success. We had hired a great staff and of course with my experience as a managing editor, I was able to put a gentle hand in things. The problem was that we didn’t have a great sales and marketing team. We were relying on an outside company to do it and unfortunately their staff was not totally geared to the job. After a few months, we were able to cover costs, but had little left over for my partner and I. AND THAT IS WHERE MY TROUBLE BEGAN!!!

My credit had always been great. Buying cars, homes, etc., had never been a problem. I had 4 or 5 credit cards and I started living off them. Within about a year, the debt had crept up to the $10,000 mark, which back then was very significant. I was making all the mistakes, using one card to pay off another, using cash advances, etc.

 It appeared as though I was heading for a small disaster and indeed I was. At some point I had maxed out all the cards and I was looking for more. I did get a little more and then the nightmare hit home. I started missing payments and got hit with penalties and late fees. The debt soared by several thousand and I was beginning to panic. I had always been taught that good credit is essential.

At this point, my ex-boss and good friend decided to lend me a hand. He would spot me a loan to pay off the debt and I would take on managing one of his publications in my spare time. It seemed like a good deal. The only problem was that I had not learned from my recent mistakes and started using the cards again out of necessity. Again the debt soared and while all this was going on, my partner decided to leave the business and when he did, I found out that he had left some major unpaid bills, so that of course effected the business.

It was the true perfect storm, no way to pay the bills, no way to pay myself and/or the credit card companies and the loan. To say the least it was depressing, at worst, it was totally devastating. My dream was about done and I was overwhelmed by all the debt. At that point I decided the only way out was a bankruptcy.

I filed for Chapter 7 on the personal side and I was going to file for a Chapter 11 business bankruptcy and then decided against it. I knew that it was a long shot to ever be able to open again, so I just let it go, despite pleas from certain leaders of the community to keep things going.

For the next year, I virtually lived in hiding, my reputation tarnished and my future looking bleak. There were no real credit counselors at the time per se, so there was no one to talk to about rebuilding, other than friends and interested colleagues. I started doing some consulting work for businesses that were having problems. It seemed so strange to see so many of them going through what I had just been through. I was able to help turn some of them around or at least delay the inevitable. It was then I also started seeing some potential in the fledging credit counseling industry. I joined a company in the late 1990’s and acted as a mediator between clients and their creditors. I felt as if I were getting a second chance. My own finances were now under control and I had decided to limit my credit cards to the minimum that I felt I needed.

My employer decided to move to FL in 2000 and I moved with them. I had always wanted to live in FL and this was a perfect opportunity, except that exactly a year later, the owner decided to move back to NY. I wanted to stay, so I was able to hook up with a similar company and in a short period of time, I became a floor manager and then general manager. The company was sold in 2004 and I immediately got hired by the company I work for now. I was doing counseling and began to conduct financial literacy seminars. It grew to the point where I was presenting programs in prisons, county jail facilities, the Air Force and many other agencies. I had and have truly found my niche. Of course, it’s not publishing, but I do get to write and create a lot of good and useful information. I have also learned to live exactly within my means and I keep to a tight monthly budget. It is the budgeting process that I love to teach at my seminars.

Most of all, I have discovered that there is life after bankruptcy and this is the message I like to convey to all my clients; that is, if I could come back from total economic devastation, so can they.

 Andrew Bernstein

ABernstein@debthelper.com
Certified Personal Finance Counselor
Credit Card Management Services, Inc.
4611 Okeechobee Blvd. #114
West Palm Beach FL 33417
1-800-920-2262

The Magnificent 7: Where state laws get you extra free credit reports

A handful of states guarantee you an extra peek at your credit

By Lisa Bertagnoli

 

Everyone loves a freebie, so residents of seven states may be happy to know that state law grants them a free extra copy of their credit report every 12 months. 

That’s one from each of the three major credit bureaus, in addition to the one that federal law promises to all citizens every 12 months. That works out to six free credit reports a year for residents of Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont. 

Most residents of those states don’t know about that extra report, though, and the big credit bureaus don’t exactly advertise it. Getting them takes some legwork, but experts say it’s worth the effort: Frequent peeks at your credit report can mean better financial health.You can find and scrub errors faster, and see what you’re doing right and wrong.

Important, but little-known rule
Federal law guarantees each consumer the right to one free credit report from each of the three major credit bureaus — Equifax, Experian and TransUnion — every 12 months. That right comes from the Fair and Accurate Credit Transactions Act (better known as the FACT Act), which became law in 2003 as an amendment to the Fair Credit Reporting Act (FCRA). Due to the recession, overall awareness of credit report availability is rising. Nationwide awareness jumped to 53 percent in November 2010 from 37 percent in July 2010, according to Freescore.com, a Norwalk, Conn.-based for-profit credit information site.

But in the seven “extra credit report” states, word about the additional report doesn’t seem to have gotten out. A call to the Colorado Attorney General’s office, for instance, yielded a telephonic blank stare: “Nobody knows anything about the law other than that it exists,” says Mike Saccone, communications director.

How to get them
Getting that extra credit report isn’t as easy as getting your first one, however. Your initial free report should come from AnnualCreditReport.com — the official government-mandated site for obtaining free credit reports. A few clicks on that site and a few minutes later, you’re all set. To get the second one isn’t so simple.

Residents of the seven “extra free report” states must contact the three major credit bureaus to request their reports. Each bureau features a different process, spelled out below.

Equifax: Visit www.Equifax.com/FCRA. After filling out the name, address and Social Security number fields, check “Free State Credit File” under the “Reason for Credit File Request” header.

Experian: The “Check Credit Report” page on Experian.com requests that consumers call (866) 200-6020 to confirm their eligibility and to request their extra free credit report via snail mail. The automated phone system uses the caller’s area code to identify their location and then provides options based on where the person is calling from. 

TransUnion: Visit TransUnion’s “Learn More About Getting Your FACT Act Free Credit Report” page. On that page, click the link that says, “Learn more about obtaining a free credit report if you meet one of the above conditions.” On the next page, click “Yes, I am eligible” next to option No. 4. You’ll then be taken to a page where you can choose your state of residence so you can get your free report.

Credit reports requested online are available immediately and are encrypted for security reasons, says Rod Griffin, director of public education for Experian, the Costa Mesa, Calif.-based credit bureau. Reports requested by telephone take about seven to 10 days to reach consumers by mail. Mailed reports do not include information dangerous in the wrong hands, such as the consumer’s entire Social Security number.

Why it matters
After a few costly experiences with look-alike websites, Donna Trimarco, a resident of Lumberton, N.J., got a free report after attending a financial services seminar at Fort Dix, N.J., where she is an administrative assistant.

The report revealed a few surprises, including a lien on her house. Still, Trimarco was glad to have the information, as she needs a new car and wants to get a student loan to finish her master’s degree.

She admits to a checkered financial past, including a bankruptcy, but hopes regular review of her credit report will help her plan a rosier future. “If I keep my act together, it means looking at everything, each credit report,” Trimarco says.

Indeed, experts advise obtaining as many free reports as are due you, and timing them to arrive regularly. Taren Coleman, president of Coleman Financial Group, a financial advising firm in Bethesda, Md., advises clients to obtain reports at least once a quarter. Consumers are better able to spot, and correct, mistakes if they pull reports often, says Coleman.

Coleman also advises thinking ahead. For instance, if you plan to purchase a house or car or refinance your home, study your credit report before the bank does. The advantage? “No surprises, no errors,” Coleman says.

Read more: http://www.creditcards.com/credit-card-news/7-states-where-residents-get-extra-free-credit-report-1282.php#ixzz1Apq2AIzD

This is how awesome we are!

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Phone Interview on Credit Card Offers

We have a Exciting Opportunity with the Huffington Post. A reporter would like to visit with clients with less than stellar credit who are receiving credit card offers or who have applied for and recently received credit cards. If you fit this criteria and would be willing to participate in a phone interview, let us know: Community@debthelper.com

Holiday Shopping Tips To Keep You Free Of Debt Stress

As retailers move into the holiday shopping season earlier and earlier, it is more important than ever for consumers to avoid getting caught up in the hysteria and instead heed some money and credit management advice to keep the holiday season happy and free of debt stress. With this in mind, the National Foundation for Credit Counseling (NFCC) offers the following information and advice on how to avoid overspending and maintain good financial health during the upcoming holiday season:

• Develop a spending budget. Write down household and personal expenses for November and December. For each month, subtract the total amount of expenses from your monthly take-home pay. The amount left over each month becomes a starting point to gauge how much you can afford to spend. Make a list of purchases from gifts to decorations.
• Make a list. Follow Santa’s example. Make a list of all the people you need or want to buy gifts for, including small gifts for babysitters, teachers, newspaper deliverers, etc. These small gifts can add up and are often the cause of going over your gift budget. Include money you’ll spend on Christmas cards, postage, holiday parties, decorations, holiday entertainment, etc.
• Consider creative gift-giving. When it comes to gifts, some people still believe, it’s the thought that counts. Consider gifts that have a personal touch, such as hand-made and homemade gifts like tapestries, quilts, pastries or other prepared foods. Don’t forget about fruit baskets, which are both economical and healthy.
• Look for shopping deals. Check out retail sales, special discounts and coupons in circulars or newspapers and deals online. Consider purchasing holiday decorations in-bulk and splitting the costs with friends and family members. These deals can add up to substantial savings.
• Avoid last-minute shopping. Shopping under stress can lead to more spending. Plan your shopping trips in advance and shop as early as possible before the December holidays.
• Pay with cash when possible and spend wisely. Stick to your spending limit. Pay with cash when possible and leave your checkbook and credit cards at home to avoid temptations for unplanned and unnecessary purchases. If using credit is a must, limit purchases to one card. Use the credit card with the lowest interest rate and don’t use more credit than you can afford to pay off in 90 days or less. Remember, credit card debt amounts to a short-term loan. The longer the length of the loan, the more you will pay.
• Avoid the post-holiday debt hangover and don’t overspend: Tally the receipts from all holiday expenses, including gifts, postage, meals, entertainment and decorations. Once you’ve completed your shopping list, stop shopping! More mall time can amount to more spending.