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More Americans Turning To Debt Consolidation
Some trends are indicating that Americans are trying to pay down debt and save more. But according to a new study released by Prosper.com, more Americans are turning to debt consolidation. The survey showed that over the last six months, more and more people have been signing up for peer-to-peer debt consolidation loans and in January they hit an all time high, comprising 59% of loans on the site. Typically debt consolidation loans only equal about 45% of loans.
“Credit card rates have been going nowhere but up, and in the wake of the Credit Card Act they are likely continue to rise along with balance transfer and annual fees as credit card companies scramble to make up for income they were generating from egregious practices,”” said Chris Larsen, Chief Executive Officer and Co-founder of Prosper. But there are a few things to watch out for if you’re considering a debt consolidation loan.
- It may not be simple and easy. If you’re searching for a debt consolidation loan chances are you have missed some payments and are behind on a bill or two. But beware of rushing through the process of loan consolidation. You may be lured in by promises of quick money, but in actuality you’ll be paying higher interest rates than you expected.
- Beware of low introductory rates. You may be enticed by a deal that promises a low introductory rate, only to hike it up a few months down the road. Make sure you know exactly what you’re getting into.
- Negotiate better terms. You can negotiate and you should always try. You never know what better rate you may get if you ask.
Financial expert Jean Chatzky says there are pros and cons to debt consolidation that you should consider before signing on the dotted line. “One advantage to debt consolidation is that it gives you the convenience of paying one creditor each month instead of many,” she writes. Jean also says, ” Be careful. The danger is you can easily find yourself falling even deeper into debt. Basically, the loan will open up lines of credit that have been closed. Now that they’re open, you may be tempted to resume poor spending habits.” And because you’re only making one debt payment a month you may have the misconception that you’re handling your money better than you really are, she says.
If you’re still wondering whether debt consolidation is right for you, check out this Debt Consolidation Calculator from MSN Money. Put in details such as how much you want to pay a month, what your current debt payments are and if there are any fees for opening the debt consolidation. You’ll have a better idea if it’s a good move for your financial situation.
More Americans Turning To Debt Consolidation is a post from: Thistle Debt Consolidation
Continue reading...Retiree fearing foreclosure finds relief through loan modification
8. March 2010
The stock market’s slump during 2008 meant many things to many consumers. For one retiree, Clara Newman, it meant falling behind on her mortgage loan payments.
According to a report in SmartMoney.com, the former employee of the city of Detroit saw her pension checks decrease in number from 13 to 12 times a year. Her adjustable-rate mortgage also reset – to a rate $500 higher than it was previously. Combined, these two factors caused Newman to miss payments.
"When you can’t pay people, this automatic thing calls you morning, noon and night," she told the website. "I was stressed that I would get foreclosed on for almost a year."
Newman considered refinancing, but chose against it after weighing her equity versus the sizeable closing costs she could face. Instead, she applied for a loan modification, and was granted one in January 2010. She was given a fixed mortgage with a 3.5 percent interest rate, significantly lower than the 9.75 percent interest rate her adjustable mortgage carried.
Homeowners facing foreclosure may also find relief through the Home Affordable Refinance Program. Launched last spring, this federal government initiative is aimed at helping homeowners with negative equity or high loan-to-value ratios refinance their mortgage loans under more affordable interest rates.
Using Your Tax Refund To Pay Down Debt
4. March 2010
Sure a new dishwasher, flat screen or spa weekend would be nice, but what about using that tax refund to pay down debt? That’s the plan for plenty of Americans, according to the National Retail Federation. Every year the organization polls Americans to see what they’re really going to do with that tax refund. And this year a big chunk of taxpayers say that check from Uncle Sam will go towards paying down debt. Here’s how the numbers break down:
- 44% of Americans say they expect to use their tax refund to pay off debt.
- 40% of taxpayers plan to sock their refunds away in savings.
- 29% will put it towards everyday expenses like house payments, car repairs and utility bills.
- 10% will take tax money and use it to go on vacation.
Using your tax refund to pay down debt can be a good idea– especially if you’ve got lots of it and your interest rates are high. But fewer Americans are using their tax refunds for this purpose as compared to last year, according to NRF. In 2009 48% of Americans surveyed said they would use money from filing tax returns to pay down debt. Some of this difference could be because fewer Americans are actually expecting a tax refund this year. Last year 68.4% of taxpayers polled were expecting that extra money, but this year that’s down to 65.5%.
Since the NRF has retailers’ best interest in mind, they’re hopeful that more Americans will hit stores to spend their refunds. Even though the bulk of people plan to put at least some tax refund money towards debt, the NRF is predicting that shoppers will be opening their wallets with more ease than last year. “A little bit of ‘free money’ will go a long way for Americans this year,” Tracy Mullin, president and CEO of the NRF released in a statement. “Retailers planning special promotions over the next few months may find that shoppers are a bit more receptive to opening up their wallets than they have been for the past year.”
What do you plan to do with your tax refund?
Using Your Tax Refund To Pay Down Debt is a post from: Thistle Debt Consolidation
Continue reading...Access Receivables Management
4. March 2010
Access Receivables Management is a debt collection agency which has developed innovative methods to do their work, is armed with experience and all set to take on the next challenge. They have experience in recovering dues for the commercial, dental, medical, insurance and education sector and have bagged quite a few awards for their excellent services.
This awards list includes:
- · Baltimore Smart CEO Future 50
· Top 50 Women Owned Businesses in Maryland
- · Top Small Business in Maryland
- · Top Women Owned Business in the United States
- · Top Women Owned Business in Maryland
Access Receivables Management has a wide range of services. They design, implement and manage first party receivables management programs. This allows corporate and consumer oriented clients to take this load off their shoulders and outsource to them. This provides a practical alternative for clients who otherwise have to get the job done by expending their own resources. Their solutions are perfectly customized to the customer’s requirement. They also offer customized services for clients who wish to sell their debts.
Third party debt collection is what they are known and respected for and they provide excellent services in that area. They have also developed totalACCESS which is a web portal through which clients can stay in the know about how their cases are being handled. This makes for a very transparent process.
A measure of how well this company does their job lies in the fact that they have won praise from both debtors and clients alike. A look at their debtor’s testimonials will reveal the effective tried and tested methods that make their ‘collections don’t need to be stressful’ policy, a reality. They fully evaluate and understand the debtor’s situation and then carry out their task with compassion. This is something al their clients will agree upon. Their ACCESS formula for SUCCESS ensures that there is a well defined code of conduct that the company sticks to. As a result of this, it has maintained a constant level of excellence.
- Access Receivables Management can be contacted at the following address:
200 East Joppa Road
Suite 310
Towson, MD 21286
They can be contacted over the phone on 1-877-276-8600 which is toll free or you can fax them on 1-410-583-8602. Continue reading...
Economy leads to bargain hunting in auto market
4. March 2010
Consumers in the current economy are more focused than ever on getting their money’s worth, and new car purchases are no exception.
However, financial institutions still have tighter lending standards than they did a few years ago, which means those who hope to purchase a new car need to have the highest credit score possible. Otherwise, they are likely to be denied for a loan or end up having to pay high interest rates.
Many people have responded to the economy by exploring their options in the used car market. However, auto dealers have been responding to the financial climate in their own right by offering various bargains and incentives for new models, especially in light of the various recent safety recalls that have undermined public confidence in a handful of well-established automakers.
Those who have checked their credit reports and have a high enough credit score to qualify for a new car loan may want to check a publication like Consumer Reports, which recently announced its 2010 top picks for American cars.
According to the consumer publication, the Ford Focus was the top pick in the small car category, while the best car overall was said to be the Ford Fusion Hybrid.
Tax Preparers Promising Large Refunds
1. March 2010
Tax preparers that promise large refunds are to be approached warily. With tax season upon us, there is going to be a strong push by preparers from coast to coast to attract consumers needing their tax forms prepared. One of the tactics used is making promises that cannot be kept.
Every year, thousands of people let a particular preparer do their taxes based on the promise they will either get a large refund or some other magical result like not owing any taxes. There is no way a tax preparer can know before completing tax forms whether the tax filer will get a refund. But the lure of a tax refund when money is tight is enough for some filers.
The Internal Revenue Service (IRS) is planning on regulating tax preparers by the start of the next tax season. Currently each state determines the rules and regulations for tax preparers in terms of licensing and training requirements. That is going to change soon.
In some states like Alabama there are virtually no rules as to who is allowed to prepare tax forms for consumers. That means anyone can offer to complete them whether or not he or she has had any training. Beginning with the next tax season in 2011, tax preparers must be registered with the government and pass competency tests.
The purpose of the regulations is control the tax preparation industry to reduce the number of errors and cases of fraud. Requiring preparers to take competency tests will help insure consumers are getting ethical and knowledgeable service. The US tax code is made up of thousands of pages and is so complex that even IRS agents have trouble answering questions consistently.
The goal is to have all the tax preparers registered before the January 1, 2012 tax filing season starts. Almost 80% of consumers use a paid tax preparer or they use tax software that fills out forms automatically based on the information entered into the program. The current estimate is that up to 1.4 million people are charging fees to provide tax preparation services.
The attorneys, accountants, and tax preparers already enrolled with the government will not see any new requirements. They are already regulated by the professions to which they belong meaning there is currently oversight of their activities. The tax preparers that will be affected are the people who simply decide to prepare returns to earn some money.
Consumers need to be careful who they turn to for tax form preparation. The taxpayer is ultimately responsible for the information on the tax return. The IRS charges interest and penalties on tax amounts due resulting from fraud or errors so mistakes can be quite costly. And there are plenty of errors made on returns. The IRS plans on sending out 10,000 notices to tax preparers that make frequent mistakes.
It is important to use people who have tax preparation training when it’s time to do your tax return. Tax preparers that will sign your return as the preparer take responsibility for the accuracy of the information. The last thing a consumer needs who are struggling financially to survive is a letter from the IRS informing him or her there has been an error and more tax is due, interest and penalty is due.
Tax Preparers Promising Large Refunds is a post from: Thistle Debt Consolidation
Continue reading...Malware-infested websites raise identity theft dangers
1. March 2010
For consumers who are concerned about identity theft, one wise strategy is to avoid suspicious websites that could harbor malware that gives criminals the opportunity to access one’s sensitive financial data, such as banking passwords.
With that in mind, the Federal Trade Commission recently announced that it had reached a settlement with ControlScan, a company that billed itself as a service that monitored websites for privacy and security.
The FTC reported that the company had apparently not checked the websites as often as it claimed, and noted that it had reached a separate settlement with the company’s CEO for $102,000.
While it can be helpful to use such tools to gauge a website’s security, especially when it comes to online purchases, consumers also need to exercise a degree of common sense when it comes to protecting their computers.
With that in mind, it’s generally advisable to stick to well-established online retailers to avoid malware and scams in general. Another major red flag is any website that is advertised by a poster on a larger website’s message or comments section, or websites that claim to offer merchandise for unusually low rates.
Consumers Lose Millions To Tax Refund Operations
26. February 2010
Many consumers expecting a refund are anxious to get it as soon as possible. That makes them vulnerable to promises of quick tax refunds. They may need the money to pay rent or make immediate debt payments. Often what happens is that consumers lose a large part of the refund to interest and fees.
Called Refund Anticipation Loans (RAL), these loans are usually not good loans to accept. As reported by the Consumer Federation of America, 8.4 million taxpayers paid millions of dollars to companies offering RALs. They also paid $738 million in loan fees. There was another $68 million paid in other fees.
It is hard to believe that so much money was paid in fees to obtain tax refunds that could have been processed in less than two weeks by the IRS. Sometimes the fees literally eat up the entire refund leaving the consumer nothing.
There are 12 million people who paid out $360 million to tax preparation companies or quick money companies to buy financial products. Many of these people believed they had to do this in order to get their refund faster.
The federal government is investigating many of the nation’s RAL companies. Recently the Santa Barbara Bank & Trust was ordered to stop making RAL loans. The federal regulators are viewing these loans as predatory in many cases because they target low income and financially desperate consumers.
The RAL is a short term loan that usually has terms extending 2 weeks. It is not a coincidence that the loan term is only one to two weeks because that is all the time it takes to get an automatic deposit of an IRS refund. But if the refund is late for some reason, expensive fees are initiated that can quickly eliminate a taxpayer’s chances of seeing any of the tax refund money.
In 2008 approximately 1 out of every 17 returns was involved in a Refund Anticipation Loan. Jean Ann Fox is the Director of Financial Services for the Consumer Federation of America. She was quoted as saying, “In tough economic times, quick money may be tempting. But American taxpayers need every dollar of their refunds, and waiting just a week or two will put more money in their pockets.”
The Santa Barbara Bank & Trust was responsible for most of the RALs offered by Jackson Hewitt. This has put a real crimp in Jackson Hewitt’s ability to offer RALS.
That is fine according the Consumer Federation of America. Americans who want a rapid refund should simply file their tax returns electronically. Consumers can request the refund money be deposited directly into their bank accounts.
The effective annual percentage rate applied to RALs is an exorbitant 50 percent to 500 percent. The lowest loans cost the highest percentage. A consumer expecting a $300 loan could end up actually paying the loan much more than was borrowed. This is due to the add-on fees that accumulate rapidly.
The bottom line is that RALs are not good financial products in most cases.
Consumers Lose Millions To Tax Refund Operations is a post from: Thistle Debt Consolidation
Continue reading...Large identity theft ring busted in New York
26. February 2010
The announcement by New York law enforcement officials that 22 people had been charged in an identity theft ring should serve as a reminder to people to regularly check their credit reports for any discrepancies.
The report from Dow Jones Newswires quoted U.S. Attorney Preet Bharara as announcing that two of those facing charges were employees of the New York State Department of Motor Vehicles while others charged were said to be customers of the crime ring.
The report noted that people’s personal data was being used by convicted felons, who would pay as much as $10,000 for a package of fake identity documents taken from other citizens, with about $1 million having been generated in the scheme.
Overall, such crimes can have a variety of impacts on those who have their identities stolen. For example, a victim’s tax status and future Social Security benefits can be seriously affected when somebody steals their identity to get a job they would not otherwise be eligible for. If the criminal also seeks medical services, it can result in inaccuracies ending up on the victim’s record.
With these things in mind, there are many reasons to take the time to check one’s credit report and to respond quickly to any suspicions that identity thieves may have accessed one’s personal data.
Tax Specialist Scams Are Still Scams
22. February 2010
The tax season is here and this is the time of year consumers can expect to hear terms like “tax settlement specialist”. According to the advertisements this is someone who can help you settle a tax debt for pennies on the dollar. If the image of a snake oil salesman comes to mind, you would be pretty close to the truth.
Just because someone uses the word “tax” in their advertisement does not mean they are legitimate. In the minds of many consumers, no one would claim to serve as an intermediary between them and the Internal Revenue Service unless the company is honest and legitimate.
It is this kind of thinking that costs consumers millions of dollars every year in fees paid to companies they believed could help them get a tax debt settled. Though the idea of settling a tax debt for pennies on the dollar sounds wonderful, making it happen is extremely difficult. The IRS will only negotiate up to a point, and unless you are someone like Secretary of the Treasury Timothy Geithner, you will have to pay most or all of your tax bill.
Paying someone who is not a tax attorney to negotiate an IRS settlement is unnecessary. The IRS guarantees you legal representation should you need legal help in certain matters and are unable to afford hiring an attorney. But even more importantly, the IRS has a plan called offer-in-compromise where you ask them to let you clear a tax debt for less than the amount due.
All the tax settlement specialist is doing is selling consumers an offer-in-compromise. First of all, the offer-in-compromise is not accepted very often. The IRS seems to take the stand that if you can afford to pay part of the debt then you can probably pay all of the debt by making payments.
Second is the fact you can fill out your own offer-in-compromise and do not have to pay someone else to do so. In the opinion of consumer advocates, the businesses offering tax settlements are little more than consumer scams. The IRS rejects 75 percent of the offer-in-compromise applications no matter who makes the request.
The IRS can afford to wait. That’s the bottom line. It may take you a lifetime of payments to clear your tax debt, but the IRS does not care. They are not motivated to accept the offer-in-compromise. That’s why it is a virtual scam to tell people you can help them get their tax debt settled for pennies on the dollar. The odds of that happening are quite low.
How do you avoid this type of scam? First, you should avoid giving your money to anyone who only does tax settlement work through offer-in-compromise. Second, you should make your own offer-in-compromise. Third, you should never pay anyone fees that can amount to several thousand dollars unless you understand exactly what you are paying for. Blind trust will get you scammed every time.
To be honest, the IRS will probably come to believe you can pay your tax debt if you can afford to hire someone to help you get it settled. In other words, using a tax settlement specialist could cost you money for very little service and hurt your negations with the IRS.
Tax Specialist Scams Are Still Scams is a post from: Thistle Debt Consolidation
Continue reading...Credit CARD Act implementation could lead to payday loan use
22. February 2010
Consumers with bad credit reports may soon find themselves reliant on short-term lenders, as new laws being implemented on Monday by the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 may make it harder for them to open new lines of credit.
According to a recent report by Reuters, some of the rules being put into effect on February 22 – such as new restrictions on creditors’ abilities to charge fees on rates and existing balances and a card holder’s ability to reject rate changes – could cause card companies to tighten up their lending standards.
As a result consumers with good credit scores will get priority over those with poorer credit histories who may look like more of a financial risk.
With credit offers off the table, payday loans may become a more necessary financial device for those in need of immediate cash than they intend to pay back later
Payday loans have become known as something of a double-edged sword. While able to provide up to $500 in a loan that can be processed quickly without a drawn-out credit check, failure to repay them on time can result in hefty fines that drive one further into debt.
However, if without the ability to take out any new lines of credit due to a poor financial past, many consumers may choose the risk/reward of a payday loan over more drastic measures such as pawning off belongings or choosing to fall into debt.
4 Tips For Reducing Credit Card Dependency
19. February 2010
Credit cards can be fantastic financial tools. Credit card use can make tracking your personal finances easier. They also give the holder more buying power and flexible payment methods. However, irresponsible use of a credit card can be a very slippery slope. Spending can become addictive, and a tool like a credit card only fuels the fire. If you find yourself unable to make adequate monthly payments and constantly maxing out your credit limits, here are 4 tips for reducing your dependence on credit cards.
1. Reduce overall spending.
This should be your first step if your credit cards are getting you in trouble. Becoming a smarter shopper and cutting out useless spending will give you less overall expenses. With less expenses, you will have less reason to use your credit card. Make a conscious effort to become a smarter shopper by clipping coupons, looking for deals and comparison shopping. Dine out less, skip the 2nd $8 martini, go to a cheaper gas station…all of these small adjustments can drastically improve your financial standing and lessen your dependency on credit cards.
Continue reading...OSI Portfolio Services
19. February 2010
OSI is a leading national company providing accounts receivables management services to their clients. Company headquarters are located in St. Louis Missouri with operations in 25 states across the country as well as in Canada, Mexico and Puerto Rico. OSI clients include numerous Fortune 500 companies. Their services have helped clients throughout the years improve their financial well being. OSI has helped their clients put plans into place to increase employee retention, accelerate cash flow, lower operations costs and reduce bad debt expenses. OSI is listed with the Better Business Bureau but does not have a rating at this time.
OSI employees over 6,000 associates and has revenues in the millions each year. While there are several divisions of the company with one being Portfolio Services, their corporate family is focused on debt. Collection of consumer debt and commercial debt and the managing of this debt is the companies’ backbone. The company purchases, manages and re-sells non-performing loan portfolios and other non performing accounts.
The company is run with a strong mission and that is to be the best provider they can for all of their clients. Employees of the company are held to high standards and must show respect and integrity on the job when dealing with clients, co-workers and anyone else they have company dealings with. A strong work ethic and a willingness to learn is also required. This strong employee stance it what keeps OSI ahead of its competitors.
OSI has over 50 years experience and can service just about any industry that works in any part of the Credit-to-Cash Cycle. With debt skyrocketing across the country, they project to continue to grow and expand. While jobs are being cut thorough out the nation, OSI continues to hire at an astounding rate. Employees at OSI are paid competitive salaries with bonus incentives, receive great benefits, can work flexible hours and have the ability to advance within the company. Employees also receive in depth training to help them perform their job at their fullest. Communication and negotiation skills are highly emphasized in employee training. Skills are also taught to help strengthen employee’s knowledge and efficiency.
For those looking for services in the accounts receivable field, OSI can help. They provide clients with assistance in collecting consumer debt and commercial debt. They also work with credit grantors, purchasing and managing debt portfolios. Finally, OSI also partners with industry buyers, assisting them to find portfolios that will best suit their needs and turn a profit.
Consumer Wages Squeezed By Inflation
19. February 2010
Consumers have been under attack economically for a year and a half due to the impact of the recession, and now a new front is forming. The US government recently issued a report that showed consumer wages are being outpaced by inflation.
As unemployment continues to remain at 10 percent, it has become doubtful whether consumer spending will be able to play any significant role in propelling the economy out of the recession. With inflation making its debut after a period of declining prices, it becomes even much less likely that spending can drive an economic recovery.
Though prices are rising only at a moderate rate, consumer wages still fell 1.6 percent in 2009 when inflation adjusted. Another way to state this is that consumers lost 1.6 percent in buying power. A dollar in 2009 will buy 1.6 percent less than a dollar in 2008. This is yet more bad news for consumers already struggling to make ends meet. The 1.6 percent decline in average weekly earnings for employees is the largest drop in a single year in twenty years.
There are more reasons than just inflation for the loss of consumer purchasing power. First is the fact employers have not been giving raises or cost of living increases. Second is the fact new jobs have become scarce and it is new job growth that often drives wages up in a competitive environment. This picture is not expected to change soon either.
Consumers are facing much more than just a loss of purchasing power though. Inflation may be modest, but other costs are rising including health care. Many families have lost their health care coverage after being laid off meaning the family must now pay for expenses that were once covered. Making an already bad situation even worse is the fact that health care costs are rising at the same time.
Other expenses that keep rising include utility bills, college tuition and fees, and interest and fees on credit cards. Many families are falling behind in their payments or are just barely staying even from month to month. Balancing household expenses under these circumstances can be very difficult.
Some of the best advice consumers can follow is to not ignore any bills or accounts. If unable to make timely payments it is important to contact the vendor or lender. Many businesses and banks today are working very hard to help consumers deal with their financial problems by lowering payments and extending the time allowed for payoff. Some companies will forgive interest and penalty charges also if the consumer is unemployed.
The good news is that inflation is expected to stay low through 2010. But most consumers should not count on a raise because the economy has lost 7.2 million jobs over the last two years. With so many people looking for work and an economy that is still struggling, most employers are not motivated to increase wages. Of course many firms simply cannot afford it either.
Consumer Wages Squeezed By Inflation is a post from: Thistle Debt Consolidation
Continue reading...Data breaches can hit even the cautious
19. February 2010
One reason it’s so important to monitor one’s credit record is because even people who are meticulous about their own data security could end up with their sensitive personal data being compromised.
Hackers have repeatedly demonstrated their ability to break into large computer networks and steal the Social Security numbers and other data of thousands of people at a time, from retail store customers to hospital patients and many others in between.
One of the latest examples was featured on a report by KFVS-TV in Illinois, involving a data breach at the University of Southern Illinois that compromised the Social Security numbers and other data of about 900 alumni.
The television station noted that one student has detected some suspicious things on their credit report since then, but it remains unclear if this is due to the breach in question.
Another example from a different type of institution comes from California, where a San Jose Mercury News report cited a data breach in that state’s Department of Health Care Services that affected about 50,000 people. In that case, Social Security numbers were disclosed on envelopes, providing an easy opportunity for would-be identity thieves.
Text Donations Is New Use Of Social Networking
15. February 2010
When the Haiti earthquake occurred several weeks ago, there were pleas for cash donations. In an effort to help, companies offered to collect donations from customers and pass them on the relief organizations Emerging from this situation is the text donation.
Texting donations have been done in the past but not one the scale seen for Haiti. The power of social networking was made clear as millions of dollars were charged against consumer accounts and each one generated by a text message. There were no checks to write or websites that had to be accessed. All a person had to do was text designated words to a numbered code using a cell phone.
Once the company received the text, a pre-determined charge would be added to a customer’s account such as a cell phone account. The money will eventually make its way to the charity but that could take months. In many cases the transaction requires more than one text to be sent before final authorization. For people charged on a per-text basis, the net result was that significant charges were added to cell phone accounts in addition to the donation.
Making the matter worse is the fact some charities will deliver regular text messages after the original donation is made. Those paying for each text message received are again racking up charges for marketing text messages they did not want and did not believe they had authorized.
Of course, the process of texting donations is ripe for scammers too. The Better Business Bureau has issued a warning to consumers that due diligence should be used before texting a donation. Though organizations like the Red Cross are legitimate, scammers have been taking advantage of the opportunity to steal money.
Scam artists request donations giving the impression that donated money will go to a legitimate organization. They provide a number to text to which is not a true charity. The consumer gives approval for the charge and the money is transferred to the scam artist’s account instead of to the charity.
In these times of economic uncertainty and unemployment it is amazing how much money was donated by families struggling to pay their own bills. It is distressing to become a victim when trying to help others. The Better Business Bureau and state attorney generals suggest that consumers take precautions to protect themselves against fraud.
Always confirm the organization and the telephone number is legitimate before texting a donation (make a phone call or visit a website)
Do not provide your cell phone number through a website until after setting your phone up to block internet text messages (to prevent multiple and costly text message charges to an account)
Check out the charity’s website for details as to how the donation program works before texting a donation
Take the time to insure the charity you are texting is legitimate and will use your money as promised
There are many good charities that use donated funds wisely and as intended. Unfortunately, there are plenty of fake charity scam operations in progress too.
Text Donations Is New Use Of Social Networking is a post from: Thistle Debt Consolidation
Continue reading...Five Tricks to Getting a Fast Tax Refund
15. February 2010
If you get money back in the form of a tax refund every year or if you expect to have a check coming your way this year from the IRS, you’re probably eager to get that check into your bank account as quickly as possible.
If you’re in the habit of getting a tax refund every year, you may need to adjust the amount of withholding coming out of your paycheck. Every dollar you get back above and beyond the standard tax credit dollars written into the tax code represents an interest-free loan that you made to Uncle Sam. So while getting that check is nice, keeping more money from each paycheck might be even better. Here are some things to keep in mind to get the money sent your way as quickly and efficiently as possible.
Gather Your Information: The end of January and first half of February is a time to pay extra attention to what’s coming in the mail every day. Almost every document that you receive will be in an envelope that is clearly marked, “Important Tax Documents Enclosed.” You should have one folder, envelope, or gathering place for these forms and keep them together as they arrive. The types of forms that belong in this folder include W-2 forms, 1099’s to record interest, dividends, and capital gains, a form 1098 from your mortgage company, and other similar documents. Having this information together and accessible is vital to a quick tax refund.
Track Your Deductions: There are two keys to maximizing your deductions. The first is to understand the types of things that you can deduct. Keep track of things like charitable donations (cash, clothing, vehicles, and anything else you might donate that has value), energy efficient improvements to your home, college tuition, childcare expenses, business expenses, medical expenses, and other related items. It’s easiest to get in the habit of tracking these items throughout the year so that when you sit down to file your taxes, all of the information you need is at your fingertips.
Set Time Aside: Preparing taxes takes time whether you take that task on yourself or hire someone else to do it. The quickest refund will come if you’re comfortable filing taxes on your own, but it’s more important to be accurate than it is to be fast. If you work with an accountant or a tax preparation service, make an appointment as soon as possible and force yourself to have all of your preparations in order by your appointment date.
Embrace Technology: It’s easier than ever to file your taxes electronically and if your goal is a fast return, electronic filing is always going to be faster than snail mail. You can also get money into your hands quicker if you establish a direct deposit from the IRS to your bank account rather than asking for a paper check—over 73 million taxpayers received their refund via direct deposit in 2008.
Keep Records: You should keep at least seven years worth of tax returns in case of an audit or other situation that might require you to show the accuracy your of tax filing. Some future loan or employment applications might ask you for a few years worth of records related to your tax returns and you’ll save yourself a lot of time and stress if you have everything in one place.
Identity Theft 101
12. February 2010
The victims of identity theft are as varied as the methods used to steal someone’s identity, and as numerous as the hours it takes to clear up the financial and emotional wreckage left in the wake of criminals who perpetrate this very personal form of fraud. Sometimes these criminals are the employees of the businesses where you write your checks; sometimes they are relatives who use your social security number to obtain credit or set up a utility bill in your name at their home; and sometimes they are robbers who steal your purse or wallet, dig through your trash, or rifle through your mailbox. There are high-tech ways to steal your identity over the internet, and low-tech ways to steal your identity as you go about your daily activities. Regardless of the methods, there are concrete things you can do to protect yourself from becoming a victim of identity theft.
The first and most common form of identity theft happens through the mail. Get a locking mailbox or make arrangements to get your mail directly from the post office. Many identity thieves rummage through mailboxes for credit card offers; tax documents that have your social security number printed on them; bank and credit card statements that list your account numbers, and for actual credit cards or insurance cards that arrive in the mail. While most credit cards require activation from the home phone number listed on the account, some allow activation from any number and some even allow the card to be used and charges incurred without phone activation. For some victims, especially when replacement cards are sent automatically in the mail, it can be a month before they even realize their account has been compromised and their new card is missing.
Investing in a paper shredder can also be a good way to prevent identity theft before it happens. Shred credit card offers, credit card convenience checks, and any paperwork containing your personal information before you throw it in your trash. Statistics show that an alarming number of people do not check their bank statements or credit card statements monthly. Sign up for online access to your banking and credit card accounts, and check them frequently for unauthorized purchases. If you see suspicious or fraudulent activities then close the accounts immediately and report the transactions to your financial institution as well as local law enforcement. Awareness is the first step to prevention, and a few simple precautions and practices like these, will go a long way towards keeping you from being another one of the many faces and victims of identity theft.
New Warnings Issued Over Debt Settlement Traps
8. February 2010
There has been a new set of warnings issued by consumer groups concerning debt settlement companies. Debt settlement companies offer to help consumers gain control of their debts for a fee. But not all debt settlement companies are equal, and that is why some consumers actually find themselves deeper in debt after paying the fees.
The consumer alerts were issued by Consumer Federation of America, the National Consumer Law Center, Consumer Action, and Consumers Union. Some debt settlement companies are actually operating more like scams then as legitimate offerings. Some of these businesses are only interested in collecting the fees and do not really have any intention of making a sincere effort to work with the consumer’s creditors.
The offers these debt settlement companies make to consumers sound appealing when debt collectors are hounding a household. A disreputable settlement business tells the consumer to make payments to a single account each month instead of to creditors. The money is allowed to accumulate in the account until there is enough to approach a creditor and offer a lump sum payment which in theory could be pennies on the dollar. But coming out of the account are fees paid to the settlement company.
The reality of this process is that consumers are often unable to pay enough into the account to reach a point of being able to make a settlement offer within a reasonable amount of time. The fees being deducted are high also. They can amount to as much as 20% of the debt amount owed. The settlement company determines the total fee up front and collects it within the first six months.
The sales pitch usually fails to explain all the details of the contract. Consumers desperate to stop collection efforts will sometimes agree to anything that promises relief. What they don’t understand is the debt settlement companies cannot stop collection efforts by the owners of consumer accounts.
Making matters even worse is the fact the consumers are placing money that would have been paid on accounts into the debt settlement bank account. In the meantime the interest and penalties continue to accumulate on the accounts. Many consumers start the debt settlement program, pay for up to 6 months, and then drop out. In the meantime the account balances have been growing. After paying the exorbitant fees to the settlement company, the consumer can end up owing even more to debtors.
Like most scams or scam-type offerings the initial proposal sounds helpful and desperate people grasp at offers of help. The debt settlement companies make sure they get their fees first meaning they get fully paid for work they did not due when people drop out of the program in less than half a year. They make no promises about debt to actually be settled either.
The Federal Trade Commission wants to implement rules that will stop debt settlement companies from charging fees before any debts are settled. More detailed information would have to be provided to the consumer as to the services included, how long it will realistically take to settle debts based on the payments to the savings account, and the fact that not everyone will be able to settle their debts.
New Warnings Issued Over Debt Settlement Traps is a post from: Thistle Debt Consolidation
Continue reading...New Warnings Issued Over Debt Settlement Traps
8. February 2010
There has been a new set of warnings issued by consumer groups concerning debt settlement companies. Debt settlement companies offer to help consumers gain control of their debts for a fee. But not all debt settlement companies are equal, and that is why some consumers actually find themselves deeper in debt after paying the fees.
The consumer alerts were issued by Consumer Federation of America, the National Consumer Law Center, Consumer Action, and Consumers Union. Some debt settlement companies are actually operating more like scams then as legitimate offerings. Some of these businesses are only interested in collecting the fees and do not really have any intention of making a sincere effort to work with the consumer’s creditors.
The offers these debt settlement companies make to consumers sound appealing when debt collectors are hounding a household. A disreputable settlement business tells the consumer to make payments to a single account each month instead of to creditors. The money is allowed to accumulate in the account until there is enough to approach a creditor and offer a lump sum payment which in theory could be pennies on the dollar. But coming out of the account are fees paid to the settlement company.
The reality of this process is that consumers are often unable to pay enough into the account to reach a point of being able to make a settlement offer within a reasonable amount of time. The fees being deducted are high also. They can amount to as much as 20% of the debt amount owed. The settlement company determines the total fee up front and collects it within the first six months.
The sales pitch usually fails to explain all the details of the contract. Consumers desperate to stop collection efforts will sometimes agree to anything that promises relief. What they don’t understand is the debt settlement companies cannot stop collection efforts by the owners of consumer accounts.
Making matters even worse is the fact the consumers are placing money that would have been paid on accounts into the debt settlement bank account. In the meantime the interest and penalties continue to accumulate on the accounts. Many consumers start the debt settlement program, pay for up to 6 months, and then drop out. In the meantime the account balances have been growing. After paying the exorbitant fees to the settlement company, the consumer can end up owing even more to debtors.
Like most scams or scam-type offerings the initial proposal sounds helpful and desperate people grasp at offers of help. The debt settlement companies make sure they get their fees first meaning they get fully paid for work they did not due when people drop out of the program in less than half a year. They make no promises about debt to actually be settled either.
The Federal Trade Commission wants to implement rules that will stop debt settlement companies from charging fees before any debts are settled. More detailed information would have to be provided to the consumer as to the services included, how long it will realistically take to settle debts based on the payments to the savings account, and the fact that not everyone will be able to settle their debts.
New Warnings Issued Over Debt Settlement Traps is a post from: Thistle Debt Consolidation
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8. March 2010
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