Click the Link Below to View Video on Hulu:

Steve Martin and Amy Poehler Saturday Night Live Skit

I think it is fair to say that a majority of Credit Card holders can relate to this skit. While it’s not funny to us when we find ourselves in buyers remorse from spending money we didn’t have, it does highlight a problem that isn’t going away anytime soon.

The good news is that there are services, like ours, that are designed to help consumers who find themselves in trouble.

As always, if you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

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Click the Link Below to View on YouTube:

Budgeting lessons from Dr. Huxtable – Bill Cosby

The clip takes a bit of humorous approach to what can be a tough discussion with our children.  I think the use of Monopoly Money and taking a hands on educating approach is a great idea.

Enjoy!

As always, if you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

Become a fan and participate in money savings topics. You will be entered into a quarterly prize drawing just for participating!

Remember that it wasn’t too long ago that the Government released its warning about the debt settlement industry…take a look at this past blog post warning of debt settlement:

Government Warnings about Debt Settlement Industry

Be wary of who you call when getting help and remember that there is no Government Debt Bailout plan for consumers with credit card debt. Any ads that state a minumim of 1ok of debt required should be treated with scrutiny and I would recommend thoroughly researching the company before proceeding.

If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

Become a fan and participate in money savings topics. You will be entered into a quarterly prize drawing just for participating!

The press release discusses the fact that filings have increase by more than double since 2006 to 2009 and that the numbers of consumers seeking assistance from Credit Counseling services have dropped from 20-25 percent down to only 7 to 8 percent.

The press release, which can be found at www.aiccca.org, warns that if you are experiencing more than two of the following warning signs, seek help now:

• Carrying credit card balances in excess of 10 percent of your annual income.
• No money or an inadequate amount put aside in savings. An emergency savings cushion of three to six months of living expenses is crucial to staying in good financial health.
• Using credit to purchase basic essentials. If you buy gas, groceries, prescription medicines or other essentials with your credit cards without a plan to repay in 90 days or less, chances are you are living beyond your means.
• Can only afford to pay minimum payments. To pay down as much of your debt as soon as possible requires substantially more than the minimum monthly payment amount due.
• Would be in immediate financial crisis with any disruption in income.

If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

Become a fan and participate in money savings topics. You will be entered into a quarterly prize drawing just for participating!

Click to view ‘Low Credit Scores Growing’ segment

Here is the text version article which can also be found on www.KBOI2.com.

———————

BOISE -

It doesn’t take much to hurt your credit score.

“A late payment is the fastest way to damage your credit, second is are you maxed out on your credit, if you have a card that is maxed out that can influence up to 30 percent of your credit score,” said Todd Christensen, Director of Education for Debt Reduction Services, a non-profit group that helps consumers tackle their credit crisis.

A new report by FICO – the Fair Issac Company – shows the number of people with a score of 599 or below is up by more than 2 million people in the past two years.

“It would have something to do with the housing market and rate of fore closures,” said Christensen.

He says while the increase in consumers low credit scores is not surprising that’s not the only group feeling the effects.

“A 650 five years ago was pretty much going to be the same as it is today but how a creditor looks at it they are going to say okay we are not willing to make that much of a risk now,” said Christensen.

So what’s the fastest way to get your credit score to bounce back?

Christensen recommend these steps: paying down debts, getting away from maximum credit limits, and most importantly paying your bills on time every time.

“Whether it’s on loans, club memberships, utilities, anything that if you are late can go to collections.”

Experts say the only authorized website to offer free credit checks is: annualcreditreport.com.

——————end of article

If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

Become a fan and participate in money savings topics. You will be entered into a quarterly prize drawing just for participating!

Couponing has been making a strong comeback recently thanks to the down economy. The promises of free items or even getting cash back with “doublers” and “catalinas” is more than just merely alluring to many. If you’re tempted to coupon more than just casually, here are some things to keep in mind:

1. Expect to spend an hour or two each week organizing your shopping trips;

2. Expand your horizons and be willing to shop at some grocery stores you normally do not frequent;

3. Be ready to beef up your newspaper subscription (and check out eBay for coupons for sale)

4. Don’t be discouraged by having to get back in line to redeem another set of coupons, and don’t be distracted by impatient shoppers behind you in line.

5. Keep your spending in perspective It’s easy to get overly excited about great deals and make bulk purchases. Always stick to your spending limits.

If you choose to embark upon the rewarding but demanding job of couponing to save your household what could be hundreds or thousands of dollars over a year’s time, find a mentor. Whether you work with a friend or find a blog online that you can trust, learn from others successes (and mistakes) and know what to expect. They may help you avoid discouragement and find encouragement.

Best wishes as you continue striving to live debt free. We know it’s not always easy, but it’s always well worth your effort.

If you have any questions, would like to discuss ways to meet your financial challenges, or, if you’re a current or former client, simply want to update us on your present situation, please contact us at your convenience. We are here to help you and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

Become a fan and participate in money savings topics. You will be entered into a quarterly prize drawing just for participating!

I wanted to share the article and a link to the video of a news story that CBS in Boise aired yesterday featuring Debt Reduction Services Director of Education, Todd Christensen. Todd provides some little known information regarding utility services.

You can watch the story here:  Make Sure You Get Credit, For Your Credit or you can read the article in full below.

BOISE – By Kayna Whitworth – Lora Peak’s husband lost his job, they had just bought a new car and had a second baby on the way.

Drowning in debt, the family decided to file for bankruptcy After a year of searching her husband got his same job back.

So, the couple set up a payment plan for their car. They paid $280 a month. Trying to rebuild their credit they struggled to pay it off in just two years. They never expected not to receive the credit for it.

“We got the title in the mail and then when we went to buy a new car we were told it’s not on our credit,” Peak said.

The Truth Squad called Auto Sense in Boise where the Peak’s bought the car and Endeavor Financial group which financed it. A call was made to Endeavor to find out why the payments never registered. The company says they’re looking into it.

Financial counselors say the Peaks were on the right track, trying to rebuild their credit.

“That was a great idea,” said Todd Christensen, education director for Debt Reduction Services. He says if people have debt that survives a bankruptcy they need to make payments on time every month.

Just as important people should check their credit report and make sure it’s accurate. Then, Christensen says, start building credit through store cards or even utilities.

“Utilities are actually a line of credit because you use the service before you pay for it,” said Christensen. People can call the utility company a call and have them submit a positive payment record to the credit bureau.

Keep in mind that there is a light at the end of the tunnel.

“Over time bankruptcy will impact their credit less and less,” Christensen said.

Bankruptcy strains many families but the stress won’t last forever.

—-end of article—-

If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

Become a fan and participate in money savings topics. You will be entered into a quarterly prize drawing just for participating!

I read this article this morning and wanted to post a link to it.

Bob Sullivan, a Consumer Rights advocate and whistle blower on scams and internet fraud has written an article on one mans experience with a debt settlement service known as Debt Settlement USA.

I feel for the teacher who took the bait. He ended up being sued by his creditors and ultimately had to file for bankruptcy protection.

You can read the full story here by clicking on this link: Debt Settlement Scam

Remember, Debt Reduction Services is a federally recognized non profit organization that does not offer debt settlement services. We offer Credit Counseling, free financial education and budgeting advice.

DRS also offers bankruptcy services in regards to the pre and post filing process.

Remember that when you are seeking help with your finances it is important to do your homework. I took a look at Debt Reduction Services BBB (Better Business Bureau) rating and it is an A+. You can review the report by clicking here: Debt Reduction Services BBB Report.

I also looked at the company, Debt Settlement USA. You can review their BBB Report by clicking here: Debt Settlement USA BBB Report. The first thing that stands out is they are not BBB members, the next is their F rating.

I use this example because it is a good start for researching companies you may want to work with.

If you find this posting helpful pass it along.

Also, I want to think Mr. Bob Sullivan for his continued effort in helping consumers avoid scams by actively exposing companies.

If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

Become a fan and participate in money savings topics. You will be entered into a quarterly prize drawing just for participating!

2010 is nearly half over and already this year we’ve seen many changes to the credit card industry. The biggest change came with the largest sweeping reform of the industry via the Credit Card Reform Act of 2010.

While the Credit Card Reform Act is designed to assist consumers from being misled on statements or inappropriately given increases to interest rates without proper notification, the Act is unable to change or help people develop better spending habits.

I’ve included some recent statistics and some things you may want to ask yourself before putting your next purchase on plastic.

First let’s start with a handful of the statistics compiled at www.CreditCards.com.

• Average credit card debt per household with credit card debt: $15,788
• Total credit cards in circulation in U.S: 576.4 million, as of year end 2009 (Source: Nilson Report, February 2010)
• Average APR on credit card with a balance on it: 14.67 percent, as of February, 2010 (Source: Federal Reserve’s G.19 report on consumer credit, May 2010)
• U.S. credit card 60-day delinquency rate: 4.27 percent. (Source: Fitch Ratings, April 2010)
• Total U.S. consumer debt: $2.45 trillion, as of March 2010 (Source: Federal Reserve’s G.19 report on consumer credit, May 2010)

The statistic that stands out most to me is the average credit card debt per cardholder is over $15,000. With the average interest rate at 14.67 percent it would appear that the average cardholder is being charged over $2,000 per year for interest payments.

With those figures it would be safe to assume that if you carried a $15,000 balance annually for 10 years you could be out over $20,000 in interest payments. Could you find a better use for that money? I’m sure you could.

Don’t get me wrong, credit cards have a purpose and can be useful; unfortunately borrowing on credit can also have expensive long term effects on your banking balances.

Before purchasing something on credit make sure to identify how long it will take you to repay the cost, including interest. Save yourself future headaches by only purchasing needed items that you can repay in a short period of time, preferably 30 days.

An ounce of prevention will go a long way towards positively shaping your financial future.

Do you currently find yourself struggling to make monthly payments to your creditors? If so, or if you have any questions, please call us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

Become a fan and participate in money savings topics. You will be entered into a quarterly prize drawing just for participating!

Need fast cash? Can’t wait until payday?

Perhaps that should read; Need fast cash? Can’t wait until payday? Borrow money for only 500% interest. (Payday Loan Fees can run between 390 to over 780% APR depending on the lender) To put it in perspective a Credit Card issuer typically will charge between 10 to 25% APR.

As we’ve mentioned in previous posts, there are more payday lending offices in the United States than there are McDonalds restaurants. And it is no wonder as to why. The payday lending business carries low overhead that yields high returns.

In fact there are several states that have either passed or are looking to pass legislation to regulate the stiff fees charged for these short term loans. The following states have made payday lending illegal.

• Arkansas
• Connecticut
• Georgia
• Maine
• Maryland
• Massachusetts
• New Hampshire
• New Jersey
• New York
• North Carolina
• Ohio
• Oregon
• Pennsylvania
• Vermont
• West Virginia

While the Payday Lending practice has come under scrutiny for charging high interest rates, another black eye on the industry comes from the perceived exploitation of individuals with financial hardships.

We recommend that you avoid using payday loans as a short term solution to your financial needs because there is a proven propensity for recurring borrowing. Studies have shown that a high number of borrowers continue the borrowing cycle due to being placed in a further deficit by borrowing the money initially and not being able to recoup enough money to comfortably pay the initial loan off.

Start your own emergency savings account. Put as little as $10.00 per paycheck in it and borrow against it only when needed. This will help you resist the short term temptation of easy albeit expensive short term cash. You can then repay the savings account on your own and avoid paying any interest fees.

If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

www.DebtReductionServices.org

Debt Reduction Services and the National Financial Education Center

Become a fan and participate in money savings topics. You will be entered into a quarterly prize drawing just for participating!