The ratio for your credit scores consist of the 5 factors that are:

• 35%:  Credit History
• 30%:  Balances (or Debt Ratio)
• 15%:  Length of Credit
• 10%:  New Credit
• 10%:  Types of Credit Used (or Mix of Credit)

When consideration whether or not you need to establish credit there are several of the Factors that you must first take into consideration, not just one. If you have positive open credit you may not need to apply for new credit, to affect the Mix of Credit Factor we have found that you need about 1 to 1.5 revolving lines of credit to every 1 installment loan. If you get heavy either on either side of this equation it will offset you FICO score to reflect a higher risk.

If you have had a negative payment history and have not established new credit you will want to take the step to re-establish a positive credit history. This step alone can affect 4 of the 5 Credit Factors in a positive way. Re-establishing credit and leaving a low balance will have a very good affect on your FICO scores and it highly recommended.

Bottom line is that if you establish new credit your FICO score will more than likely decrease while you are establishing a payment history for this account. We have found that an installment loan will have more of a drastic affect for a longer period of time (due to Debt Ratio) where this factor can be controlled with an installment loan.

Statutes of Limitations: A statute setting a time limit on legal action in certain cases.

How the Statute of Limitation Affect Your Credit and Finances

The above definition describes in detail what the statute of limitations (SOL) is. There are many misconceptions on what this means to a consumers credit report as well as their finances.There are 2 time lines we need to address to really understand the statute of limitations. 

The Fair Credit Reporting Act allows for negative (and positive) information to be report against you for up to 7 years from the date the incident occurs. If the item is a Bankruptcy the information can be reported for 10 years and Tax liens can report for up to an atrocious 15 years!

The statute of limitations differs from the amount of time an item can be reported on your credit report. SOL refers to the amount of time a creditor has to take legal actions against you (sue you!). The common misconception is that a collector cannot attempt to collect on a debt past the SOL - this is not true. A collection never just "goes away", a collection agency or creditor can attempt to collect on it for as long as they would like, the SOL just sets the date that they are allowed to take you to court for it.

A best practice when trying to pay collections or old derogatory accounts off is to wait until you can pay them off in 1 lump sum. Making a partial payment on an account can reset the statute of limitations and give the creditor the right to press legal actions sometimes 10 - 11 years after the incident.

Here are the key points to remember about Statute of Limitations:

• Your debt never magically disappears

• SOL determines how long a creditor or collection agency has to press legal actions

• Just because an account has passed the statute of limitations does not mean that it cannot be reported

• Making a partial payment resets the statute of limitations

• Even if an account is past the statute of limitations - you still owe the money

There is a new sales method in the Credit Restoration industry. They call it the Pay –Per-Deletion model and pride themselves on a client not paying until items are removed from their credit reports. This sounds amazing…until you get to know why.

We have had the opportunity to sit in on many webinars as well as talk with many companies across the nation offering this “Risk Free” model. Here are the issues presented with this new model being the sole source of payments from clients:

1. More money is being charged for overall repair
2. There is no maximum cap on the amount that could be paid (a violation of the Credit Repair Organizations Act)
3. There is no monthly cap on the amount being charged We have seen some bills as high as $1,500 for 40 days worth of work
4. There is no way for a client to budget the monthly payments
5. There are A LOT of misleading fee’s and extra charges for the client

Here is an example of industry wide standards that uses this current model:

FEES FOR RESTORATION:
Late Pays $27
Collections less than $5,000 $32
Collections greater than $5,000 $45
Collections less than 12 months old $45
Public Records $60
Inquiries, Names, Addresses, Social Security, $12
Bankruptcy or Foreclosure $125
Certified Mail $4.75
These fees will be charged per Credit Bureaus (Experian, Equifax or CSC and TransUnion).

(Numbers are averages of nationwide companies prices – these are not actual prices)

This looks great and is usually accompanied by catching slogans like – “You don’t pay if it don’t go away” that make you feel warm and fuzzy, but let’s look at the real numbers. In the example of fees listed are not the cost for 1 total item – they are the cost for EACH CREDIT BUREAU which means a client may be charged 3 times for the same item. This could make 1 collection worth up to $255. Another example would be 1 charge off reporting multiple late payments could cost $30 per late payment!!! This could potentially be over a $1,000 bill owed just for the correction of 1 item!

The Credit Guys Way
Credit Guys offers 4 different payment plans for our clients – yes one of them is the pay-per-deletion model (but with caps). We have several options for a client to choose from to find the right fit for their needs. Every client is different and by having 4 different options we are able to tailor fit their credit restoration and not just cram them into one cookie cutter program. We have found that even offering the Pay-Per-Deletion program that 95% of our clients prefer the comfort and stability of knowing what their payments will be.

Our number 1 goal is to get as many clients credit repaired and back to buying status as soon as possible. The happier our clients and partners are, the more referrals we will get from them! So make sure you are working with the right team who has proven results, and can help you accomplish your financial dreams!

• No Federal Tax Liens will be placed for amounts under $10,000
• No Delinquent balances under $10,000 will be reported with the credit bureaus
• A consumer who makes a payment arrangement with their tax lien and makes their 1st payment as an auto-debt will be able to get the tax lien removed from their credit report.
• This policy is retroactive which will affect all Federal Tax Liens current in place!

There has been no report on whether the States will follow suit on this but Credit Guys has found that the credit bureaus have made a broad adjustment to the   reporting of ALL tax liens and we are seeing the similar results for State Tax Liens.

To remove the accounts in dispute status quickly the following steps need to be taken:

Contact the Credit Bureaus:

• TransUnion 1-800-916-8800
• Experian 1-888-397-3742
• Equifax 800-846-5279 or 866-322-3162
• CSC 1-866-487-0264
• Obtain a credit report at www.annualcreditreport.com (you will need the report numbers for the next 2 steps)

Ask the bureaus to take the accounts out of dispute:

• The customer support rep that you are speaking with can tell you if the remark is reporting from them or the creditor. Tell them “THESE ACCOUNTS NEED TO BE TAKEN OUT OF DISPUTE”
• Find out a timeline for the accounts being taken out of dispute
• Obtain the credit report or dispute identification code to follow up on the process online

Periodically check your reports online:

• TransUnion - click here
• Experian - click here
• Equifax - click here
• CSC - click here

Accounts in dispute with the creditor:

• Some accounts may have been disputed directly with the creditor – they are required by law to update your credit report to show account in dispute. To remove this comment you will need to contact the creditor directly.
• Some creditors may press you to pay a balance on the account and it may be a step required to do if the creditor is unwilling to provide documentation.
• Press the creditor to get a letter faxed while you are on the phone with them that this account is no longer in dispute.

Issue’s and FAQS:

• We have found that some accounts (few) have never been disputed but are showing that they are in dispute.

  • This will take persistence to get the company to send information that the account was not in dispute and you may need to climb the corporate ladder to do so, but it can be done.
• The run around – if the credit bureaus tell you that they did not place the dispute comment on the credit report and they cannot remove it tell them you would like to initiate a dispute that the account is not in dispute. They control what is posted on your credit report and can remove the information.
• If the creditors tell you they do not have a letter for this simply tell them that you still need one because they are reporting inaccurate information on your report that needs to be deleted.

  • You may also get them to update their online dispute system (E-OSCAR) with the bureaus to remove any comments.

TIPS:

• Documentation beats confrontation. Document, Document, Document every person that you talk to, every conversation so that you can refer back at all times.
• Be persistent. Don’t take no for an answer – if the person you don’t know can’t give you the answer you want then ask for their manager and keep climbing until you get answers.
• BE NICE. Sugar attracts more flies than vinegar. The nicer you are the further you will get and the more help people will be willing to provide you. Be nice as much as possible.

Once you see your report updated it may take some time before the credit provider of your lender to updated their report. To find out how soon this account will updated the lender will need to contact their credit provider representative to find out when their reports update with the credit bureaus. If you wish for Credit Guys to help you with this problem we are more than happy to help you with these accounts.

Understanding Your Balances:

FICO® will calculate the ratio of your available credit to your balances when determining your scores. This is very important for you to remember when trying to maximize your credit scores. Generally keeping your balances below 50% of the credit limit or original amount owed will help you to maintain your credit scores at a good level. To maximize your scores you will want to keep your balances below 10%.

Remember FICO® trying to determine the likelihood of you going 90 days late and statistically when your balances are high the chances for financial difficulties raise. Proving your ability to manage your credit will provide the best results for your credit scores.

Calculating Your Utilization Ratio:

There is often much confusion about calculating your balance ratio. FICO® takes the credit limit of revolving lines of credit and the original balance of installment loans to determine your available credit. Then they take the actual balance of the accounts that are reporting to determine the used credit. The dividing the used credit by the available credit will determine your Utilization Ratio.

Total Balance / Total Credit Limit or Original Balance = Utilization Ratio

Maximizing Your Scores

Now here is where the game gets tricky. I have heard hundreds of times that, I have bought a car to raise my credit scores. This is not a wise way to raise your FICO® score! It will take YEARS to get your balances down to maximize your scores going this way. This is also the reason that you DO NOT want to buy a car if you are trying to finance a home - it will have a negative affect on your score while FICO® is determining whether you can handle the debt.

To maximize your scores I recommend the following steps:

• If you don't have credit cards get 1 or 2. I do no recommend or condone going into debt but there are times that you have to dance the FICO® jig to maximize your finances. So keeping this in mind, if you don't have any credit cards get 1 or 2 with a high limit that you can easily pay off monthly. I recommend getting a name brand card (Mastercard, VISA, Discover, American Express) and avoiding junk cards (which will be covered at a later date) that you can use for a part of your budget such as a credit card just for gas or groceries. This way you know that you will have to pay them off monthly to continue using them.
• If you have credit cards with high balances pay them down or raise the limit. If you can afford to pay down your cards then do it! Another great trick to maximizing your scores is to ask your creditors for a credit limit raise. Being out of debt is the most important aspect to your finances but if you are one of the millions paying 30 to 40% more monthly on your debt and utilities because of your credit scores then again we are going to do the FICO® jig to help you maximize your finances.
• Don't refinance your auto loans. When you refinance your auto loan your may be lowering your payment but utilization ratio will be raised again. Also keep in mind that an installment loan will charge you a bulk of your interest on the front part of the loan so many times it may be more beneficial financially to keep the loan instead of paying more interest again.
• Don't open new installment loans. New installment loans will have a negative impact on your scores and will take months (even years) to recoup the points lost.

If you are in the market of buying a new home or a new car you may want to explore these steps. Credit is not something that should be leaned on as an everyday part of life (even though the Credit Reporting Agencies would like that!) but used for large purchases so understanding that your scores may drop when you make a large purchase can help you to plan to maximize your finances!

As always if you have any questions for our staff please don't hesitate to call us at 816-463-4626 or email us at support@yourcreditguys.com

1.  Evaluate:

Our Credit Consultants review balances and credit limits, determining if new credit needs to be established, identifying accounts believed to be inaccurate, and determining how to pay off the negative debt.

2.  Establish:

Often times new, positive credit will need to be established to maximize our clients FICO_® scores. We offer tools from Secured Credit Cards to large Unsecured Lines of Credit for clients who need to establish new credit.

3.  Dispute:

Inaccurate, unverifiable, or misleading information reporting against our    clients are aggressively disputed with the Credit Bureaus AND the Creditors to ensure a permanent change - not a Band-Aid. It is not uncommon for our clients to see over 80% of the inaccurate items removed within 4 to 6 months!

4.  Settle:

Many times accounts report a balance that is past due. We help our client to settle and pay these past due balances to ensure that these accounts do not appear again on the credit report with a different company.

5.  Save:

When we have seen improvement on our clients FICO_® scores we will identify areas that our clients can save money from having better credit scores. This may include refinancing an automobile, re-applying for insurance, consolidating credit cards, or refinancing their home.

6. Equip:

Our clients receive the added benefit of financial tools and credit tips to help them sustain lasting credit success. Others who have used these same tools have enjoyed a lifetime of great credit!

The Better Business Bureau, one of the country's best known consumer watchdog groups, is being accused by business owners of running a "pay for play" scheme in which A plus ratings are awarded to those who pay membership fees, and F ratings used to punish those who don't.

To prove the point, a group of Los Angeles business owners paid $425 to the Better Business Bureau and were able to obtain an A minus grade for a non-existent company called Hamas, named after the Middle Eastern terror group.

"Right now, this rating system is really unworthy of consumer trust or confidence," said Connecticut attorney general Richard Blumenthal in an interview to be broadcast as part of an ABC News investigation airing tonight on 20/20.

In an official demand letter sent to the national headquarters of the Better Business Bureau Thursday, Blumenthal called on the BBB to stop using its grading system, which he said was "potentially harmful and misleading" to consumers.

"The BBB accreditation and the BBB ratings systems is not about generating money," said BBB national president and CEO Steve Cox. He said the A minus grade for Hamas was given in error. "Plain and simple, we made a mistake," Cox told ABC News.

Errors seem to abound at the Better Business Bureau. As reported by an anonymous blogger the BBB also awarded an A minus rating to a non-existent sushi restaurant in Santa Ana, California and an A plus to a skinhead, neo-Nazi web site called Stormfront.

Each listing cost $425.

"They ran the credit card and within 12 hours they were an approved, accredited member," said the anonymous blogger, who runs a site called bbbroundup.com.

"They're more interested in the money than their credibility," he said.

The BBB's Cox said the three listings were all mistakes made by sales people.

"That's an inaccurate statement that business people are able to buy A's," Cox said. "We have more than 500,000 non-accredited businesses who have A ratings," he added.

Yet, as part of the ABC News investigation, an ABC News producer with a camera was present as two small business owners in Los Angeles were told by Better Business Bureau tele-marketers that their grades of C could be raised to A plus if they paid $395 membership fees.

Terri Hartman, the manager of a Los Angeles antique fixtures store, Liz's Antique Hardware, was told only a payment could change her grade, based on one old complaint that had already been resolved.

"So, if I don't pay, even though the complaint has been resolved, I still have a C rating?"

Hartman then read off her credit card number and the next business day the C grade was replaced with an A plus, and the one complaint was wiped off the record.

In a second case, Carmen Tellez, the owner of a company that provides clowns for parties was also told she had to pay to fix her C- grade, based on a two-year old complaint that she says had already been resolved.

The C minus became an A plus the very next day after she provided her credit card number for the $395 charge.

"If I'm paying for a grade, then how are the customers supposed to really trust the Better Business Bureau?" she asked.

Cox said the examples provided by ABC News were violations of sales policy and not a standard way of doing business.

"The BBB is not operating fraudulently," Cox said.

In his demand letter to the BBB, the Connecticut attorney general said, "I am deeply concerned that certain BBB practices threaten its reputation and effectiveness as a reliable resource for consumers."

Allison Southwick, media relations manager for the BBB, said that the BBB had worked with Attorneys Geneal across the country, including Blumenthal, across the country to fight fraud. "We disagree with his characterization that BBB does not adequately disclose the fact that Accredited Businesses financially support BBB," said Southwick. "However, we are always interested in hearing from our partners in consumer advocacy and are pleased to accept constructive feedback from his office and other consumer advocates."

"We have made good progress in working with his office on these issues, and anticipate that we will satisfactorily address his concerns," said Southwick.

Better Business Bureau Grading System

The Better Business Bureau, a non-profit group that began 98 years ago, instituted its A plus through F grading system just two years ago, replacing a "satisfactory/unsatisfactory" ratings system.

Critics say the BBB has used the new grading system as part of an extensive tele-marketing campaign to increase membership and revenue.

An ABC NEWS examination of filings with the federal government revealed that at least 25 of the Better Business Bureau's top officers had salaries in excess of $100,000.

The head of the Los Angeles Better Business Bureau, William Mitchell, was paid more than $400,000, according to the Better business Bureau.

"I think the Better Business Bureau changed course and lost its way by adopting a system of pay to play that maybe enhanced its revenues but also greatly diminished its credibility and honesty," said attorney general Blumenthal, who was elected to the United States Senate from Connecticut last week.

"It's very troubling and it could be illegal because the failure to disclose to consumers could well be deceptive and misleading," he added.

The ABC News investigation found numerous examples of well known companies that are not members of the Better Business Bureau being branded with F grades, often apparently based on scant evidence or a small number of complaints.

The five-star Ritz Carlton Hotel in Boston was given a F rating after only two complaints.

"A million customers served, two complaints resulting in an F rating, seems to be somewhat unusual, to say the least, " hotel general manager Erwin Schinnerl told WCVB-TV in Boston.

Celebrity chef Wolfgang Puck told ABC News that parts of his food and restaurant empire have received an F grade because he refused to pay to join the Better Business Bureau.

"You know, if you become a member, you're sure to get an A, but if you don't pay, it's very difficult to get an A," said Puck, who has been a regular on the ABC News program "Good Morning America" since 1986.

"I think where you have to join an organization to get a good grade is wrong," Puck said.

This article is courtesy of www.NACSO.org

As the mass chaos of Black Friday rapidly approaches you can already see people starting to lose their minds. Kids throw fits at the sight of their favorite toy, grown men beg their wives for the new Xbox Kinect and wives across the nation take the weight of pleasing everyone on their wish list on a limited budget.  It is no wonder that the lure of 20% can cause the strongest of men to wait in the cold at 3:30 in the morning! To help you maximize your 20% savings I would like to offer you credit tips during the holiday crunch time!

Don't Get Caught in the Retail Card Hype

1. Retail Cards are just "Pretty" Junk Cards.  Did you know that typical retail credit cards offer a $750 credit limit with a rate of up to 24.9% - and this is for people with GOOD credit!!! They entice you with 20% off and can be having you pay 4.9% more than the original price, how is that for savings? Don't get caught with a junk card with a logo, it is a bad investment.

2. Inquiries Can Crash Your Scores. Retail cards are not looked on as favorably as credit offered by auto dealerships or mortgage companies. Because of this multiplie inquiries from a retail credit cards can affect your scores more drastically and for longer periods of time than other inquiries.

3: New Accounts can Hurt Your Credit. 10% of your FICO score is based on the age of your credit. This is used by taking the averages of all the accounts opened. Opening new lines of credit will lessen the average age and potentially affect your score. The more your open then more you can affect your score. Also according to FICO it takes an average of 90 days for an account to score correctly which can make your credit scores suffer during this period.

Using Credit the Smart Way  

If you are planning on using credit this holiday season then use an existing card with a low interest rate and a decent credit limit. Anytime you are using a credit card for purchasing keep in mind that 30% of your score will be based on how much you owe and how high your credit limits are. So think before you buy or that 20% off may cost you more than the original asking price!

Keith Knapp | Credit Guys

Each year, thousands of people around the world fall victim to identity theft… the assumption of their identity by others in an attempt to empty their bank accounts, establish fake lines of credit in their name, or to take advantage of current lines of credit and max out any credit cards that they might currently have.

Luckily, there are some simple steps that you can take that will help you to avoid identity thieves and keep your personal and financial information private.

The tips provided below are designed to help you to protect your identifying information, though in the end the implementation of them is up to you.

Lock Up Your Records

One easy way to keep your financial information out of the wrong hands is to purchase a lock box in which to keep your personal and financial records until they are out of date. Though the lock box doesn't have to be expensive, it's important to buy a sturdy one with a good lock on it in the event of a break-in or if someone should be in your house looking for financial information. Buying a fireproof lock box can also have the benefit of protecting your financial and personal information in the event if a fire or other natural disaster.

Buy a Shredder

When it comes time to get rid of old records, unused credit card applications, and other identifying information, a personal shredder is one of the best investments that you can make. It's generally best to purchase a cross-cut shredder, which cuts paper at opposite angles and makes it virtually impossible to reconstruct at a later date. These shredders can usually be bought for not a lot of money, and can more than make up the cost in the peace of mind that they can bring.

Be Careful with Your Information

Before giving out any personal or financial information, you should make sure that the person that you're giving it to is legitimate. Avoid giving any identifying information to anyone over the phone unless you know for sure who you're talking to and that it's alright to do so, and don't submit personal information over the internet unless it's via an encrypted and automated system.

You should also avoid replying to requests for passwords for websites that claim to come from administrators… almost all major websites have automated password generation features, so administrators would not have any need for your password.

Report Suspicious E-mail

If you receive an e-mail that claims to be from a company that you do business with but is asking for financial or personal information, don't believe it. Don't reply to it, and don't click any links contained within… instead, manually type in the main URL of the website, log in, and report the e-mail to the company to verify whether it's legitimate or not.

Watch Your Credit and Accounts

In order to stay on top of identity theft, you should periodically check your credit report and go over all account statements and account transactions via online bank account access. Verify that all charges and debits are legitimate, and report any that appear without your authorization. Look for accounts or listings on your credit report that you didn't open, and contact the issuer should you find any.

By taking a little time to stay on top of your bank accounts and your credit report, you can usually discover attempts at identity theft while something can still be done to stop it… and might just catch the person in the act.

If you have ever been contacted by a collection agency, you know that it can be an unpleasant experience. A collection agency can turn simple acts, such as checking the mail or answering the phone, into dreaded tasks. However, it is important to know that there is a law in place intended to protect the people that collection agencies contact. The FDCPA (Fair Debt Collection Practices Act) was enacted to keep debt collectors from abusing, harassing, or deceiving a person when attempting to collect a debt. It also gives debt collectors strict guidelines to follow when collecting a debt. In this article, we will have this collection agency law explained in simple terms, to better inform debtors of their rights.

For starters, the FDCPA outlines very clear practices for debt collectors to follow when contacting a debtor. Debt collectors are only allowed to call during reasonable hours (usually 8:00 a.m. – 9:00 p.m.), but they are also allowed to call a debtor at work. However, if the debtor notifies the collection agent that their employer wants the calls to cease, the debt collector must stop calling the person’s place of employment.

There are also rules of conduct a collection agency must follow when collecting a debt. A debt collector is forbidden from harassing any person from whom they are trying to collect a debt.Examples of harassment include excessively calling, insulting the debtor, or using obscene language. A debt collector is also not allowed to make false statements when collecting a debt. Examples of false statements include posing as a government official, making threats (lawsuits, imprisonment, seizing of home and property, etc.), or telling the debtor they owe more than they actually do. In addition, a debt collector can not use unfair practices in attempting to collect a debt. These practices include collecting an amount larger than what the debtor actually owes, or suing the debtor for a debt they do not owe.

The FDCPA requires collection agencies to notify debtors of their rights, and any correspondence (mail or phone) has to contain the information that the contact is being used to collect a debt. The only reason a collection agency can contact a third party (family or friend) is to acquire the debtor’s phone number or address. If the collection agency has this information, they are forbidden to contact a third party. It is also illegal for collection agencies to tell a third party that they are attempting to collect a debt.

The FDCPA is in place to protect the rights of debtor’s while making a collection agent’s job clear and concise. If a person being contacted by a debt collector feels that they are experiencing the violations discussed in this article, it is important that these misconducts are accurately documented. The reason for this is so that the claims can be proven if the debtor decides to take legal action.

Now that you have had this collection agency law explained, you should feel more confident about your rights if you are ever contacted by a debt collector. It is best to avoid the situation altogether by staying current on your debts, but it is good to know that the FDCPA exists if ever find yourself on the receiving end of a collection call. 

Each year, thousands of people around the world fall victim to identity theft… the assumption of their identity by others in an attempt to empty their bank accounts, establish fake lines of credit in their name, or to take advantage of current lines of credit and max out any credit cards that they might currently have.

Luckily, there are some simple steps that you can take that will help you to avoid identity thieves and keep your personal and financial information private.

The tips provided below are designed to help you to protect your identifying information, though in the end the implementation of them is up to you.

Lock Up Your Records

One easy way to keep your financial information out of the wrong hands is to purchase a lock box in which to keep your personal and financial records until they are out of date. Though the lock box doesn't have to be expensive, it's important to buy a sturdy one with a good lock on it in the event of a break-in or if someone should be in your house looking for financial information. Buying a fireproof lock box can also have the benefit of protecting your financial and personal information in the event if a fire or other natural disaster.

Buy a Shredder

When it comes time to get rid of old records, unused credit card applications, and other identifying information, a personal shredder is one of the best investments that you can make. It's generally best to purchase a cross-cut shredder, which cuts paper at opposite angles and makes it virtually impossible to reconstruct at a later date. These shredders can usually be bought for not a lot of money, and can more than make up the cost in the peace of mind that they can bring.

Be Careful with Your Information

Before giving out any personal or financial information, you should make sure that the person that you're giving it to is legitimate. Avoid giving any identifying information to anyone over the phone unless you know for sure who you're talking to and that it's alright to do so, and don't submit personal information over the internet unless it's via an encrypted and automated system.

You should also avoid replying to requests for passwords for websites that claim to come from administrators… almost all major websites have automated password generation features, so administrators would not have any need for your password.

Report Suspicious E-mail

If you receive an e-mail that claims to be from a company that you do business with but is asking for financial or personal information, don't believe it. Don't reply to it, and don't click any links contained within… instead, manually type in the main URL of the website, log in, and report the e-mail to the company to verify whether it's legitimate or not.

Watch Your Credit and Accounts

In order to stay on top of identity theft, you should periodically check your credit report and go over all account statements and account transactions via online bank account access. Verify that all charges and debits are legitimate, and report any that appear without your authorization. Look for accounts or listings on your credit report that you didn't open, and contact the issuer should you find any.

By taking a little time to stay on top of your bank accounts and your credit report, you can usually discover attempts at identity theft while something can still be done to stop it… and might just catch the person in the act.

There is nothing really good about debt. Americans have been convinced by retail salesmen and the banks that to have good credit one must have a solid credit history through credit cards or credit accounts. A solid history means more than the fact that you have consistently made payments on time without failure. The credit card companies and the banks evaluate your spending tends, the debt load over time, your savings history, checking deposit history and actual check spending history. This personal information is felt by these institutions to be proprietary, belonging to the institution because of their unique methods of collection, rather than belonging to the individual who creates this activity.

A credit card, if it is the only credit card you possess, could start improving a portion of bad debt only if you liquidate your current debt in a steady, reliable manner. This will only show a history of reliable payment. As I have already stated banks and credit card companies are not interested only in your reliability, they want the "juice" off of the advanced credit you have obtained. This means they only want you if they can get their interest in a regular and steady manner. This is not the same as pay your debt regularly until it vanishes. They want you to remain indebted permanently but repaying them in a timely manner.

If you are debt free you may not be judged to be a good credit risk. This is the state that underage children and young adults find themselves whenever they attempt to secure a credit card. Simply stated, good credit doesn't mean what it did just fourteen years ago. The protections afforded the consumer since the Depression of 1929 no longer exist. The Financial Laws passed through Congress in 1992 allowed banks, insurance companies,especially health insurance companies investment firms to handle banking, insurance and investment operations. Laws passed after 1929 had prevented banks from insurance and direct stock exchange trading, likewise insurance companies could not pursue banking operations or stock exchange nor could stock exchange companies pursue insurance or banking operations. This freedom was granted without the subsequent protections of the consumer included in these new laws. There currently exists no single body of consumer law. The private citizen must fight the triumvirate of bank,insurance and stock exchange through the court system.

Your teen might need a crash course in money management if:

1. Your teen has no “cash” concept.

It’s easy to overspend or not realize that this is really money I’m using when it’s all done via technology. Debit cards and credit cards are convenient; ATM cards have virtually replaced my need to ever actually visit the bank. Which is great on a holiday when I need cash; not so great for a teenager who never associates cash with any of their transactions. If your teen uses a debit or credit card for every purchase, wean them of it for 30 days. For 30 days, all transactions must be in cash, which means they have to have the cash in their pocket. Somehow those “necessities” become less necessary when you must have the green to make them.

2. Your teen “needs” things

Things as in gizmos, gadgets and junk. I have a saying in my house that is incredibly insensitive in a “but I need it” moment, but puts it in perspective. “You need sunshine, oxygen, food, shelter and basic clothing.” No one on the face of the earth has ever needed a video game, a new MP3 player, a newer phone with newer accessories, jewelry, the best shoes at the store, etc. You get the picture. Break them of the habit. Needs are necessities of life. Wants are completely different and are not priorities.

3. Shopping is an errand you run

It’s not an all-day thing. Shopping is not entertainment. Neither is it the best way to spend an entire weekend. It’s also an expensive hobby. The temptation to keep up with their friends is great and just might wipe you out. The urge to shop even when there is nothing to buy is a sign of a shopping addiction. When most of your teen’s social activities include going somewhere to spend money, this is definitely a sign that possible future money problems are on the horizon. Cut the mall time down. Or better yet, maybe they should get a job at the mall. That way, it’s the last place they want to be.

4. Your teen always “runs over”

Those commercials for cell phones where the parents are having chest pains over the cell phone bill are funny; but the reason that they work as a commercial is because a lot of us can relate to that and that’s not funny. As a parent of a teen, giving them something to be responsible for is the only way to make them more responsible. The unfortunate side effect of that giving of responsibility is that sometimes they screw up. Once or twice is a mistake. Every month, going over on the minutes, putting more on the credit card than they’re allowed, causing you overdue charges, consistently costing you money is a sign that your child desperately needs some money management education. Take the phone, cut the card and get back to basics until there’s a change.

5. You didn’t just win the lotto

Every time there’s a birthday or Christmas, the next day, is your child broke? Does one trip to the mall wipe out a paycheck? Are they always borrowing from you to keep afloat or keep gas in the car? Learning to create and manage a budget is a skill that is learned, which they’re not going to learn until you create the necessity. If your teen is working, then they probably know what must be paid for each month. Do they have to keep the car up and pay for their own insurance? Work with them to set up a weekly savings so that those bills are paid. Keep it simple and keep it on the refrigerator until they’ve got the hang of it.

6. They missed the formula

You know that amazing formula. Want more money? Work more. Or maybe work smarter or for more money. Whatever you do to change that formula, “work” is always a part of it. If your teen is always moaning and complaining about lack of funds, what are they doing to make money? Do they have a job? Could they work more hours and still keep their grades up? Could they work a weekend job for more cash? Could they work full-time over the summer and save some of that money for rainy days? Getting the work formula is key because it usually helps with money management skills. Your child will start looking at that hot new gizmo and think, “how many hours did I work to make that money?” What a great way to start prioritizing.

7. Watching you, they’ll never do it differently

Where do children learn their attitudes and ideas about money? The same place they learn everything else that winds up being really important; at home. If you never pay in cash, why would they? If you need things or are constantly trying to keep up with your friends or neighbors with the best gadgets, best car, best house, etc., of course they’re going to. If you feel insecure about money, they do. If you are always borrowing from one credit card or one bank to keep the other one off your back, then of course they are. If there is no family budget, how could they have a personal budget? In other words, if you need money management help, of course they need money management help. The best way to remedy this situation? Make a money education for your family a priority. Ask for help and then be dedicated to the process of making changes.

If you’re afraid your teen wouldn’t make it financially in the “real world”, then they probably won’t; at least without the opportunity to learn some new money management skills. Don’t throw your hands up in despair. You and your family can learn more about money, it’s not hopeless. Money is a learned skill just like making a bed or driving a car, and your teen learned that! Make a commitment to yourself and your family to make a money education a priority and then do the daily work required. In no time, your teen will be proud of their accomplishments and enjoy using their new skills. Now if you could just get them to do laundry.

Budgets can be customized to fit individual and family means, as well as needs and wants. As it is identified where money is being spent, evaluating purchases and what can be cut, changed or eliminated will allow for more conscience and effective spending. Many people do not realize how much they spend on eating out, unnecessary household items or clothes. The money is gone and they can't account for where it went. This is not only damaging financially by spending more than one has, but it is less fulfilling because it is thoughtless purchasing. For many, immediate gratification in purchasing has led to a plague of debt and bankruptcy. Avoid the trap of interest and wastefulness by making clear decisions about money. Here are some suggestions to help make a successful budget.

Counsel with partner/family on a regular basis about spending

Regular communication and goal setting allows for financial success because all parties are on the same page and work together to make decisions for the family. By talking about goals it identifies concretely what the needs and wants are for the home and family and helps eliminate the power that impulse can have when shopping. Make decisions together including gifts, eating out, home improvements and personal spending amounts. Setting a limited amount allocated for each person to do with what they want without reporting gives freedom of choice, but controlled. Depending on your financial status that amount will vary and could be as little as $50 a month. It is important to keep it within an amount that can be afforded.

Use it up, wear it out, make it do, or do without

It seems as though the more people have, the more they want. Just getting more money is not the solution for most financial struggles. Learning to evaluate needs and what can last and what needs to be replaced is the first step to putting money in the best places and making what ever your income is, be enough. Although it is tempting to "keep up with the Jones' " comparing possessions to others and trying to have what they do will not allow for a successful budget. If items are bought on borrowed money then possessions are not a true reflection of finances anyway. Making due with what one already has will eliminate a lot of unnecessary spending and free up money for more wise purchases.

Give thought to purchases

Planning for purchases and saving before something is bought will prevent unnecessary debt and the consequences associated with it. Mindless spending has as negative of impact on the household as mindless eating does for the body. You end up with more than you need in the wrong places. Plan for what you want by making a list of most important or most desired to least important. Identifying your needs and wants will give focus and direction for spending and help prevent impulse buying. Shop around and see what is out there, what the going rate is for an item, and what a good deal would be. Watch for sales and coupons to make the best purchase.

Include savings in a budget

Living within financial means is not living on the maximum made, but planning for a rainy day. Because unexpected events can and do happen planning for such situations will prevent the debt that would have to be incurred to pay for them. The more a person saves, the better, set aside as much as possible in this area for security and protection. Regret of purchasing is much for common than regret of not purchasing.

Creating a budget will reduce financial stress. Making conscience spending choices, well thought out and followed through with will create financial freedom and power for individuals and families. Wise choices will increase the quality of life, even if the quantity of possessions is not, and greater peace of mind will be found, and that is success.

The best solution is to save your way out of debt. It is a much better idea to keep track of your expenses so you know what you are spending your money on and then you can eliminate unnecessary expenses and start to save.

A small first investment you might want to make is a software program that will assist you in budgeting and saving. By making it easier to keep track of things, this small expenditure will save you a lot in the long run.

The first thing you need to do is establish a budget. A software program will ask you all the questions you need to establish a budget. By answering the questions, the program will put all of your income and expenses in the correct categories and show you what you have left over. You can also do this on your own, by using a form where you write all of your income on one side and all of your expenses on the other.

Each week write down what you spend on each item, how much you put in your savings account or retirement fund, taxes, etc. Record your earnings and track how much you have left. If you see that each week you have nothing left to pay an essential bill, you will have to change your payment system. Each week as you pay your bills, try to make as large a payment as you can on each of your necessary bills, such as rent or mortgage, electric, water, phone, etc.

Then you have to survive on what is left by cutting back on non-essentials. You may have to stop going to the movies for a while and just rent inexpensive ones from the library. You may have to cut back eating out.

Next, examine all of your essential bills to see how you can save money there. If you start to limit the phone calls your family makes, if you make sure to turn off lights and stop wasting water, you can probably save a lot of money. Making these cutbacks and sacrifices will pay off big if you can catch up on all of your bills. You will not even remember which movies you missed while you were putting money away to pay off all of your bills.

Another way to handle this problem is to make a survival budget. What is the absolute minimum you and your family need to survive on? Cut every expense down to its lowest, like budget meals every night, no entertainment except whatever is free, basic water, basic T.V. cable, basic telephone. Follow this survival budget for a few months and you will be shocked at how much extra you will have to pay off your bills and debts. Certain items are important to keep up, such as health insurance and your rent or mortgage, so you don’t end up with no roof over your head or medical bills you can’t pay. But everywhere you can cut back, you should. Any savings can be applied to catch up on bills or debt.

The other side of the equation to look at is your income side. Can you ask for a raise, or can you find a better paying job, or perhaps you can find a second job? Find any way you can (any honest way, that is!) to increase your income while you cut down on your expenses, and you will repair your credit before you know it.

The best remedy is to start saving money. There are many ways to do this. Firstly, try purchasing accounting and budgeting software that enables you to save. It may seem like just another added expense, but the cost will benefit you in the end. Part of this process will be to track your outgoings and incorporate them into a monthly budget plane. The software will assist you by making the task much easier, but if you prefer you can set up a manual table with a paper and pen.

Next, label your table with the heading of Daily (or weekly) Spending – Week of ________. Make sure that you list all your spending requirements, savings, income, taxes, banking fees, food, rent, etc.

Each week, when bill payments are due, spend as much as you can on them first, leaving a minimal amount of money for the following week’s essentials. For example, if your telephone bill is $114, your utilities bill is $59, and your cell bill is $180 and you get paid only $300 then it will be obvious that you do not have enough to cover this.

It is now time to cut down on unessential items. Do you really need two phones?

Forget going to the cinema, budget in rentals, but unfortunately, you may simply have to do without this week. Listen to the radio or watch t.v.

Try to also develop a table that includes your estimated monthly repayments and your living expenses. List your gross income, pensions, bonuses, child support, retirements, and other deductions. Then work out what can be saved on and put it towards paying down your debts.

Sadly, you will have to reduce your groceries, medicinal, personal, pet, holiday and gifts costs. Are there any assets that you don’t really need? Do you need that second car? Why not sell it and clear some more debts?

These simple little tips, along with good record keeping, will help you to gradually reduce debt, fix your credit score and rating, and help reestablish you credit. You may want to think about getting a higher paid job, if your current one offers measly wages. In fact, taking on another job part-time on top of your regular employment can pool in more money. Always remember that there is always a way to rebuild your credit and repair the damage done.

Bankruptcy occurs when a person - the debtor - has a large amount of debt that they cannot repay for one reason or another. People who file bankruptcy often feel that there is no other option for them to get out of the insurmountable pile of debt that they have acquired. The accumulated debt can come from a variety of sources, including medical bills and credit cards, but not all debts are eligible for dischargeable status under bankruptcy regulations. The situation can also occur for a variety of reasons, from a legitimate catastrophic life event to merely years of irresponsible spending habits.

For years, many people decided to file bankruptcy in order to rid themselves of their student loans. Unfortunately for some people, the United States has recently made laws that exempt federal student loans from personal bankruptcy status. This means that even when a person has declared bankruptcy, they are still responsible for their federal student loans. Currently, this is the only exemption that debtors cannot add to their bankruptcy, but certain circumstances can allow for special provisions in very few cases.

For those who want to avoid bankruptcy, there are several ways to get out of what might seem to be insurmountable debt. Several bankruptcy alternatives are available and they are worth the extra amount of effort and work in order to preserve your credit. Since the United States passed new laws, it is almost impossible to have all of your debts simply relieved. Debts are more likely placed in a repayment plan with courts relegating a percentage of your income to each debt. The problem with this is that you can make deals with your creditors to make payments yourself without damaging your credit as much as a personal bankruptcy would do.

Even if it takes some hard work and effort, researching your financial options is of utmost importance for making the right decision. Instead of just allowing a personal bankruptcy to affect your credit for years to come, look into the ramifications it will have on your financial future. For instance, it will always affect your ability to get a low interest rate when you decide to buy a home or for many other types of major purchases. The best thing to do is to pick up as much overtime and negotiate with your creditors in order to pay them off. Of course, it will take some extra effort on your part, but your credit rating will thank you for it.

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