Tips for Developing Activities in Your Community

Living in a town with nothing to do is boring for the young and old alike. Parents want to take their little ones to fun activities, and seniors want to interact with other individuals who are around their age. How can you go about making your community a friendlier place for everyone to live? Read on to find out!

Form a Committee

You'll likely find that forming a set schedule of activities by yourself is overwhelming. A good place to start is with the town department of recreation and the local library. Generally, these two places are major hubs for all sorts of activities. Libraries can play host to yoga, arts and crafts and computer courses, and the recreation department is in charge of activities at local parks. Once you've contacted these organizations, ask if a movement can be started to create an activities committee.

 Know Your Neighbors

If you start a soccer team for preschoolers in a town that is almost entirely made up of senior citizens, you're probably not going to have much luck. Start with activities that you feel the community would love. Maybe there has been a lot of talk around town regarding an adult basketball league or yoga classes for beginners. Once you break the ice with these types of activities, you can move on to ones where the intended audience will likely be a bit smaller.

 Host Activities

Sometimes, the town budget might not allow for activities, or your plans may be met with a great deal of resistance. Start hosting some small activities out of your home, but be sure to check if you need a permit to do so. You could host a weekly book club, or you could teach art to children in the community. Consider charging a small fee so that you're able to build this program up. Once community leaders see how well you are doing with the project, they may very well be motivated to let your project expand into a larger venue or space.

The Details

Starting a community wide activity is not as simple as just telling someone that you want to do so. You'll have to go over a budget with the town or other people in your committee. If the activity requires a specific skill set, such as the ability to teach yoga or to demonstrate clay modeling to a group of budding artists, you'll need to hire an individual to conduct the session. Advertising is a huge part of starting community activities too. If no one or just a couple of people show up, the operation may be knocked down before it even has the chance to get onto its feet.

 Starting new activities in your community is a way to become more involved, and it's also a way to meet new people who may live just down the block. Remember, start out small and keep the details in mind. If you play your cards correctly, your activity might just be the biggest hit in town before you know it.

Jessie Rodriguez writes about his career in community development. Recently, his work has been on the Top 10 Best Online Bachelor's in Social Work Programs .

 

 

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Should You Buy When Mortgage Rates are at Record Lows?

This past week, mortgage rates hit a new record low, bottoming out at a 3.79% average for a 30 year loan. A fifteen year mortgage is now at 3.04%. This is compared to rates that were 4.64% and 3.82% a year ago, respectively.

To put that in perspective, if you have a $200,000 home loan, your monthly mortgage payment for a thirty year loan would be $930.78, and on a 15 year loan, you’d only be paying $1,385.01.
That’s pretty low. For many people, these rates would be lower than what you might expect to pay on a similar rental.

When Sarah and I bought our home, interest rates were falling pretty quickly. We got a rate that was under 6% on a thirty year mortgage and were thrilled with how low it was. Today, we could have received a mortgage with the same monthly payments but for an amount tens of thousands of dollars higher. The pendulum really has shifted in favor of the buyer.

These low rates bring about a big question: how low do rates have to be before it’s a good idea to get a mortgage, even if you don’t have a 20% down payment?

This is really a tricky question to answer, because much of the answer has to do with one’s personal ideas about money. There is no good way to “run the numbers” over the long term, because the true answer to this question relies on the future of the housing market in the particular area where you’re buying the house, as well as things like the homeowner’s desire and ability to keep their house in good shape.
Given that we can’t know such things, my perspective is that you should buy when your total monthly cost for owning the home is less than the total monthly cost of renting. Right now, the interest rates are making the home ownership cost quite low.

For example, let’s say you’re looking at buying a townhouse that’s similar to the apartment you’re renting with your spouse. You’re currently renting for $1,200 a month and you pay, say, $25 a month in renters insurance.

If you buy a $200,000 home with nothing down, you’ll be paying $930 a month in mortgage payments, another $80 or so a month in PMI, another $80 a month in homeowners insurance, and another (say) $200 a month in property taxes. That adds up to $1,290, which means it’s a solid deal, but not a great one.
Now, if you buy a $150,000 home with nothing down, your total goes down to somewhere around $970 a month, which makes it a better deal.

In other words, if the total cost of your rental is more than the total cost of home ownership, then you should own. If it’s really close, I lean slightly toward renting, simply because there are usually extra costs in home ownership, such as home repairs and the like. You can no longer just call a landlord.

Right now, the pendulum is about as far toward home ownership as can be, but it’s still not all the way there for everyone. If you’re in an inexpensive apartment and don’t have a down payment saved up, you’re better off staying put.

What about the pendulum swinging back the other way in the future? The possibility of something becoming more expensive in the future is not a good reason to put yourself in a financially risky position today, particularly if your financial position isn’t strong enough for home ownership. If you don’t have a lot of money to spare, leave the risky investments to others and play it safe.

Source

Preparing For Bankruptcy

When you are considering a trip, usually, you make substantial preparations in anticipation of that trip. You make travel arrangements; you make sure you have a place to stay; you make reservations for any activities in which you wish to participate. You will often make significant plans and preparations for any “big” event. Bankruptcy is no different. It is a significant life event that demands some thought and preparation before you embark on it.


In talking with potential bankruptcy clients, it seems that a lot of them wait until the last minute before contacting a bankruptcy lawyer to find out how bankruptcy may help them. While visiting a bankruptcy lawyer most likely does not rank high on most people’s “bucket list,” if you are struggling financially, it most likely makes sense to determine if and how bankruptcy can help you sooner rather than later.

So, how can “preparing” for bankruptcy help? First, you will need to have the fees for the lawyer and for the court available. For now, for a chapter 7 filing, just the filing fee is $306.00. Additionally, before you file, you must complete a consumer credit counseling session and get the certification that must be filed with the court. If you “fail to plan” for your bankruptcy filing by finding out what you need ahead of time, when your car is on the verge of getting repo’d, you may not have the time and/or money to retain a bankruptcy lawyer.

Second, you can carefully go over your income and expenses and see where the trouble lies. Certainly a bankruptcy lawyer can help you identify the problem (with appropriate information) but you also need to know how you got into this financial mess. Some problems are easy to identify–temporary loss of income; extraordinary medical bills; overspending for a bit, etc. Bankruptcy can assist in overcoming those past problems but you need to be aware of the problem so that you can avoid it in the future. Bankruptcy is designed to be a “fresh start.” You can greatly assist in obtaining that “fresh start” by breaking or modifying some of the habits that perhaps got you here in the first place.

Third, make sure you know who you owe and how much. Find out if there is any collateral associated with the debts and gather up loan documents. Your lawyer will need this but, more importantly, you need to know your own financial picture. Credit reports are freely available and can be a big help. Also, if lawsuits or foreclosures have been filed against you, make sure you have that paperwork–all of it! It is important!

Finally, change your mindset. In dealing with individuals facing financial problems, it is often much more difficult instead of dealing with distressed businesses. That is because a business looks at assets and liabilities and can make a rational decision as to whether keeping an asset is worth the corresponding liability. Understandably, people are attached to their “things.” But, after all, they are just “things” and you have to consider carefully whether retaining a “thing” is worth the potential stress and headache. As an example, if you suffered a decrease in income and you have two relatively late model cars. No one wants to give up one or two cars but sometimes it is better to surrender a vehicle or two in order to keep your house (if that is important to you). There will be some emotional attachment to some “things” but it is imperative that you do this. Determining what is important to you is important for your bankruptcy lawyer in setting achievable goals for your bankruptcy filing.

Finally, do some research. There is a lot of information about bankruptcy that is freely available. However, you should exercise extreme caution in considering the information. Not that the information is inaccurate (some info may be outdated or simply inapplicable) but it takes an experienced profession to know what is appropriate and what is not. But, by familiarizing yourself with some basic bankruptcy information, you will be in a better position to appreciate and assist your bankruptcy lawyer in setting realistic and achievable goals.

After all, the real goal of a bankruptcy filing is a “fresh start.”


Source

Should I Short Sale My House Or Declare Bankruptcy?

By Orfelia M Mayor, Esq.
You bought your home during the real estate rush a few years ago and now your dream home has turned into an upside down nightmare with adjustable interest rates. The rates are going up while the value of your home is going in the opposite direction. In addition, credit card debt is mounting since credit card companies have been on a mission to raise interest rates to the 25 - 29% level. What's a consumer to do?

Unfortunately, there's not much one can do to stem the tide of today's economic climate. The banks are going to do what they are going to...the credit card companies are going to raise their rates (regardless of your credit history) and to top it off, you never know if your job will be there tomorrow.

When it comes to your home, you do have a couple of options. If you cannot afford the payments on your home anymore, you can try to have the loan modified to a more affordable payment under the HAMP legislation. Banks are moving very slowly in this area and although they are reducing interest rates, they are not forgiving principle and closing the gap between your home's value and what is owed.

Another option is to short sell your home to a buyer. A short sale is when you sell the house for less than what is owed on it. This requires the bank's approval since they are taking a loss on the original mortgage. This process usually takes months and is not always successful. The difference between what you owed on the house and what it was sold for is called a deficiency. Banks will issue you a 1099 Misc for the amount of deficiency and you will have to declare it as income on your taxes. Yes, you will have to pay income tax on that amount. The good news is that until 2012, deficiencies on primary mortgages (your homestead home) are forgiven through legislation that President Bush signed. After 2012, you will have to pay taxes on deficiencies unless the law is extended by Congress.

In a bankruptcy, you can choose to surrender the home and all of your personal liability for the loan amount is forgiven. That includes any potential deficiency between what was owed and what the bank ends up selling the house for. There's no haggling with the bank, no approvals to wait for - no doubts as to what the future will bring. Additionally, filing bankruptcy will eliminate all of your other unsecured debt so you can truly get a fresh start and a good night's sleep.

If you'd like more information on bankruptcy options for eliminating debt, please visit http://www.ombankruptcy.com/

Orfelia M. Mayor, Esq.
Bankruptcy Law Firm of Orfelia M. Mayor, P.A.
Fort Lauderdale, Florida
http://www.ombankruptcy.com/

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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

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.

Source

My Life Experience 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

How much it costs to attend Super Bowl XLV

If you are a penny pincher, which, let's face it, most of us are, we will not be attending the big game this year. If by some chance you're debating, this will change your mind. I had no idea the costs behind just getting there. Yeah yeah I knew the tickets were expensive, but everything else added up.... Gimmie a break! This is the best way to go broke if your on a budget! ...and if your on a strict budget and decide to go anyway, you need our help. Call us 800-920-2262. We'll change your mind. You can thank us later. Debthelper.com

Break out your credit card. Better yet, several
By Jay MacDonald

Headed to Dallas for Super Bowl XLV?

Bring a credit card -- heck, bring a deck of them -- because everything in Texas is supersized this weekend, including the prices.

First and foremost, you're going to need a ticket. Good news: the NFL Ticket Exchange lists 21,032 seats still available as of Tuesday afternoon in the new $1.2 billion, 105,000-capacity Cowboys Stadium.

The bad news? They run between $2,400 and $23,730. Yes, apiece. Which might at least push your card's credit limit.

On the other hand, if you recently sold the ranch, you might want to consider an XLV offer on eBay for a private, 25-person luxury suite on the 40-yard line just two doors down from Cowboys owner Jerry Jones, complete with catering, attendant and private loo, for just $599,000.

For the ultimate in NFL street cred, Barclay's new official NFL Extra Points rewards card enables diehard fans to flash their team's colors and logo with every purchase. NFL Extra Points cardholders enjoy a 20 percent discount at NFLShop.com and earn loyalty points toward game day tickets, memorabilia and fan experiences with every purchase.

You can even cash in your rewards points for a seat at next year's Super Bowl, but you'd better get busy -- it will cost you 200,000 points at $1 per point.


Your Pockets after Super Bowl

 Let's talk parking. According to ParkWhiz.com, you'll spend between $550 and $990 for a parking space one-tenth of a mile from Cowboys Stadium, no discount for steer horns on the grill. Ouch, right? If you don't mind riding a free shuttle, you can park one mile away for a mere $55.

As for accommodations, this might be the year to reconnect and crash with that geeky guy from high school who wound up in Big D. CBS MoneyWatch reports that the cost of a queen room at the Arlington Super 8 Motel goes for $1,198 plus tax for Friday and Saturday night. 'Nuff said.

If you plan to pull plastic to partake of the more exclusive Super Bowl parties, you may want to brace your card company first. A single ticket to the marquee Sports Illustrated soiree featuring the Black Eyed Peas -- the halftime performers for the big game -- runs $1,500. Hey, that's cheap; a stage-side cabana for 12 goes for $80,000. Admission to a private party with Prince will set you back $1,500 per as well, which makes the $750 cover charge to rapper Diddy's "Fantasy" blast seem like a steal.

Game: 60 minutes; commercials, 46

The SB wouldn't be the SB without those 46 wacky minutes of TV commercials that have garnered a following all their own over the years. The big game has become the big reveal for ad spots that feature celebrity send-ups, anthropomorphic animals and zany sports spoofs from major brands and bet-it-all upstarts alike.

The cost to join the XLV commercial lineup? A record $3 million for a 30-second spot. The reason? Last year's viewership topped 106 million, roughly one-third of the U.S. population. This year's viewership is predicted to exceed 110 million.

Among this year's most anticipated time-outs, Ozzy Osbourne and Justin Bieber take a "Star Trek" turn for Best Buy, reality star Kim Kardashian attempts to make Sketcher's Shape-Up shoe look sexy, comedians Richard Lewis and Roseanne Barr follow last year's Betty White mudfest in Snickers' clever "You're not yourself when you're hungry" shtick, NASCAR driver Danica Patrick and fitness gurl Jillian Michaels push the envelope for GoDaddy.com and rapper Eminem follows Ozzy into Claymation for Lipton Brisk iced tea.

E*Trade, which has featured its talking baby day traders for the past three years, will unleash the diapered dealers again this year, including a pregame "talk" with Fox Sports.

It's the only event where advertising is not the uninvited guest. Commercials come on, people stop talking.

-- Nick Utton
E*Trade chief marketing officer

"It's the only event where advertising is not the uninvited guest," E*Trade chief marketing officer Nick Utton told the New York Times. "Commercials come on, people stop talking."

Of course, the bigs will be back in force. Anheuser-Busch, which has unveiled everything from talking frogs, lizards and gorillas to a lamb streaker in 23 consecutive Super Bowls, has five spots this year -- its first as exclusive Super Bowl beer advertiser through 2014. Pepsi will air six spots for Pepsi MAX and Doritos, General Motors will roll out five and Hyundai three. If you can't wait for the show, the website SuperBowl-ads has posted 2011 Super Bowl ad previews.

Conspicuously absent from the XLV lineup are credit card commercials. Past Super Bowls teemed with credit card ads. This year, all we have is the pregame campaign from Visa, whose "Never Miss a Super Bowl Club" spots feature four weathered gents who have missed family births and weddings for 44 years in order to attend the big game.

Betting on the national anthem

There's little doubt that XLV will redline more than a few credit cards before the winning QB plants a wet one on the Lombardi Trophy this year. It is equally predicable that a fair number of cardholders will try to hedge their spending spree with a wager or two on the big game -- placed on their card, of course.

SBNation.com reports that MGM has already accepted a $1 million bet on the Packers. Win or lose, that's one cheesehead that's likely to stand alone!

With this gridiron classic too close to call -- Las Vegas odds makers favor Green Bay by 3 -- many soon-to-be super-debtors are hoping to hit on "prop bets" to prop up their finances. A "prop bet," or proposition bet, is a bet made on a proposition or outcome.

XLV's most intriguing prop bets?

•Coin toss: heads or tails?

•Which team will win the toss? Unexplainably, the NFC has won 12 straight Super Bowl coin flips. Will the Packers extend the streak?

•How long will it take Christina Aguilera to sing the national anthem? Over/under 1:50 minutes.

•How long will she hold the word "brave?" Over/under 6 seconds.

•Will her hair be any color other than blond?

•Will she wear a cowboy hat?

•How many times will controversial former Packers quarterback Brett Favre be mentioned? Over/under 2.5

•How many times will the word "lockout" be mentioned? (Why "lockout"? Owners have mentioned that they will likely lock players out in the offseason as the two sides continue contentious labor negotiations. Some believe that the lockout could continue for months, even putting next season in peril.) Over/under 1.5

•What color Gatorade will be dumped on the winning head coach? According to Pregame.com, a $100 bet returns $150 for yellow, $300 for clear or orange, $400 for red, $500 for lime green and $1,500 for blue.

Whoever emerges victorious, whether on the field, the advertising response or the tote boards, the only guaranteed winner of Super Bowl XLV will be the Dallas metroplex, which stands to rake in a record $202 million, according to a PricewaterhouseCoopers estimate.

Not bad for a week's work.

 Source

5 Reasons You Will Always Be Broke

Being broke sucks. I’ve had extended periods in my life where I have been living on the edge of financial ruin, so I know how stressful and overwhelming it can be. When you’re broke and hating your job, things are much worse. It's hard to leave ANY job, regardless of how insanely miserable it is. This is the reason I still need to work at my loathsome job as a financial planner.


Over the last 9 years working in financial planning (and struggling with my own budget), I have seen some commonalities when it comes to people living beyond their means.

Struggling with a job you hate job is hard enough, but when you never seem to have enough money to pay the bills, let alone get ahead, things can be damn depressing. Financial stress is extremely difficult on you, your marriage, and your children. I am speaking from personal experience here.

Getting ahead financially is not especially difficult, even in the absence of a high paying job. It all comes down to your spending habits. It seems so simple; spend less than you earn. In reality though is much more difficult than that.

Our society has taught us how to be greedy, needy, over spenders. In fact, it's empowered us to be downright irresponsible. We want what we want and then we go buy it! If we don't have the money, we buy it anyway.

With this in mind, here are the top 5 reasons that you will always be broke:

Your Spouse Is Out Of Control.

I've seen this time and time again. A non-working wife decides that she needs to fill her empty day with spending their money on anything and everything that looks remotely interesting. Ok, this is a little extreme, but having a spouse that is out of touch with the family finances (and reality), is very difficult to manage. If both partners are not on the same page with the money, things can, and usually do, get very ugly.

You're In Denial.

Millions of people reside here. This is when you refuse to accept that you need to take a serious look at your financial picture. Doing so would mean you might actually have to stop spending and do without the things that your cool neighbor has. Who wants to do that?

You Are A Dreamer.

I worked for a multi-level marketing (MLM) company about 15 years ago and I was taught that if I followed their "proven system", I would become wealthy. Guess what, thousands of us bought into it. We spent like we didn't have a care in the world, hell, we we're going to be RICH in 5 years. As it turns out, it was not what we all thought it was and the company, along with our hopes of becoming a millionaire, went down the toilet.

Dreams are fine and long as long as the execution plan is injected with a sense of reality. Blindly following hype is a sure path to pain and agony.

You Have No Budget.

Budgeting is a word that strikes fear into our hearts and sends us running for the hills. Why? Because it's absolutely boring, limiting, humbling, and at times depressing. At work, I have no problem building Excel spreadsheets and PowerPoint Presentations all day - still, I hate doing a budget. Now imagine the regular person who has no financial background and doesn't even know what Microsoft Office is. Are they going to budget? I think not. Calculators and graph paper don't have a ton of appeal.

You Waste Too Much Money.

This is supremely obvious, but you would be surprised at how few people actually track their discretionary spending. In know, in your brain right now you're saying that the last point was 'budgeting'. I'm not talking about that here. I'm talking about tracking. People don't think about the coffee and bagel in the morning or the afternoon soda and candy bar they buy, but guess what? They will have spent around $1,700 in a year on this stuff. The $1,700 that could have taken your family on vacation.

Start tracking every dime you spend and you will see the difference! Once you've tracked, you can budget. Without tracking, you have no idea what needs to me eliminated or limited in the first place!

There are a number of other reasons why you could be broke, but these are the 5 most common I've seen. So what do we do?

How NOT To Be Broke

It is certainly possible to turn our finances around and actually start showing in the black, but it takes work, often A LOT of work.

Here are 5 ways to avoid being broke:

Talk With A Professional.

This IS NOT a solicitation to get your business or to endorse any service! Remember, I hate my job and don't really want to help you manage your money. However, I do recommend finding a Certified Financial Planner (CFP) that can help you implement a comprehensive financial plan. Let's face it, most people are clueless when it comes to money.

I have clients with $500k in cash that don't have any idea what a mutual fund is. It's not that they're stupid, they just never took the time to learn. On top of that, investing jargon is confusing and often intimidating.

Use Cash Only.

Say what!!! Too many people fall victim to thinking they can just use their credit card this one time and they will pay it off when the bill comes. That one purchase turns into two and then into $40,000 in Visa and MasterCard debt. If you think you're smarter than that and are going to use your debit card instead, I've got news for you - it doesn't work either. You will end up over spending and getting slammed with $35 overdrawn account fees (and those annoying letters telling you about it). Budget out your needs for the month and use cash only. Use the Envelope Method to control spending. It's cheesy, but it works.
Cut Your Expenses.

I'm not talking about canceling your power or living off of Ramen Noodles, I'm talking about things like limiting eating out, avoiding buying movie theater snacks (a $5 candy bar, really?), reducing your tv cable stations from 800 to 200, and generally avoiding buying anything on impulse. It can be done, it sucks big time, but it can be done.

Set Up Automatic Savings From Your Paycheck.

This is one of my favorites because we totally forget that we are saving. I, unfortunately, have never been a good saver. I am fantastic at spending, but not so great at putting money away. Once you figure out exactly how much money you have going out each month, take a portion of the excess and have it taken out of your check and put into some form of savings vehicle. Also, put it into something that is not readily liquid. You will be much more likely to take it out and piss it away if it's sitting in cash at your bank. Buy a CD with a early withdrawal penalty or a Mutual Fund which charges a fee if you sell it before a certain period. Perhaps that will deter spending. (note: Don't use those account types for emergency funds. You can't get penalized for needing money when the furnace breaks!)

Educate Yourself.

Many of the folks who struggle with their bills are not educated when it comes to finance. People tend to bury their heads in the sand when the topic comes up. You cannot afford to do that anymore. Go find a book on personal finance and spend some time reading and understanding it. You should at least know the basics. The more you understand about money, saving, investing, budgeting, etc., the more likely you are to take control of your finances. If you let it control you, you will always be broke.

The bottom line is that if you're living beyond your means, you MUST take control of the situation immediately. I have seen too many people lose everything because they just couldn't get it together.
Don't let that be you too.

Source

New Toyota Commercial Reinforces Materialism

Been hearing a lot about this commercial lately and decided to let you guys and gals judge for yourselves.



Can we say materialistic children? I embarass my child on a daily basis, with my paint peeling, missing hubcaps, skreetchingly loud when turning the wheel, dent on the back bumper, 10 year old Nissian.
This type of subliminal messaging can only lead your kids into money problems in the future. Teach your kids now about money! It's never to late! After all, wouldn't you rather be a part of the "Geek Family" than Broke?!


If your in debt, CALL DebtHelper.com 1.800.920.2262. We can help!

Five Steps to Take When a Collector Comes Calling for a Debt You Don’t Owe

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If a debt collector is contacting you about a debt you know you don’t owe, explaining your case can be an uphill battle. Whether it’s a matter of mistaken identity, an honest error or identity theft, the Better Business Bureau recommends taking five steps to fight back against erroneous debt collectors.


According to a 2010 report, the FTC received 119,364 complaints about third-party and in-house debt collectors last year, up from 104,766 in 2008. While complaints can be about any number of issues, trying to collect on a debt the consumer doesn’t owe is common. In a recent example, the FTC reached a million-dollar settlement with Credit Bureau Collection Services over accusations that the collection agency violated federal law by inaccurately reporting credit information and pressing consumers to pay debts they often did not owe.

“It can be an exhausting process to set the record straight on a debt you don’t actually owe,” said Alison Southwick, BBB spokesperson. “Because debts are often sold and resold to many different collection agencies over time, you may have to make the same case every few years when the debt trades hands again.”

If you’re receiving calls for a debt you don’t owe, it could be a case of mistaken identity. Perhaps you share the same name, or even inherited an old phone number of the person who actually owes the debt.

You could also be the victim of zombie debt—it could be that you paid the original debt off but it wasn’t recorded as paid, or the statute of limitations on the debt has expired and the debt collector is trying to get you to pay for a debt you can no longer be taken to court over.

A final common cause of being hounded for a debt you don’t owe is fraud. It could be that you have become a victim of identity theft and someone is opening up new lines of credit or buying items using your good name. Additionally, the “debt collector” calling could actually be an identity thief who is trying to get you to divulge personal financial information such as Social Security, bank and credit card numbers.

If you’re being pursued for a debt you don’t think you owe, BBB recommends taking the following five steps:

1. Request written proof of the debt. By law, a debt collection agency must provide you with a validation notice within five days of contacting you about the debt. If you would like to get verification of the debt, send a written request to the debt collector within 30 days after you receive the validation notice. This written proof can help you determine if the callers are actually identity thieves, or if you really do owe the debt. Once you have the name and contact information for the agency, confirm they are a legitimate debt collector with your BBB at www.bbb.org. After you confirm that you don’t owe the debt, advise the debt collector you do not owe the debt and advise them to stop contacting you (see step 4).

2. Correct any errors. After confirming you do not owe the debt, you may want to correct any incorrect submission related to the debt captured on your credit report. Contact the company that has provided the information to the reporting bureau by writing a detailed letter and include copies of pertinent documents which back your case. The FTC provides additional information on how to report errors at www.ftc.gov.

3. Weed out fraud and errors. Check your credit report with the three major credit reporting bureaus, Experian, Equifax and Transunion every year by visiting www.annualcreditreport.com. If you’ve been the victim of fraud or identity theft, you may also be eligible to view your reports for free. By keeping a close eye on your credit reports, you’ll be able to more quickly identify fraudulent activity or mistakes and make corrections before the debt collector calls.

4. Tell them to stop contacting you. According to federal law, a debt collector cannot continue to contact you—at work or home—if you tell them to stop. After confirming you do not owe the debt in question, you may cease all contact from the debt collection company by sending a letter (via certified mail) to the debt collector advising them to cease contact. Keep a copy of the letter and the return receipt for verification purposes. Any further contact to you from the debt collector except to advise you there will be no further contact, or to inform you that the agency is filing legal action, is a violation of the FDCPA.

5. File a complaint with the Federal Trade Commission. Familiarize yourself with the consumer protections provided under the Fair Debt Collection Practices Act. Included are rules that debt collectors may not make false or deceptive claims and must investigate the validity of a dispute over a debt. If a debt collector violates the law, report them to the FTC—the federal government’s agency overseeing fair debt collection practices. You should also file a complaint with your BBB at www.bbb.org.

Source

You're eligible for Chapter 7 bankruptcy, but should you file?

Dear Opening Credits,


My husband and I have accumulated a lot of credit card debt, due to his layoff from a good job and extended unemployment/underemployment. We consulted with an attorney, and it looks like we can do Chapter 7 bankruptcy. We're trying to look at other options, but we're not sure what are legitimate and what are not. Also, we have a lot of pause about a bankruptcy and its effects on our lives for the next 10 years. I'm also concerned about a bad credit report. (Our credit was very good before all this happened.) Thank you. -- Laura

Dear Laura,

Are you familiar with the snappy little adage, "Just because you can doesn't mean you should"? It applies well to bankruptcy. Many people are able to file, but a good portion would actually be better off taking a different course of action. While your attorney said it is a viable option for you, you're right to question whether the legal route is the best road to travel. The person you spoke with likely didn't cover the myriad ways to deal with the debt.

Chapter 7 bankruptcy has equal parts wonderful upsides and rotten downsides. Indeed, it can be a great way to jump-start a new financial beginning. With it, you can walk away from those credit card balances -- well, at least those that weren't incurred for high-dollar cash advances or luxury goods within 60 to 90 days of filing. Those types of purchases might draw the creditor's attention, prompting them to ask that those debts not get discharged.

You don't say how much you owe, but I'll assume it's so much that you're struggling to meet your payments. If you've been late a few times, the interest rates on those accounts will have soared. They could be so high that nearly all of your minimum payment is going toward finance charges. Therefore, each month is the same: You struggle, scrape up as much cash as you can, neglect and even fall behind on vital expenses but get nowhere with that balance.

It seems like a horrible waste, doesn't it? Just think about how you would feel if you could get rid of that debt in bankruptcy. You would be able to use that money you were sending your creditors to pay for living expenses and non-dischargeable bills, and you might even be able to add some into a savings account. That's what people mean when they say it's a fresh start.

Before you get the wrong idea that I'm pushing you toward bankruptcy, know that I am not. If your husband will likely be working again within the next year, I would far prefer that you go on a creditor's hardship plan (assuming it was open to you) where you ask that they suspend payments and maybe even interest and fees for a while. When paychecks start flowing in again, you can get back on track. The fact is, you borrowed that money and ought to repay it if you can.

Other downsides to consider: The bankruptcy notation will remain on your credit report for a total of 10 years. That's a long time for such a black mark to follow you. Back when I was counseling, I used to have my clients picture themselves 10 years older, so a 37-year-old would have to envision herself at 47. Look at it in that kind of mirror and the gravity of a decade is apparent. As for your score, bankruptcy will take it down from where it is now to the very bottom, and it will languish there for a while. Regarding future job prospects, employers aren't privy to your score, but they can see your report --- and thus the bankruptcy. While they are not permitted to discriminate against job applicants who've filed, such a allegation would be virtually impossible for you to prove.

More, if you wanted to finance something during this time -- be it a home, car or new TV -- you would probably be charged a dreadfully high rate of interest. Have valuable property? You may have to give some of it up.

To really help you decide, please visit an accredited credit counseling agency. They will be able to give you a thorough rundown on all of your options, and that may or may not include bankruptcy. For example, a debt management plan could work well for you. Contrary to popular lore, repaying debt on such a program typically boosts a credit rating because it enables participants to resume steady payments.

So should you file, Laura? Perhaps, but only after exploring all other options first.


Source

How Not to Fail at Frugality

Yesterday, I had a wonderful conversation with an Associated Press reporter who was writing a story about teaching children how to be frugal. The discussion wound around through several topics, eventually coming back to the idea that many people (like, for example, Ramit) do not like frugality because it doesn’t give you the “big win” and that people don’t like giving up things like lattes.

She herself gave an example of this. She lives in a major metropolitan area and lives in a small apartment, which means that, in order to entertain friends, she has to do it outside of the apartment.

My response to her was simple: one of her key values is entertaining friends, so that shouldn’t be an area where she cuts back. Instead, she should cut other areas to the bone, and I mentioned making your own laundry detergent.

Why the “latte factor” has problems
David Bach has long been one of the most well-known personal finance voices out there. He’s written a small truckload of personal finance books and reached a lot of people.

One of his most well-known ideas is that of the “latte factor.” To put it simply, it means that if you simply stop buying a latte each day and save that $5, you’ll begin to build that into a great deal of wealth. $5 every day for a year adds up to about $1,800. Investing it at 8% interest and repeating for two decades gets you just under $83,000. That’s just from avoiding a single latte a day.

The math there is absolutely correct – and the concept works, too. If you cut something small out of your life and consistently save the money from that cut, you’re going to end up with some serious change over time.

The problem is what you’re giving up. The “latte factor” of course refers to coffee – something that’s inessential to basic life, something that’s purely a treat. Yet, for some people, a latte a few times a week is a significant part of their emotional happiness. They rely on that sweet flavor and that little caffeine boost and it fuels them throughout a challenging day.

When you take away that latte – from some people, mind you, not everyone – a very noticeable part of their spice of life goes away. The latte is the big treat in their day that really brings them a shot of happiness and makes the day easier. Taking that away makes their day much drearier.

That’s the inherent problem with the latte factor: when you apply it indiscriminately to everything in your life, you’re going to chop away things that are unimportant – but you’re going to also whack away things that are really important to you.

I prefer the “laundry detergent” factor
Everyone has different little things that make their life happy and bearable. For some people, it is that morning cup of coffee. For me, it’s having books to read and a game to play.

The trick is figuring out which of those little thing really does brighten your life – and which of those things don’t. What you’ll find is that when you really dig into this question, you begin to find that surprisingly few things really make you significantly happy (beyond the initial burst of pleasure at acquiring something). An awful lot of things we buy are part of a routine or done to make others happy or done because we’ve believed that it’ll make us happy when it really doesn’t.

That’s the reason I prefer the “laundry detergent factor” to the “latte factor.” Some people get a great deal of personal pleasure and joy from their morning latte. I’ve yet to meet someone whose life is made substantially better by their decision to buy Tide over another laundry detergent.

Thus, I usually tell people to make their own. You’ll save around twenty cents per load of laundry with a homebrew detergent, and it takes about ten minutes to make a batch that will handle fifty loads. Quick back-of-the-envelope math tells you that making a batch of this stuff earns you about $10 (after tax) in ten minutes.

Once you’ve done that and seen how easy it is to save money while living a little cheaper and not reducing your quality of life, start searching for other methods to do it again. Install a programmable thermostat to whack your monthly energy bill. Properly inflate your car tires to improve your gas mileage. If you don’t read magazines much, cancel your magazine subscriptions. If you rarely watch television, drop your cable. Make a simple price book and figure out the best value grocery store around you (unless, of course, you get deep personal value from shopping specifically at Kroger’s).

If something seems difficult or makes you deeply sad, don’t be afraid to back off. You’re probably hitting on something important to you and, unless you’re in deep financial straits, you’ll find more success by leaving those areas alone.

Good luck!

Source

America's new debtor prison: Jail time being given to those who owe

Debtors prisons were federally abolished in the United States in the 1800's, yet in certain states, they seem to be making a comeback. Out of Minnesota come disturbing reports of Americans being thrown in jail due to outstanding bills -- sometimes for as little as $85. The Star-Tribune of Minneapolis profiles a number of people who say their debts got them jailed, including Joy Uhlmeyer a 57-year-old patient care advocate who was pulled over on her way home from visiting her elderly mother and put in jail for a night for missing a court hearing about unpaid debt.

The Star-Tribune reviewed the state's court documents and found that arrests like Uhlmeyer's are up 60% in Minnesota over the past four years. And Minnesota isn't the only state where this is happening. It's a turn of events Ed Mierzwinski, consumer program director at advocacy group U.S. Public Interest Research Groups (or PIRG), calls a "very bad situation for consumers." Mierzwinski attributes the practice to "bottom-feeder debt collectors [who] are very aggressive."

People who are imprisoned for their debts are technically locked up for contempt of court after failing to appear for a hearing pertaining to their debt. It's a legal loophole that debt-collection companies are increasingly using. Here's how it works: First, the collections company files a lawsuit against the debtor, which requires them to appear in court. If the debtor doesn't show up, the creditor wins a default judgment against them. This allows them to ask the court to schedule another hearing at which the judge can go through the debtor's assets and determine if actions such as wage garnishments or bank account seizures can take place.

If the debtor doesn't show up to that hearing, the hammer of justice can come down hard and fast. From there, the judge can order the debtor in contempt of court and issue a warrant for their arrest. If this seems unnecessarily punitive, the price to get out of jail is even more so, say consumer advocates: Generally, the judge sets the cost of bail at the amount of the disputed debt, an amount which is then turned over to the creditor.

"This is the private use of government resources to collect debt," Pete Barry, partner at law firm Barry & Slade LLC, told Walletpop. One of Barry's clients was arrested at her workplace for not filling out and sending back a form demanded by the creditor. The client, Barry says, suffered the humiliation of having to have her boss come to the jail and post a bond before she could be released. The bond money, he added, was turned over to the creditor. "They're using the court system as their collection agent," he says.

"There are big issues," says Ira Rhinegold, executive director of the National Association of Consumer Advocates. "Minnesota isn't the only place it's happening, but it seems to be the worst. They're leading the way," he says, noting that NACA has heard similar stories out of Wisconsin, New Jersey, Arkansas and Washington.

Rhinegold tells Walletpop that some unscrupulous debt collectors never even send debtors the required notification that the case is being taken to court. Then the debtor fails to show up and the collector wins a default judgment, which can pave the way for imprisonment until they post their bond.

What's behind all of this? "In some ways it stems from the growth of the debt buying industry," says Rhinegold. Collection agencies buy debt for pennies on the dollar, then hire lawyers to chase after even the smallest amounts. Of all of the unfair aspects of this chain of events, advocates say the most galling is that, in many cases, consumers may not even be legally responsible for the debts for which they're being jailed. In fact, the debt may not even be theirs, the amount may be inflated by penalties and attorney's fees, and it's almost certainly been written off by the original creditor -- who then resold it for pennies on the dollar to a debt-collection firm that plays hardball to get money from consumers. Often, says Rhinegold, the collector doesn't even have the paperwork that would prove that existence of the debt. In these cases, the judge will dismiss the case against the debtor. All the debtor had to do was show up for their day in court.

For this reason, Gail Hillebrand, financial services campaign manager at nonprofit Consumers Union, says it's vitally important for consumers to respond if you get a letter threatening legal action and requiring a court appearance. The name of the collector can change because of how often debt is resold, she warns. So if you have an outstanding debt, don't assume that a notice that seems to come from a different company than the original lender is junk mail. "The problem is that people don't realize what it is," she says.

It's important to do some research first, though. If the debt isn't yours, you can dispute it. Even if it is, showing up to court can sometimes lead to an outcome in your favor if the collector can't prove you owe the debt. Either way, it will keep you from being hauled off in handcuffs.

Source

When will BP send you to BK?

If you still need the required counseling for bankruptcy,
Debthelper.com can help! Call us today. 800-920-2262.

Alert: Obama Warns World Leaders ‘Millions Could Die’ From Gulf Oil Disaster

A sobering report circulating in the Kremlin today from President Medvedev’s meeting with other World leaders at the G8 summit in Muskoka, Ontario states that President Obama has warned his counterparts that the Gulf of Mexico oil disaster “will most likely kill millions, perhaps tens of millions” of people during the coming year.

Fueling Obama’s dire assessment of this “Gulf Apocalypse”, this report says, are the oil and toxic rains now being reported to be falling throughout the US Gulf Coast region due to the fracturing of the Gulf of Mexico seafloor allowing untold millions of gallons of oil and millions of cubic feet of methane gas to escape unchecked into our World’s seventh largest body of water, not to mention the millions of gallons of dangerous disbursements being used that is poisoning everything in its path.

So dangerous has the Gulf Coast environment become to human beings the United States Centers for Disease Control and Prevention (CDC) issued a warning that, in part, says: “People, including pregnant women, can be exposed to these chemicals by breathing them (air), by swallowing them (water, food), or by touching them (skin). If possible, everyone, including pregnant women, should avoid the oil and spill-affected areas.”

With nearly 20 million American’s living along the affected Gulf Coast region one wonders where they could all go and leaving many to speculate a massive evacuation is being planned by the US Government of the entire region.

This view, however, is not shared by a Louisiana woman named Kindra Arnesen who was allowed unprecedented access to the BP Operations Center overseeing this catastrophe and reported to the Gulf Emergency Summit this past week that along with millions of fish dying because of this disaster people are falling ill all over the region.

Even worse is Arnesen’s incredibly reporting that even as this oil disaster grows BP is being allowed the US government to begin cutting costs in their cleanup and oil containment efforts.
Important to note about in this report is that Obama’s warning that “millions could die” from this disaster has been further confirmed by the American engineer who helped lead the team to put out the Persian Gulf oil fires set by Saddam Hussein in the first Iraq war and had warned a full 12 months before the April sinking of the Deepwater Horizon that BP was drilling into a huge methane deposit that if released would be beyond catastrophic, it would be biblical in its scale of destruction.


Interesting to note too is that one of the World’s top oil and gas industry experts Matthew Simmons is calling for the evacuation of the entire US Gulf Coast, and as we can read as quoted by him in an interview with the Washington Post News Service: “We’re going to have to evacuate the Gulf States. Can you imagine evacuating 20 million people? . . . This story is 80 times worse than I thought.”

Now the “80 times worse than I thought” comment by Simmons is one of the most vitally important points to understand in this unfolding historic disaster due to the findings of the United States National Oceanic and Atmospheric Administration (NOAA) high-tech research ship Thomas Jefferson, and as we can read as reported by the Los Angeles Times News Service:
“The National Oceanic and Atmospheric Administration on Monday released new data from the agency’s latest research trip through the Gulf of Mexico, showing concentrations of oil below the surface at more than 3,600 feet below the surface, about 7.5 nautical miles southwest of the BP’s blown-out well.

The Thomas Jefferson research ship found evidence of depleted oxygen, a potential sign of microbes digesting oil, in the area. Acoustic and fluorometric instruments likewise indicated the presence of oil. Water samples taken on the trip have not been analyzed.
Since the leak began April 20, attention has been focused on surface oil washing up on environmentally fragile shoreline ecosystems. But “plumes” or “clouds” of oil hovering in the water column below the surface, where myriad marine life eat, breed and swim, has as much or more potential to cause ecological damage to the Gulf, scientists have warned.”

Not being explained to the American people about NOAA’s findings is that the live video feed of this spill being shown to them of this spill contains oil and methane gas being expelled at pressures estimated to be at 100,000 pounds per square inch (psi) and cannot in any way being associated with the massive underwater oil plumes found by the Thomas Jefferson nearly 8 kilometers away.

To where these massive underwater oil plumes are coming from, Simmons stated during an interview on the US television network MSNBC that the release point was “5 to 6 miles away” from where the Deepwater Horizon sunk.

In our June 10th report “Scientists Warn Gulf Of Mexico Sea Floor Fractured “Beyond Repair” we reported that Russian scientists (the only scientists to have actually viewed this disaster in their deep submersible submarines) had likewise confirmed Simmons dire assessment of this catastrophe; reports, mind you, that not only have we seen, but Simmons has undoubtedly seen too.

Most incredibly in all of these events is that Obama has issued what many experts are calling a “get out of jail free card” to BP in the setting up of a $20 Billion “sham” cleanup fund paid for by this British oil giant that allowed them to borrow from Goldman Sachs the entire amount and not affecting their bottom line for years, if not decades to come.

To the greatest consequence of this catastrophe upon the American people, an FSB appendix to this report warns that the US Soldiers currently deployed throughout their island territory of Puerto Rico are in fact being trained in how to “suppress and contain” large concentrations of people and being “recycled” to military bases throughout the State of Florida where they will soon be joined by an estimated 28,000 NATO allied troops where both will join up with an estimated 7,000 pre-positioned UN marked vehicles for purposes “still not known or clearly stated by the US”.

To the greatest danger facing the American people it comes from the founder of the psychoanalytic school of psychiatry Sigmund Freud’s nephew Edward Bernays, the father of the field of “public relations” and propaganda, who said that news was made “when reality is distilled down to the most simplified and dramatized form and it appeals to the instincts of the public mind.”

Unfortunately, the “instincts” being instilled in these Americans “public mind” is going to kill them as there is NOTHING to be simplified about this catastrophe, and what they aren’t being told by their so called mainstream media, or what they aren’t willing to find out for themselves, is going to kill them. Just like all of those who cleaned up the1989 Exxon Valdez spill disaster, ALMOST ALL OF WHOM ARE NOW DEAD.

Bankruptcy - What if the Creditor Didn't Intend to Harass You?

Written on April 2, 2010 by Eugene S. Melchionne Attorney at Law in Bankruptcy Basics

It is not necessary to prove intent to violate the automatic stay when a creditor calls after you have filed for bankruptcy in order to recover damages for harassment.

Considering the previous post, you may imagine that the creditor who harassed you claims in Court, “I didn’t mean to violate the automatic stay when I sent bills and made those 3 AM phone calls. It was an honest mistake!” Thankfully, if he argues something like this, the Judge will side with you.

When attorneys file motions against creditors for violating the automatic stay, all they need to show is that the actions were a “willful violation” of the stay. That means the creditor “knew or had reason to know” that you filed for bankruptcy.

In practical terms, this means your attorney does not need to show intent or some nefarious scheme to try to collect despite the bankruptcy or sent out an incriminating memo stating a desire to violate the stay.

In other words, your lawyer merely needs to show the Court that the creditor should have known the automatic stay existed and that the creditor sent the notice. By showing this, you will receive damages from your harassing creditor.

Of course, the nest question to be answered is “what are the damages?” While emotions are a factor, it is impossible to put a number on them. However, if you lose time from work or have to pay an attorney to defend you or are put to some other cost, these can be recoverable.

If you’re thinking about bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.

Contact Attorney Melchionne
Eugene S. Melchionne, Esq.27 First Ave.Waterbury, CT 06710(203) 757-3437

www.mybkcounseling.com

Credit after bankruptcy: Brave new world in 2010

If you still need the required counseling  for bankruptcy, Debthelper.com can help! Call us today. 800-920-2262


What will bankruptcy do to my credit rating ? is the most frequent question prospective bankruptcy filers ask. I try to stifle my knee jerk reaction to ask if anyone who knew the truth about their financial situation would lend to them now, and now I say truthfully, I don’t know.


Before the Great Recession, I could tell clients several things with confidence:

Your bankruptcy filing becomes less and less significant with each passing year

A recent bankruptcy influences chiefly the price of credit; credit is still available

You recover for home buying purposes faster than for unsecured credit

Parts of your credit score will go up immediately after the discharge

As the economy improves, I doubt that we will return soon to the way it was before: credit given out indiscriminately almost irrespectively of the borrower’s ability to repay. I hope not.

I think that going forward credit in general will be more limited and even based on an estimate of the borrower’s ability to repay. I hope that borrowers will take on debt with the same thoughts in mind.

But even if credit is less available, I suspect that the principles I’ve been reciting will remain true. People with little or no debt will be better candidates for credit than those who have lots of outstanding credit, even if they are current on that debt.

The other fundamental issue is that one’s financial health is not measured by how much money you can borrow. It’s measured by your net worth, your available cash flow, and the stability of your income. The elephant in the room for most of my clients is that, whatever their age, they are under-prepared for retirement. Rather than thinking about what kind of “things’ they can acquire on credit, they need to be living beneath their means and saving for retirement.

But I am certain that whatever the availability and terms of future credit, 99.9% of the people in my office asking that question will be better off shedding impossible debt in bankruptcy.

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Mutual Funds

Establish the right mix of mutual funds for you Low-risk stuff pays nothing nowadays, so you need to invest in stocks and bonds to earn a decent return.
Ingredients:
• Internet access.
• The result of your risk-tolerance test.
Instructions:
• See the model portfolios assembled using Kiplinger 25 funds.
• Choose the portfolio that most closely matches your recommended allocation. Tweak the allocations if your target for stocks doesn't align closely with one of the model portfolios.
If you're investing in a taxable account, consider using the Fidelity Intermediate Municipal Income (FLTMX) fund for some or all of your bond allocation.
Total time: five minutes.

Buy mutual funds
Ingredients:
• Internet access.
• A brokerage account.
• Your perfect portfolio.
• A calculator.
Instructions:
• Translate your portfolio's allocations from percentages to the actual dollar amounts you plan to invest.
• Next, log in to your brokerage account, and go to "trade."
• Place your orders.
Total time: up to 15 minutes.

See whether your fund managers have skin in the game
If the fund manager has money alongside yours, your interests are aligned.
Ingredients:
• Telephone or Internet access.
• Money in a mutual fund.
Instructions:
• Read a fund's "statement of additional information" to find out whether your manager has money in the fund. The statement will describe a manager's investment in broad dollar ranges, from zero to more than $1 million.
The statement is usually available on the fund's website. If not, call the sponsor and ask for the document to be mailed to you.
Total time: five minutes online or about 10 minutes for a phone call.
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South Florida Distressed Homeowners

The following are some of the options open to the South Florida distressed homeowner:

Many homeowners in Florida have experienced an unprecedented loss of value in their homes. In the years leading up to what the media likes to call the "Mortgage Meltdown" many homeowners were enticed to tap in to the seemingly abundant and always increasing equity in their home to consolidate credit card debt, do home improvements, or simply take some cash out of their home to pay for a vacation.
The temptation to take out a Home Equity Line of Credit (HELOC) or to refinance was fueled by the never ending advertisements on all type of media promising all time low interest rates, small monthly payments, and the ability to "write off" the payments come tax time.

1. Mortgage Modification - HAMP or otherwise. As the mortgage companies have ramped up their staffing, the ability to achieve a HAMP or other modification has been increasing. The government regulations have also been improved over time to increase the achievement of modifications.

2. Short Sale - often favored by real estate brokers, but may soon have more actual benefit for homeowners if FNMA guidelines are changed to allow for better future credit for short sales rather than foreclosure.

3. Deed in Lieu of Foreclosure - the homeowner gives a deed to the mortgage company to avoid a full judicial foreclosure. Often not requested by mortgage companies due to possible title issues.

4. "Walk Away" from Home

5. Chapter 13 Bankruptcy - often combining a HAMP modification for the first mortgage and an avoidance of the second mortgage. Recent changes in HAMP rules have approved the use of HAMP within chapter 13 bankruptcy.
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