With the average American saving around 3.3% it seems like getting out of debt could be difficult. However, in a recent article author Laura Rowley points out,
If savings behavior isn’t changing, consumer attitudes may be. A recent Gallup poll found 62 percent of Americans say they enjoy saving more than spending, while 35 percent reported the reverse. Back in 2006, respondents were split about 50-50 on the question. Moreover, 57 percent say they are spending less money in recent months than they used to, up from 50 percent last July. Among the newly frugal, 38 percent say this spending pattern is the “new normal,” while 19 percent say the budget cuts are temporary.
Rowley goes on to explain that the average American can significantly reduce their debt by using a small portion of their extra income to pay down their debt. In her example she points out that one home owner was able to save $23,900 over the life of the loan by paying $35.86 more a month towards his home loan.
At MoneyDesktop we are passionate about helping people get out of debt as quickly as possible. The best part is, it’s not that hard. Our software shows you where your money is going and gives you step-by-step instructions on how to get out of debt. Results like those mentioned are not uncommon for our users, so if you haven’t already, give MoneyDesktop a try for free today.
Read all of Rowley’s article on Yahoo! Finance here
photo credit: dieselbug2007 on Flicker
Tags: Debt, Debt Elimination, Home Loan
08.Mar.10 
Budgeting, Credit Card Debt, Debt Management, Payoff Mortgage 
Comments (0)
Your Social Security number is one of the keys to your financial health. It’s a unique identifier lenders use to assess your creditworthiness. It’s also exactly what a would-be thief needs to apply for a credit card, mortgage, car loan or job in your name.
If you’re like most Americans, it’s also something you give out all too frequently.
“As with so many procedures in the business world, your Social Security number is something that many companies ask for, so no one really questions it,” says James Van Dyke, president of Javelin Strategy & Research, a research firm that tracks financial services topics. “But giving out your Social Security number is definitely a practice consumers should think twice about.”
Case in point: A recent Javelin Strategy & Research report — the 2009 ID Fraud Survey — found that, among identity theft victims, 38 percent said the perpetrator had obtained their Social Security number and used it in the crime. “It’s certainly logical to say that you could eliminate 38 percent of your risk of identity theft by limiting access to your Social Security number,” says Van Dyke.
‘Your Social Security number, please’
Still, saying it and doing it are two different things. Many of the forms you encounter during the day — at doctor’s offices, at the dentist, at your child’s school — ask for Social Security numbers. Retailers may ask for it, too, when accepting a check for payment or before issuing check cashing privileges. Potential employers also need it, and they may even want a copy of the actual card, says Linda Foley, founder of the San Diego-based Identity Theft Resource Center (ITRC). You’ll also be asked for it at your local Department of Motor Vehicles, car dealerships, pawnshops, drugstores — even at the airport, should you lose your luggage, she says. In fact, you may be surprised at how far-reaching this practice is, says Foley.
“A few years ago, we were putting some of my mother’s things into storage, and they wanted her Social Security number to use as a passcode,” she says. “It’s that prevalent.”
Just because someone asks for it doesn’t mean you have to comply, says Michael J. Arata, the author of “Identity Theft For Dummies,” especially since there are only a handful of organizations that actually have a valid need for it. For instance, anytime you’re applying for credit — for a new credit card, a loan, new telephone or cellular service — the creditor will need your Social Security number to run a credit check. You’ll also need to provide it if you are applying for federal or local government benefits such as Social Security, Medicare or Medicaid, unemployment insurance or disability. Another example: If you or your children receive services or aid at the state or local level, such as free or reduced fee lunch or financial aid. The local motor vehicle department, thanks to the USA PATRIOT Act, has the legal right to ask for Social Security numbers, too. In addition, when you complete a cash transaction totaling more than $10,000 you’ll be required to provide your number so that transaction can be reported to the Internal Revenue Service, says ITRC’s Foley.
Medical professionals have their own impetus, says the ITRC’s Foley. “The reason a doctor or a dentist asks for your Social Security number is that, should you die while under his or her care, they are required to put your Social Security number on the death certificate,” says Foley.
Even so, fulfilling non-credit-related requests — even medical-related requests — is purely optional, says L. Jean Camp, an associate professor at Indiana University and the author of “Economics of Identity Theft.” “The problem is that you have the right to say that you’re not going to give out your Social Security number, but a business owner has the right to say he’s not going to do business with you,” says Camp. “Most companies aren’t being malicious. They’re just being cautious by giving themselves a way to track you down if you don’t pay a bill.”
Gracefully saying ‘No’
One of the best ways to get out of giving your Social Security number to someone is to simply overlook it on your paperwork, says Arata. You may get by without a confrontation. If you’re questioned, however, ITRC’s Foley suggests being proactive. “The most basic thing you can do is ask the person or organization why they need it. One of the most powerful things you can say is, ‘Is there a law or requirement that I must provide it to you, and can you tell me what it is?’ You can also ask the person requesting your Social what will happen if you don’t disclose it,” she says.
Often, as in the case of a school or a charitable organization, they simply want it to use your number as a unique identifier. In that case, says Javelin Strategy & Research’s Van Dyke, you’ll need to start negotiating again. “Say, ‘In order for me to become your customer, I really need you to find an alternative record keeping method because I know giving out my Social Security number places me at great risk.’ When you say it like that you may get better results,” he says.
Even doctor or dentist offices should be willing to forgo your Social Security number — especially if you have health insurance. And if they won’t? Ask to give your information directly to the doctor and have him or her input it into the system for you, says Van Dyke. ITRC’s Foley says most medical offices may also feel comfortable without it as long as they have an emergency contact on file — someone who knows your Social Security number and could provide it in the event of death.
And what of the worst case scenario — when you absolutely can’t get out of it, but you still don’t feel comfortable? You can always make up a number, says Camp, but if you do, make sure you write it down and don’t inadvertently steal someone else’s identity. “If you go this route as a last resort, make sure you put zeros in for the two middle numbers,” she says. “There are no Social Security numbers that have double zeros in that section.”
By Karen J. Bannan via creditcards.com
Tags: ID Theft
01.Mar.10 Uncategorized Comments (0)
Maybe you’ve made a credit mistake or two, but there’s no reason to freak out. Here are the three common problems people make, as well as what you need to do to solve them.
Problem No. 1: Opening too many credit accounts. Ah, this is a common one. You may have applied for credit randomly, causing your wallet to burst with plastic. It also resulted in the ability to charge and (temporarily) live far beyond your means. Without enough cash to pay for what you wanted, those open lines of credit probably made buying what you couldn’t afford too easy.
Solution: If you have any active lines of credit left, review them and decide on a couple that you want to keep. They should be accounts with the lowest interest rates and other favorable terms. Tuck the others away in a safe place, or if you feel you can’t control overspending, close them entirely. In the future, only apply for the credit you require and won’t abuse. The average person needs just a couple of accounts — a general purpose credit card that you can use anywhere, and perhaps a retail card at a store where you regularly shop.
Problem No. 2: Letting debt escalate. A $10,000 total liability is not unusual, but it’s a hefty sum for one person to repay quickly. You know this now, but while you were using the credit cards, you needed to have kept your eye on the ball (er, bill). Certainly you didn’t get to that figure overnight, and the moment you discovered it was getting out of control you should have stopped charging and focused on repaying the balance.
Solution: When you do use credit again, you’re going to have to make sure your debt never gets out of hand again. To do that, always check your balance before charging. If you know you’ll have enough money to pay for everything you charge in full without neglecting your essential expenses, great — go for it. If not, put the card away.
Problem No. 3: Reneging on your contract. If you have arranged a hardship program through a qualified credit counseling agency, your creditors will probably report you as delinquent, since you’re not making the originally agreed-upon minimum payments. On the other hand, if you are settling the debt by negotiating the balance with a debt settlement company, you will also see credit damage because you are paying less than the total owed. It will be notated on your credit report as “settled,” which is much less desirable than “paid in full.” Why such damage? You’re reneging on a contract. When you got the credit card, you promised to pay according to their terms. When you don’t, you get dinged.
Solution: If you are using a hardship plan, resume minimum payments again as soon as possible. In the event you’re with a debt settlement company, the accounts have likely gone into collections, so you may as well continue and get the financial break. The prescription for both of these scenarios is basically the same: Wait for notation to age — after seven years, the negative information will drop off the reports (and after a couple years it will become considerably less important) and start to use credit responsibly now. By charging regularly, and paying on time and in full, you’ll establish a positive credit history as you’re waiting for time to work its magic.
Erica Sandberg’s articles and insight are featured in such publications as the Wall Street Journal, Pregnancy, Babytalk, Redbook, Bank Investment Consultant, Prosper.com, MSNMoney.com, and Smartmoney.com. An active television and radio commentator, Erica is the credit and money management expert for San Francisco’s KRON-TV, a frequent guest on Forbes Video Network, Fox Business News, Businessweek-TV, and all Bay Area networks. Prior to launching her own reporting and consulting business, she was affiliated with Consumer Credit Counseling Services of San Francisco where she counseled individuals, conducted educational workshops, and led the media relations department. Erica is a member of the Society of American Business Editors and Writers, and on the advisory committee for Project Money.
22.Feb.10 Budgeting, Credit Card Debt Comments (0)
The United States is currently ranked in the bottom ten nations by export value. While the US imports tend to be high, it can be criticized as exporting poorly – in this instance tying in rank with Greece.
Most nations report their imports using the cost-insurance-freight (c.i.f.) valuation basis and exports on the free-on-board (f.o.b.) basis.
F.O.B. numbers can vary greatly depending on a nation’s location, size, and proximity to its neighbors. As the dollar declines in value it tends to get more expensive to import foreign goods while exports tend to increase because the cost of US goods drops.
19.Jan.10 Upside Down Comments (0)
Wise preparation for inflation is a necessity in many nations if one wants to save for retirement. Generally, a fixed rate mortgage, owning gold, or holding property can be a good method of hedging against future inflation. The US currently has inflation under 3%, which is significantly lower than many other nations.
15.Jan.10 Financial Planning Comments (0)
MoneyDesktop’s President was recently interviewed by radio talk show ConnectingWomen. The full interview may be listened to here.
With 43% of American families spending more in a year than they earn, consumers now owe approximately $2 trillion (not including mortgage debt). MoneyDesktop is dedicated to providing a software solution to American’s debt. For less than $20 a month, a family can save thousands of dollars a year using our product.
photo credit: AMagill
07.Jan.10 Uncategorized Comments (0)
A recent video by CNN money suggests that a good benchmark for preparing for retirement is to set a goal of having one’s investments reach 5 times that of their salary by the age of 40. So, if one were making $65,000 a year, the goal would be to have $325,000 in investments.
Additionally, they recommend setting a goal for age 50 to have investments worth 10 times that of one’s salary and about 20 times one’s salary by 60. Assuming one can achieve a 7% return on their investments, they should see a doubling of their money every 10 years. Under this method CNN claims that at 65 one could begin withdrawing 4% of their investments each year permitting them to take home 92% of their previous salary, a very comfortable amount to live on.
Financial planning is never an exact science – during 2009 it was not uncommon for many people at age 40 to be unemployed, so this benchmark would be of little assistance to them in planning for the future. Likewise, someone making minimum wage at age 40 will struggle to save much for retirement while someone making 6 figures would be perfectly fine not having anything saved at age 40.
The most important concept is that one plan. With the new year approaching, now is a great time to sit down and plan for the next decade, when and what to save, and how aggressively you’re going to need to save in order to be comfortable in your retirement years.
photo credit: anotherloverholenyourhead
Tags: investments, savings
28.Dec.09 Financial Planning Comments (0)
Most economists agree that a certain amount of unemployment is normal and indicates a healthy economy. This frictional amount tends to hover just above 4%. Once unemployment starts to climb much above that you begin to see a troubled economy.
With the exception of the mid-west, our country has been climbing quickly towards a 10% national unemployment rate. The last 2 years have seen unprecedented unemployment in many of America’s largest cities.
A visual timeline of the unemployment trend can be viewed here.
10.Dec.09 Financial Planning Comments (0)
According to the NY Times: “the number of food stamp recipients has climbed by about 10 million over the past two years, resulting in a program that now feeds 1 in 8 Americans and nearly 1 in 4 children.”
This offers a brutally realistic view of the state of our economy, with most areas experiencing 100% growth since 2007 in food stamp usage. States like Michigan, Oregon, and Maine along with much of the south are currently seeing food stamp usage climb in excess of 20%.
09.Dec.09 Budgeting Comments (0)
As the end of the year approaches, it’s good to look back and make sense of the mistakes made to ensure they are not repeated in 2010.
Here’s ten financial mistakes to avoid:
Not diversifying. Seeing many stocks drop 50% or more in the recent financial upheaval left many with depleted retirement funds. Owning a diverse mixture of investments can help offset the bad years and hedge towards equal gains in good ones.
Not investing: The only thing worse than seeing your retirement drop 50% is not having one at all.
Early Adoption: New technologies can be great fun, but they can also be costly mistakes. Just ask anyone that bought an HD-DVD player for $1,000.
Playing Penny Stocks: Investing in Penny stocks can bring overnight gains of 100% or more. More frequently than not it results in a total loss.
Investing in FOREX: Foreign exchange markets are extremely risky. One example, a 13% CD offered on the Icelandic Crona ended up costing investors $6,000 or more.
Not Fighting: Whether it be a wrongful tow, a denied insurance claim, or a simple overbilling standing up for yourself and fighting yields better returns than doing nothing.
Buying Cars (or anything) based on monthly expense: The monthly payment should not be your primary method of determining your purchase. Actual price should.
Buying things on credit: If you cannot afford it, save until you can. Buying things based on expected earnings or promotions often results in large credit card debt.
Not getting credit: Credit scores require a credit history. Failure to ever get a credit card can make getting a mortgage impossible.
Buying a Condo: While condos can be great buys for many, those that bought just before the bust saw their value drop by as much as 90%, along with skyrocketing HOA fees.
Not diversifying. Seeing many stocks drop 50% or more in the recent financial upheaval left many with depleted retirement funds. Owning a diverse mixture of investments can help offset the bad years and hedge towards equal gains in good ones.
Not investing: The only thing worse than seeing your retirement drop 50% is not having one at all.
Early Adoption: New technologies can be great fun, but they can also be costly mistakes. Just ask anyone that bought an HD-DVD player for $1,000.
Playing Penny Stocks: Investing in Penny stocks can bring overnight gains of 100% or more. More frequently than not it results in a total loss.
Investing in FOREX: Foreign exchange markets are extremely risky. One example, a 13% CD offered on the Icelandic Crona ended up costing investors $6,000 or more.
Not Fighting: Whether it be a wrongful tow, a denied insurance claim, or a simple overbilling standing up for yourself and fighting yields better returns than doing nothing.
Buying Cars (or anything) based on monthly expense: The monthly payment should not be your primary method of determining your purchase. Actual price should.
Buying things on credit: If you cannot afford it, save until you can. Buying things based on expected earnings or promotions often results in large credit card debt.
Not getting credit: Credit scores require a credit history. Failure to ever get a credit card can make getting a mortgage impossible.
Buying a Condo: While condos can be great buys for many, those that bought just before the bust saw their value drop by as much as 90%, along with skyrocketing HOA fees.
photos: futureback credit: {Guerrilla Futures | Jason Tester}
dvd credit: hainteractive
car credit: Police_Mad_Liam
card credit: apesara
04.Dec.09 Financial Planning Comment (1)
Rowley goes on to explain that the average American can significantly reduce their debt by using a small portion of their extra income to pay down their debt. In her example she points out that one home owner was able to save $23,900 over the life of the loan by paying $35.86 more a month towards his home loan.