How To Increase Your Savings

Identity Theft is when someone uses another person’s social security number, driver license, name, address, telephone number and any other information about that particular person as their own. The unauthorized person that obtains this information without the other person’s knowledge uses this information to commit theft and fraud.

How does a person committing ID theft get my information? By going through your trash, hacking into a computer that you may use, securing a copy of your credit report, stealing credit card and debit card numbers that you may have, stealing your mail,completing a change of address form to reroute your mail to a different address, stealing your purse or wallet, and scamming information from you by posing as a business person.

How would I know if I am a victim of ID theft? If you receive credit card statements for accounts you did not apply for, you do not receive your mail, your credit is being denied and you do not know why, counterfeit checks are used to withdraw money from your bank account, you receive calls from collection agencies about bills for accounts established with your personal information that you do not know about,and other problems that you may have with your personal information.

Should I order a copy of my credit reports to find out if I am a victim of identity theft? Yes, you may want to consider doing this if you suspect that you are a victim of identity theft. You would want to order a copy of your credit reports from all three credit reporting agencies which are: Equifax www.equifax.com 1-800-685-1111; Experian www.experian.com 1-888-397-3742; and; TransUnion www.transunion.com 1-800-916-8800.

What should I do if my identity is stolen by someone? Contact the three credit reporting agencies as soon as possible and let them know that you are a victim of ID theft and ask them to place a fraud alert and your statement as a victim in your credit report file. Order a copy of your credit report from each agency to check the information on your report.

Contact the credit reporting agencies fraud units at these telephone numbers or addresses: Equifax: 1-800-525-6285, P.O. Box 74021, Atlanta, GA. 30374-0241:: Experian: 1-888-397-3742, P.O. Box 9532, Allen, TX. 75013:: TransUnion: 1-800-680-7289, Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA. 92834-6790.

Should I close my credit and checking accounts if ID theft has occurred? Yes, you may want to consider closing your credit and checking accounts if you suspect identity theft. Contact your bank and creditors about your identity being stolen and consider closing your accounts and establish new ones.

If your checks are stolen, request that your bank notify the check verification company that they use. You may also want to contact the major check verification companies as well.

The major check verification companies that you would want to contact are the following: Telecheck, 1-800-710-9898 or 1-800-927-0188:: Certegy Inc., 1-800-437-5120:: and; International Check Services, 1-800-631-9656.

You may also want to contact a company known as Scan at 1-800-262-7771 to find out if an identity thief has been using your checks. In addition, you should also contact your local police department and report that your identity has been stolen.

Make sure that you file a complaint with the Federal Trade Commission about your identity being stolen as well. You can file this report at www.consumer.gov/idtheft.

These days everybody wants to be completely self-reliant. Nobody wants to have to depend on others. There is a great sense of achievement in being able to deal with one’s own needs and requirements without taking the help of others. The personal finance markets have realized this need that the people of the world of today have. As a result we are witnesses to the great proliferation in the numbers of loans to help people help themselves.

Are you looking for a car loan? How eager are you to actually invest in real estate? Are you going to need a lot of cash to fund your child’s education? Well, whatever it is, there will be a great loan that will be absolutely perfect to take care of your needs. From large amounts, to low interest rates, to adjustable payments, you name it and you will discover a great loan that suits your specific needs.

And loans are not the only things that help us to be self-sufficient. What about the good old credit cards that we always take with us no matter where we go. There is no longer a need to carry bundles of cash when going out shopping for more expensive things. A credit card swipe works just as well and is certainly much more effortless. If your wallet gets robbed, you really cannot do very much about the money in it. However, you can do your part by informing the credit card company that your card has been robbed.

Life has become extremely convenient in the world of today. I find it very liberating to be able to walk out of my house with only my little credit card for company. And yet, I am able to return home with bags and bags of groceries, some DVDs of my favorite movies, and maybe even something that cost me a little too much.

Of course, the downside is that credit cards usually tend to make us overspend. They say that women are the shopaholics, but put men in the right store and they too end up spending much more than they had originally calculated on. The culprit has to be the credit cards.

In a similar way, when it comes to loans, we are developing the tendency to take on loan after loan. Eventually we have no choice but to keep repaying a multiplicity of loans that charge different interest rates and drain away various amounts of money from our bank accounts.

Yet, despite the many problems, loans and credit cards have made us more self-reliant and far more willing to look at life from an independent standpoint.

In just a few short weeks, President Bush’s Bankruptcy Abuse Prevention and Consumer Protection Act will take effect. In a nutshell, the new law, which goes into effect on October 17, 2005, makes it more difficult to cancel your debts under Chapter 7 Bankruptcy protection. Instead, consumers will find themselves having to file for Chapter 13 Bankruptcy protection and paying back their creditors over a five year period.

Here’s a look into some of the major changes that will affect consumers choosing to file for bankruptcy after the new law goes into effect -

Qualifying – Chapter 7 or Chapter 13?

To be able to qualify for protection under Chapter 7 bankruptcy, consumers will have to face a means test. The means test determines if your household falls above or below the median income in the state where you reside. Those whose total is greater than the state median income will not qualify to cancel debts under Chapter 7 protection and will alternately have to file under Chapter 13 and pay back your creditors.

The major intent of bankruptcy reform is to require people, who can afford to make some payments towards their debt, to make these payments, while still affording them the right to have the rest of their debt erased.

The amount you have to pay back under Chapter 13 protection will be greater because instead of a 3-year pay back period, that time frame is now extended to five years – to ensure your creditors get paid.

Credit Counseling

Anyone filing for bankruptcy under the new law will be required to go through mandatory credit counseling. Be careful before choosing a credit counselor as this field is filled with people looking to line their pockets while emptying yours.

To find a trustworthy counselor, check to see if there are any complaints against them or their organization filed with your local Better Business Bureau. Secondly, find out if they are certified by the National Foundation of Credit Counselors or the Association of Independent Consumer Credit Counseling Agencies. Finally, find out if they have not-for-profit status. Personally I recommend Consumer Credit Counseling Services as they meet all three of the above criteria. They can be reached at 1-800-888-2227 and can connect you with a local office.

The Cost Factor

Filing for Chapter 7 protection under the old laws normally cost under $1,000. You should expect to pay more under the new laws as filing fees have been increased by $60. Additionally, your attorney will be required to double check all your financial information which will take more of his or her time. Also there is greater liability imposed on the lawyer which may cause their liability insurance to increase, which gets passed on to their clients in the form of higher fees. Under the new law, many are expecting fees to increase between 25-50%.

Why Were the Laws Changed?

The bottom line is that major commercial creditors lobbied hard for reform. Companies like CitiBank, MBNA, and other credit card issuers actively contributed proposed amendments along with generous financial support to reforming the bankruptcy laws – and in their favor, according to many consumer protection groups.

Age brings about a number of new expenses. Expenses keep on increasing as the years keep growing. Old age merely brings about a rise in a number of expenses. Visits to the doctor have to be made. Medicines need to be bought. And there are so many more bills. However, even as expenses keep on multiplying, the income with which these bills can be paid remains stagnant. Post-retirement, one has to be dependent on one’s pension and on the monies that accrue from the various investments that one has secured for oneself. Given these sources of income, it does become difficult to pay for the expenses of daily life.

However, with a little bit of research and some application, one can use the mechanisms of personal finance to add quality to life post retirement. For starters, let us take the case of bank accounts. Now, there are various kinds of bank accounts that people can apply for. But which bank account would be a good choice if one has just retired? Ideally, one should be looking at a bank account that offers a high rate of interest. High interest savings accounts are a dime a dozen these days. Joint bank accounts are worth looking at. Elderly couples often pool their monies together and start a joint account, thus, earning higher interest amounts on a regular basis. Just check with the bank that is nearest to you. Moreover, senior citizens are eligible for some other offers that cater specifically to their needs. So anyone who falls into this age group need to be on the lookout for deals like this.

Credit cards are often the knight in shining armor for aged people. After retirement, a lot of people find it difficult to carry on with their earlier standards of living. Thus, many end up running up their credit card debt as they pay for various recurring expenses, with medicines being one of the recurring ones. Now, credit card debt cannot be run away from. It had to be settled in the near future. However, senior citizens can approach their credit card providers and try to negotiate a reduction in debt. Many a provider is eager to comply with such requests.

Naturally, leaning on the credit card is not the smartest financial advice that you can get. All the same, you can certainly use the credit card judiciously and let it help you when you are in dire need. For that purpose, you must make sure that you are not splurging on any goods and services that are not really required. Of course, it can be argued that every thing is "required. But that is not the way a smart consumer thinks.

Of course, sometimes cash advances and credit card payments are not sufficient. Turning to loans can be quite costly for people who do not have a fixed salary. Things are simpler for people who own property for a secured loan is usually cheaper. However, nowadays, cheap unsecured loans are not such a faraway dream either.

Besides staying cool when the warm weather rolls in, not getting hot under the collar when the utility bills arrive can be a challenge. The goal is to find an air-conditioning system that looks nice, makes you feel good and operates efficiently.

How To Measure

Cooling Efficiency

Recently enacted federal legislation helps with the efficiency issue. All central air conditioners manufactured after January 23, 2006, must have a seasonal energy efficiency ratio (SEER) of at least 13 SEER. This increase in the measure of cooling efficiency from 10 to 13 SEER means savings on your utility bills.

As manufacturers of air-conditioning systems work to meet this new efficiency standard, some are also incorporating improved comfort features in their designs. For example, the Acclimate™ Series of air conditioners from Luxaire

Money in my opinion is not the most important thing in life, but it is nice to know that you have a certain amount of money, saved or invested, which you can use if needed. I actually think that health and happiness are the two most important things in life. Having this pool of money helps to keep me healthy and happy, as it means that I do not have to stress as much about the future.

I only really realised the importance of investing and saving money, when I was twenty-three years of age. Up until this age, I would always spend all of my wages and did not care if I was overdrawn in the bank. I used to think that I could die tomorrow, so why bother about saving money which I might not ever use. This is a bit stupid, I know.

At the age of twenty-three, on one particular day, I was having a conversation with a friend called Tim. He basically earned the same amount of money as I did and lived a similar lifestyle. Tim told me that he was thinking of buying a flat and that he was going to cash in his investment bond to help fund the move. I was very shocked that he even had a bond and asked him how long he had had the bond, and how he had managed to get the money to put into it. I expected Tim to tell me that his parents had given him the money, but they hadn’t, he had saved up the money himself.

Tim told me that he tries to save as much money as he can per month and normally manages to save at least

There is a simple money saving exercise that everyone should do at least once in their lives. It is ultimately one of the best ways to save money, because it is not about pinching pennies, but about discovering what you really want and getting it. It is so simple you may hesitate to try it. Just try it. Here it is:

List everything that you have spent money on, are currently spending money on, or might spend money on.

Don’t just read this and think of a few things. Take the time to actually write it all down. Review your bank statements if you have to, in order to remember and include everything.

Now go through the list, and carefully consider each item. Take the most time on the big items – past, present and future possibilities. If your timeshare on the beach is worth half what you paid, costs $1,000 per year in expenses, and is rarely used, you need to learn from that – not to punish yourself, but to have a richer life.

If you think honestly about the number of times you will use that Recreational Vehicle, and the cost, it may be $250 for each day of use. That’s okay if that is worth it to you, but maybe you really would enjoy $100 hotels more. Or maybe you can rent an RV for less overall cost, thus freeing up money for other important goals.

You see, saving money isn’t about sacrifice. We all are aware of the scrooges in life that pinch their pennies, bank the savings, and then do nothing with it. The point should be to save money in one area of life so you can use it in ways that make your whole life richer.

Suppose you notice you’re spending $8 per month on subscriptions to magazine you don’t read, or on insurance for a motorcycle you almost never ride? Cancel the subscriptions or sell the
motorcycle, and what have you lost? Is it a big deal? What will that $8 get you instead?

- Bank it for ten years, and use the $1200 to take a second honeymoon.

- Use it to pay for a day off work once a year, to spend with the kids.

- Invest it, to have an extra $50 per month during your retirement years.

- Buy six good books a year, to learn something new.

- Make banana splits for the family once a month.

- Give $100 per year to a worthy cause.

$8 per month can do a lot if used wisely. Imagine what you could do if you stopped wasting $200 per month. That’s why it is so important to discover what you really want – and what you don’t want. This is one of the most intelligent ways to save money.

A lot more people are becoming interested in debt settlement as an alternative to bankruptcy. That’s because a new bankruptcy law was enacted on October 17, 2005, which means a rude awakening for many consumers seeking a fresh start in bankruptcy court.

It used to be that 7 out of 10 people filing personal bankruptcy were granted Chapter 7 status, where the unsecured debts are totally wiped away. That has changed under the new rules. If your income is above the median for your state, or you can pay back at least $100 per month toward your debts, then you’ll be turned down for Chapter 7. Instead, you’ll be shifted into Chapter 13, where you pay back a portion of the debt over 3-5 years.

It gets worse. When the court calculates your allowable living expenses, it will use the approved IRS schedules, not your actual documented expenses. So even if you don’t think you can pay $100 a month or more, the judge will probably disagree. Instead of a fresh start, many people will be faced with the grim reality of a harsh 5-year plan, on a court-mandated budget that forces them to adopt a much lower standard of living. That’s where debt settlement starts to look pretty attractive.

Yes, I know debt settlement has its critics. I’ve criticized aspects of the industry myself. But what the critics don’t seem to understand is that this approach is for people who would otherwise go bankrupt! Let’s examine the three main complaints against debt settlement and see where the critics are missing the mark.

"Debt settlement has a negative impact on your credit score."

Wow. Big deal! Pretend it’s two years from now. Would you rather have an A+ credit rating or be totally free of debt? Pick one please, because you can’t have both. All debt reduction programs have a negative impact on credit scores. That’s why only people who truly can’t keep up with their bills should go into one of these programs. But it’s pointless to worry about your credit while you’re being crushed with debt. That’s like worrying about how the yard looks after your house has burned down.

"You might have to pay taxes on the canceled portion of the debt."

I’ve always been amazed at how frequently this lame criticism is repeated in article after article. Yes, it’s possible that you may need to pay taxes on forgiven debt balances, but the odds are against it. That’s because the IRS allows insolvent taxpayers to exclude canceled debts. So unless you have a positive net worth, you probably won’t need to pay taxes on your settlements. And even if you did, so what? You’d be paying taxes because you saved a bunch of money off your debts! And this is a problem?

"Collection activity will continue and you might get sued."

Yes, if you fall behind on your bills, your creditors will most certainly continue attempts to collect what’s owed, and one or more of those creditors might sue you in civil court. But again, this criticism totally misses the mark. Collection activity is already a function of being in debt trouble. At least debt settlement allows the consumer to use the collection process to eliminate debt through negotiated compromises. Even lawsuits need not be cause for panic, since they can often be settled out of court. The only reason to allow a legal action to proceed to the point of wage garnishment, property lien, or bank levy is lack of financial resources with which to settle. And if that’s the case, the debtor should be talking to a bankruptcy attorney anyway.

In contrast, let’s look at some of the positives
of debt settlement.

1. You can save $1,000s versus any other method of debt elimination (except for Chapter 7 bankruptcy, which is much more difficult to accomplish now that the new law is in effect).

2. You can get out of debt in 2-3 years, and much faster if there is some available home equity to work with. This is a lot better than 5 years in the financial boot camp of Chapter 13 bankruptcy, or 5-9 years in a credit counseling program.

3. You keep control over the process more than with any other approach.

4. You maintain personal privacy. With bankruptcy, your case file becomes a matter of public record, easily located via Internet search by future employers, landlords, or creditors.

5. You retain your dignity while working through your financial problems. Bankruptcy still feels like failure to a lot of people. Debt settlement represents an honest and ethical alternative to that extreme solution.

6. You can adjust your monthly funding into the settlement program up or down depending on real-world conditions in your financial life. If your income fluctuates from one month to the next, or you get hit with an unexpected expense, it won’t torpedo the whole program. The built-in flexibility of debt settlement gives it a huge advantage over other options, all of which require a fixed monthly payment.

Once you’re made the determination that debt settlement makes sense for your situation, you’ll need to decide whether to go it alone or seek professional assistance. For people who aren’t easily intimidated, there’s no question that the do-it-yourself approach is the way to go. For others who can’t handle the least bit of pressure or just want to focus their time and energy elsewhere, hiring a professional settlement company may be the correct choice.

If you do decide to take the do-it-yourself approach, follow these tips:

* Use a privacy manager on your telephone service to screen creditor calls so that you only speak to creditors when you’re ready.

* Make sure you have a solid game plan for building up money to settle with, and set the funds aside in a separate bank account.

* Do not send settlement funds until you have the deal in writing. No exceptions!

* After paying the settlement, follow up to obtain a zero balance letter from the creditor, so you don’t have bogus collection problems later on.

* Know your rights as a consumer by reading the free resource articles on debt, credit, and collections at the Federal Trade Commission website: www.ftc.gov

* Don’t be intimidated or pressured into accepting a settlement deal that you can’t handle.

Remember, thousands of people settle their own debts every year, without the need for lawyers or bankruptcy. You can do it too if you’re disciplined, determined, and prepared to ignore some of the crazy stuff that bill collectors say. When you’re finally debt-free, you’ll feel a lot better about having worked it out on your own. Good luck on your road to debt freedom!

Credit cards offer a high level of security and flexibility to customers, and this is why so many people use their credit cards for day to day purchases as well as for special purchases. However, in order to make the most of your credit card you need to make sure that you use it and repay it sensibly and responsibly.

If abused credit cards can result in high levels of debt, which can create huge financial problems for the future. It is therefore worthwhile remembering some valuable tips in order to make the most of your credit card whilst reducing the risk of falling into unmanageable levels of debt:

1. Always try and repay the balance in full when it comes to your credit card repayments, as this will enable you to avoid paying interest on your borrowing, and will also help you to avoid being charged for late or missed repayments.

2. If you cannot repay the balance in full on your credit card, always try and pay more than the minimum requested repayments. If you only every pay the minimum it could take you years to clear a relatively small balance, and it could cost you a fortune in interest.

3. Make sure that you compare credit cards in order to find the best one for your needs. For instance, if you tend to repay your balance in full at the end of each month then a rewards based credit card may suit your needs. However, if you plan to spread your repayments then you may fare better with a low interest rate credit card.

4. If you already have existing credit card balances on which high interest rates are being charged, it is worth considering consolidating these. You could do this through a 0% balance transfer credit card, or by taking out a loan to repay all of your cards.

5. Resist the temptation to use your credit card for purchases that are not really necessary simply because you have it to hand. Remember, you will have to repay whatever you spend on it, so if you can’t afford to make the purchase then don’t.

When you and your family are considering a budget, you may be missing the values that are held within rebates and coupons. In general, because of the time it takes to actually clip these things out of your local newspaper or a magazine, people tend to over look these big money savers all too often. Coupons should be an important part of your family budget. The money you could save using coupons could easily add money to other areas of your budget, like family entertainment.

For decades, people have been clipping and using coupons of a variety of sorts. It is something that is done by grabbing your favorite pair of scissors and scanning through your magazines or newspapers, to find coupons that will help your entire family saved money on your favorite products. Many people commonly skip over coupons because the savings tend to “look” small and insignificant. However insignificant they may look, once these savings add up they could equal a good sum of money saved EACH time you go to the grocery store.

Using and clipping coupons or rebate forms have been known to be an art. People often plan their entire budgets around the coupons or rebates that they have and save a good deal of money in the process. It is impossible to account for coupons during the actual creation of the monthly budget, because you never really know how many coupons you will be able to use and just what the savings will be. Many people choose to stash away the money saved from coupons into a special place to use for a special treat for the entire family. You will be able to enjoy treating your family to a special night out or something of the like, without having to place an impact on the family’s budget.

Stick close to a few rules when you decide to use coupons, this will allow you to get the greatest value from them. When you are using a coupon, try to find the item on sale. This will help you reduce the price in a dramatic way, for items that you would generally purchase at regular sale price. In addition, some stores have what is called “Double Coupon Day”; these actually double the amount of savings that is listed upon the coupon. Giving you DOUBLE the money to put away for that special treat and what could be better.