News

This is a topic I’ve addressed before, but it bears repeating.

If you are struggling to pay your mortgage, or if you know someone who is, please remember that there is reputable, free help out there.

It has come to light that many of the same mortgage brokers who peddled sub-prime home loans have quit the business of making loans and have started new businesses to “help” homeowners who are facing foreclosure to modify their loans.

Yes, that’s right. The same guy who sold you a home loan he knew you couldn’t afford is now offering to help you make the loan affordable.

What? That doesn’t sound right? That’s because it’s not.  According to this New York Times article, these same companies are now continuing to harm homeowners who are having difficulty paying their mortgages.

If you can’t make your mortgage payment, or you fear you may not be able to make a future payment, please make sure you get real help. 

Start by contacting your lender directly and ask to speak to someone in the “loss mitigation” department.  You can also find a list of approved, non-profit housing counselors by visiting the web site for the U.S. Department of Housing and Urban Development.

If you are a resident of Pennsylvania and have received a foreclosure notice, or Act 91 notice, you can find approved housing counselors in your area by going to the web site for the Pennsylvania Housing Finance Agency.

The most important thing is to look for this reputable help immediately.  Do not ignore a foreclosure notice or simply assume that there is no relief for your situation.

Tips

We’re once again in the midst of tax season.  Here is some information for people who are filing their own taxes as well as what do with a refund or what to do if you owe Uncle Sam:

·        Pennsylvania residents can file their federal and state income taxes for free through

·        There are some common mistakes people make when filing their taxes. Make sure:

1)      To enter your Social Security number correctly.

2)      That your deduction totals are correct.

3)      That your withholding and estimated tax payments are on the correct lines.

4)      To sign and date your return.

·        Those who find themselves with a particularly large refund or shortage may want to adjust the number of allowances claimed for federal income tax withholding.

·        Remember that some employers do not deduct local wage taxes. If an employer does not deduct this tax, the employee is responsible for paying this tax to the municipality where he or she lives. Generally this tax is 1 percent, but it may be less in some municipalities.

·        People who receive a refund will have to decide what to do with that refund.  Advantage CCS recommends using a refund to pay down debts or put the money into savings. Whether the money should be used to pay down debts or go towards savings really depends on each individual’s circumstance. Those who would like advice about how to handle their refund can contact Advantage at (888) 511-2227, and a certified credit counselor will help them go over their budget and determine the most prudent way to use their refund.

I love a good deal as much as the next person. As a matter of fact, I pride myself on being able to find some of the best shopping deals out there. That being said, I don’t go near the stores on the day after Thanksgiving. As a matter of fact, I try to avoid the stores as much as possible during the holidays.

First of all, I get very claustrophobic in crowds. I get easily agitated when I’m trying to shop in a crowded store. Studies have shown that people spend more money when they are shopping in crowded stores and/or are in a hurry.

Tip: During the holidays try to shop during a week day when stores are less likely to be crowded. If you’re stressed you could make impulse purchases that cost you more than any savings on good sales.

Second of all, yes there are some great Black Friday deals, but most retailers offer good sales throughout the holiday season. My sanity is worth more than any amount of money I could potentially save.

Tip: Do lots of price comparisons before you head out to the stores, including price-checking reputable online retailers. Know exactly where you want to go and for what before you head out the door.

I think organization is key in terms of who you and buying gifts for and how much you plan to spend. I have always spent more money during holiday seasons where I didn’t make a plan and set a budget.

Tip: Make a list of every person you intend to buy a gift for and how much you plan to spend on each person. Before you hit the stores write down a few gift ideas for each person, so you have some direction once you get into the store.

Finally, it’s always easier to spend more if you’re using plastic versus cash.

Tip: Once you know how much you plan to spend put that amount of cash into an envelope and use that to do your shopping. Make sure to keep your cash in a secure location and never leave your purse or wallet unattended!

Debt Management

I’ve become quite concerned with some of the advertisements I’ve seen recently for debt relief companies.

I have seen more and more places claiming that people have a “right” to settle their debt for 50 percent of what they owe. I’ve also seen quite a few ads somehow relating the government and the president to credit card debt relief.

Neither of these things are true.

No creditor has a legal obligation to accept less than the full amount that you owe them. Some companies are willing to consider a settlement offer, but many won’t.  And those that will accept a settlement aren’t doing it because they are legally bound to do so.

As far as the government goes, there is nothing in place to help people pay off their credit card debt.

The new CARD Act that is partially in effect regulates the credit card companies in some areas, but it does not offer any financial help to individual borrowers to reduce their debt.

If you are struggling with credit card debt, there is reputable help available. The best place to start is with a credit counseling session. Advantage CCS has a team of certified credit counselors who can review your financial situation and offer practical suggestions to pay down your debt.

Please research any debt relief company before you sign any paperwork or hand over any money. Make sure you are working with a reputable, non-profit agency that has your best interests in mind. And be especially watchful of companies that make promises that are too good to be true, or simply false.

Credit Counseling

I’ve become quite concerned with some of the advertisements I’ve seen recently for debt relief companies.

I have seen more and more places claiming that people have a “right” to settle their debt for 50 percent of what they owe. I’ve also seen quite a few ads somehow relating the government and the president to credit card debt relief.

Neither of these things are true.

No creditor has a legal obligation to accept less than the full amount that you owe them. Some companies are willing to consider a settlement offer, but many won’t.  And those that will accept a settlement aren’t doing it because they are legally bound to do so.

As far as the government goes, there is nothing in place to help people pay off their credit card debt.

The new CARD Act that is partially in effect regulates the credit card companies in some areas, but it does not offer any financial help to individual borrowers to reduce their debt.

If you are struggling with credit card debt, there is reputable help available. The best place to start is with a credit counseling session. Advantage CCS has a team of certified credit counselors who can review your financial situation and offer practical suggestions to pay down your debt.

Please research any debt relief company before you sign any paperwork or hand over any money. Make sure you are working with a reputable, non-profit agency that has your best interests in mind. And be especially watchful of companies that make promises that are too good to be true, or simply false.