Debt, your credit report and statues of limitations
April 18, 2008
People sometimes have questions regarding statutes of limitations on debt and how long negative items can stay on your credit report.
With the help of some information provided by one of our certified counselors, let me try to clear up these questions.
First of all, it’s important to know that the statute of limitations on a debt and the time that a negative item can appear on your credit report are two different things.
Let’s start with the statute of limitations. This refers to a state statute — so it will vary from state to state — that determines the length of time that a debt is considered legally enforceable. After the set amount of time has passed, creditors or collection agencies can no longer legally collect the debt. In
The statute of limitations begins with the date of the last activity on an account. You should keep any financial records that show the account has past the statute of limitations because the statute does not prevent a creditor from filing a judgment. If you do not have sufficient evidence that the statute has expired, you could still be held liable for the debt.
Credit reporting laws are federal. In general, a negative item will remain on your credit report for seven years. The seven year period officially begins 180 days after the delinquency that caused the account to charge-off or pass into collections.
If a collection agency continues to report on an account after the set time frame has elapsed, you do have the right to challenge that account’s appearance on your credit report.
Like many other things in life, there are always exceptions. I would recommend talking to a certified counselor before taking any action when it comes to a credit dispute, or talk to an attorney if you have legal questions.
Trying to save money on groceries? Try clipping coupons
April 16, 2008
The Associated Press released an article this week detailing the rising food prices.
According to the story, which you can find here, food costs are rising at the fastest rate in 17 years, and it could get worse.
The cost of eggs is up 25 percent from last years, while the price of milk and other dairy products has gone up 13 percent. Chicken and other poultry is up 7 percent.
“How can people deal with these rapidly increasing prices,” I wondered. Then, I thought about my mother.
I can remember Sunday mornings as a child. My mom would sit on the family room floor, drinking her tea, coupon cutter in hand and pages of advertisements spread out before her.
She always had a nice stack of coupons by the end of the clipping. She kept them in a coupon holder I made in second grade as a Mother’s Day project. It was quite possibly the ugliest thing I created in my years of school-made arts and crafts, but being a good mom, she used it for years.
Flash forward a couple of decades … As an adult, I don’t clip coupons. For years I’ve gone to the store and gotten what I needed or wanted without a thought about coupons or looking for store specials.
I decided this rather frivolous way of shopping has got to stop. With the increasing cost of groceries, gas and utilities, we can’t afford to spend more than necessary.
I have a plan to reduce my grocery costs based on research I’ve done and information and tips from our counselors and educators here at Advantage.
Here’s my plan:
· Take the time to clip coupons or find coupons online. I’ve found good coupons on www.coupons.com. I also discovered many companies actually put coupons on their web sites. It’s worth it to take the time to visit web sites for products that you buy frequently.
· Actually look at the store fliers that come in the mail. I plan to see what products are on sale that week and plan my meals according to the specials.
· Try to let go of my brand loyalty and try something different if it is on sale or a less expensive store brand.
· Buy extra meat or poultry when it’s on sale and freeze it for future use.
· Cook a little extra so there is a meal or two left for lunches throughout the week.
I’ve heard stories about people who will go to several different stores to buy sale items and get the best price. The only thing I would caution is to plan your trips carefully and make sure you are not spending more money on gas than you are actually saving.
None of these steps are difficult. They just require time and planning, something that can seem daunting because so many of us find that our time is at a premium.
I’ll keep you posted of my progress.
Please feel free to share any tips you have for cutting grocery costs or successes you’ve had with coupon clipping or finding grocery store bargains.
Workshop for first-time homebuyers
April 14, 2008
Homebuyers likely have a lot of questions and concerns these days with foreclosure rates climbing and talk about the subprime lending meltdown.
The concerns can be especially troubling for a first-time buyer who may not understand the ins and outs of the home buying process.
The first thing potential buyers should understand is how much house they can actually afford. There are many costs homeowners have to consider in addition to their mortgage payment. Taxes, insurance and home repairs can really add up.
Also look at whether or not your potential home needs immediate upgrades. We can all live with ugly wall paper or an outdated kitchen, but a leaky roof or foundation problems probably need immediate attention and could be very costly.
Also, buyers need to factor in the rest of their daily living expenses. Be realistic: Can you actually afford a $1,500 mortgage payment in addition to all of your other bills and expenses? If not, you should reconsider your price range.
Figuring out what price range you can afford is just the tip of the iceberg. Buyers also need to know about qualifying for a mortgage, financing a home, the loan application process, how to prevent a home foreclosure and have good life-long money management skills.
First-time homebuyers in the Pittsburgh area can attend a free pre-purchase workshop from 9 a.m. to 1 p.m. May 3 at Advantage CCS’s South Side Pittsburgh office, 2403 Sidney St., Suite 400.
Registration is required for the workshop. For more information about the workshop, or to register, call (866) 430-2227.
First-time buyers who cannot attend the workshop or do not live in the area can schedule a session with a certified housing counselor by calling (888) 511-2227.
Your wedding: Can you afford it?
April 9, 2008
Nearly every little girl dreams of her wedding day. Along with dreams of a beautiful dress, a handsome groom, an impressive hall and a fun party comes the reality of paying for that dream.
Unfortunately most of us don’t think about the cost in that childhood dream.
Once you actually start planning a wedding reality hits … big time.
I know because I’m in the midst of planning, and paying for, my wedding.
From one who is on the front lines of wedding finances, I’d like to offer some advice.
First, decide what you can realistically afford to pay for a wedding. If you are counting on money from your parents or in-laws, make sure you know how much money they will be contributing. You don’t have to be rude or demand money, just make sure you know where your finances stand.
Here are some typical things you might need to include in your budget:
· Invitations
· Photographer
· Videographer
· Church musicians
· Contribution to your church or officiate
· Reception expenses (Including food, beverages and any other fees)
· Transportation, such as limo service
· Gifts for attendants
Once you have a budget in mind, then begin looking at locations and vendors. Most places have price lists available online, so you can get an idea of what your costs will be.
Don’t be afraid to tell vendors what your budget is because many can work with you. My fiancé and I were able to tell our florist how much we could afford to put towards flowers, and she worked with us to come up with something that we loved and that fit within our budget.
When you start to try on gowns, be upfront with your consultant about how much money you can afford to spend. Make sure to include all alterations, your veil, undergarments, shoes and accessories into your cost. Your $600 gown could easily end up costing you double that much by the time you factor in the other costs.
If you are on a very tight budget, consider looking for clearance sales or dresses that were designed for a bridesmaid or as a prom gown. These dresses are often beautiful and appropriate for a fraction of the cost of a more traditional wedding gown.
I would recommend only planning a wedding that you can afford to pay for in cash. The last thing you want to do is start your new life as a couple mired in debt. This may mean making some tough decisions. For example, we’ve decided to forgo a professional videographer and get family to take home movies of the day because we were determined to stay within our budget
If your dream wedding is more than you can afford and you’re not willing to scale back, take a look at how long it would take you to save up enough money. Wouldn’t it be better to push your wedding date back a few months to save up more money than it would be to wrack up debt that will cost you interest and could take years to pay off?
Make the most of dollar store shopping
April 7, 2008
After a trip to the mall or the grocery store, do you ever think about how much things cost lately?
In a day and age where everything seems to be so expensive, frugal shoppers do have an oasis: the dollar store.
I admit to being a former dollar store snob. When a friend mentioned shopping there, I turned up my nose. Then — through a series of circumstances that is too long to describe here — I ended up stranded outside of a dollar store one January and went inside seeking refuge from the cold.
I ended up leaving with a basket full of items, much to the amusement of my previously mentioned friend who happened to be stranded with me.
For the uninitiated, dollars stores offer everything inside for $1 or less. These stores should not be confused with other discount stores that may have “dollar” in the name.
While dollar stores can be a blessing for the budget-minded, I wouldn’t recommend going in without a plan, or buying just anything in the store.
As a regular dollar store shopper for several years now, I have learned some lessons. Here they are:
- If you are trying to control your spending, walk into the dollar store with a list. It is very easy to grab lots of extra items that you may not really need. I have found lots of great things that I’ve gotten lots of use out of. I’ve also purchased things that sat unused in a closet only to be tossed out.
- Be aware of what items cost in a more traditional store. I have seen items that you can actually purchase for less at your neighborhood grocery store.
- Be very careful purchasing anything that you plan to eat, drink or otherwise put in your body. An episode with a “name brand” toothpaste that turned out to be approved by the “South African Dental Association” taught me this. Don’t believe me? Check out this tidbit on Snopes.com.
- Glasses, mugs and plates are often a great value. Not long ago I was in need of dishes. I went to my local dollar store and purchased plates, bowls and mugs for four people. The total cost: $12, plus tax. A New Year’s Eve trip with friends required champagne glasses. We were able to buy glasses for everyone, and there was no worry about expensive glasses getting left behind on vacation or broken during travel.
- Shop for Christmas supplies like wrapping paper, boxes, bows, etc. early. Dollar stores are great places to get these supplies, but the closer it gets to the holidays, the sparser the choices are. I usually stock up before Thanksgiving.
- There are lots of cleaning supplies and products available. This is especially helpful if you are spring cleaning or moving and need extras supplies.
Have you ever found a great deal at a dollar store? What are your favorite products to purchase at dollar stores? Please feel free to post your thoughts or any dollar store shopping tips!
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