Bad Decisions that Typically Lead to Debt.

Retirement: A Lifelong Journey, Investing 101.

may08.cc2@gmail.com — Mon, 26 May 2008 05:37:13 +1000

The difference between saving and investing is that when you invest, you put money in hoping to get something better back out. Every contribution is a step towards the goal of having the kind of retirement you want. Here are some of the most common choices:

Stocks—these are shares of ownership that a company sells to individuals to raise the money it needs to conduct business. The value of the shares usually rises and falls over time, depending on how the company is doing. However, there is potential for high long-term growth. Stocks have the highest risk and return potential.
Bonds—these represent loans to a company or government to finance operations. The loan is paid back after a fixed number of years and the investor receives regular interest payments. Typically, the risk is lower than that of stocks, but may not earn as much in the long run. Bonds have moderate risk and return potential.
Mutual Funds—these are professionally managed funds where your money is combined with money from other investors to invest in a variety of stocks and bonds. This is a good way for smaller investors to gain diversity of their investments. The risk level depends on the stock and bonds in which the mutual fund invests.
Money Investments—these are the most basic type of investment but produce the lowest returns. Types include bank and savings accounts, money market mutual funds, certificates of deposit, and treasury bills.

As always, investments don’t come without risk, but if you’re investing for the long term and start early, you’ll have more time to ride the ups and downs in the market. Whatever you do, choose the investments that are right for you.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit Counseling organization dedicated to helping consumers achieve financial wellness through christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and christian credit counseling. Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show “The Money Mentor”, Greg McTaggart is a qualified Christian Credit Counselor to help you.

Click Here to Schedule an Online Consultation with a Trained Counselor.

Retirement: Why you need to plan now.

may08.cc2@gmail.com — Mon, 26 May 2008 05:36:42 +1000

You may not want to, but people of all ages need to start thinking and planning for retirement. What do you want to do with your time and freedom? Travel? Spend more time with family? Volunteer? Being financially prepared can make all the difference in what kind of retirement you will have.

Longer retirement, higher costs
The good news is that people are living longer, thanks to medical advances and increased awareness of health issues. Therefore, the length of retirement is lasting longer than ever. The bad news is that it is more expensive. In retirement, your costs will change—you’ll probably spend less on work-related expenses, such as clothing and lunches, but your medical expenses will most likely rise. Inflation has to be considered as well.

Who will cover the cost?
Imagine what life will be like without your paycheck. You may receive other sources of income from some or all of the following:

Social Security. This isn’t intended to be the only source of income for retirees. It was created supplement your income.
Pension. This is also meant to supplement other sources of income.
Inheritance. If you expect an inheritance, plan carefully to ensure that it will still be around to provide income when you retire.
Retirement Savings Plan. The money you save and the choice of investments will have a huge impact on the return.
Personal Savings. Save as much as you can now. Look into an individual retirement account (IRA)

Where retirees get their income
Preparing for retirement will only be a benefit to you and your family. To make sure you’re on track for a comfortable retirement, get your finances in order now. That means paying off debt, save, and invest.

About Christian Credit One, Inc.

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Money Matters: The Price of Your Vice.

may08.cc2@gmail.com — Mon, 26 May 2008 05:35:27 +1000

Nicotine, caffeine, & alcohol. These are the three big ticket items that can break your budget, but many people are willing to pay for them no matter the cost. Maybe your personal indulgence isn’t as costly, but whatever your weakness is, sit down and do the math to determine how much you’ve been spending.

Cigarettes: burning money
Without a doubt, everyone knows the dangers of smoking and the long-term health hazards it can lead to, so who needs a better reason to quit? A lot of people! The desire to quit may not be enough. But what about your finances? You’ll pay more for health care and insurance as well as spend more money on dry cleaning and teeth cleaning, not to mention the lower resale value of your house and car. In some cases, you can even lose your job! If you’ve got debt that you’re committed to pay off, this is one area where you can save. If you pay an average of $4.50 per pack to support a pack a day habit, you burn through $31.50 per week, or $1,638 per year. If you can get through the detox, you could take the money and pay off debt, go on that long overdue family vacation, save, or invest it.

Caffeine: what’s the entire buzz?
A cup of coffee brewed in your own home is not the problem here. It’s the expensive specialty coffees that you pick up on your way to work every morning. According to E-Imports, a leading provider of espresso business solutions, specialty coffee sales are increasing by 20% per year and among coffee drinkers, the average consumption in the U.S. is 3.1 cups per day. It’s easy to figure out what you spend on coffee every month and multiply that by twelve. Again, imagine what you could have saved.

Alcohol: the savings may be sobering
Whether you drink socially at a bar with friends on the weekend, or enjoy a good bottle of wine with dinner at home, the cost can really add up if you indulge on a regular basis. Lets say your bar tab of two beers per day at $4 adds up to $56 per week, or $2,920 annually. If your budget is out of wack, it is certainly a luxury that can and should be eliminated.

After looking at the numbers, hopefully you may find renewed motivation to cut back, save, and improve your health in some cases.

About Christian Credit One, Inc.

Click Here to Schedule an Online Consultation with a Trained Counselor.

Are You Fiscally Fit? Using Credit Wisely.

may08.cc2@gmail.com — Mon, 26 May 2008 05:34:45 +1000

More and more Americans are using credit on a daily basis without realizing the effect it can have on their future. According to Experian’s “National Score Index “, at least one in ten consumers have more than 10 credit cards. The overall average number of credit cards per consumer is 4 with an average amount of debt carried totals $8,500. For people who don’t pay off their balance in full every month, it’s so easy for this to number to grow quickly.

However, if used wisely, credit can be part of a sound financial plan. There are obviously good reasons to use credit, such as financing the purchase of a new home, major home improvements, or a car. Credit is useful in emergencies as well if you haven’t saved up enough money in your emergency stash. But buying luxury items that you cannot afford or buying things that will not outlast the credit payments are not “credit worthy” and can get you into trouble.

The following are some tips to help you use credit more wisely:

Limit your number of credit cards. In turn, you’ll be limiting your potential for debt. It’s also easier to keep track of your money with less cards.
Plan ahead when using your cards. Don’t use them to purchase everyday items, food, or clothes. When you do use them, make sure your income will be able to cover it when the bill arrives, along with your basic living expenses.
Always pay your bills on time and pay more than the minimum amount so you can reduce the monthly finance charge and pay them off quicker.
Don’t charge items that will not outlast the credit payments.
Try living with cash and cut down on the frequency of charging.
Eliminate store or department store cards they typically have higher interest rates than bank cards.

About Christian Credit One, Inc.

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High car payments can drive you over the edge.

may08.cc2@gmail.com — Mon, 26 May 2008 05:34:02 +1000

Many people in debt counseling can trace the beginning of their debt problems to a new car purchase—too much car, big monthly payment, and financed too long. Some households even have two vehicles with large payments in the $400 to $500 range. “But I got a really great deal” is typically the line of thinking. With the budget maxed out, one can see how this burden can inevitably lead to a financial crisis. It’s easy to start falling behind when you don’t have the money for car repairs and the car isn’t paid off yet.

How much car can you afford?
You may think you got a great deal on the new SUV parked in the driveway. After all, the dealer took two thousand off the sticker price because of the points you accumulated on your credit card. You wanted it because you want to impress your neighbors, or even yourself. The best deal is one that you can actually afford and one that suits your needs. Several factors have to be looked at in order to make a smart purchase:

Monthly payment—financial experts recommend spending no more than 15% of your monthly take-home pay for a car payment. If your budget is tight, a more conservative number like 8% is more appropriate.
Term of the loan—according to the Federal Reserve, the average auto loan term has been creeping up over the years. In 1998, the typical car loan was a 4-year term, and now, lenders offer up to 6-year terms. It certainly lowers your monthly payment and may help you reach the 8% goal, however, it doesn’t come without cost. Obviously, you’ll pay a lot more for the car because of interest, but if you want or need to sell, chances are you owe more than what the car is worth. It takes a lot longer to build equity if you have a long-term loan. It’s better to figure out what you can afford based on a three or four year loan at the most, or consider buying a used car for cash.
Interest rate—shop around for the best rate before negotiating with the dealer. If the dealer offers incentives, such as a 0 percent loan or cash back, do the math and base your decision on the outcome.
Your own budget—how much debt do you already have and will you be able to afford the cost of ownership, taking into account insurance, gas, and maintenance? If you already have a car loan, don’t be tempted to “roll” the debt over into the new loan. This will really create more problems, especially if the car is totaled or stolen.

What you can do
To make wiser decisions regarding your vehicle purchases, evaluate your needs, rather than your wants. Most people do indeed need a car for transportation, but a new car is really a luxury. Seeing your car as a status symbol also contributes to over-buying. Lastly, just because the lender approved a larger loan doesn’t mean it’s good for your budget.

About Christian Credit One, Inc.

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Inexpensive does not have to be cheap.

may08.cc2@gmail.com — Mon, 26 May 2008 05:33:12 +1000

Some people assume that to have the best of things, one must spend a lot of money, no matter the cost. Also, others won’t look for sales or shop the clearance shelves because they think there is some kind of flaw with the product. In both cases, they don’t want to buy cheap stuff—they assume that less expensive products are inferior. This isn’t always the case buying the most expensive items isn’t always the best choice. In addition, for those who need to cut their budget, this can be a great source of savings.

What cheap really means

Cheap is something that is of inferior quality or worth, such as cheap workmanship. Even an expensive item can actually be cheap in quality. This is especially true for children’s toys. We’ve probably all bought what we thought was a great toy for the kids, only to see it fall apart later. Quality has to be evaluated on an individual basis, regardless of price.

What now

All too often people overlook inexpensive yet good products because of their prejudice against lower priced or sale items. Shoppers really need to evaluate the quality of the item, as well as needs. Take sandwich bags, for example. In the grocery store there are tons of sandwich bags to choose from—with zips, snaps, or fold closures, priced high and low. The high-priced zip closures can be double the cost of the old-fashioned fold and close bags. They all do the same thing and end up in the garbage after your child eats their school lunch. The point is that the less expensive bags do the job they’re meant to do equally as well as the fancy bags with zippers. In this case, there is no reason to spend more money on zipper bags—the less expensive product is better.

Looking for lower priced products by shopping the sales and clearance racks is not only a smart way to shop, but also a must if you want to save money. Sometimes the only difference between two products is the price tag.

About Christian Credit One, Inc.

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Keeping your children busy on little or no money.

may08.cc2@gmail.com — Mon, 26 May 2008 05:32:31 +1000

If you’re in credit counseling or have signed on to a debt management plan, you may be concerned about how it will all work with your children while being committed to paying down your debt. Paying for gymnastics, swim lessons, baseball, or karate can really add up and it may not be part of your budget any longer. Having anxiety about it is normal, but you don’t want to pass it on to your children, no matter what their age. Worry no more! Not all activities cost money or a lot of money. Here are some resources and ideas to keep your children busy this summer without the cost.

Local parks—most communities have at least one park for their residents with playground equipment and bike trails. Most kids beg to go, even if they have a swing set of their own. Fly a kite, bring your bikes, or go exploring. Some parks even have tennis courts and basketball courts open all the time—this is good for older kids.
Lake or Pool—some communities have lake or pool access through the recreation department. Fees are typically pretty low for the summer, but it pays for a lifeguard. They may offer free swim lessons. Check with the high school in your town if they have a pool. It may be open to residents at certain times.
Library—there are so many programs available for all ages. It’s not like the library you may remember when you were a kid. Besides having videos and DVDs available for checking out (for free!), some libraries even have family movie nights. It’s definitely worth it to check out, plus kids usually love getting a library card and picking out their own books.
Volunteer—with so many different organizations needing help, there’s no excuse for not teaching kids, especially teens, the value of helping others. It’s also a great way to meet interesting people and make new friends and contacts.
Play with what you already have—everyone has toys, games, paints, and puzzles just waiting for someone to play with. Kids just need a little push and enthusiasm to get interested. Make paper airplanes or look online for other craft ideas.

Trying to keep kids active over the summer without breaking your budget will benefit your whole family and set a good example that you don’t need a lot of money to have fun.

About Christian Credit One, Inc.

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What you can do to avoid for closure.

may08.cc2@gmail.com — Mon, 26 May 2008 05:31:50 +1000

It’s good to know that more Americans than ever before are able to realize their dream of owning a home. Unfortunately, the number of people burdened by big debt and home foreclosure is also increasing.

What it means

Foreclosure is the legal process through which the lender, a bank or a mortgage company, takes back what is theirs because the borrower failed to meet the requirements of the contract and did not make payment on their loan on time. A mortgage payment is not like a credit card where you can make a partial payment. It is all or nothing. If your mortgage payment isn’t made within 60-90 days, the foreclosure process will begin.

One of the main reasons people end up in foreclosure is because they agreed to an “exotic mortgage” that has teaser interests rates. They may have a low interest rate for a certain period of time in the beginning and then it increases, sometimes more than once, thus, their payment goes up, stretching their budget even more until they can no longer handle it. Other reasons for foreclosure include loss of job, pay cut, loss of overtime, divorce, and heavy credit card debt.
Stages of Foreclosure
Generally, there are four stages of foreclosure:

Redemption—you’re given a date, called a cure date, by which all missed loan payments must be paid in order to avoid foreclosure.
Default—if you don’t bring it up to date by the cure date, you will receive a notice of default.
Foreclosure—if your payments are not paid even after the default notice has been posted, the lender has the right to foreclose on the mortgage and take possession of the house. If you still occupy the home, the lender can get a court order for eviction.
Sale—the lender can sell the home at a public auction.

What you can do to avoid for closure

Call your lender as soon as possible and have all your financial documents ready so you can discuss your loan. Also, contact the lenders mitigation department to find out if a payment option is available. Depending on your specific situation, lenders can offer retention options or liquidation options. Remember, it’s in your best interests to talk to your lender instead of ignoring it until it’s too late.

About Christian Credit One, Inc.

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How to Improving your Consumer Skills.

may08.cc2@gmail.com — Mon, 26 May 2008 05:31:12 +1000

Being a smart consumer these days is getting more and more difficult considering all the different scams that we hear about in the news, as well as all the slick advertising used by retailers all competing for our dollars. Take these tips into consideration so you won’t be taken for your money.

Protect yourself—don’t rely completely on others. Although there are consumer protection agencies out there doing their jobs, you still have to do your part. Be leery of anything “too good to be true.” If you don’t get satisfactory answers to your questions, say no.
Don’t do business with solicitors at your door. There are honest salespeople who go door to door, but it can be risky. You need the opportunity to do a thorough check on the business first.
Be more discriminating when shopping, in terms of price and quality. Looking for the least expensive item can sometimes be a mistake. Cheap can mean shoddy materials. This is when being frugal can backfire. You may be better off spending a little more for certain things so you won’t have to replacing them as often.
Read the small print before you sign. Make sure you understand it and verify that it matches what the salesperson told you and what you agreed to.
Keep your personal information to yourself. This cannot be stressed enough. Don’t give out your social security number, credit card numbers, etc . . . even if you are told it will be used for verification purposes.
Be skeptical of any pay in advance request, either for work or a job. Legitimate businesses typically don’t require all the money to be paid up front. They may require half the money if they have to order specialized or custom materials. It is never necessary to pay for a job.
Don’t respond to letters or calls stating that you’ve won a prize and must pay to collect it.
Avoid any work-at-home opportunities where you have to pay for instructions or a kit. These are just schemes to get your money.
Don’t open email messages from people you don’t know. There are a lot of clever scams designed by computer criminals just waiting for someone to take the bait.

About Christian Credit One, Inc.

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Give Yourself a Boost: Easy Debt Reduction Ideas.

may08.cc2@gmail.com — Mon, 26 May 2008 05:30:28 +1000

Easy and debt reduction in the same sentence? Is it even possible? Yes, if you’re determined. Try these ideas and see your debt begin to shrink.

Save your change. Everyone should have a change jar. The idea is that when it’s full, cash it in and apply it all to your debt as an extra payment. Don’t cash it in to put in your wallet to spend.
Turn cash gifts into extra payments. Make a deal with yourself that anytime you receive money, make an extra payment on your debt.
Pay raise. Don’t think a pay increase is an invitation to spend more! Take it as an opportunity to pay down your debt. You’ll be much happier.
Tax return or bonus. Money like this should go directly to your debt, on top of your regular payment.
Hire yourself. If you hire someone to cut the grass or clean, start doing these things yourself and put the money towards your debt.
Have a garage sale. Get rid of your junk—it can so burdensome. Empty out some of the things you never use and are just taking up space. You’ll be surprised at how liberating this can feel, with the added bonus of making some money and paying down your debt.
Eliminate your credit cards. Just do it. Using cash helps you make better purchasing decisions and you should be able to make larger payments.

About Christian Credit One, Inc.

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Home Improvement: Ways to Save Money on New Appliances.

may08.cc2@gmail.com — Mon, 26 May 2008 05:29:20 +1000

No one likes spending money on new appliances, so most of us try to put it off as long as possible. Eventually, you get to the point where you can’t ignore it any longer. Your kids are finally out of the house or have graduated from college, and your budget has a little wiggle room in it, but you still don’t want to spend an arm and a leg. Stove, refrigerator, dishwasher, and microwave oven—they can really add up. Here are some ways you can save money and still get what you’re looking for.

Buy on sale only. This should be a given. Check the newspapers for upcoming sales or clearances. If you find something you like that isn’t on sale, find out when the next sale will be and then consider a purchase. Patience can save money.
Look for discontinued models. You can save hundreds of dollars off your purchase price if you look for a model the manufacturer is no longer making. Typically, the retailer needs to get it off the floor.
Buy last year’s model. Old version, new version—usually the only difference is the price. You can save a lot!
Buy a floor model. You can walk away with a bargain if you don’t mind bringing home a floor model. Typically, you don’t get the box, but you still get the warranty.
Look for a “slightly” damaged model. You can save money by buying something with a little scratch or dent that has no bearing on the function of the appliance and it may not even be visible once you’ve installed it.
Ask about a package deal. There may be discounts if you’re buying more than one appliance.
Ask about trade-ins. Check the yellow pages or call appliance dealers in your area to see if they accept trade-ins. Then find out what your appliance is worth.
Only buy what you need. Don’t go for models that have all the extras that you probably wouldn’t use anyway. You can save a lot of money by sticking with the basics. Plus, you have less chance of something breaking that would cause a repair bill.

About Christian Credit One, Inc.

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Summertime Scammers: Home Improvement Scams.

may08.cc2@gmail.com — Mon, 26 May 2008 05:28:39 +1000

Many home owners rely on independent contractors for improvements in and around the house, or the handyman for smaller jobs. Now that summer is upon us, it’s time to start those home improvement projects and get some work done. But be careful! Dishonest contractors can easily scam innocent homeowners, not only out of your money, but also by using substandard materials. Here are some red flags that you should be aware of when evaluating a contractor.

Pushes for you to sign a contract right away.
Solicits door-to-door.
Cannot find listing in the phone book.
No written information is available about the company.
Accepts only cash.
Asks for entire payment up front.
Credit card or checking account information is requested.
When you call, you only get voice mail or an answering machine.
Cannot verify license or insurance information.
Doesn’t have references, or cannot verify references.
Wants you to pull the building permits.
Offers you a deal good for only one day.
They’ll help you finance the project.

These tips can help you become an educated consumer and avoid any possible scams.

About Christian Credit One, Inc.

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Bad Decisions that Typically Lead to Debt.

may08.cc2@gmail.com — Mon, 26 May 2008 05:27:57 +1000

A common thread running through many households in terms of debt is a lack of planning. Whether it is caused by ignorance or indulgence, it is crucial to recognize it and change it. The negative consequences caused by this lack of planning are many, but in particular, the three most common expenses are put at risk and lead to debt.

Home Purchases
Although it’s the American Dream to own your own home, many couples spend too much of their income on the mortgage payment and eventually, it catches up with them. Years ago, it was much more difficult to qualify for a loan but because of deregulations in the lending industry, it is now easier. Sounds good, you may think, but you can become “house poor” very quickly and not have enough money to cover other expenses. Many people choose this anyway, thinking that it’s wise to purchase the most expensive home they can get, regardless of how far they have to stretch the budget. They make the decision based on the assumption that their income will increase in the future. They didn’t plan for a slump in the economy, little or no raise, or a layoff, unfortunately.

New Car Purchases
This is another area where people get in over their head, especially for those who have a tendency to overspend. Unfortunately, many people put their material desires before their pocket books and purchase cars that are beyond their means. They don’t consider that the cost for insurance and auto repairs increase with the cost of the car. It’s so easy to only consider the monthly payment and ignore the total cost of the car. Even if you decide to sell the new car to relieve debt, you’ll be surprised to find out that you probably owe more than what you could get for it, so the burden continues. Saving for a good used car is a better decision.

Scheduled Expenses
Many people fail to plan for inevitable expenses such as car maintenance, insurance, home repairs, and medical expenses. Or, when they try to fit these items into their budget, they don’t fit. Ignoring them until they’re due causes you to pull out the plastic, adding to debt.

Without a budget, people cannot realize they’re headed for a financial crisis until it’s too late. If you have trouble balancing your income with expenses and have growing debt, go to www.CCone.org for help.

About Christian Credit One, Inc.

Click Here to Schedule an Online Consultation with a Trained Counselor.