Save Money Without Clipping Coupons

There are plenty of articles about how to slash your holiday spending. Sure, you can clip coupons, make retailers play "match the markdown price" and spend your Thanksgiving evening loitering in some dark, damp parking lot guarding your place in line so you can snag those Black Friday door buster deals.

Alternately, you could try a more cerebral cost-cutting strategy. Here are five ways to psych yourself into saving money.

1. Sweat the big stuff

No need to drive around all day to find the best price on wrapping paper and snowglobe stocking stuffers (unless you're really sick of rewashing the dishes just to avoid the in-laws). Concentrate your cost-cutting first on high-dollar purchases -- big-ticket items where saving 20% puts some real cash back in your pocket. Then tackle the smaller stuff as time, energy, and sanity allows.

2. Do some retail recon before you shop

You won't know whether you're getting a real bargain or a dud deal unless you have some pricing history for comparison. Many stores don't include an item's original price in their advertising circulars. If the original markup was helium-high, even 50% off is hardly a "sale." Keep a folder for sales circulars on items of interest, so you aren't suckered into buying something that seems like a good deal until you get it home.

3. Don't fall for the upsell

Skip the extended warranty, which can pad the price of the item by 10% to 30%. With just a few exceptions -- such as treadmills and big-screen HDTVs -- warranties are rarely worth the extra price, according to Consumer Reports. If you feel the need to purchase extra protection, pay no more than 15% of the product's price, and buy the manufacturer's warranty, not the store's version. Same goes for all those extra doodads that are displayed near the only item that's actually on your list. It's called an "up-sell" for a reason -- it drives up your tab and the store's profit margins.

4. Shop with blinders on

Avoid last-minute upgrades by picking the must-have features and target price range for more complex goods such as electronics and small appliances. Studies show that the more choices shoppers are given, the more likely they are to trade up to a fancier (an unnecessary) model. So weigh the merits of each product independently. Compare like with like -- and erase from your mind the alternatives that don't fit your criteria.

5. Go on an all-cash diet

Yes, credit cards are convenient -- they offer purchase protection, rewards, an easy way to track your spending (albeit after the damage is done), and they take up less wallet room. But they're also too convenient. Studies show that people spend more -- and more impulsively -- when no actual cash changes hands. Plastic makes us devalue what we spend because we don't experience the immediate loss of buying power that we do when we pay with cash. (Why do you think they use poker chips and not actual currency in Vegas?) If you tend to overspend, leaving your credit cards at home during the holidays can be a serious boon to your bottom line.

Source: The Motley Fool

Florida is First in Foreclosures

Sometimes, being in first place is not a badge of honor. Take Florida, for example, which currently holds the dubious distinction of being first in the nation in foreclosures.

The Palm Beach Post informs us that close to 1 out of every 5 homes loans in Florida was delinquent in payments by 90 days or more, or was somewhere in the process of foreclosure during this last quarter.

The state has almost 3.5 million outstanding loans, and more than 13% are in trouble. This type of economic behavior does not bode well for a recovery. It also indicates that another large group of foreclosed homes is about to crash into the real estate market with a resounding thud.

This somewhat alarming foreclosure statistic is not being helped by Florida’s other problem, an 11.2% unemployment rate. Experts do not expect employment to alleviate before the second quarter of next year, by which time it will have risen, according to projections, to 11.4%.

While Florida’s foreclosure figures seem high, the reality is, according to the Mortgage Banker’s Association, that 1 out of every 7 loans across the nation is in foreclosure. This is an increase from the 1 out of 10 that began the year.

Florida foreclosure rate is closely followed by Nevada, California, and Arizona. These four states are responsible for 43% of the new crop of foreclosures that is due to hit the market.

In addition, foreclosure filings in October of 2009 showed an 11% increase over those from a year earlier, and are up more than 25% on a year to date basis. According to the Boston Globe, it is not subprime loans that are spurring the foreclosure increase; instead, it is rampant unemployment, which stands at a 26 year high nationally.

Nationwide, the rate of joblessness has moved beyond 10% and expected to rise above 11% before it turns around sometime next year.

What is extremely alarming is a report from the Mortgage Banker’s Association that fixed-rate home loans, which were often made to people with excellent credit, are also falling victim to foreclosure. These formerly credit-worthy individuals are succumbing to unemployment. When faced with a choice of feeding a family or paying a mortgage, food always wins out.

What may be even more disturbing is that the Federal Housing Administration (FHA), which has been holding the housing market together by insuring more than 40% of new home loans, reports that more than 18% of those who hold FHA loans are delinquent by at least 1 payment.

Source: huliq.com

Debt Relief Grants To Clear Credit Card Debts

By: Walter Sigmore  
Debts are dreaded by almost everyone. No matter how confidently one promises to himself about using the credit card only when the need arises, all the users end up being guilty for having made purchases that are well beyond their budget. This in turn directs them to huge debts, which necessarily means headache. Debt relief grants can come to your rescue now. With these grants, it is easier to get rid of your debts and lead a peaceful life.


These debt grants can be utilized for your educational purposes, health care, to clear your household or store debts, etc. The good thing about such grants is that the rate of interest is relatively low and repayable by any person with not so good financial status. These financial grants are issued by debt consolidation companies and also nonprofit organizations. The nonprofit companies provide relief to people who are in critical financial crisis and can hardly find any means to get out of the same.

Credit counseling should be the first step that any person who is fully submerged in debts should look forward to. This will help him analyze the various options left and which one suits him the best so that he can comfortably get out of the debts. Normally, a person who has huge debts to clear will be in a confused state. Hence, it is necessary to submit to a credit counselor.

Before you can attend these sessions, you are required to collect all your credit bills and other debt bills. When you carry these to the credit counselor, he will analyze your financial status and with his experience, will provide you with all the possible scenarios. A good counselor will strive hard to lead you towards personal freedom and helps in stabilizing your future.

There are umpteen credit consolidators in the market today. While most of them genuinely struggle to help you out, there are scams too. You should conduct a brief research on which company has been successful in helping the debtors to restore their life like before.

You can compare the success rates of the various companies and zero-in on the best company that can help you out. You can try looking for nonprofit companies that offer debt relief grants for people who are in terrible crisis. If your condition is really poor, then you can benefit from such grants. Start today with ending your bad debt.

Source: Article Snatch

How to Set Up an Emergency Fund

“Most financial advisers recommend building up emergency savings equivalent to three to six months’ worth of living expenses… however, some recommend a fund to cover eight months’ living expenses.”
Emergency Fund?

Respondents (n=122) in Wi$eUp’s latest online poll have…

42% – NO emergency fund

26% – less than 1 month’s savings on hand

15% – 1-2 months’ savings on hand

7% – 3-4 months’ savings on hand

3% – 5-6 months’ savings on hand

7% – more than 6 months’ savings on hand

(http://wiseupwomen.tamu.edu/03-resource-center/polls.php)

The Wi$eUp poll results highlighted above illustrates a challenging reality for many families – NO or very limited emergency savings. Polls and studies reported in the media frequently talk about people being “a paycheck away from financial disaster.” Is it possible to be proactive and establish an emergency fund even during tough economic times? The answer is, yes, if you are able to make it a financial priority. That may not be easy when money is tight, but it is important.

Just what is an emergency fund? Your emergency fund is a reserve of money intended to cover basic living expenses IF you experience a financial emergency, such as losing your job or other sources of income, or having an unanticipated, catastrophic expense (perhaps a medical expense or a major household expense).

Here’s how to start an emergency fund…

• First, do the math. What are your “bare bones” monthly living expenses? That is, what is the least amount of money you would need to cover the very basics and not fall behind with your monthly bills? This amount is
generally less than what you actually spend on a monthly basis.

• Once you know the monthly fi gure, multiply it by three, six, or eight – whatever is your goal for how many months’ worth of living expenses you want to build up.

• Next, determine how much you can save regularly on a monthly basis.

• Then decide how long it will take you to build up your emergency fund. Remember, you do not have to fully fund your emergency fund overnight!


Example:

• “Bare bones” monthly living expenses = $2,100
• Emergency fund goal (3x, 6x, or 8x) = 8x
• Total amount needed to fund it = $16,800 (8 x $2,100)
• What I (we) can aff ord each month = $300
• How long it will take to build it up = 56 months
($16,800 divided by $300)
• In the example, 56 months may seem like a long time, but remember the money can be accessed for emergencies if needed during this time. And you can always alter your goal.

• Designate a special savings account to hold your emergency fund. Select an account that will accrue interest or earnings and is liquid (accessible when needed without penalty), but don’t make it so easy that you will “raid” the fund every time you need a litt le “extra.”

• For more information on emergency funds and set-aside accounts, check out

Chapter 5 – Savings Basics at Wiseupwomen.org

The Importance Of Finding A First-class Bankruptcy Attorney

Bankruptcy. It’s not a decision anyone comes to lightly. For most people it is, as it ought to be, a last resort, chosen only after other options have been exhausted. Before you even get to point of considering bankruptcy, you’ve probably already been through disappointment, discouragement, worry, and many gut-wrenching bill paying sessions.

Don’t compound your troubles by trying to make decisions about bankruptcy without good expert advice. A reputable Phoenix bankruptcy attorney can review your situation and will honestly let you know whether or not bankruptcy is the best option and if you are likely to qualify. If you are unsure where to begin finding an attorney, you can check with the Maricopa County Bar Association. Their referral service can help you find a competent and reliable Phoenix bankruptcy lawyer. A creditable lawyer will charge you a nominal fee for an initial consultation, at which point you can determine if this is the right person to help you move forward with your bankruptcy filing.

Good advice can help you determine the best way to manage your debt and get your life back on track. It will take time, but eventually your can regain a good credit standing as well, certainly faster than if you continue to miss payments or try to borrow more and more to catch up to your debt obligations. Your bankruptcy lawyer will assess your state of affairs and let you know which form of bankruptcy is the better option: Chapter 7 or Chapter 13. These labels refer to the federal codes regulating bankruptcy, and your personal circumstances, including type of debt and assets you may want to protect, will determine the better choice.

Many people will not even have an option, as you must meet the standards of a means test to qualify for a Phoenix Chapter 7 bankruptcy. Congress passed a sweeping new bankruptcy law in 2005, making it more difficult for people to qualify, and file, for bankruptcy.

The reasoning behind the new bankruptcy regulations was that too many people were carelessly piling on debt and using bankruptcy to get out of their obligations. If you find yourself facing this incredibly difficult decision, you probably think that any member of Congress ought to try walking in your shoes for a while. They might become aware that injury, illness or job loss does not constitute carelessness. When you find yourself in this challenging position, don’t tough it out alone. Find yourself a good Phoenix bankruptcy lawyer to help you guide you through to the light at the end of the tunnel.

Source: Lawyers-Law.com

Home Affordable Modification Program

In March 2009, the US government declared an initiative that was set into motion so as to aid homeowners to keep their homes and put off the threat of foreclosure. This program gives each homeowner in financial duress a glimmer of light in an area that seemed so dark and it is called the Home Affordable Modification Plan.


President Obama put this plan into effect this year in order to pull people out of possible financial disaster and keep the economy ticking along. The majority of homeowners who have a mortgage could possibly be eligible and monthly payments will be largely lowered to a point where their mortgage payment fits into their budget.

This fantastic initiative has shown to be a massive break for those homeowners who have come close to losing their house and the government has permitted thousands of dollars to help give both the consumer and the economy a large helping hand.

Who is eligible for this initiative?

Because of the giant number of homeowner's and the fact that the majority of lenders are not suitably staffed, now is the time to jump in and attain help in paying down your mortgage. It will assist you to avert foreclosure and the credit issues that will haunt you for the next umpteen years. There are guidelines put into place that will allow you know if you qualify for the home affordable modification plan.

The main qualification is that you received your current mortgage before the beginning of 2009.

It is imperative that your home be both owner occupied and your primary residence or you will not be entitled. To qualify, the property cannot be an investment and the house cannot be left sitting empty under the terms of this plan. The basics are that the house be your current residence. You will have to document proof of residency with some sort of bill with your name and address on it during the application process.

How much money you make monthly needs to fall into a particular area and guidelines. Talk to a professional ahead of you continuing the process.

Throught the application process, there will be numerous factors being evaluated with your income, expenses and assets being one of the largest parts. Don't rush things and take care to include everything you own that has any true value. If you don't disclose anything you could lead to future problems and keep you from qualifying for this program or government assistance in later years.

Additionally an important point that needs to be made is about those who are currently in the middle of a bankruptcy suit. Don't automatically think that this fact will completely rul you out from this modification scheme. Simply ensure that you are truthful with regards to all that your lawsuit entails at the time of your application.

The initiative will come to an end by December 2012, however all payments will keep going for numerous months after the finish.

The Treasury Department has provided a cash incentive to those who apply early for this plan and make timely monthly mortgage payments. This is a way to encourage people to sign up and the government hopes this will reach everyone that is entitled.

The Home Affordable Modification Plan has been created to make fantastic steps in assisting folks to lower their mortgage payments and put off foreclosure. In the state of our current economy it has taken the burden off many homeowners' shoulders. Now numerous individuals might have a long future with the home they worked so hard for.

Source: CMLC Mortgage

Avoid Bankruptcy Double Jeopardy

Our guest author for this post is Morlino and Lathea Morris on How to Avoid Bankruptcy Double Jeopardy

As more people remain unemployed and layoffs continue, more and more consumers are finding themselves unable to pay their bills and forced to file Chapter 7 bankruptcy. Although you expect your credit score to take a hit when you file bankruptcy, you shouldn’t be penalized twice. But many consumers who have filed bankruptcy and anxiously applied for financing soon after their bankruptcy is discharged, are shocked to learn they have been denied only because the credit bureaus have failed to do their job. Credit bureaus sometimes don’t update consumer credit reports to show debts that are included in the bankruptcy. A court ruling requires the three credit bureaus - Experian, Equifax and TransUnion to report all debts that are discharged through Chapter 7 bankruptcy to be listed as such on consumer credit reports. Delinquent debts that were discharged through bankruptcy that still appear on your credit report not updated will negatively impact your credit score. Why? These debts will be looked upon as current debts and will appear to a potential lender that you still owe these debts.

A customer who has been using our Complete Credit Management Toolkit to smartly manage his credit after filing Chapter 7 bankruptcy, unfortunately, missed a very important follow-up step. He spent a period of time getting his family finances in order and remaining debt free. But it wasn’t until his mortgage application was denied, that he realized he had failed to take a very important step. Had he reviewed his credit reports after his bankruptcy was discharged, he would have discovered credit cards debts that had been included in the bankruptcy were being inaccurately reported on his credit reports. So despite the fact in reality he was debt free, to the mortgage lender he was carrying more debt than he could afford, and he was delinquent on these accounts as well. The lesson here is this, if you see a bankruptcy in your future, remember, once your bankruptcy is discharged, your job is to follow-up with the credit bureaus to make sure they have done their job. Unresolved errors will negatively impact your credit worthiness. Here are some Smart Credit Moves:

1. Request a copy of all three of your credit reports from the three major credit reporting agencies, TransUnion, Equifax and Experian. You can get them free online at www.annulacreditreport.com or call 877-322-8228.

2. Examine your reports carefully for errors. Pay particular attention to any accounts that were discharged as part of a bankruptcy. Any civil judgments discharged in a bankruptcy should be reported as discharged or included in bankruptcy and show a zero balance. Any other accounts discharged in bankruptcy should be reported as discharged or included in bankruptcy and show a zero balance versus showing charge-off or any other reporting.

3. Report to the credit bureaus any errors uncovered. Send them a copy of the credit report with the errors high-lighted, include any supporting documents from the bankruptcy court.

During these economic times, it’s more important than ever for consumers to review their credit reports for inaccuracies that could cause their credit score to plummet -and interest rates and insurance premiums to spike! It is your responsibility to make certain credit bureaus are doing their job. Be Proactive!

Source: Rosie's Boomer Review