|
Free Checking Won't Be Free For Long
 Banks are preparing to charge fees on basic banking services to replace revenue lost due to the CARD Act, according to the Wall Street Journal. One of the new rules is that banks can only charge overdraft protection fees to customers who sign up for the service. Some banks are dropping this overdraft protection altogether, which means if there is not enough
money in the account to honor the draft, the transaction will bounce.
Meanwhile in the Senate version of the huge financial legislation pending will be limits on fees for use of debit cards. This is viewed as helping retailers but again cutting bank revenue, so banks will search for alternative sources of income.
To generate new revenue, banks are developing new pricing models with changes expected in early 2011. Many customers will likely be required to pay monthly maintenance fees on the
most basic accounts that don’t generate a lot of money. This could drive away some middle and low income consumers who don’t have a great deal of activity on their account.
To avoid fees, customers will have to maintain certain account balances or frequently use other banking services, such as credit and debit cards, automated teller machines and online accounts.
Back to Top
Inside Scoop on Credit Building
 Your credit history is based on several components which added together result in a credit score. Your credit score is based on recent credit activity, late payments, how many times you have applied for credit and any public actions you’ve been involved in, such as lawsuits, liens, foreclosures and bankruptcies.
Fair Isaac Corporation (FICO) considers payment history above all else (35%) when calculating your credit score. An easy way to make positive changes to your credit score is to simply pay ALL of your bills on time. While some contracts like cell phones or gymnasiums don’t establish your credit, they have a negative effect on your credit score if you walk
away from the commitments or forget to pay the bills.
We suggest that if you are concerned you may make a late payment or miss a payment, inform your creditors of your present situation and how you plan to resolve your financial problems. If you have a good payment history, you may be able to negotiate your next payment.
Remember, it is never too late to clean up your credit report or build a credit history. Call our credit counseling experts at 210.979.4300, 800.410.2227 toll-free or find us at
www.cccssa.org.
Back to Top
Summer Tidbit
 Because South Texas Summer days include heat and plenty of it, low-income residents are encouraged to join the “Lite-Up Texas” Program. The program provides discounts on summer monthly electric bills from May to September. While Medicaid or food stamp
customers are automatically enrolled, Texans with incomes of $13,538 per individual or $18,213 a couple may apply by calling 1.866.454.8387 toll-free.
Back to Top
Cool Off Spending
 Feeling the "Urge to Splurge" this Summer? Control your spending habits by freezing your credit card in a block of ice. The time it takes to thaw out the card helps you examine whether or not you really need the item.
Back to Top
|
|
Making the Most of Your Tax Return
 Although tax season is often the most dreaded time of year for some, other consumers look forward to getting what's owed to them. According to Kiplinger.com, new and expanded tax breaks for home and car buyers, college students and their parents, homeowners who installed energy-efficient improvements and the unemployed are expected to boost tax refunds
even higher than last year's average of $2,800.
More Americans are choosing to e-file and more consumers are filing their income taxes before April. You can also get your income tax refund faster with direct deposit. IRS Form 8888 allows you to deposit your refund into more than one account so you can wisely save part of your tax refund instead of spending it.
Consumer Credit Counseling Service of Greater San Antonio (CCCSSA) suggests the following tips for managing your tax refund:
Avoid refund anticipation loans.
The is actually a loan secured by your pending tax refund, which you have to pay back even if you don't get a refund. Many income tax preparers offer this option when you file; in essence, it's about 1% of the refund plus a paperwork fee. If you're looking for a quick refund you can get it within two weeks or less by e-filing and having the refund directly deposited into your account. Volunteer Income Tax Assistance (VITA) program offers free tax preparation and e-filing for taxpayers whose incomes were $55,000
or less in 2009. VITA site information is available by calling 2-1-1. If you earned $57,000 or less in 2009, you can also e-file your taxes for free at www.irs.gov. Other free tax preparation and e-filing services may be found by searching the Internet.
Pay down credit cards or other high interest loans.
Use your refund to pay more than the monthly minimum payments. Add extra cash to loans with high interest rates. Remember, credit card debt is simply an unsecured loan. The longer the life of the loan, the more you'll pay for borrowing the money. If you can't pay the off completely, make an extra payment. By making an extra credit card payment you can reduce your interest costs.
Pay down your mortgage.
Any extra payments go toward paying down your principal. Paying off your mortgage faster means you pay less in interest. Using your refund to reduce your mortgage debt can mean substantial long-term savings. Just by making two extra payments a year, you might be able to pay off your loan in 15 years on a 30-year mortgage. Most experts believe that is a better approach than refinancing to a 15 or 20 year loan.
Contribute to or open an emergency fund.
Your tax refund is a great way to start. Most experts recommend saving three to six months of living expenses. By placing the cash in a separate savings account or short-term CD, you're going to be less likely to use it and it will be there in case of an emergency.
Invest in retirement.
Many people are working after the normal retirement age of 65 and it is estimated that a majority of workers believe they are behind on their retirement savings. Something new is coming in 2010, regardless of income, consumers will be able to convert their traditional IRA's to Roth IRA's. Tax on the conversion is spread over 2 years. Currently, if you are 59 1/2 years or older and open a Roth IRA, it must stay open at least 5 years to avoid being taxed for withdrawals.
Tax Refund Savings
Whether
it's your 401(k), IRA or Roth IRA, investing your tax refund now will mean a nicer cushion later. The sooner you start saving the more time your money has to grow. Make retirement savings a high priority by setting goals for yourself, devising a plan and sticking to it.
Service the car and tackle other to-do's.
If you've been putting off getting an oil change, cleaning the gutters or fixing the leaky roof - now's the time to cross those things off your list. Using your tax refund to maintain your expensive possessions now could save you money in the future.
Open a 529 College Savings Plan.
A college education isn't getting any cheaper. With 529 College Savings Plan withdrawals are tax-free when used for higher education. Plus, some plans come with tax benefits.
Want more information about maximizing your tax return? Call our agency at 210.979.4300 or 800.410.2227, or find us on the web at www.cccssa.org.
Back to Top
Treasure Hunt: Finding Unclaimed Cash
 Finding treasure doesn't always mean mining for gold, silver or diamonds. Dan Schointuch, MoneyTalksNews writer found that 1 in 8 Americans have money waiting for them as reported by the National Association of Unclaimed Property Administrators (NAUPA).
Missing Money
NAUPA calls missing money "unclaimed property" left over from inactive financial or corporate accounts (one year or older). Examples include old bank accounts, stock certificates, life insurance proceeds,
un-cashed paychecks, utility deposits, savings bonds, income tax refunds and pension benefits.
Hunting for Treasure
Instead of paying someone to search on your behalf, why not start with these locations? NAUPA database, www.MissingMoney.com lists unclaimed governmental property records; in Texas these records may be found at www.ClaimItTexas.org. USA.gov lists unclaimed money by the following categories: bank failures, Credit Union unclaimed shares, damaged money, investors claims funds and class actions, government benefits, HUD/FHA mortgage insurance refunds, pension funds from former employees, tax refund status, tax vacations and undelivered tax refunds. Finally, older stocks may be traced on the U.S. Securities and Exchange web site
(SEC), www.sec.gov. Good luck and happy searching.
Claiming your money is the first step. For help in making the most of your "treasure", arrange for a free budgeting counseling session by calling 800.410.2227 or go to www.cccssa.org.
Back to Top
CCCSSA Announces Facebook Page
 Look for us on Facebook in April when our nation recognizes financial literacy. On this site you will find information on our financial counseling and education programs, industry updates and helpful tips designed to give consumers "recipes" to achieve financial success. If you currently use Facebook, just look for "Consumer Credit Counseling Service of Greater San Antonio" in your search.
If you are not on Facebook, we invite you to join. It's free and a great way to stay connected to CCCSSA, so you can participate in discussions and learn ways to improve your financial literacy. Help us reach more people by becoming a fan and spreading this important message.
Back to Top
|
|
Credit Score Analysis Program
 There are a number of reasons why you may be interested in boosting your credit score. Perhaps you are in the market for a new car, or are considering buying a larger home. But those signs stuck in the ground on the side of the road suggesting to call a phone number and you’ll improve your credit don’t strike you as the best referral source.
Well, good news!
Consumer Credit Counseling Service of Greater San Antonio (CCCSSA) has partnered with CREDCO to offer legitimate and qualified assistance in understanding your credit score, how to improve it, and even what effects different actions (like closing a line of credit, or credit balances) can have on your score. Our new Credit Score Analysis Programis designed to provide consumers with a realistic, timely, and powerful method using CreditXpert™ to analyze and understand what specific actions
will do to their credit score.
For an initial fee of only $75[1], our certified and experienced credit counselors will provide the confidential counseling session, access to the proprietary score analysis CreditXpert™ product, and follow-up for one-year. Additional fees apply only if additional use of the scoring analysis product is required. Your counselor will help you identify specific areas that are negatively impacting your credit score and provide detailed actions to improve your credit image.
At the conclusion of the session, you will be
provided with a detailed action plan outlining steps and guidelines that show you how to get where you want your credit to be.[2]The Financial Solution.
For more information about CCCSSA’s Credit Score Analysis Program or any other of our credit or debt services, call us at 800.410.2227, or find us on the web at www.cccssa.org.
[2] Delaying or deviating from any of the recommended actions can affect your results. Predicted results are supplied by the modeling product, and cannot be guaranteed.[1] $75 charge covers up to one hour of Certified Counselor time and one modeling session with theCreditXpert™ product. Clients desiring additional modeling sessions are only charged the pass-through charge of the modeling session, for up to one year.
Back to Top
Credit Card Changes in 2010
 In February 2010 the Credit Card Accountability, Responsibility and Disclosure Act of 2009 will take effect. The new rules will better protect those who use credit cards by limiting some practices. If you have noticed recent changes in credit card policies, the reason could be that the financial institution is trying to have policies in place before
the new law takes effect. So what do these changes mean to the credit card holder?
Credit card companies will be required to provide 45 days notice of rate increases and other changes.
Interest rate increases cannot be made on existing balances; new balances are not covered.
Over-limit fees may not be charged unless the card holder knowingly elects to make over-limit charges.
Creditor must provide a toll free number where the consumer may receive information about credit counseling and debt management services.
Creditors will be required to consider the consumer’s ability to make payments when they issue credit cards or increase credit limits.
Credit will NOT be issued to consumers under the age of 21 without Parental/ Guardian permission.
These points are just a few of the highlights from the upcoming law. Click here to read the Federal Reserve's review of these changes. CCCSSA can help you understand the “Act” and how it will personally affect you. We offer workshops to the community that can increase consumer financial literacy. Contact us at 210.979.4300 or 800.410.2227 or go to www.cccssa.org for workshop information in the New Year.
Back to Top
Volunteer Income Tax Assistance Program (VITA), Returns $70.5 Million to Local Residents
San Antonio Ranks Second in the Nation for Free Tax Filings
 The Alamo City Coalition for Economic Self Sufficiency (A.C.C.E.S.S.) VITA program continues to be one of the nation’s largest producers of free Federal Income Tax preparation, second only toNew York City.
During the 2009 tax season, the VITA program completed 38,740 tax returns, returning $70.5 million toSan Antonio andBexar County residents. Of
the total dollars, $24 million represents the Earned Income Tax Credit (EITC). The EITC helps working families meet basic needs through tax credits for earned income, up to a variable threshold based on family size.
As many as one-in-four eligible Texans fail to claim the EITC, leaving $1.4-$1.9 billion unclaimed in 2009. [3]
VITA volunteers assist families and single or married working individuals who earn less than $55,000 and are eligible for EITC benefits. The VITA program helps prepare basic 2009 tax returns for families, and individuals FREE of charge.
The VITA sites will begin operating on January 13, 2010 for the
2009 tax year. This year 26 sites will operate throughout the city.
A Super VITA Sunday will be held on Sunday, January 31, 2010 at the Henry B. Gonzalez Convention Center. Doors will open at 11:00 am. Please call 2-1-1 for locations and times, or visit the web site at www.vitasa.org. Volunteer Opportunities are also available through the web site.
The threshold amounts for 2009 tax returns follow:
$13,440 ($18,440 if married filing joint) if you do not have a qualifying child
$35,463 ($40,463 married filing jointly) if you have one qualifying child
$40,295 ($45,295 married filing jointly) if you have two qualifying children
$43,279 ($48,279 married filing jointly) if you have three or more qualifying children)
The maximum EITC for 2009:
$5,657 with three or more qualifying children
$5,028 with two qualifying children
$3,043 with one qualifying child
$457 with no qualifying children
Alamo City Coalition for Economic Self Sufficiency (A.C.C.E.S.S.)
A.C.C.E.S.S. is a community initiative developed by members of government, private and nonprofit organizations. The primary goal of ACCESS is to:
“Increase the Financial Stability of Working Families”
Back to Top
|
