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Consumer Interest Articles

October 2008
A Ghostly Tale
Benefits of a Spending Plan
What You Need to Know About Reverse Mortgages
Announcing CCCSSA /NHS Partnership

July 2008
CCCSSA Helps the Economy
Credit Reports & Scores
Extreme Saver Secrets
CCCSSA  Happenings

April 2008
National Financial Literacy Month - The Concept of a Lifetime
Ten Short-Term Sacrifices That Can Make You A Millionaire
Are you an Inner Money Hog?
How to Make Room for Building Wealth in Our Economy

January 2008
Identity Theft: Myths and Realities
A look back at 2007
Charge-off and collection accounts: the best way to handle them if you want to improve your credit score

A Ghostly Tale

Thinking about “ghosts” may remind us of times like Halloween activities, “trick or treat”, and carnivals; however, Identity thieves have given the term a different meaning.

According to Wikipedia, “ghosting” occurs when a thief steals the identity of a deceased person. They may look for someone around their age, height, gender, and so on to avoid suspicion.  Because the thief usually has abused their own credit lines or has a criminal record, they intend to get a fresh start with the deceased’s identity.

Before the Information Age, it was easier to get away with assuming another person’s identity. With unrestricted access to public records (birth and death certificates) in that era, all the thief had to do was pay a small fee and obtain a copy of the respective death certificate. Genealogical organizations were sometimes unknowingly accomplices in the process. But today with a new awareness of privacy, you have many options available to protect your identity.

Here are some steps you can take to protect the identity of your loved one or friend:

· Do not provide too much identifying information in any public announcements including obituaries;

· Cancel the deceased’s drivers license, financial, medical and governmental accounts;

· Send copies of the death certificate to the three major credit reporting bureaus: Equifax, Experian and TransUnion. Approximately one month later, check their credit reports and look for any fraudulent activity.

If you need assistance reading credit reports, CCCSSA can help you with this for a minimal fee.

Learn more about “ghosting” and other forms of Identity theft by participating in our Protect Your Identity Day Event, Saturday, October 25^th, from 9 am to 2 pm at our main location, 6851 Citizens Parkway, off Fredericksburg Road and Loop 410. Activities include: credit report review sessions, document shredding, an educational fair as well as hot dogs and cold drinks.

All activities, free and open to the public, are made possible by our sponsors, Alamo Area Consumer Education Partnership (AACEP), Security Service Federal Credit Union, Alamo Chapter of Credit Unions, San Antonio Federal Credit Union, Randolph-Brooks Federal Credit Union, Ancira Dodge, and Marshall Shredding Company.

To learn more about Identity theft, visit our web site at www.identitytheftcounseling.org. You may also contact CCCSSA at 210.979.4300 or 1.800.410.2227 toll-free or online at www.cccssa.org.

Benefits of a Spending Plan

 

What are your financial goals; homeownership, college, travel, or retirement?  To achieve these goals takes time and planning. One of the best ways to get started is to organize your finances.

 

A fundamental tool of financial organization is the Spending Plan. Without a plan, spending decisions may be reactionary. A sound Spending Plan however can control your life’s direction and prevent making foolish choices with your money. You are also less likely to become a victim of identity theft because you are aware of your financial habits and credit history.

 

What is a Spending Plan?

 

A Spending Plan is a guide to help you strategize how you will spend and save your money. It gives you the means to track the amount of money that comes in and goes out to meet your living expenses.

 

Purpose of a Spending Plan

 

A Spending Plan helps you control your finances so your finances do not control you.

 

When constructing your Spending Plan, be realistic.  You will probably be more successful when you cut back rather than cut expenses. Because the plan is a revisable document, it is important to review it monthly and make necessary changes.

 

A well-designed spending plan considers all sources of income, living expenses, debt obligations and savings. It should include all three expense categories: fixed expenses (e.g., mortgage/rent, auto loans and insurance), variable expenses (e.g., groceries, entertainment, clothes and gasoline) and periodic expenses (e.g., property taxes, home repair, car maintenance and holidays).

 

Benefits of a Spending Plan

• Helps you set money aside to reach your savings goals
• It is important to treat yourself like any other bill and "Pay Yourself First":
• Arranging for a portion of your paycheck to be transferred to your savings account(s) makes it more difficult to spend the money.
• Helps you prepare for expenses
• Making a list of your regular expenses makes it easier to set enough money aside to pay your bills.
• Helps you prepare for unexpected expenses
• Although you cannot predict the exact amount that you will need to cover some expenses, such as repairing your car or replacing an appliance, you can set aside a portion of each paycheck to prepare for life's little emergencies.
• Helps you plan ahead
• A Spending Plan helps you track the progress you are making towards achieving your goal(s).
• Helps you control your spending habits
• Once you have written down all your household expenses, it is easier to see where you can cut back. One way is to ask yourself if you really "need" everything that you buy. Making the distinction between needs and wants can help you determine why you are spending your money. With thought, you can search for other ways to meet emotional needs.

Creating a Spending Plan

 

Certified Consumer Credit Counselors are experts in creating Spending Plans. For reliable and professional help, schedule a confidential appointment with one of our certified credit counselors by calling 210.979.4300 or 1.800.410.2227 toll free.  Or find us on the web at www.cccssa.org.

 

What Your Need to Know About Reverse Mortgages

Given on-going economic woes, high fuel prices, up and down stock market and rising medical costs, surviving is challenging for Americans on fixed incomes. Some consumers 62 years and older who prefer to remain in their homes are finding relief in a reverse mortgage.

A reverse mortgage does not have to be repaid until you or the last surviving borrower permanently moves out of the house or dies.The money borrowed in a reverse mortgage is tax-free and does not affect your Social Security or Medicare benefits.

How does a Reverse Mortgage differ from a Home Equity Loan?

As stated in AARP Home Made Money, with a forward mortgage, your equity rises while your debt decreases. However, with a reverse mortgage you are withdrawing from your home’s equity, which causes the reverse mortgage to be a “cash generator”. The amount borrowed depends on the age of the youngest borrower, current interest rate, and appraised value of the home and the FHA’s mortgage limits for your area.  Also, the lower the interest rate, the more you can borrow.

One of the drawbacks of a reverse mortgage is the up-front fee total, which can include a 2% lender origination fee, 2% mortgage insurance, appraisal fee, closing costs, and other miscellaneous expenses.  As your equity in the house increases and especially if you’re planning to stay in the home, the reverse mortgage can be an attractive alternative to moving.

It is important to remember that while you do not make house payments, you are responsible for taxes and associated bills like utilities and fees. You should also know that the lender cannot take away your home if you outlive the loan. And you can never owe more than the value of the home.

Does it matter how long you expect to stay in your home?

While you cannot be foreclosed on or forced to vacate your house, the upfront costs of a reverse mortgage make it unattractive for those who plan to move in a few years.  A reverse mortgage works best for older consumers who want to remain in their home, and allows them to pay off high-cost debt, fund medical expenses or purchase long-term care insurance.

Discuss your plans with your family and heirs.

When changing your living arrangements it is important to determine what is best for you and your family. Maybe you would do better to downsize or sell and move to another home. Perhaps you have relatives in another part of the country, or an assisted living arrangement may be more practical. Everyone in your family needs to be informed of your choice.

In Summary.

Reverse mortgages have assisted many individuals by allowing them access to their home equity while paying off the existing mortgage, make needed repairs or increase their monthly income.

“Caution should be used and all options considered to determine if this type of mortgage is right for you before taking out a loan against your home,” says Diana Hamby, Certified Consumer Credit and Housing Counselor.

To learn more about our reverse mortgage counseling services contact our agency at 210.979.4300 or 800.410.2227 or find us on the web at www.cccssa.org.

 

Announcing CCCSSA/NHS Partnership

CCCSSA has formed a partnership with the Neighborhood Housing Services (NHS) ofSan Antonio, builder and lender for affordable housing inSan Antonio.  NHS has helped people achieve their dream of homeownership for the past 15 years.

Our credit counselors will help NHS clients to become mortgage ready. They will review their financial situation and help them create action plans to guide their financial decisions.

Consumer Credit Counseling Service of GreaterSan Antonio is a full-service non-profit financial counseling service which specializes in rebuilding consumers’ credit.

CCCSSA Helps the Economy

RECEIVE $500 IN GAS
Offers like this are commonplace nowadays. People are anxious to save money, especially when it comes to transportation. Although CCCSSA cannot pay you to use our services, we offer you other ways to economize.

Our agency’s no-cost budgeting, credit and foreclosure prevention counseling services are available online and by telephone. When you utilize these counseling methods, you are guided to create a budgeting plan and examine your options without using any gasoline. Not only does this save you time, it gives you valuable money-saving ideas that you can immediately put to practice.

Another way to save transportation costs is to enroll in our online financial management course, Better Fortunes. The course covers knowing the difference between needs and wants, forming financial habits, dealing with budgeting and credit issues, understanding your credit report and improving your related score, rebuilding credit, avoiding predatory lending situations, preventing Identity Theft and selecting the correct amount of insurance. When you average the course fee of $25 over the one-year period in which you can access the information, your investment costs .07 cents per day.

For more information on how you can save money and receive assistance, contact our agency at www.cccssa.org or 1.800.410.2227 toll-free.

Credit Reports & Scores

A credit report is a record of your credit activities, revealing how you handle credit cards, loans and payments.  Late or missed payments that are reported to the credit reporting agencies may adversely affect your credit, so making payments on time is crucial to building a positive credit history. Until the advent of computers, creditors kept credit history information on special file cards, and if you wanted to buy something on credit, a note would be sent to the credit office, often in the basement of the store, where a clerk would quickly check your file and determine if you were credit worthy. 

Since the 1960’s, credit records have been kept by computers, and reported by creditors to local credit bureaus, and also to the three nationwide credit agencies, Equifax Experian, and TransUnion. This enables someone with good credit in one city to apply for credit in another city. Of course, the downside is that bad information is also widely available, including late payments, settlements, and other adverse data. This may stay on your report for up to 7 years, and a bankruptcy filing may stay for 10 years. Companies may also still maintain their own record of your credit history, and there is no time limit for how long they can keep that information.

Credit Score

To expedite the process of granting credit, most lenders access a credit score, a product of a mathematical formula that helps determine your credit risk. The most frequently used version of your credit score is the FICO score created by Fair Isaac and Company; FICO scores range between 300 and 850, with higher being better.  Hilary Smith with MSN Money reports that a score in the 700s or higher is excellent; 650 is a midrange score, and anything lower than 600 has room for improvement.  The national average score is 676. Since late payment information could lower your credit score, disputing errors you find on your credit report is important, as well as guaranteed by consumer protection laws.  A higher score will generally result in a lower cost of credit, since you are perceived as less risky.  Credit scores are often checked by companies that you might not expect, including utilities, cell phone companies, and potential lessors and employers.

About 35% of your credit score is determined by your payment history. This includes late payments, judgments, bankruptcy and tax liens. Other factors are outstanding debt, length of credit history, recent inquiries and types of credit used. The impact of outstanding debt (30% of the score) may be reduced by keeping balances to within 30% of credit limits. Creditors also consider the length of your credit history (15%); longer relationships with financial institutions have a positive impact on your score. Recent inquiries are also about 10%, since creditors want to know if you’re buying lots of items, so it is important to monitor the number and types of credit inquiries that you make. Our workshop, Building a Better Credit Portfolio provides more insight into the credit scoring process, and the steps you can take to build a good credit score.

Review your Credit Report and Score

We recommend that you review each of your credit reports at least once a year.  Since you are allowed one free credit report a year from each of the three credit bureaus, a good strategy is to order one every 4 months, and then you can stay on top of your credit throughout the year. You can also order a copy of your credit report online, by telephone at 877.322.8228 or by mail.

Also, you are entitled to a free credit report if a company denies your application for credit, insurance or employment, but only if you ask for the report within 60 days of the denial. If you are unemployed and plan to look for a job within 60 days, or you are on public assistance or have been a victim of Identity Theft, you are entitled to one free copy of each report.

If you catch illegal activities between 30-60 days you are only liable for the first $50. If you wait longer, you may liable for the entire amount of money. Don Taylor, Ph.D., with Bankrate.com notes that “late payments…are like shooting yourself in the foot.”  One way to avoid late payments is to establish a bill-paying plan coupled with a personal spending plan.  You can learn more about bill-paying plans in our Money Principles For Today Workshop.

CCCSSA’s classes and counseling services are designed to give you the power to understand your credit report and to improve your credit score. Contact us at 800.410.2227 or www.cccssa.org to get started.

Extreme Saver Secrets
 

It’s no secret that prices are rising for food and soaringfor fuel. The good news is that this is a good time to investigate some new ways to trim our spending.

Habits

The first thing we should examine is our personal habits. Do we stop on the way to work for coffee each morning? Rent movies every week? Eat lunch out during the work week? Run to the store for extra items we forgot on our last trip? Besides the expense of the time, the cost of transportation is suddenly looming large.  If our vehicle costs 20 cents per mile for gas, add 5-10 cents per mile for wear and tear, even if we do our own car repairs. So a quick 10 mile trip out to lunch can easily cost $3.00 in travel money on top of the lunch expense!  Here are some tried and extreme savings techniques.

Find the Spending Leaks

Becoming aware of our spending habits will lower our spending. To get started, for one week write down everything purchased. Everything. Starbucks; Dunkin’ Donuts;  M&M’s from the machine; Car Washes. On Sunday evening either total up the amount, or better, put it into a spreadsheet. Now examine what we bought and, looking at the costs, decide, “What am I willing to give up?”

For example, can we replace that expensive cup of coffee mostdays with home brew? Should we try mail order movie rentals and get rid of pay TV service?  Maybe I could really go extreme and turn off the television set altogether. The library has books that are just waiting to be read. A deck of cards or a board game such as Scrabble or Monopoly is a one-time purchase that can not only help save money but it will bring the family closer together. Bringing our lunch to work instead of eating out saves time, money, and calories!

Make Savings Automatic

It is harder to spend what we don’t have; studies have proven that consumers spend up to 30% more when purchasing with a credit card. If we work on buying everyday items only with cash, we will automatically save. Transfer money left over each week to a savings account it’s harder to get to. Carey Denman with the American Center for Credit Education notes that saving money works even if you begin with a small amount. “Start with $25 every two weeks and you’ll have $500 socked away in ten months.” Double this amount and we will save $1300 in one year. If that is more than we can afford, start with a smaller amount like $10 or $20 a month. It is important to establish the habit of saving, and then we can work on increasing the amount.

Groceries

Today we have such a variety of food available year around, that we really have to look at the prices and focus on purchasing in-season produce. Often during the summer we can buy locally grown fruits and vegetables and save money. Some of us are now once again planting our own favorite vegetables. What about coupons?  Besides the weekend paper, there are now many Internet coupon sites, just type grocery coupons into your search engine. Be careful to analyze the cost of the coupon item vs. the store brand at a discount store, to be sure you are making an optimum purchase. Coupons are available for many items we might not suspect.  For instance, my local dry cleaner has a weekly coupon that is available on their website – 20% off any item. Or, I can really get frugal and wash, dry and iron my own shirts. Not only will I save money, but the shirts last longer.

Back to groceries, knowing what we intend to purchase helps avoid those impulse items conveniently placed at checkout stands. As we shop, be sure to look high and low; grocery stores often put more expensive items at eye-level so they are easier to grab, and lower priced items are more often found above and below eye-level.

Sometimes we can save money by comparing the unit price of the larger box to the smaller. Buying bigger sizes does not always mean we save money. Larger amounts of items may go stale before we can finish them. Do I really need 40 pounds of laundry detergent?

Phone and Internet

There are many options available today for communication, and in fact many younger people only have a regular phone line for Internet. However, often anything saved by the one bill is spent sending text messages! The problem with cell phone bills is that by the time we see the bill, it’s history. Take it easy with texting and sending pictures until we understand how our cell phone contract works. If we incur lots of minutes, or text a lot, we can increase the base rate and keep away those sky-high bills.

Vehicles

Track gas mileage at each fillup, so we can see when something may be awry with our engine. Correct tire inflation is the single most common thing we can do to increase car mileage. Newer cars usually do not need oil changed every 3000 miles, regardless of what the lube specialist’s sticker says. Follow the manufacturer’s recommendation for the type of lubricant and the recommended change interval. Resist the lube specialist’s sales pitch to having the air filter changed before the manufacturer’s recommendation, unless driving in a dusty area. Look up the suggested maintenance in the manual, or research on the Internet, and if needed, shop around for the best deal. Pay attention to manufacturer-suggested critical maintenance; countless owners have delayed a recommended 60,000 mile timing belt replacement and then ended up having to replace the whole engine.

Save for Contingencies

Even though gasoline prices are soaring, our spending does not have to get out of control. By dedicating a portion of our savings for emergencies, we have options when that sudden car repair need does pop up. Then we need to work on rebuilding these funds for the next emergency. 

Financial Education

This is just a brief overview of some quick ideas. Now is a good time to learn the latest money-saving techniques. Make plans to attend “Money Principles for Today”, our agency’s free workshop which offers techniques for budgeting and saving money. Staying up-to-date helps manage our money more effectively.  Interested?  Go to www.cccssa.org and sign up.

CCCSSA/BCS Happenings  
 

CCCSSA/BCS is growing! To better serve the Randolph Metrocom community we have opened an office at 1001 Pat Booker Road, Suite 201, Universal City, Texas 78148. The northeast office is only 5 minutes from Loop 1604 and IH-35.

We have joined forces with the San Antonio Silver Stars Women's Basketball team to promote money saving tips for residents of San Antonio. Go to www.sasilverstars.com, keyword moneytips to learn more about this exciting partnership.

Identity Theft awareness during National Protect Your Identity Week, October 19-25, 2008. Details of the event will soon be announced on the Education portion of our web site, www.cccssa.org.

We are now partnering with the Texas Foreclosure Prevention Task Force. Our certified counselors are now part of a statewide initiative to reduce foreclosures in Texas. They are specifically trained to help homeowners who are behind on their mortgage payments. On June 10, 2008 our agency was invited to participate in the Neighbor Works and Hope Now Alliance Home Preservation workshop in Live Oak, Texas (Randolph Metrocom Area). The event sponsored in part by the Texas Foreclosure Prevention Task Force had anticipated between 200 and 400 distressed homeowners to attendthroughout the day. The event was broadcast on the major radio and local television stations. There were approximately 9 to 12 lender/servicers and various non-profits,including CCCSSA,  the City of San Antonio and HUD. We were welcomed by Wells Fargo, Chase and Washington Mutual Banks. These lender partners referred clients to us as an option to assist in developing budgets, understandingcredit and information for work out plans and were pleased at the services we provided in assisting their customers.       Credit Counselors Gina Gomez, Joe Louma and   Gabriela Guzman at Live Oak Conference Center.

National Financial Literacy Month - The Concept of a Lifetime

Given the mortgage woes, financial hardships and credit worries our country has endured this year, it’s never been a better time to increase awareness about financial literacy. CCCSSA will unveil an addition to our educational curriculum in April. 

Money Principles for Today is a highly informative workshop that can be taken as a two hour workshop or a more in-depth four hour class. Mixing tried and true budgeting techniques with fresh ideas on how to manage your finances in today’s world, Money Principles for Today is a realistic representation of what it takes to improve your financial life and reach your wealth goals, whatever they may be.

This financial literacy workshop is accompanied by a 48-page Money Principles for Today guide equipped with budget worksheets, sample bill paying plans, and expense trackers, as well as cost-cutting tips and advice on building wealth. Handling credit and learning how to use it for your benefit is also addressed in this workshop. Enroll now at 1.800.410.2227 or online at www.cccssa.org.

Rising to the Challenge - Foreclosure/Loss Mitigation Counseling

If you or someone you know can benefit from a confidential, Foreclosure/Loss Mitigation counseling session, please call us at 1.800.410.2227 or reach us online at www.cccssa.org.

 

Are You An Inner Money Hog?

Find out how your personality may keep you from good money management.

When it comes to money, there are slightly different characteristics rooted in your personality that affect your behavior and money habits. Influential people in your life have also contributed to your decisions concerning money.

Sometimes, a characteristic such as being a “long-range thinker” can have a natural impact on a person’s financial life. Personality traits such as “putting the needs of others over your own” may wreak havoc when it comes to repeatedly buying a special someone gifts on credit. For each personality type, there are characteristics that can be either beneficial or detrimental when it comes to spending behavior. The good news is, you can root out the detrimental traits and learn to change and improve your financial life.

The Money Hog

The Journal of Financial Planning identified two extreme money personalities to be that of the compulsive spender and the hoarder.[1] According to the two Certified Financial Planners who lend their experiences with clients to the article, if you live by the phrase, “But I might need it someday,” you are a hoarder.  Hoarders, or “money hogs”, fiercely resist spending; sometimes, to the detriment of their financial wellbeing. 

Because this personality also lends itself to procrastinate and ignore bills, one might also end up in an illogical cycle of postponing paying bills and then having to pay more in late fees. In time, repeated late payments also start to weigh heavily on this person’s credit score. If you tend to keep your money when it comes to paying bills you will inevitably have to pay, such as a minor car repair, do it before the “problem” becomes a larger, more expensive issue.

Fixed expenses do not change from month to month.  These are expenditures that are regularly paid or that carry legal and/or moral obligations such as rent or mortgage, insurance, etc. Flexible expenses can change.  These items include food, clothing, recreation and personal care. Periodic expenses may include an emergency fund, car maintenance, school supplies, birthdays, and vacations.

It may be helpful to evaluate your thoughts about expenses at thebeginning or end of each month (whenever your bills arrive). Use a budgeting technique listing Fixed, Flexible and Periodic expenses. This budgeting format will help you focus on meeting fixed expenses on time in order to avoid late fees and dings on your credit report. To use this format, designate expenses into fixed, flexible, and periodic. If you recognize tendencies that might derail your budget plan, refocus and stay the course. Since the “money hog” is most interested in saving, one should feel at ease knowing (and having it down on paper) that saving for that “someday” is a priority even after taking care of life’s expenses. 

The Social Spender

It’s no secret that people around you influence your spending habits. If you tend to have an entourage of friends with you when you visit the shopping mall, you’re more likely to walk out of there with an unplanned purchase. This is because friends’ approval of big ticket items or fancy new social media gadgets can translate into that positive reinforcement a social spender craves, making one feel good about oneself when making the purchase. For the “social spender”, buying decisions may also come from magazines and trendy ads that highlight status or focus on how the purchase will make them “feel”.

Social spenders often lose track of their indebtedness and have difficulty separating wants and needs. However, there is a way social spenders can have their gourmet cake and eat it too.

Using the Income and Expenditures Format, a social spender can plan personal allowances and track money management on a regular basis, gaining the freedom to keep up with the Jones’s while staying out of financial trouble. 

The purpose of the Income and Expenditures budget format is to provide realistic estimates of income and expenditures daily, weekly, monthly and yearly, while prorating larger payments into smaller units (usually weekly or monthly). This means the social spender can decide how much money to allocate for each expenditure in each period. For this method to work, policies regarding allowances and advances must be established so that planning and controlling become part of the social spender’s positive money habits.

Dara Duguay, Director of the Office of Financial Education for Citigroup and the author of several self-help personal finance books, advises those with social spender characteristics to seek advice from a certified financial planner rather than acting on investment tips they receive from friends or co-workers. She points out that a financial planner will help keep emotional decisions in check and can develop an investment strategy based on the investor’s long-term personal and financial goals.

The Compulsive Shopper

For those who live in the moment, it may be easy to adopt a mentality in which it’s okay to buy something they feel they deserve, whether it’s in the budget or not.This way of thinking can easily develop into a compulsive shopping disorder, making it impossible to walk out of any store without making a purchase. For people with this problem the Save, Spend and Share budgeting approach can prove to be helpful in making choices among uses for money. It may also be helpful to limit the amount of plastic they carry in their wallet. 

The save, spend and share technique works with concrete rather than abstract concepts, by using a simple envelope system for planning, distributing and recording money. This allows the compulsive spender to physically see how much money is being spent and can serve as a reminder that funds are being depleted, guarding against excessive debt.

Although the three money behaviors discussed here are only a few in a myriad of possible money behaviors, it is important to begin to examine they way you behave towards money. It isn’t as easy as it sounds. The hardest thing is to realize one’s own shortcomings. Assistance from a non-judgmental, experienced professional can help when it comes to combating your unhealthy money habits. Certified Consumer Credit Counselors can help consumers develop a budget that is perfect for their personality. Budgeting sessions are free and can be scheduled at www.cccssa.org or by calling 1.800.410.2227.

If you’re a self-starter, you’ve probably already begun to mentally examine your spending habits. We recommend that you work on correcting only one to three financial behaviors at a time and be flexible. It takes time and patience to change something like a behavior.

 

How to Make Room for Building Wealth in Our Economy

With gas prices at an all-time high and economists disagreeing if we are in a recession, you may believe there is no way to build wealth from an already tight budget.

 

According to Bruce Witter, a CCCSSA Certified Consumer Credit Counselor who has been counseling for 10 years, nearly half of the people who walk into his office believe that "there is barely enough for necessities, there is NO way I can start saving," but walk out understanding that there are ways to identify potential savings in their current spending plans.

Witter points out that every little bit helps. Saving just $20 a week can start building wealth. Sometimes individuals and families overlook small day to day changes that can help save money. For example, one can resolve to pay $1-$3 less each morning for that cup of coffee by opting to shop at a less expensive coffee shop or even making their own. Tracking expenses for a week can help you be aware of the areas in which you overspend. Evaluating which items are needs rather than wants will be helpful in deciding what adjustments you will be comfortable with.

 

Facing the fact that you have prioritized double lattes and ignored savings can be difficult. A visit to your local CCCS, a community-oriented organization with certified credit and housing counselors who are ready to review each individual situation, can be the start of improving your finances in a big way!

 

Each counseling session includes an often eye-opening budget session, in which clients uncover ways they can save that they'd never thought of before. The key is stepping into an environment that encourages a money-conscious flow of ideas.

 

"Recently, a budget session revealed that over $200 of a client's monthly income was going to movies, sporting events and entertainment," says Rita Meza, Certified Consumer Credit Counselor. She added, "My client was even more surprised that there was actually an $873 unaccounted for in his monthly income. Clearly identifying expenses gave him a sense of control over his hard-earned cash that he lacked when he didn't know where it was all going."

 

Identity Theft: Myths and Realities

One thousand one,

One thousand two,

One thousand three,

One thousand four...

 

Every four seconds another person's identity is used by someone else without their knowledge. It occurs in Texas more often than in 46 other states according to reports by the Federal TradeCommission.

 

So while you are reading this article, over 200 cases of IdentityTheft (IDT) will occur in the United States. These statistics include both ID Theft and ID Fraud. The difference is basically that theft involves using existing information or accounts while fraud involves opening new accounts or creating a fictitious person. Because stolen personal information can be sold again and again for use by another thief, IDT may happen more than once to thesame person.

 

IDT is probably the only crime that requires the victim to prove they are innocent and even clean up the mess caused by the thief. It’s not a bad idea to get professional help with this.

 

But, ideally you want to prevent yourself from becoming avictim. There are a number of steps we all can take – steps that are not expensive, but that require some diligence. Visit us online at www.identitytheftcounseling.org for 15 steps to help protect you from Identity Theft.

One of the best tools available to stop the unauthorized use of our credit history is a “Freeze”. Texas and many other states now allow anyone to place a “Freeze” on their credit report, a service that was previously limited to only IDT victims. A security freeze is effective because it requires the consumer to make an active consent before the Credit Reporting Agencies can release their information.

However, this “Freeze” also makes obtaining new credit more difficult for the consumer taking advantage of the service. A Personal Identification Number (PIN) is determined by the Credit Reporting agency and then must be used in all subsequent communication with the agency, or any time information is to be accessed or each time an application for credit is made.

Imagine you’re at the store to buy a new HDTV and they have a “no payment” for one year plan. Or, it’s year-end sale time at the car dealer, and you’re planning to use the 3% dealer incentive loan. It won’t happen if your credit can’t be checked. These are some considerations that you should ponder prior to taking this step, as it does last for seven years, and there will be a charge to unfreeze.

Another alternative is to place a “Fraud Alert” on your report. The “Alert” is effective for 90 days but can be renewed. The alert requests but does not require creditors call you before using the information so may not be as effective as the “Freeze.”

Another tool we have is access to a free credit report each year from each of the three Credit Reporting Agencies. To obtain your report go to www.annualcreditreport.com ; note: there are other sites claiming to be free, but they require a purchase of a monitoring service.

Another very effective protection is to be very, very stingy with your Social Security (SS) number. Before you provide it, ask why it is needed. Probably the veterinarian does not need this number to care for your pet, etc. If necessary, speak to a supervisor or manager to insist another identifier be used. Often when people ask for your SS number, they are planning to check your credit.

Thieves can use SS numbers to obtain employment, and then the IRS may dun you for the  income taxes due. Sometimes IDT thieves use a SS number to falsely claim a dependent on a tax return or to obtain government benefits. In some cases, a new virtual person can be created using a your SS number, with that person obtaining new credit card accounts, a new drivers license, renting an apartment or obtaining utilities. This is also where the credit freeze is effective.

If you or someone you know may be a victim, Consumer Credit Counseling Service of Greater San Antonio and Budget & Credit Solutions offer Identity Theft Counseling services to assist in the resolution process. Their counselors can help you deal with the numerous contacts, the letters and forms that can take hours and hours to research and complete. They can also provide information such as phone numbers and letter templates for the victim to complete on their own, or can assist in the process to reduce the amount of time spent on remediation. You will have peace of mind knowing that you’ve worked with a professional and covered all the bases.

A look  back at 2007

Unlike for-profit organizations, community oriented organizations like Consumer Credit Counseling Service of Greater San Antonio and Budget & Credit Solutions measure success by the number of people whose lives we’ve touched rather than revenue gains.  At the close of 2007, our agency had conducted over 6000 counseling sessions in which Certified Consumer Credit Counselors helped individuals and families with matters of budgeting, avoiding or managing debt, learning about bankruptcy, reading and interpreting credit reports and foreclosure prevention. 

During the same period of time, over 402 clientssuccessfully completed the debt management program, one of them clearing as much as $150,000 in debt.  Another 239 learned the tools and knowledge to resume making payments on their own.

During the first 3 quarters of 2007, CCCSSA  and Budget & Credit Solutions educated 1326 consumers in 150 classes on issues concerning money management, credit, credit reports, and bankruptcy.  As the year continued, a total of 1,615 participants attended one or more financial literacy workshops.  Educational outreach initiatives designed to improve economic circumstances for individuals and families focused not only on those who were struggling with debt, but set out to empower our community with the tools and knowledge needed to prevent overwhelming debt issues.  In addition, our agency conducted other outreach activities that reached over 270,000 consumers.  The creation of an e-newsletter, the Expert Connection, reinforced our efforts to supply consumers with a financial life-line, accessible any time.

Times of Crises

Perhaps our most poignant endeavor in 2007 was reaching out to at-risk families in the midst of the sub-prime lending morass. While the San Antonio and Austin areas were not affected as intensely as other parts of Texas, CCCSSA and Budget & Credit Solutions came to the rescue of homebuyers in the affected cities of McKinney,Plano,Denton and other areas in North Dallas. As the number affected grew, the Hope Now Alliance, a coalition of nonprofits, lenders, and investors formed with encouragement by the Department of the Treasury and Department of Housing and Urban Development, was overwhelmed by skyrocketing levels of incoming calls. While the Hope Now Alliance was receiving about 100 calls per day in 2006, the mortgage crisis caused a whirlwind of calls that bumped that number to 1,200 calls per day. In December, a CNN report announced the center’s call volume continued to grow and had reached about 1,500 first-time callers a day, with bumps of up to 3,000 per day after major media coverage. Once more, our agency offered the expertise of Certified Housing Counselors to alleviate the overflow of calls, this time assisting affected homeowners all over the country. 

Locally, CCCSSA began to work with the City of San Antonio providing counseling to consumers who were seeking homeownership but needed assistance in reducing debt and/or improving their credit before taking the city’s first time homebuyer classes.  In addition, an agreement with Merced Housing allowed us to help low-income families who were late on their rent save money. By attending one of our monthly Money Management classes, Merced Housing tenants became eligible for a late fee waiver.

Moving Forward

As the new year begins, CCCSSA is excited to continue over 20 years of supporting financial literacy and the alleviation of credit and debt problems for families acrossSouth Texas.  We anticipate the start of a new partnership with Operation Comfort, in which we will help wounded warriors returning fromIraq andAfghanistan to successfully achieve financial self-sufficiency.  Operation Comfort is a nonprofit organization founded to support the recreation rehabilitative needs of wounded Soldiers and Marines while they receive treatment at Brooke Army Medical Center (BAMC). Because Operation Comfort has identified that many of these wounded service members are in dire need of financial literacy and education to help them budget and manage their adjusted incomes, CCCSSA will teach money management and credit classes to as many of the service members and their families as possible. If necessary, confidential counseling sessions will also be provided to discuss special financial needs. The objective is for these wounded warriors and their families to have money management skills to manage finances and credit on their own. If a debt management program is needed, this outcome tool will be offered free of charge. Like any other community initiative, CCCSSA will tailor our educational workshops to fit the special needs of these wounded warriors. 

We encourage you to call us toll free at 1.800.410.2227 or email us at newsletter@cccssa.org with suggestions on how we can reach out to you or address your individual needs in 2008. Tell us what you think of our perfor