Annually, consumers are entitled to one free credit report. This free report does not include a credit score but does allow consumers to review their credit histories, correct mistakes and misinformation, and overall keep tabs on their financial situation. Because people are working harder to beef up their good credit, companies are taking advantage of the opportunity by advertising free credit reports in exchange for becoming a member of a credit monitoring service. This monitoring service generally charges a fee each month, which many times is automatically deducted from a credit card account. Consumers just looking to receive a free copy of their annual credit report are often mislead and not fully understand the consequences of their signing up for membership.

The FTC is taking steps to clarify when free doesn’t really mean free. A new disclosure will be required on print advertising of credit monitoring services beginning April 1st. Starting in September, the disclosure will be also be displayed on television and radio advertisements. This notice states:

‘THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV. You have the right to a free credit report from AnnualCreditReport.com or 877-322-8228, the ONLY authorized source under federal law.’

There have also been reports of visitors going to AnnualCreditReport.com and being automatically re-directed to a paid website that offers credit monitoring services. This action likely was the result of visitors clicking paid advertisements which will no longer be displayed on the site until after consumers have ordered their free credit reports.

Consumers who have not regularly been checking their credit histories are encouraged to do so because many financial decisions are based on histories and credit scores. Lenders, insurance company, landlords, and even potential employers may access your credit report to base decisions and interest rates on how you rank financially. By requesting a free report, you can stay on top of your information and know where you stand. After receiving the free copy of a report, subsequent reports will cost a flat-fee. No one is required to sign up for credit monitoring services unless they choose to do so.

FTC Clarifies the ‘Free’ In Free Credit Report was created by and is property of American Consumer News.

The reason more people are choosing to take to the skies despite being ill is the fact that many airlines are unwilling to refund or reschedule flights for consumers who are sick. In a weakened economy where every penny is being stretched to its limits, many people simply cannot afford to lose hundreds of dollars in airfare. This results in more people boarding planes when they really would be better off at home in bed.

According to a recent poll on TripAdvisor.com, 51% of the people who responded would rather fly with the flu than pay the fee to rebook a flight. This means that the chances of being in an airplane with someone suffering from either the regular or swine flu virus is pretty likely this holiday season.

If you want to limit the chances of being seated next to a person who had to make the difficult decision to travel sick or pay a penalty for re-booking, consider the policy of the airline on which you are flying. Each carrier has their own policy regarding refunds for medical reasons. If the carrier you are flying with does not honor a medical waiver, than passengers on that airline are more likely to be flying while sick. American Airlines and US Airways, to date have stuck to their “change fees still apply” policy, while Delta, AirTran Airways and United have adopted policies which examine each situation on a case-by-case basis. When applicable, the latter carriers will reschedule a flight without charging additional fees if a doctor’s note is provided.

With more people suffering from the flu this holiday season, The Centers For Disease Control is asking people who have a fever or cough to stay home and avoid traveling whenever possible. People who are obviously too sick to fly can be removed from a flight if a flight attendant or gate agent brings the situation to the attention of the captain prior to takeoff.

Hopefully more airlines will consider waiving re-booking or cancellation fees to make the choice easier for people who are forced to decide between the health of others or the health of their finances.

Why Are More People Willing To Fly While Sick? was created by and is property of American Consumer News.

The economy has given us a lot to worry about lately. The market is up and down on a daily basis, people are concerned about the amount of retirement savings they’ve lost and continued to lose, unemployment numbers are reaching all time highs, and thinking about what the future might bring is downright scary for many.

In the current economic climate, it’s hard to remain calm and worry free. Complex financial problems and concerns surround us and there is no quick fix or solve-all solution to be had with the snap of our fingers. The fear can paralyze you and when people are afraid, making difficult decisions becomes even more challenging and the ability to think clearly diminishes. Fear is complex, and if not handled properly, can overwhelm people and cause chronic stress. Chronic stress is detrimental to our overall health and well-being, and therefore it’s important to get a handle on the stress and anxiety.

Reducing financial stress, or any kind of stress for that matter, comes down to distinguishing between productive worries and unproductive worries, according to associate professor Josh Klapow from the University of Birmingham. Productive worries are situations you have some sort of control over. Worrying about these situations results in you taking action, and that’s what makes it “productive”. Unproductive worries are things outside of your control, and worrying about them does nothing but cause you undue stress and eventually, illness.

Here are some tips for getting a handle on your financial anxieties:

Do something. Taking action is one sure way to be productive about what worries you. Carpool to save wear and tear and commuting expenses, create and stick to a family budget, use coupons, turn out the lights more. Find ways to reduce your expenses and spend less in order to stretch your income.

Plan for the future. Planning is what enables people to be prepared, and people who are prepared have less anxiety and stress. Polish your resume in case you become unemployed, attend networking events and make new connections with people that could help you in the future or that you could help in the future. Put money aside in a savings account for emergencies and unexpected expenses. See a financial advisor for assistance planning for the future.

Relax and remember to take a break from it all. Tuning out completely from the economic conditions and fluctuations in the market isn’t a good idea – but focusing on nothing but bad news is not a good idea either. Remember to participate in stress relieving activities and give yourself necessary breaks from worry. Try yoga, meditation, listening to music, exercise and spending time with friends all good methods of relieving stress.

When the economy is struggling and your personal finances are stressful, keep hope for the future. There are promising times ahead.

Reduce Financial Stress by Choosing Your Worries was created by and is property of American Consumer News.

Credit Scores of Old
A credit score of 720 used to be considered excellent to lenders but this is no longer the case. Many mortgage companies want to see a 740 or higher to feel confident in lending. As a result of the 2008 situation, most lenders have tightened their belts and have issue stiffer requirements than ever before. So it will be highly important you know where you stand credit-wise. Order your copy of your credit report today and find out what your score it. If it falls short of the 740 mark, start working towards paying down your debt and decreasing your debt to income ratio. Analyze your credit report for errors and report them immediately to the credit bureau. If the credit bureau can not ascertain that the mistake is legitimate, the correction could help to improve your score rather quickly.

Proof of Income
Not long ago, those applying for mortgages would go through the extensive application process and think there couldn’t possibly be any more paperwork to complete. However, now that lenders have upped the anty, applicants are required to do even more extensive work. For instance, it used to be good enough to state your income on the application. Now most lenders will also require solid proof of how much money you make. Applicants looking to breeze through a no-documentation loan may want to reconsider their option because loans with little or no documentation are very rare. Before applying with a lender, make sure you have copies of all your tax returns in recent years as well as copies of your pay stubs put in order. The last thing you want to have to do is scurry around looking for missing paperwork.

Other Records
In addition to your income, expect to provide other documentation during the application process. As your clear through 2008 documents for your upcoming taxes, you should keep a separate file to collect your bank statements, monthly bills you are paying on, and other relevant documents. If your debt to income ration is high, the lender may require some additional convincing.

Saving the Cash
As you pour over your finances and necessary documentation, you should also start putting away as much cash as possible for your down payment. Because improving your credit and getting your financial records in order takes time, you can focus on the renewed importance of saving as much as possible to get the house you’ve been dreaming about without too much hassle.

Tips for Getting a Mortgage in 2009 was created by and is property of American Consumer News.

There are many things couples can do to prevent this scenario. Here are some tips to mull over about marriage and money.

1. Communication is Essential

If you are not talking collectively about money, chances are good that one half of the couple will overspend. Without setting limits that both parties are aware of and not having a budget, couples can easily get overwhelmed with debt, late payments, and overall money mismanagement. Set a time each week to discuss income, bills, savings plans – whatever financial issues might be in need of analysis. Balance the checkbook and pay the bills together so both parties are fully aware of where they stand.

2. Find Common Ground

For many couples, there may be a situation where one is a spender and the other is a saver. Without the proper communication, a couple’s financial goals are a moot point. Find common ground and make priorities for your financial direction. Discuss what is most important – saving for college, buying a home, establishing an emergency fund. Whatever financial goals you have, write them down and review them often. Having a common goal to work towards can and will often strengthen the relationship you already have.

3. Make Important Banking Decisions

Once married, many couples immediately dissolve their separate accounts and combine all of the money into a joint account. It may not always be the best avenue to travel. In sticking with a budget, couples should feel good about having a sense of financial independence. Just because you each have a separate bank account as well as a joint account, does not mean that as a couple you lack trust. It may lessen the burden to have your “own money” to spend as you see fit, provided a budget and goals have been set.

4. Have a Plan for the Golden Years

Looking forward to the future with your beloved, it is wise to establish a plan for retirement early in life. It gives you both the opportunity to save up more for a longer period of time. A good rule of thumb is to put away 10% of your income into an emergency fund. Once you have built up a good bulk of money, plan to invest it into a retirement account and keep saving. Even if you are living paycheck to paycheck, you can likely find a something to sacrifice to save that 10%. Consider it a big investment into your future golden years together and have fun planning for those days to come.

5. Work Together

In many cases only one half of the couple will come into the marriage with financial baggage. If you are willing to make the commitment to each other “for richer or poorer”, you better be willing to mean it. Debt needs to be handled by both parties. This is important for your emotional well-being as a couple but also because the debt of your partner, if not handled correctly, can carry over to your own credit score and affect you negatively.

6. Live A Life Without Secrets

Financial secrets can be devastating to a marriage. If you or your partner go out and make a large purchase or hide any past debts, it is likely the trust factor will be broken, leaving your relationship in the dust. When you marry, you make a commitment that is meant to last a lifetime. Hiding information, no matter how embarrassing it may be, can cost you a lot more than money. It will likely cost you your marriage. Be open and upfront when it comes to finances or you will find yourself very single and very much in debt.

Talking Marriage and Money was created by and is property of American Consumer News.

If you find that you are facing a similar situation, know that you are not alone. For many faced with the difficult decision to give up a family pet, it is a big source of embarrassment, leading many people to drop off their animals along the side of the road, rather than face shelter care workers. Even worse, there are reports of people who have lost their homes to a foreclosure who have simply left their pets behind in the vacant home. However, pride or embarrassment should not be superseded by your love for your dog or cat and turning them over to a shelter is the best way to save your pet if there are absolutely no other alternatives.

 Before making any final decisions, it is important to consider all of your options for your pet. Since many shelters are already faced with problems of overcrowding and not enough public support, it is worth your time to investigate your other resources. No one can blame you for having to give up a pet because of financial reasons, provided you do it responsibly.

ASK AROUND – Many of your neighbors, co-workers, and relatives may be more than happy to take care of your pet, even temporarily. Even if there is no takers from the immediate circle of your friends, someone may know someone who would love to adopt your dog or cat.

POST FLIERS – These days it can be risky to advertise your pet publicly to total strangers but there are plenty of good people who may be interested in taking your animal. Consult with your local animal shelter and ask for their assistance in screening potential takers or even recommending quality foster parents.

GO GENERIC – Many people do not even realize how much luxury they lavish on their pets. Dogs and cats are happy to eat quality food but there is no need for the additional treats, snacks, and gourmet foods. Unless there is a medical necessity, you can probably cut back on some of the pet products you are currently buying. You can also skip the pricey vet bills for routine shots and instead seek out a clinic that offers discount rabies and other vaccines. If you cut back on the cash you spend on your pet, you may find you can actually afford to keep him.

If you happen to know someone struggling to get by who has a pet, drop off a few cans of pet food anonymously on their porch if you don’t want to cause them undue embarrassment or deliver some personally and let them know you care. For elderly people who can barely afford their own medication, their dog or cat may be the only company they have each day. If you can help them keep their beloved pets at home, you can really make a difference.

You can also donate food, money, or other necessities to your local shelters, which are filling up faster these days as more pets get surrendered. A few cans of dog or cat food can make a big difference and may only cost you a few bucks. Shelters can also used old blankets and shredded paper as bedding which doesn’t cost you a thing. My own mother, who is a nurse, donates expired baby formula that is not good enough for infants but works wonders with kittens. Every little bit will help.

Bad Economy Is Hurting Pets was created by and is property of American Consumer News.

With so many families struggling just to buy gas to get to work and groceries for your family, there is all likelihood that the worst-case scenario will hit many. Repossession due to the lack of funds to keep up with bills can be embarrassing process but one that many people may face with the state of the economy and the lack of good paying jobs.

When people are being faced with collection agencies and incessant calls, they often do not know what is possible and what is not. They can be threatened with repossession and lawsuits so they will often avoid contacting creditors altogether, making the situation worse.

Here is some information about repossession and what can legally happen.

What Can Not Be Repossessed

Items Purchased Using an Unsecured Loan

If you fail to pay back a credit card balance or a unsecured loan, such as a payday type loan, the company can not repossess any property you purchased with the money once you default on that loan.

Property Not Used As Collateral

If you have not used property or possessions as collateral on a loan, those possessions can not be taken away. Only things that have been listed as collateral on a secured loan are able to be legally repossessed.

Credit Agreement Collateral

If you use property as collateral on a credit agreement, there may be a loophole. An attorney can review credit contracts and in some instances, they will find that the contracts are not enforceable due to your state’s legal statutes. If the attorney can find such cause for voidance, then your collateral property may be saved from repossession.

What Can Be Repossessed

A Vehicle

If you default on your loan with your lender for car financing, the lender has the right to repossess you automobile and resell your car to recoup their loss. Additionally, to add insult to injury, if you fail to make your car note and the lender repossess your car, they can also come back after you for any balance left over should the car sell for less than the price you owned on your loan. Essentially, you will still be paying for a car you no longer have.

A Home

When you use a mortgage to finance a home, you are essentially using that home as your collateral. If you default on your home mortgage loan and foreclosure happens, you can lose your home back to the lender, who can legally evict you and resell your home to recoup their money.

Rent-To-Own Merchandise

If you go to a store that rents merchandise for a fee, with the end result of ownership, the items can be repossessed if you fail to make the arranged payments.

What’s The Deal with Repossession? was created by and is property of American Consumer News.

Here are some quick tips to help you on your way to a life of frugality that take no time or planning at all but can help you cut down costs and save more money.

Go Generic

Whenever you are in the grocery store stocking up on staples, pick out the generic brand if you only ever buy the brand name. While I will be the first to admit not all generic versions of everything are exactly the same, most generic brands are and cost sufficiently less than their brand named counter parts. You won’t know until you try it.

Eat Healthy

Eating better may not save you money at the grocery store but it will effect your long term finances for the better. By improving your diet and exercising regularly, you will be less likely to have to fork over a co-pay at the doctor’s office and will not be forced to shell out cash for cold medicines or missed days of work.

Stay Out of the Malls

During the summer, it may be easier to find outdoor activities to do for free than it can be during the colder winter months. However, it should be a rule of thumb to stay out of the stores during any time you do not actually need something. Window shopping can be a serious blow to your budget, as many people are able to rationalize a lapse in spending one day but suffer from overwhelming guilt the next. There are plenty of fun things to do outside of the mall’s walls.

Do Not Overcommit

This is especially good advice for busy parents. It takes a lot of effort to get one kid to soccer while picking up the other from dance class. Many parents don’t stop to think about much during the chaotic days of the week. Consider how much money it cost to gas up the vehicle used as “mom’s taxi”. Also, there is no doubt that overworked parents are more likely to cave in to a dinner or 5 at the Burger King drive-thru. Sit down and talk with your kids and see where you can cut back on different activities during the week. You may be surprised to learn your kid only played baseball because you wanted him to play.

Cutting Costs With the Least Amount of Effort was created by and is property of American Consumer News.

1. You are paying only the monthly minimums, or less, on your accounts.

1. You are constantly finding ways to pay a bill by not paying other bills.

1. Your credit cards are all close to their limit or maxed out completely.

1. You charge more on your credit card a month than you are making in payments.

1. You are receiving collection notices in the mail or calls on the phone about delinquent accounts.

1. You are using money from a savings account or other investment resource just to pay your monthly bills.

1. You find yourself hiding or lying about expenses or purchases to your husband/wife.

1. You are signing up for new credit cards.

1. You work overtime hours to be able to make your credit card payments.

1. You avoid facing the amount of your debt and do not take the time to analyze how much money you actually owe or how far behind you have become.

If any of these statements ring true, it may be time to seek outside help to get control of your finances before they get out of hand, especially if you have tried to do it on your own without success. Consumer Credit Counseling is one option many people are now using to straighten out family finances. A qualified, reputable counselor can help you gain perspective on your situation and assist you in setting new goals for saving and paying off debt.

The key thing to remember is not to wait. Ignoring the situation will only escalate the trouble you are getting into with your finances and will ultimately lead to you owing even more money than you can afford to pay. Credit companies especially will impose penalties and fees and also jack up interest rates, which can quickly increase and make bill paying all the more difficult.

Research local counselors in your area and find out how they can help you regain control. Go to your appointment fully prepared with all of your statements and bills for a thorough analysis. You will also need to find out what other information the counselor will need, including your pay stubs and proof of other income. Do not try to hide any issues out of pride or embarrassment or you will never be able to resolve a bad financial situation. If you ultimately decide to use a debt management program, it is very important you do not miss any payments or you risk being dropped from the program completely, leaving you in a bigger bind than when you started.

All debts start life under control, but things can change. That’s when you need debt help and the best advice on which debt solution would be right for you. You may also want to know what’s involved in a Debt Settlement Company, an IVA (Individual Voluntary Arrangement), Debt Consolidation, Debt Management Company, Bankruptcy or other financial advice. Whatever solution we recommend, honest, free advice is at the heart of our service. If you owe over £15,000 call us without obligation today.

10 Warning Signs of Debt Disaster was created by and is property of American Consumer News.

First, in order to get the phone calls to stop, you need to face up to and deal with the situation. If you dispute any part of the amount they say you owe, you have the right to respond in writing within thirty days of receiving notice from a collection agency or the debt collector. If you do owe the amount stated but want the phone calls to stop, send a letter to the collector who has been calling to tell them to stop contacting you by phone. Once you have made the collector aware of your request, they can only utilize contact by phone or mail to tell you about legal action they are taking or if they are going to stop collecting the debt. If any debt collector calls you at your place of business or during a time not in between 8 in the morning or 9 in the evening, you can file a complaint with your state’s attorney general’s office.

When attempting to negotiate repayment of an overdue credit card debt, do all of your talking on paper and send it using registered mail to ensure the company has received all of your correspondence. Keep accurate records of the information you have sent and received, including copies of all letters. Keep your cool as you try to work through a payment negotiation. When you do reach a unanimous decision, make sure you stick to your word and follow through with your commitment to pay off your debt. Take on a part-time job or find odd jobs in the neighborhood to help supplement your minimum payments and pay off your debt faster.

It can be easy to get off track with your finances, especially when something unexpected comes up and throws off your budget. If you find that you are falling behind again at some point in the future, you can save yourself a lot of aggravation and ringing phones by contacting your credit card company first and explaining your situation. Most companies will work with you if they trust you are sincere about your efforts to pay and get yourself back on track with on-time payments. At that time, you may be offered a customized plan that works better with your financial situation and budget.

Don’t give up on or ignore your credit card crisis or you will end up paying for it for a long time to come. Do take responsibility for what you owe and work hard to put that debt behind you.

Getting Yourself Back on Track With Delinquent Credit Card was created by and is property of American Consumer News.

Bankruptcy is a legal process, handled by an attorney. If you have questions or concerns, the first step you need to take is to schedule a consultation with a bankruptcy attorney who can sort out the facts and myths of bankruptcy relative to your situation. Certain states also have specific rules for bankruptcy, such as the bankruptcy laws california has, so speak to an attorney in your staet. A person who files for bankruptcy without knowing the full list of pros and cons, could find themselves in an even more serious financial situation than they were in previously. A good bankruptcy attorney will also assist you with loss mitigation to help you keep the assets that you can.

From a financial point of view, you need to sit down and figure out how much money you really owe. Make a list of balances and payment amounts along with all sources of your income and calculate the feasibility of successfully making payments each month, while still being able to live a normal, daily life.

In addition to your financial assessment, you also need to consider your mental and emotional situation. If bill collectors are ringing your phone morning, noon, and night and it is all taking a psychological toll on your physical health or your personal relationships, you may find that bankruptcy is the solution to your overall situation. If you find that you have the tolerance and ability to work through your financial situation on your own, keep your health in mind as you work toward your goals.

Bankruptcy does not come without consequences. First of all, it isn’t free and depending on the type of bankruptcy you file, there may still be monthly payments and fees involved. Until you consult with a professional, you can not make a decision about filing. Make sure you understand what can be affected by a bankruptcy filing, not only in the present, but for your future as well. Bankruptcy has a stigma that may affect your future for a time to come. You may no longer have an easy time getting loans, getting a job, procuring insurance, or getting credit potentially for the next 10 years. Because of the lengthy effect of going bankrupt, you can not make this decision lightly.

In addition to consulting with a bankruptcy lawyer, a qualified credit counselor may also help you make the decision about how to handle your debt, They can review your financial records with you and perhaps suggest alternatives to filing bankruptcy, such as helping you create a budget that would allow you to pay the debts on your own. They may even help you work through negotiations with your creditors to settle your debts outright for less than what is owed. You may also seek help from a debt management company or from family and friends who would be willing to lend you money to get you back on your feet.

Your Finances: When Is Bankruptcy the Answer? was created by and is property of American Consumer News.

Here are 5 simple tips to keeping your finances straight and get the most out of your cash.

Write What You Spend – Many people are impacted by a visual and if you truly want to understand where your money is going or how you can get better at saving it, you should start tracking it. Commit to tracking your every penny for a solid month. Then sit with your spouse and analyze the results. Little notebooks can easily fit into your pocket or purse and cost some change at a dollar store. This will help give you a reality check on how to cut spending and how much you can start saving.

Avoid the Green-Eyed Monster – Society often tends to be obsesses with other people’s income, job titles, and other financial successes. Personally acknowledging the priorities in your own life and the successes you have already achieved can help reduce the need to “keep up with the Jones’” and allow to you be content with your own successes and not envious of others. Also remember that you can’t always judge a book by a fancy cover.

Observe Your Own Purchasing Habits – Any trip to the store should afford you the opportunity to observe your own spending habits as well as change your thinking about spending. If you are an impulse shopper, prepare yourself each time before entering the store and always bring a list of items you need, rather than fill your cart with wants. If you tend to hit the mall to deal with boredom or other life frustrations, opt to take a walk in the park to clear your head.

Transition from Credit to Debit – If you have a history of not being able to pay off your credit card balances each month, stop using credit and switch over to debit cards that withdrawn money directly from your bank account. Debit cards will not hold a balance over your head and you can only spend what you have or face the consequences of overdraft fees and other penalties.

Focus on Debt then Save – You’ll find it to be near impossible to start saving money when you still owe on debts.  Start by understanding how much you owe and make a plan to pay off the debt before concentrating on your plans for saving.

5 Money Tips for Financial Smarts was created by and is property of American Consumer News.

When looking for a new bank, take the time to consider what aspects of banking mean the most to you, Write down a list of important items and any corresponding questions you may have for the manager. Schedule an appointment if necessary to go over your concerns. Cover everything from ATM fees to the cost of an account, ask questions about direct deposits and any other service you are already used to having and see how it compares to your current bank. Check out the interest rates as well. The banking industry is competing for your business so it is in your best interest to see which bank will best fulfill all of your needs.

If you find a new bank that undeniably beats out your bank for services and fees, do not jump right in. It may be worth your time to approach the manger at your current bank and discuss your concerns, as well as the terms of the competition. They may be will to work with you and give you comparable service, saving you the hassle of transferring your money and information to a new bank.

Re-Evaluating Your Bank May Save You Money was created by and is property of American Consumer News.

Step One: Try using the Budget calculator from Providian’s website to give you an accurate idea of where your money is currently going.

Step Two: Establish goals. Write them down! What bills do you wish to pay off this year? How much money do you hope to have in your savings by the end of the year? Use these goals as your roadmap for what you need to do.

Step Three: Account for your current spending. When people do this, it’s often a real eye opener. For two or three months, write down everything that you spend- even the 99 cent pack of gum! You might be able to cut back on certain purchases that you didn’t even think about before doing this exercise, and it may add up to being able to save more or pay something off sooner.

Step Four: Using the information from previous steps, create a new budget. Figure out how to reach your goals by changing your spending habits, either increasing your savings or reducing your unnecessary expenses.

Step Five: What happens to most New Year’s resolutions? We make them, we write them down, and one month later we forget about them! It’s important to measure your progress on a monthly basis to make sure you are still on track to meet your goals, and determine if there is a need to change any of your stategies.

Step Six: Remember the days when dentists would reward a child with no cavities by giving them a lollipop? It kind of defeated the purpose and that’s why you’d have a hard time finding a child’s dentist that still uses this strategy! In order to maintain your budget though, you may need to reward yourself from time to time- just be careful that you don’t blow your budget by planning lavish rewards that cost a fortune and go well outside your “entertainment” budget amounts!

Do You Need a Money Diet for the New Year? was created by and is property of American Consumer News.