Most people never consider their rights in the process of credit repair — they think they don’t have any.

But they do. And knowing your credit repair rights is important.Here is a site with helpful information regarding your rights:

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

Don’t confuse creditor, debt collector and credit repair. A creditor is the person or organization you owe the money to. A debt collector is a person or organization that purchases, at a discount, the right to collet the debt you owe to a creditor. They make their money off the difference. A credit repair company is one that offers to help you deal directly with your creditors, usually for a fee, For the purpose of this article, the three terms may be used interchangebly.

What if your creditors/debt collector is trying to scare you into paying them? What if you need to dispute items in your credit report? Or how about if you’ve been scammed by a credit counselling company? In all these instances, knowing what you are entitled to is critical.

#1) Scare tactics

Are you being harassed by those you owe money to? Then you will be relieved to hear this isn’t legal. There are certain procedures creditors have to follow when dealing with you. But most folks don’t know what those procedures are, so they just put up with the barrage of phone calls, letters, etc. In some instances creditors have been less than truthful in order to get you to pay them.

How can you tell if it’s a lie?

If they say they are going to call the company you work for, rest assured they are not telling the truth. This is against the law, and you should notify the authorities.

Sometimes they will tell you they will take your income. Again, this is totally illegal unless they’ve been told they can do so by a court – In which case you would have plenty of advanced warning.

And obviously they can’t touch your checking or savings account. All these are common threats that are not actually legal.

#2) Credit score

You are legally entitled to get a no cost copy of the report each year. You can do so from all of the major bureaus. This helps you verify that there are no mistakes on any of them.

But isn’t one enough?

No! Remember, the bureaus all get their information from different companies, because very few of the merchants you work with report to all them. Therefore, even if one of the reports is mistake free, another one might not be.

What if you find an error?

Then you have a legal right to see that it’s fixed. And the bureaus have a legal obligation to check with the company you have issue with and let you know within thirty days of their decision. If you aren’t proactive, the mistakes on your report will never get fixed. Be persistent in getting those errors off your report.

#3) Credit counseling scams

Thiese are very popular.. A lot of “credit counseling” firms are nothing more than scammers out to take your money.

Before going any further, let me say I would never pay any ‘credit repair’ agency money up front. If they have a positive evvect on your credit, go for it. Also remember there are usually local agencies that might assist you, often for free.

Is there anything you can do if you’ve been taken?

Maybe. If the company told you to file disputes with items in your credit report, that you know are correct, this is illegal. You get your money back because they were advising you to do something illegal. And if they don’t fulfill the service you agreed to when you first paid them, they are lawfully required to do so. If they haven’t, you again have legal recourse against them. But if they are scammers your chances of recovery are not good.

How do you know your rights when dealing with a scammer?

Read the ‘Credit Repair Organization Act’:

http://www.ftc.gov/os/statutes/croa/croa.shtm. A guide to your rights in this situation.

The bottom line: don’t allow yourself to be taken.

Even if you owe others money, you have more rights than you think. While this article can’t give you every single one of them, hopefully it’s alerted you to the fact that you have legal courses of action.

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The Fourth Of July

On this, our nations ‘birthday’, I would like to wish every one a Happy Fourth Of July!

I would also ask that you remember all those who have fought, and continue to fight, for the freedoms we enjoy — Freedom Is Not Free!!

There is a cost to this ongoing fight, not just that borne by our armed forces, but by you and I! It is your and my job to ensure that cost has not been in vain.

We are the greatest nation in the world because of our freedoms. We, you and I, have a responsibility to ourselves, our families and friends and our country, in that order, to ensure the freedoms we enjoy. The freedoms which every peoples in the world aspire to and deserve.

The freedom to make their own destiny.

** A Very Happy Fourth of July To All **

The Jedi’s Grandpa

Please, take a moment to watch this video

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There are all sorts of credit repair schemes out there. The reality is, if you have bad credit, there are solutions to repair that credit. It’s possible to improve or repair your credit in a relatively short time period. How?

Here are five strategies that can be effective in helping you correct your credit..

!) Before you do anything ‘Get A Copy Of Your Credit Report’. You are entitled to a free copy once a year. You need to see what’s there before taking any action. You can begin to correct obvious errors yourself by contacting the credit reporting agencies and having them investigate and correct those mistakes. Scan your credit report and looking for mistakes.

If you find errors, then contact the particular credit bureau and let them know. While I prefer doing so in writing via certified mail, they all have contact phone numbers. They will look into it. If they verify that indeed there is an error in your report, they must erase it from your report. Have them send you a corrected copy of your report.

This should instantly improve your credit score. And since mistakes are quite common, there’s a good chance this will work.

And don’t give up. If they don’t remove something the first time, keep after them. It may take two to three months, but eventually you can get that erroneous information taken off.

2) Pay on time

This is one of the simplest methods for raising your credit score. It’s so obvious it might not seem worth mentioning, but it’s one of the most important tips of all.

Can’t pay on time? Contact the creditor directly and see what king of terms you may be able to work out twith them. But do remember to stick with whatever terms you devise.

Creditors have been know to make ‘adjustment’ to terms more than once, as today our personal situations are very fluid.

3) Credit counseling

This will not only give you strategies for better money management, but the company can negotiate with your creditors on your behalf as well. In many instances they may be able to reduce the amount you owe substantially.

Look for an agency local to your area, where you can do things face to face. Try o getting a referral from someone you know.

Since they are very experienced in the industry, they may have a much better chance of negotiating better terms for you than if you were to do it yourself.

4) One of the least desirable techniques is obtaining a consolidation loan. This might make it easier for you to pay your creditors, leaving you with just one payment rather than multiples. But exercise caution here. Many have gone this route but began piling up more debt because they suddenly have more money! You need to be very disciplined to use this sort of strategy.

5) Build up your investments

Instead of spending on things you don’t need, start putting a certain percentage of your money away every month for investing. This is easily one of the best methods to repair your credit.

But be wary of scams.

Remember, there are many firms that come after people with bad credit. They claim they are going to help you raise your score. But often times they just take your money and disappear.

How do you spot those companies?

Charging you an up front fee is often an indication you should exercise extreme care in working with the firm. Also, telling you to dispute everything on your credit report even if it’s right, it’s certain they are not legit.

Implementing these tips can help you improve your overall credit rating.

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Many of us live paycheck to paycheck, spending without regard to the consequences. Keep that pattern up long enough and you soon discover the money runs out before you’ve paid all the bills, and there is never any left over for special purchases or holidays. Getting control of your household spending means setting u a budget, which will allow you to begin saving as well.

Sticking to a budget makes most of us cringe. It sounds restrictive and boring. But if you are serious about creating wealth, a budget can actually give you freedom. You will have control over your finances, know where your money is going, and have a plan to reach your financial goals. Not spending on things that you can do without right now means you will be able to spend on larger, more important purchases in the future.

Here are some easy household budgeting strategies you can use to get started.

Find out your earnings:

The way you’re paid can determine how you budget your money each month. If you’re paid on a weekly basis, you can calculate your budget based on four paychecks a month. That means you’ll have four extra checks throughout the year to help with extra expenses. If you’re paid bi-weekly, you can calculate your budget based on two paychecks a month, and have two extra checks throughout the year. If you’re paid monthly, calculate your budget based on the monthly amount. You won’t have extra checks throughout the year, so you’ll need to be careful in budgeting for the extras. For those who aren’t paid regularly, figure out your annual income and divide it by 12 to determine your monthly income.

Track your expenses:

Your fixed expenses will be easy to figure out. These are the items that stay the same from month to month, such as your mortgage/rent, car payment, etc. Tracking your other expenses is a bit trickier to accomplish and often where I have fallen down. To find out how much you really spend in a month, carry a notebook with you and write down everything you spend for the next 30 days. This will tell you how much you’re spending, and where your money is all going.

Figure out the difference:

Now, find out the difference between what you spend and what you earn each month. If you have a surplus, a portion of that must be budgeted for investments or a savings account.  If you have a shortage, you have one of two choices to solve your budget woes: lower your expenses or increase your income – do both.

Cutting your expenses:

Lowering your expenses is the most obvious way to solve  discrepancies between your income and your spending. Simple changes made over time, such as renting a video instead of going to the movie theatre, can add up to big dollars in your bank account. Those Latte’s really add up!

Others may be lifestyle changes, such as giving up one car and taking public transportation instead. While I have a vehicle, I often use public transportation – it gives one a different perspective on the world arournd me.

Taking control of your finances by setting up a household budget is an important first step to creating wealth. As you begin to make wise decisions about where your money goes, over time you will find opportunities to spend less and have more money to invest. Do a Google search for ‘free financial software’ and you can find programs that may help you as well.

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How you think about money is the single most important factor to determining whether you are wealthy or not. If more money in your life is what you want it’s crucial that you develop a positive money mindset.

However, many of us have been taught to think negatively about money. We’re told things like “money is the root of all evil,” It’s not! How you acquire/use it is – ‘Greed’. Another is “money doesn’t grow on trees”. Actually it figuratively can if you know how. No wonder we have such a difficult time thinking positively about money!

You may have even been taught that rich people are greedy and as a result you are subconsciously avoiding wealth and missing out on the great opportunities having money can provide.

As long as you hold on to negative and incorrect beliefs about money, you will never create the wealth you desire or deserve.

To change your money mindset, you must first recognize that money is not good or bad by itself. It is just a tool. In fact, money is more often used to do good than bad. Think about the wonderful charities that have been able to help people all around the world when they are given large donations of money. Appreciate all the good that money can be used for. It is important part of life and is used to make positive changes in the world. Money should be sought after, not avoided.

Recognize that money is abundant. When you were young, you may have been told by your parents that money doesn’t grow on trees. If you’re holding onto that belief now, your own mindset could be holding you back from attracting money. Money may not grow on trees, but there is an abundant amount of it for everyone, including you. However, if you believe that money is scarce, that belief will keep it far away from you.

Giving money away, such as charitable giving, is another way to develop a positive money mindset. Wanting to hang onto every cent you have is a sign of a negative mindset, reinforcing the idea that there is not enough of it. Giving reinforces the concept of abundance. Something I do every so often is pick a name/address randomly out of the phone book and. anonymously, send them some money – anywhere from$1 to $20 (or whatever you prefer). I find this a fun thing to do.

Finally, be happy for those who are successful and have money. Try to learn from them. We often remember being told that those who have money are greedy and are tempted to think negatively about them. In fact, the opposite is usually true. Rich people often accumulate their wealth by sharing what they have with others and believing in the idea of abundance.

When someone else has money, don’t resent their success. If you have feelings of jealousy, it will only hold you back from achieving your own wealth and success. Instead, be happy for them and remember that there is enough wealth for you too, and your turn will come.

Making these changes in how you think about money, will put you on your way to developing a positive money mindset. Once you begin thinking about money in a positive way, you will be on the path to achieving your own wealth.

‘The Jedi’s Grandpa’

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Over the past few years many changes in our financial industries, most of them bad, have caused a great deal of harm to us ordinary individuals. Many of these changes have brought about calls for more government regulation of these institutions.

While some new regulations or the overhaul of some existing rules may be needed I am not a fan of big government. Mostly because government doesn’t get it right when they get involved. Yes, the government had their hands in what has happened over the past few years as well. They do the bidding of lobbyists, whether it’s health care or financial reform and most of the rules and regulations are written for them by these same lobbyists.  Most of our representatives don’t even read what they sign.

One of the things that’s always frosted me is the fees financial institutions charge – such as check fees. These days most of them seem to be in the range of $30 to $50 dollars or more. Of course the banks try to convince us they are doing us a favor by paying a financial instrument they shouldn’t and then turning around and charging us a ‘fee’ for doing this – fees which are a source of Pure Profit for banking institutions.

One bank officer told me the banking fees are charged “…in order to teach the customer a lesson…“! Another told me “…we only follow ‘industry standards’ in setting our fees…“, which is bank-speak for ‘a little price fixing’.

I’ve had overdraft protection in the past by tying a second checking or a savings account to my main account. That is legitimate. What’s not is when I don’t ask for or give permission for overdraft protection.

If the bank wants to do me favors like paying a check even though there is no money there, hey, more power to me! Just don’t turn around and charge me for something I never asked for! This year some new government regulations regarding fees/overdraft protection are supposed to go into effect. I want less government not more.

The financial industries brought new banking regulations upon themselves with their treatment of ordinary folks over the last few years, as though the people are their own personal ATM machines! These industries took government money and stuffed their pockets with it and did nothing to help the people who needed it most. Never fear though, the financial industries Will find a way around any regulations – they are good at that.

The industry’s recent “..we’re sorry for the damage we caused…”, to congress aside, ‘Changes Need To Come Not From Government But From the Industries Themselves‘, getting back to the reasons banks were formed in the first place – to help people build and rebuild their lives not to stuff the financial industries pockets with money. What kind of lesson are we teaching the future generations? Greed is never a good thing.

Plenty of greed has fueled what has happened to this country over the last few years! Mom used to say “…money is the root of all evil”. When Money Becomes Your God, it is!

The financial industries should take the medical profession credo to heart – ‘Do No Harm‘!

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Unlike Christmas, which is a day of giving, Thanksgiving is a day to celebrate that which we hold
dear – Our Families, Our Friends and our surroundings!

It is not easy today to find things to be thankful for but family and friends will always be reasons for
Thankfullness, for they give us their unconditional love.

I sincerely wish everyone a Happy and Blessing Filled Thanksgiving!

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“Thanksgiving Day comes, by statute, once a year; to the honest man it comes as frequently as the heart of gratitude will allow.”

-Edward Sandford Martin

Celtic Women – We Gather Together

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Whether you grew up in a household that was plagued with debt, or you simply want to make sure that your kids are money smart and make the right money choices when they grow up, you will discover helping your kids understand things like debt and how to handle money is something that should start early. Some kids have a knack for managing money, while others seem inclined towards being spendthrifts – like I was. But remember, money management is something that can definitely be taught, and when you are thinking about how to get the point across, keep a few things in mind.

First, there does not seem to be a right or wrong method to giving children money. Children who receive an allowance unrelated to chores, children who receive an allowance in exchange for chores, or children who get money only on special occasions don’t seem to have better or worse experiences with money. What is important is showing them where it comes from and how they should spend it. When a child has money, you can make suggestions about what he or she can do with it, but the important thing to emphasize is that there is a finite amount!

Parents need to instruct their children good money management by avoiding making money issues a secretive issue or one that is for the grown-ups. In my family, money was a subject that was held very close to the chest. It was never talked about when we kids were around.

While of course your eight year old may not grasp the intricacies of a mortgage or a loan, you can still explain things to them in manner they can comprehend. Many parents are surprised by how much their children understand. Have faith in your child and remember that they are part of the family as well. Being secretive is more likely to alarm them, and you will find that they can understand quite a lot if you are patient.

When you want to make sure that your kids are money smart, remember to set a good example. Even if you have issues with debt yourself, make sure that you are honest about how you got there and what you are doing to get out of it. Take some time to show them how good money management works, whether it comes with balancing a checkbook, or working with a household budget. Once again, you will be surprised at how interested a child will be in things like this, when presented properly.

When your child is a little older, explain credit cards and loans to them. If they can get a basic understanding early on, it will make further investigation much easier on them when they are young adults.

Many schools today have curriculum’s to instruct children about money management. If your school doesn’t have such a program, look into having the school institute one. Given todays financial climate it’s extremely important to give our kids as much financial acumen as possible. Had such programs been available while I was in high school, I would be much better for it today.
As a parent, you have a responsibility to help your child how to use money. A child who understands money will grow into an adult who is debt aware and money-savvy. So take some time and invest in your child’s financial future and outlook!

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The holiday season is notorious when it comes to getting into debt or making existing debt worse. And is it any wonder! No matter where we go or what we are doing, we are deluged with reminders that the holidays are upon us and that it is time to break out the wallet. No wonder it’s so hard staying out of debt during the holiday season.

Whether you are looking to avoid serious issues with debt this year, or whether you just want to make sure that you have more money when it comes to going into the January slump, take some time and consider what kind of planning you need to do to stay out of debt.

The first thing to remember is that the earlier you have a plan, the better off you are going to be. Take a hint from the merchants – the same day that the Halloween decorations go down, the Christmas decorations go up, and you can tell that the stores are already thinking about the money you’re going to be spending. Take some time to get used to the idea that the holidays are here and that you will be spending money. It would be a good idea to put money away in advance of a major spending holiday, just as you would when planning for a vacation.

Another thing that you can do when you are planning out your holiday, or other, spending is make a list of what you need to buy. Make this list as early as you can and you will discover that your shopping is going to be much more organized. There will be no more running out at the last minute, which can cost you a bundle, and you will find that your shopping is a lot less frantic than it might be.

Plan what stores you are going to go to. Planning the stores and making sure that you know what you need from each will keep you from overspending as you wander around crowded malls urging you to spend more than you have. You will also find that this is a good way to save gas during the holiday season and that you can do a great deal to make sure that you are going to be getting everything together early; avoid stress as well as debt! One thing I do is take a bus rather than drive when shopping. In my area it’s one bus ride to the big malls and I won’t buy as much because I would have to carry it!

Finally, remember that one great way to save cash and avoid holiday debt is to look into do it yourself projects. Look into workshops, free and other wise, in your home town, where you learn how to tackle these projects. Are you a painter or a sculptor or a tailor? You will discover that making things can be quite satisfying, very affordable and a lot of fun. And most of us really appreciate those personal, hand made gifts.

I would love some one to make me a handmade quilt as
a gift – any takers?

These projects need to be started well in advance of the holiday season and you will discover that the more time you spend on things like this, the better off you are going to be. They are great for any celebration such as birthdays or anniversaries, not just the holidays.

The holiday season is a poor time to go into debt, and yet it happens to us so often. Take some time and think about these advance planning measures that can keep you out of debt for the entire holiday season!

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Does your credit card work for you or do you work for your credit card?

Most people’s answer to that question will depend on how they treat their “old plastic”, as credit cards are known. People who have gotten their fingers burned with credit cards will tell you they had no idea things had reached a point of disaster until it was too late!

Most credit card companies offers try sounding like they are in business to make your life easier. Well, they aren’t! Credit card companies have one purpose in life – to make money and they do it very well!

Now this is not a campaign against credit cards -they definitely have benefits. For instance in America if you want to rent a car, you need to have a (major) credit card.

But, consider this scenario: You receive an offer in your mail that sounds good, maybe it’s a new generation TV or a fridge. But it costs $2000. Oh, but you have a credit card with a $5000 limit, so you immediately make your purchase.

Here is how your repayment schedule might play out. Most credit cards charge a minimum percentage of the total balance per month – the amount varyies from card-to-card.

Assume the interest rate is 18 percent – in todays world that may be a low assumption – and you choose to repay only the minimum amount. By far the largest percentage of your payment will go towards interest and only a very small percentage towards the principle.

As a result, it may take years to repay the balance with you paying an exorbitant amount of interest for said purchase.

There is a moral here. Do you know how a porcupine makes love? Very, very, very carefully. Use your credit card(s) the same way.

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