Advantage CCS Gears Up For 14th Annual National Consumer Protection Week (NCPW)
March 7, 2012
Advantage Credit Counseling Service is joining with federal, state, and local government agencies and national organizations to celebrate the 14th annual National Consumer Protection Week (NCPW) on March 4th-10th, 2012. During NCPW, groups nationwide share tips and information that help consumers protect their privacy, manage money and debt, avoid identity theft, and avoid frauds and scams.
This year, Advantage CCS will focus on money management, the wise use of credit, an effective debt management program and identity theft. All this week, Advantage CCS will be utilizing social media to spread the message and to help educate consumers. We are really excited to be a part of something that will help people and spread awareness about fraudulent activities and scams. We want to make sure consumers are protected and that they know their rights.
Go to http://www.ncpw.gov/ to read more about National Consumer Protection Week, check out a calendar of events nationwide, and find out how you can be a part of NCPW. The website’s blog features posts from consumer experts nationwide, and allows consumers to connect directly with them about a variety of consumer protection resources.
Knowledge is power! The better informed consumers are the less people will fall victim to scams and identity theft problems. We are here to educate and help the community, so NCPW is something we take very seriously. We’ll be providing tips, advice, and information all week long about various topics. Come check us out on Facebook, Twitter, LinkedIn and Pinterest. Thank you!
Living Above Your Means & What That Can Mean For Your Finances
March 5, 2012
We’ve all heard the phrase “keeping up with the Joneses” before. This means that you always buy things that are probably not within your budget and that you most likely can’t afford, but you need to keep up appearances anyway. You have people to impress and a reputation in the neighborhood to protect. You are always comparing yourself to your neighbors as a benchmark for social caste. This is not a good thing for your family, your personal finances or that monthly budget.
It’s sometimes hard to distinguish between a want vs. a need. Especially if it’s something you really want and have wanted for some time now. You’ll make excuses about why you “need” that certain item. Before you know it, that item is in your shopping cart and you buy it. This kind of mentality needs to stop. It is going to destroy your budget and eventually may lead to serious financial problems.
Ways to Decrease Expenses:
- Go to a matinee instead of an evening movie. Rent movies from Netflix or Red Box instead of from your cable company. Better yet, get free movies from your local library.
- Ask your utility company to perform an energy audit of your home to show you how to save energy consumption and thus save more money each month.
- Comparison shop for insurance and ask about available discounts. Whether its car insurance, health insurance or homeowner’s insurance. If you bundle everything together with the same company, you could save hundreds of dollars every year.
- Avoid convenience food stores and convenience food (fast food). Everything is always more expensive there and fast food is just not healthy for you. Cook more food at home and bring leftovers for lunch.
- Stay away from the vending machines at work. You can bring in snacks and beverages from home to save money.
- Ask your doctor about generic equivalents for your prescription drugs. Many times you’ll end up paying 2-3 times less than what you’d spend on the brand names.
- Check out consignment shops or online discount stores such as eBay.com or OverStock.com; especially for children’s clothes because they grow out of them so quickly.
- Go to 1 or 2 stores at the most to get all of your errands done. There’s a reason why people love Wal-mart so much. It’s not just because of the everyday low prices, it’s because you can get everything you need in just that 1 store. You’ll save so much money on gas by keeping your driving limited.
There are many other ways to decrease your spending habits. Stop and think before you make that next big purchase. Ask yourself if it’s truly something you need and how it will benefit you and your family. If you know you can live without it; then don’t buy it. Impulse spending is one of the major reasons people fall into serious debt.
If you need help getting out of debt, call Advantage CCS today and ask us how we can help. Our certified credit counselors will review your situation and see how much of a “shortfall” you may have. They might recommend a debt management program to help you get back on track. Let us help get that debt monkey off your back today!
Image: vichie81 / FreeDigitalPhotos.net
Secured Debt vs. Unsecured Debt
February 22, 2012
There are two main types of credit: secured and unsecured. Knowing the difference between the two can help you prioritize your debt payments. It is not uncommon for people to ask about the difference between the two and how they may affect your credit score. We’ll take a closer look at both of them and explain the differences.
Secured Debt -
Secured debt is debt that is backed by some type of collateral such as an asset or revenue from the borrower. You typically encounter secured debt when you purchase a large ticket item such as a house or a vehicle. Mortgages and car loans are two examples of secured debts. If you fail to pay back the loan as agreed, the lender can foreclose on the home or repossess the vehicle for non-payment. Because there are assets the lender can use those assets to recoup their loss in the event of a loan default, interest rates are generally lower on secured loans.
Unsecured Debt -
Unsecured debt is debt that is not guaranteed or “backed” by any type of collateral. Essentially this means that if you default on an unsecured debt there is nothing that the creditor can take back to recover their costs for non-payment of the loan. Interest rates tend to be higher on unsecured debt because there is no collateral for the creditor to seize if you default. Credit cards fall into the category of unsecured debt. A credit card company cannot seize any of your possessions if you do not pay off the balance. Creditors attempting to collect on a delinquent unsecured debt typically turn the account over to a collection agency.
How Secured Debt and Unsecured Debt Affect You? -
Both types of debt will show up on your credit report. A small portion of your credit score (about 10%) is based on the types of debt you carry and whether or not you have a “healthy” mix of credit types. The score takes into account if you have a mix of revolving credit (credit cards) and installment loans (mortgage).
Revolving credit are often the types of loans issued with unsecured debt. Your payment amount can vary, or revolve, based on your account balance and interest rate. Installment loans are typically issued with secured debt. For example, if you take out a vehicle loan, you are given a set schedule of payments. Your payment and interest rate generally remain the same each month until the loan is paid in full.
AdvantageCCS Can Help You Manage Your Debt -
With all types of credit, there are often steep penalties for not paying as agreed. If you’re having trouble managing your unsecured or secured debt, you should contact Advantage Credit Counseling Service and talk with a certified credit counselor. It is possible to get your debt under control, and the sooner you start, the sooner you can get on the path towards financial freedom!
Image: Pixomar / FreeDigitalPhotos.net
Which debt to pay off first? Debt Snowball Method vs. Highest Interest Method
February 8, 2012
There is much debate on this issue in the financial world. Some experts say to pay off the smaller balances first to get instant gratification. Others say it’s better to pay off the high interest rate ones first regardless of the balances. The first method (smaller balances) is called the “Debt Snowball Method”. The second method is called the “Highest Interest Method” and both have benefits.
We’ll go into detail and discuss each method in length to help you decide which method is right for you. Are you the type of person who needs to see instant results to know something is happening? If so, then you might prefer the snowball method. If you are more interested in saving money in the long run and are not worried about seeing a result right away, then the highest interest method is for you.
Debt Snowball Method:
Using the debt snowball method, you would focus on paying off the smallest debt first while just making minimum payments on the rest. Start by listing all of your credit card debts in order from the smallest balance to the largest balance. Next, total up the minimum payments you are making on all of your cards to see how much you are paying each month. Continue paying the minimum on all of your cards except the card with the lowest balance. If possible, try to add more money to that monthly payment. Paying more than the minimum will help you pay off the balance faster. For example, if your smallest debt is $100 with a $10 minimum payment, by increasing your monthly payment to $20, you will pay off the balance in about 6 months versus 10 months.
Once you have eliminated the balance on your lowest card, the debt repayment snowball effect begins. Apply that $20 you were paying on your lowest card to the next lowest balance in line. If you were paying $30 a month minimum payment, you will now be paying $50 a month. Once that balance is eventually paid off, apply that $50 you were paying per month to your next lowest balance, and so on and so forth.
Highest Interest Method:
Using the highest interest method, you would focus on paying off the highest interest debt first while just making minimum payments on the rest. First, list your credit card debits in order from highest interest rate to the lowest interest rate, disregarding the balances. Continue paying the minimum on all of your cards except the card with the highest interest rate. You need to add more money to that monthly payment to pay it down quickly. Any extra money should go directly to that debt first. Paying more than the minimum will help you pay off the balance faster and it will save you money in the end because of the high interest rates. Continue this method using the next highest interest rate and descending in that order.
It can be frustrating at first because it’s hard to see any improvement or “dent” when using this method. That doesn’t mean it’s not working, it really is, you just have to give it more time to see the results. The benefit to this method is the amount of money you can save when all is said and done because you paid the highest interest rates off first.
Which Method Wins?
The “highest interest” method usually means that you would pay less in overall interest by going that route. However, with that method, the “successes” don’t start happening for quite some time. With the “debt snowball” method, the successes occur more regularly throughout the process, meaning it’s better for keeping your encouragement up as you repay, even though you will pay more in the end because of the interest rates.
It’s really up to your personality when choosing one of these methods. If you think you will get frustrated and give up with not seeing instant results, then you might want to go with the “debt snowball” method. That is actually the more preferred method among people in debt.
Just remember that it’s always easier to get into debt than it is to get out of debt. Hang in there and have some faith. You can do this and we are always here to help. Give us a call if you have any questions or would like more information.
Introduction – Taking Over Our Financial Blog
February 6, 2012
Hi there! My name is Lauralynn Schueckler and I’m the Online Marketing Specialist here at AdvantageCCS. I’m taking over our Blog and I’m looking for some great ideas for topics to write about. Please let us know what’s on your mind and what you’d like to see on our Blog. I’ll do my best to provide you with the correct information and to answer any questions you may have.
I’ll tell you a little bit about myself. I have an Associate’s Degree in Multimedia Technologies and Graphic Design from Pittsburgh Technical Institute and I have been with the agency for a few months now. Before that I was the Social Media Manager at a Pittsburgh based Internet Marketing Firm. I’ve always had a passion for Social Media and Search Engine Optimization.
I’ve actually gone through the AdvantageCCS Debt Management Program personally myself almost 2 years ago. I’m completely debt free today and my credit score is very good now. I know all about what it’s like to be in debt. I was in over my head and I almost gave up. I had student loans, a car loan, and massive credit card debt. I heard about Advantage Credit Counseling Service from a friend and I’m so happy that I checked them out. They truly are the reason I’m out of debt today. I have been there and done that when it comes to debt, so if you can name a financial issue, I probably have experience with it.
In conclusion, if there are any financial topics that you would like to see discussed here, please feel free to suggest them. You can also contact me directly at lschueckler@advantageccs.org with any questions or ideas. Don’t forget to friend us on Facebook, and follow us on Twitter. We are also on Google+, LinkedIn and YouTube. Thank you and I look forward to hearing from you!
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